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Committee hears how student-growth and declining-enrollment formulas interact and affect district budgets
Summary
Bureau staff reviewed how student-growth funding (quarterly) and declining-enrollment funding (prior‑year ADM formula) are calculated, highlighted unpredictability in growth payments and noted that declining-enrollment plus prior-year foundation funding can yield roughly 1.5 times the foundation rate for lost students.
Adrienne Beck and Elizabeth Bynum of the Bureau of Legislative Research presented the committee with an overview of student-growth and declining-enrollment funding.
Beck explained student-growth funding was created in 1995 (Act 917) to supplement foundation funding for newly enrolled students because foundation funding is based on prior-year ADM. She described how Act 741 (2017) changed calculation timing and introduced a provision that reduces student-growth payments for districts that generate excess revenue through the uniform rate of tax…
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