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Committee approves update to charter tuition formulas, replacing assumptions with actuals; lawmakers debate equity and fiscal impacts
Summary
House Bill 26 34, as amended, moves charter tuition calculations toward actual expenditures and actual special‑education enrollment and raises certain cyber charter deductions for 2026‑27; staff estimated approximately $79 million in district savings for 2026‑27 and $167 million for 2027‑28; the committee passed the bill 14–12 after contentious debate.
Representative Prokopiak introduced House Bill 26 34, which would change how the Commonwealth calculates tuition rates for brick‑and‑mortar and cyber charter schools by moving from budgeted estimates and fixed assumptions to using actual expenditures and actual special‑education enrollment data.
Sponsor’s case: Representative Prokopiak said the bill "uses a data driven approach as opposed to a one‑size‑fits‑all approach," and argued the outdated 16% special‑education assumption inflates charter tuition rates districts pay. He estimated the reforms would yield roughly $799,000,000 in additional savings to school districts in 2026 and 2027 (as stated in the transcript) and cited a concrete example in his district, saying Morrisville would save an estimated $175,000 (about 14% of its payment) under the proposal.
Staff fiscal estimates and specifics: Emma Englington, House Democratic Appropriations staff, said staff estimates indicated approximately $79,000,000 in savings to school districts for cyber charter tuition rate changes in 2026‑27 and about $167,000,000 in savings for 2027‑28 from eliminating the flat 16% special‑education assumption.
Opposition concerns: Several members said the changes would amount to cuts for charter schools—many of which serve high shares of minority and economically disadvantaged students—and warned of previous staffing reductions after prior reform (testimony cited layoffs at Insight Cyber Charter and Agora Cyber Charter following earlier measures). Representative D'Orsay and Representative Gleim argued the bill would jeopardize cyber charter students’ access and special‑education services and said more input and study were needed.
Amendment and vote: The committee considered a technical amendment (A803694) to correct references; the amendment passed and the committee then approved HB 26 34 as amended on a roll call of 14 ayes and 12 nays.
Clarifying details: The bill raises the allowable deduction for cyber charter student activity and operations from 60% to 80% for 2026‑27, replaces budgeted expenditures with actual expenditures beginning in 2027‑28, and requires the Department of Education to use the most recent annual financial report available by June 1 to calculate per‑student amounts. Members debated audit findings and fund balances at several charter schools and requested broader data collection and stakeholder input.
Ending: The committee passed the bill as amended; supporters said it modernizes formulas and uses current data, while opponents warned it could shift burdens onto vulnerable students and urged further study and stakeholder engagement.
