Virginia Lawmakers Approve Plan to Advance New K-12 School Funding Formula

A state legislative subcommittee on Monday approved a plan to hire an expert to study a new school funding formula for Virginia, with up to 24 months to complete the work.

The decision continues lawmakers’ work to update the state’s 52-year-old funding formula, which determines the Standards of Quality, or funding level for public schools. A December 2023 study showed that Virginia local governments spend far more on K-12 education than the state, underscoring the need for a clearer approach.

Virginia Dept. of Ed projects K-12 schools will need $1.2 billion over next two years

Researchers from the Joint Legislative Audit and Review Commission, which studied the formula, said lawmakers could partially replace the SOQ formula by using student-based calculations for special education and English learner funding. Another option would be to fully replace the entire staffing-based formula with a new student-based formula, researchers said.

Sen. Mamie Locke, D-Hampton, who was re-elected chair of the Joint Subcommittee to Study Elementary and Secondary Education Funding on Monday, said that although the group has 24 months, it would be “optimal” to complete the work when Gov. Abigail Spanberger presents her biennium budget requests in December 2027.

“I don’t think it’s going to take us 24 months to get this work done, and that would be better and in the best interest of our school districts and our kids if we can move this as quickly as possible,” Locke said.

The scope of work requires the consultant to give lawmakers a data-driven tool to evaluate alternative K–12 funding formulas and understand their fiscal and distributional impacts before implementing changes.

Holly Coy, chief of staff for the Virginia Department of Education, said that once the agency finalizes the draft Request for Proposal, or formal service request, it will publish the proposal and accept bids for 30 days.

The agency expects to select a consultant and begin work during the upcoming General Assembly session in January.

Coy said lawmakers will have an opportunity after the session to provide further input to the consultant on the policy factors that will be built into the funding model.

Factors include base funding per student, extra weights for student needs, class sizes, operating costs, transition provisions, and the Local Composite Index, which determines what each locality can pay for its schools.

Virginia has increased ongoing K–12 education funding by just over $4 billion, or 50%, from fiscal year 2023 to fiscal year 2028, according to a staff report for the subcommittee, highlighted by $1.5 billion in teacher salaries, plus $375.4 million in one-time educator bonuses.

Other investments include $273.2 million in additional funding for at-risk students, $537.5 million in additional funding for school support staff, $126.8 million to establish and expand dedicated funding for special education, and $106.9 million for additional English language learner teachers and reading specialists positions.

The state has also contributed to additional funding for school construction, early childhood education, and updates to school funding calculations.

Del. Cia Price, D-Newport News, a committee member, expressed support for moving the matter forward without further delay.

“I think this is overdue, and so anything that we can do one time thoughtfully and expeditiously… I think just to put on the record our desire for this to go aggressively, thoughtfully, quickly,” she said.

By Nathaniel Cline, Virginia Mercury

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