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Tennessee’s governor has a novel idea to fund more student mental health services. Will it pay off?

Gov. Bill Lee has stood by an experimental health care block grant approved by the Trump Administration. (Photo: John Partipilo)
Gov. Bill Lee has stood by an experimental health care block grant approved by the Trump Administration. (Photo: John Partipilo)

“Tennessee’s governor has a novel idea to fund more student mental health services. Will it pay off?” was originally published by Chalkbeat, a nonprofit news organization covering public education. Sign up for their newsletters at chalkbeat.org/pages/newsletters.

Tennessee Gov. Bill Lee’s proposed $250 million trust fund for student mental health is generating accolades for its magnitude, but new questions are emerging about the plan’s unconventional funding approach.

The one-time amount, pulled from better-than-expected tax revenues, would establish an endowment that dedicates annual investment income toward mental health needs. Those could include clinical services in K-12 schools, trauma-informed training for educators, mental health awareness campaigns and initiatives to quell bullying, violenceand suicide.

But projections released last week suggest the endowment initially would generate only about 2%, or $4.5 million annually – a third of what was expected when the governor first proposed the idea last year.

The lower projections have added fuel to arguments that a trust fund might not be the best approach to tend to needs that have become more acute and widespread during the pandemic, as students have become more socially isolated.