Legislation– SB 302 and SB 303– to implement Delaware’s school funding cleared the State Senate with bipartisan support and now awaits House approval.
The Joint Finance Committee recommended $126 million in funding to implement the new school funding formula for 2027-2028.
Public Education Funding Commission chair State Sen. Laura Sturgeon (D-Woodbrook) said during a Monday meeting this bodes well for the future of their recommendations.
"This is no longer a pipe dream," Sturgeon said. "...We put together a formula that we are going to fund, that we are two thirds of the way to funding."
The new model allocates additional dollars for vulnerable student groups. To implement it without immediately reducing funds to wealthier schools, the state needs $150 to 200 million, according to Sturgeon and her group.
"And in next year's budget, I feel quite sure we'll be able to come up the money to fund it fully," she said. "Because we only need a portion now of what's required."
The JFC approved $100 million in one time funds. And the rest of the $26 million is from Division II money reinstated by the JFC, which was cut from the Department of Education's budget in 2018 during a budget shortfall.
"The fact that we finally were able to restore it was huge news," Sturgeon said. And that $26 million will be ready earlier, "going out the door after July 1st. They'll be able to put towards meeting student needs immediately."
The JFC also approved $2.8 million in this year's budget to begin implementation of a new funding model. That includes logistics for DOE, like training, software updates, and website design.
Still work to do:
The long awaited funding formula's phase 1 has secured funding.
But the PEFC still needs to address the state’s equalization formula– which levels the playing field for education funding based on property assessments. That formula was frozen in 2009.
Sturgeon said the group didn’t have the necessary data to revamp equalization over the last couple of years, because of complications with property reassessment in New Castle County. The General Assembly passed legislation last summer asking Tyler Technologies to explain its process for properties that were evaluated lower than comparable plots.
"So we didn't have final numbers that would allow us to revamp the equalization formula," Sturgeon said.
Sturgeon said a technical working group could meet over the summer to examine equalization. But the full PEFC won’t meet again until fall.
Not a PEFC recommendation– but standing to influence school funding – is SB 322. It would do away with school districts’ ability to raise property taxes by 10% after reassessment. Instead districts could increase property taxes by 2% annually without referendum. That bill is awaiting a Senate vote.
