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Committee hears foundation formula details: $15,033 base and new weights create Educational Opportunity Payments

Legislative committee (briefing on Act 73) · January 9, 2026
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Summary

Legislative counsel outlined the new foundation formula in Act 73: a per‑pupil base (presented as $15,033), updated pupil weights including special‑education tiers and EL proficiency levels, Educational Opportunity Payments (EOP = base × weighted membership), and a phased transition across FY2029–FY2033; many provisions are contingent on a Section 45a report.

John Gray (Office of Legislative Counsel) walked the committee through the education‑finance sections of Act 73 (Sections 34–35 and related provisions). He told members the foundation formula establishes a per‑pupil base amount (the presentation cited $15,033 per pupil, adjusted for inflation) and creates Educational Opportunity Payments (EOPs) calculated by multiplying that base by a district’s weighted long‑term membership. The act repeals prior education funding concepts and replaces them with the EOP construct.

Gray summarized pupil‑weight changes: a single grade‑level base weight (including pre‑K as a negative weight to be revisited), an updated economic‑disadvantage weight (slightly increased), a reworked English‑learner (EL) weight broken out by proficiency and prior formal education, and three special‑education weight tiers distinguished by disability cost. He emphasized that students may accumulate multiple applicable weights and that small‑school and sparsity weights are replaced with support grants.

Support‑grant eligibility was described: a small school must meet an objective numerical test (fewer than 100 pupils on a two‑year average) and be annually determined by the State Board as “small by necessity”; sparse‑school eligibility requires fewer than 55 persons per square mile at a municipality level plus an annual determination. Gray noted the Section 45a cost‑factor report will examine sparsity measures and other weights and that several foundation pieces are contingent on that report. The rollout to EOPs and related transitions are phased FY2029–FY2033 with prorated adjustments to districts’ EOPs over five years.

Committee members asked for numeric analysis; speakers agreed JFO and consultants are preparing detailed work that will be presented to the committee.