School Finance Mid-Year Adjustments

      Joint Budget Committee. 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 bill 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.
  (Note: This summary applies to this bill as introduced.)