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Delaware commission adopts phased hybrid school‑funding model, sets timeline and holds‑harmless protections
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Summary
The Public Education Funding Commission voted to adopt a phased hybrid funding model and approved four companion recommendations including a temporary hold‑harmless rule, equalization modernization timing, extension of the commission, and a local funding study. The group signaled two bills (SB302, SB303) will be filed to start Phase 1 planning.
The Public Education Funding Commission voted to recommend a phased hybrid school‑funding model that blends the current base with a weighted, needs‑based approach and a multi‑year implementation plan.
Chair Laura Sturgeon, who said she will file draft legislation this week, opened the meeting by asking the Department of Education and technical working group to prepare for implementation work so the system can be rolled into Phase 1 beginning July 2027. Sturgeon told members they would receive final drafts of two bills, SB302 and SB303, when the bills are pre‑filed.
Why it matters: sponsors and staff said the hybrid model is designed to direct more resources to students with greater needs — multilingual learners, students in poverty and those with disabilities — while consolidating dozens of existing streams into a simpler set of funds and confirming guardrails and accountability measures before money is distributed.
Budget and timeline: Denise (Department of Education) said the governor’s recommended budget includes $2,800,000 in one‑time funding for DOE to start implementation work in fiscal 2027. Technical lead Nick described a snapshot estimate that, depending on enrollment and final weight choices, the new model could require roughly $150 million–$200 million in additional funding to maintain a ‘hold‑harmless’ approach that prevents schools from losing state dollars in the transition; he said that estimate excludes future equalization changes and that the CTE weight remains under technical review.
Debate and guardrails: during discussion, a commissioner raised concerns that consolidating 32 separate funding lines could risk related services for students with disabilities unless the commission creates clear guardrails. A staff member said the implementation year is intended to identify which uses should be mandated versus flexible and that technical work and public reporting will be used to track how funds are spent.
Hold‑harmless provision and equity concerns: the commission adopted Recommendation 2, a hold‑harmless provision that prevents LEAs from losing state funding tied to the hybrid model until Phase 2 is implemented and funded. One commissioner warned that an open‑ended hold‑harmless could entrench district allocations and reduce the equity gains of a needs‑based formula; the motion passed on roll call, 24 yes, 1 no.
Equalization and follow‑up work: Recommendation 3 asks the state to freeze equalization at FY2009 levels for FY2027 and modernize the equalization formula for implementation in FY2028 after county reassessments and appeals are resolved. Members agreed a technical working group will continue work on equalization and provide updated recommendations to the commission.
Extension of the commission and local funding reform: the body voted to reestablish the Public Education Funding Commission (Recommendation 4) to shepherd Phase 2 tasks and implementation details; the commission also urged the General Assembly to study local funding implications and options for local funding reform (Recommendation 5), with members stressing that frequent local referenda have left some districts’ finances vulnerable.
Votes at a glance: Recommendation 1 (hybrid model) passed 25‑0; Recommendation 2 (hold‑harmless) passed 24‑1; Recommendation 3 (equalization timing) passed unanimously (25‑0); Recommendation 4 (extension of PEFC) and Recommendation 5 (local funding reform study) passed with 24 votes in favor (full roll calls recorded in meeting minutes).
Public comment: public commenters voiced support for the commission’s direction while urging clear accountability. Kendall Massett of the Delaware Charter Schools Network said flexibility must be paired with accountability and that IEPs ‘‘will happen as written.’’ A CTE representative thanked the commission for keeping CTE under review; Blair Caitlin Brown, president of the Indian River Education Association, said her members will help educate the public ahead of committee hearings.
Next steps: Chair Sturgeon said she and Representative Williams will file the bills (SB302 and SB303) so the recommendations can be heard in committee; she encouraged commission members to testify in committee hearings once dates are announced. The commission adjourned and will reconvene as necessary to continue implementation planning.
