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House limits some recent education formula increases, creates 'fiscal-capacity' aid and reroutes lottery revenue to education
Summary
Representative Jess Edwards said the House left FY2026 adequacy funding unchanged, increased per-pupil special education funding in FY2027 and created a new fiscal-capacity aid to direct money toward low-property-value towns while capping a recent extraordinary-needs grant that had heavily favored large districts.
Representative Jess Edwards, chair of Division 3 for the House Finance Committee, described several changes the House made to the education adequacy formula and to how lottery proceeds are accounted for.
Edwards said the House did not change core adequacy funding for FY2026, but added just over $1,000 per pupil for special education in FY2027 — a change he estimated would cost about $28 million in the second year of the biennium. He also said the House set a proration floor for catastrophic/special-education aid at 80% to avoid…
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