Senate Education Committee tables bill to allow "educational bankruptcy" for failing school districts

The Wyoming Senate Education Committee on Feb. 7, 2025 heard testimony on Senate File 173, the "Educational Bankruptcy Act," a proposal that would allow state intervention and court‑appointed trustees to assume authority over chronically low‑performing school districts, then voted to table the bill for interim study.

Senator Scott, sponsor of the measure, told the committee the bill is aimed at "the very worst, of the school districts out there," citing third‑grade English language arts and other grade‑level performance triggers in the draft. "There are some real problems out there, Madam Chairman," he said, and described a multiyear eligibility structure and a role for the state superintendent to select districts that meet the bill's criteria.

The bill would authorize a court to appoint a trustee who could remove the district superintendent and suspend the board's authority while implementing corrective actions. The text includes eligibility triggers tied to multiple grade‑level assessments, a provision allowing parents to petition for bankruptcy if the state superintendent does not, and an exception intended for tribal councils and reservation districts.

Committee members and public witnesses raised practical…