Agency of Education presents timeline and major assumptions for proposed foundation funding formula

The Agency of Education on Feb. 5 told the House Ways & Means committee it plans a multi‑year transition to a statewide foundation funding formula that would shift to full implementation under a new governance structure on July 1, 2027, with fiscal year 2026 serving as an "informational year." "I'm Zoe Saunders, Secretary of Education," Saunders said as the presentation began.

Why it matters: The proposal would change how state education dollars flow to districts and schools, affect small‑school weightings, increase some categorical supports and change how career and technical education (CTE) funding flows. Committee members pressed the agency for the model spreadsheets and more detail on eligibility, rounding rules and how costs such as special education would be carried during the transition.

The presentation and committee discussion covered four broad areas: implementation timing and incentives; school size (sparsity) adjustments; categorical increases (notably special education and transportation); and CTE funding flows. Agency staff and outside consultants said the modeling assumes full implementation of the formula in fiscal year 2028 but that governance and foundation changes would begin July 1, 2027, with FY 2026 (school year 2025–26) used to signal parameters and allow districts time to plan.

Key implementation assumptions and timelines - Implementation timeline: The Agency framed FY 2026 as an informational year, with the governance shift and the foundation formula scheduled for 07/01/2027. Agency staff said they expect additional multi‑year work to rescale buildings and staffing after that date rather than immediate systemwide consolidation. - Signaling vs. eligibility: The agency will publish parameters (for example, class‑size…