School Finance Mid-Year Adjustments

Plain English Breakdown

The official source material does not provide information on whether the reduction in state funding will keep districts' total program funding at least as high as their 2024-25 budget year levels.

Adjustments to School Funding for 2025-26 Budget Year

The law adjusts school funding by reducing the state's share of districts' total program funding due to lower than expected pupil counts and higher local contributions.

What This Bill Does

• Reduces the state's contribution to schools for the 2025-26 budget year by $103,472,508.
• Clarifies that if a district’s new formula calculation is less than its old formula amount, it will use the higher of the two amounts from the previous year or the old formula.

Who It Names or Affects

• School districts receiving state funding for the 2025-26 budget year.

Terms To Know

Total program formulas

Two methods used to calculate how much money schools receive from the state: old formula and new formula.

Funded pupil count

The number of students that the school funding system is designed to support financially.

Limits and Unknowns

• Does not specify how individual districts will be affected by the reduction in state funding.
• Does not provide details on how the reduced funds will impact specific educational programs or services.

Official Summary Text

Compared to what was anticipated when appropriations were established in the 2025 regular legislative session for the 2025-26 budget year, the general assembly finds that for the 2025-26 budget year the actual funded pupil count and the at-risk pupil count are lower than anticipated; the local share of total program funding is higher than anticipated; and therefore, the general assembly intends to decrease the state share of districts' total program funding by $103,472,508 for the 2025-26 budget year.
Under current law, there are 2 total program formulas to finance public schools, commonly referred to as the old formula and the new formula. For the 2025-26 budget year, a district's total program is the greater of:
The district's total program amount for the 2024-25 budget year; or
The amount calculated for the 2025-26 budget year under the old formula plus an amount equal to 15% of the difference between the amounts calculated between the old formula and the new formula.
The act clarifies that for the 2025-26 budget year, if the calculation under the new formula is less than the calculation under the old formula, then that district's total program for the 2025-26 budget year is the greater of:
The district's total program amount for the 2024-25 budget year; or
The amount calculated for the 2025-26 budget year under the old formula.
The act reduces appropriations to the department of education for the 2025-26 budget year by $103,472,508.
(Note: This summary applies to this bill as enacted.)