Under Senate Concurrent Resolution No. 201 (152nd General Assembly) and House Concurrent Resolution No. 2 (153rd General Assembly), the Public Education Funding Commission (Commission) has studied how to improve Delaware's public education funding policies so that public school funding is equitable and appropriated in a manner that allows public schools, including both school districts and charter schools, to not only spend all money that is appropriated but to do so in a manner that best meets the needs of the students in each school. This Act implements the Commission’s recommendation that the Public Education Funding Commission be established as a permanent body. As set forth in Senate Bill No. 302 (153rd General Assembly), the Commission recommended that the General Assembly enact what is known as the hybrid formula. The hybrid formula combines elements of the current funding calculations with a weighted needs-based approach that provides additional funding for students who receive career and technical education or special education services, who are multilingual learners, and who live in low-income households. Codified, the Commission will have a crucial role in implementing and maintaining the benefits of the hybrid model by continually reviewing the hybrid model, including the amounts of the required weights, if school spending of state appropriations complies with the applicable requirements, and making recommendations for improvements. The continual review of public education funding by the Commission will allow adjustments to be made on a gradual and incremental basis as needed.
This Act recognizes that the Public Education Funding Committee’s (PEFC) recommended hybrid model formula to determine public education funding is good public policy and that implementation of the hybrid model should not be delayed any longer than absolutely necessary. As such, this Act provides authority for the Department of Education (Department) to begin making the changes to systems that are necessary to implement the hybrid model for Fiscal Year 2028. This Act also encourages that, in collaboration with the PEFC, the Department incorporate elements of the hybrid model in the development of the Governor’s Recommended Budget for Fiscal Year 2028 for consideration by the 154th General Assembly. However, during this transition, a school district or charter school should not receive a state appropriation for Fiscal Year 2028 that is lower than the amount that school received in Fiscal Year 2027. The PEFC was established under Senate Concurrent Resolution No. 201 (152nd General Assembly) on June 27, 2024, and then re-established under House Concurrent Resolution No. 2 (153rd General Assembly) on January 21, 2025, to conduct a comprehensive review of public education funding for all students and populations served by school districts and charter schools (public schools) and develop a roadmap of recommendations to implement improvements to the public education funding system. The PEFC’s recommends adopting a new public education funding framework, known as the “hybrid model”, that combines the current, resource-based funding formula with a student-based, weighted funding model. The hybrid model will improve equity in public school funding and facilitate gains in student achievement by increasing flexibility in how public schools may use appropriated money. The PEFC recommendations include accountability measures as an important balance to the increased flexibility and that the equalization formula must be modernized.
This Act sunsets the committee that reviews and makes recommendations on the equalization formula for school districts under § 1707(i) of Title 14 (§ 1707(i) committee) because the Public Education Funding Commission (PEFC), established under House Concurrent Resolution No. 2 (153rd General Assembly), is currently handling the functions under § 1707(i). The PEFC recommendations will include both how to equalize school funding and how to address equalization in the future. In addition, almost all of the members of the § 1707(i) committee are members of the PEFC but the membership of the PEFC also includes stakeholders who are not on the § 1707(i) committee. The PEFC is holding public meetings to discuss and make recommendations on the equalization formula and how to periodically review the formula.
The Public Education Funding Commission was first established under Senate Concurrent Resolution No. 201 of the 152nd General Assembly. This Concurrent Resolution re-establishes the Commission to continue its comprehensive review of public education funding for all students and populations served by district and charter schools, develop a roadmap of recommendations to implement improvements to the public education funding system, and serve as an ongoing body to review the funding annually and recommend updates and changes. The Commission will issue its first recommendations by October 1, 2025, and its final recommendations by July 1, 2026.
This Concurrent Resolution directs the Public Education Funding Commission (Commission) to make findings and recommendations to achieve the equitable collection and distribution of property tax revenue to support the needs of public schools, and submit a report with the recommendations no later than January 1, 2026. This Concurrent Resolution provides that the House and Senate Education committees will hold a joint meeting in January 2026 where the Commission will present for discussion the recommendations that are due October 1, 2025, and from this Concurrent Resolution.
