Wyoming recalibration adds $124.1M to K‑12 funding; committee examines formula changes and limits on spending

Matthew Wilmarth, deputy administrator for the Legislative Service Office’s Budget and Fiscal Division, told the Select Committee on School Finance Recalibration that the 2026 Legislature increased statewide K‑12 funding by approximately $124.1 million, consisting of about $114.1 million in model components and a separate $10 million dual‑enrollment program. "The total funding allocated Wyoming school districts has been increased from the prior law by approximately $124.1 million," Wilmarth said during the June 24 meeting in Lander.

The committee heard that the Legislature codified the K‑12 funding formulas into Wyoming Statute 21‑13‑309.1 and departed from consultant recommendations in several places. Key differences include how average daily membership (ADM) is counted — the law uses the greater of prior year ADM or a two‑year average rather than a three‑year average — and changes to elementary class‑size assumptions (K–3 up to 16 students in some calculations, versus 15 recommended). Wilmarth also said the Legislature adopted a 34% weighting for high‑school CTE teachers, above the consultants’ 20% recommendation, and increased average model salaries to roughly 85% of comparable workers (a model average of roughly $75,863).

Why it matters: the combination of formula changes, salary uplifts and new categorical components shifts district budgets. Wilmarth told the committee that while the model produced fewer traditional classroom teacher FTEs in some cases (a net classroom teacher decrease of about 750), the Legislature funded additional instructional supports — summer school, tutors, instructional coaches and other positions — that yield a net increase of roughly 259 instructional FTEs and about 201 model positions overall. He summarized the effect as an 8.6% statewide increase in the model components.

Committee members pressed staff on operational implications. Representative Kelly confirmed the committee’s baseline: "That is correct" — the $124 million represents additional funding compared with prior law. Several business managers and superintendents during the public‑comment period said that while the added dollars helped raise teacher pay, the law’s restrictions on how some funds may be spent (the so‑called instructional silo) and the treatment of reserves and interest earnings create local budget questions.

Wilmarth said the law changed how some reimbursements are timed (special education moved to quarterly reimbursement for out‑of‑district placements; bus purchases reimbursed within three months rather than amortized over five years) and shifted retirement funding fully outside the block grant. He also noted a regional cost adjustment update tied to the 2025 Hedonic Wage Index and an additional add‑on for any district exceeding certain cost thresholds (Teton County School District No. 1 was cited as an example).

What’s next: Wilmarth and WDE staff urged the committee to clarify reserve‑account rules and the treatment of transfers made prior to July 1, 2026. "If it's moved to a special reserve fund prior to June 30th ... those have no limitation or restrictions related to the expenditure of those funds," WDE staff told the committee, but they asked the Legislature to be explicit if a different interpretation was intended. The Department of Education plans emergency rulemaking in early July and said it will publish ongoing guidance on its website as implementation questions arise.

The committee scheduled follow‑up work this interim on mental‑health services (elementary counselors and nurses added to the model), one‑to‑one technology goals, school resource officers and school nutrition, with consultants and WDE returning with implementation options.