(1) The state shall provide seventy-five percent (75%) of the funds generated by the Tennessee BEP formula in the classroom components and fifty percent (50%) in the nonclassroom components as defined by the state board. Every local government shall appropriate funds sufficient to fund the local share of the BEP. No LEA shall commence the fall term until its share of the BEP has been included in the budget approved by the local legislative body. From the local portion of such revenues, there shall be a distribution of funds for equalization purposes pursuant to a formula adopted by the state board, as approved by the commissioners of education and finance and administration. It is the intent of the general assembly to provide funding on a fair and equitable basis by recognizing the differences in the ability of local jurisdictions to raise local revenues.
(2) The fiscal capacity of each LEA for purposes of allocating BEP funding during a school year shall be determined by May 1 preceding the school year. Once the fiscal capacity of an LEA is determined for a school year, neither the department nor the Tennessee advisory commission on intergovernmental relations shall change or revise the fiscal capacity of the LEA for that school year.