BUDGET
Funding in the 2024-25 School Year:
A Breakdown of the Recently Passed State Budget and What it Means for PA School Districts
The 2024-25 Pennsylvania state budget marks a significant step towards addressing the unconstitutional school funding system, as ruled by the Commonwealth Court. This includes a $1.1 billion increase in K-12 education funding. Here are the key education components and their importance:
FUNDING IN THE 2024-25 SCHOOL YEAR:
A Breakdown of the Recently Passed State Budget and What it Means for PA School Districts
NEW Adequacy Supplement:
The legislature codified a $4.8 billion adequacy gap for Pennsylvania school districts, $4.5 billion of which is the state’s responsibility. This budget includes $494 million in funds – or about 11% of that adequacy gap – to be distributed through a new adequacy formula, targeting the 348 school districts with the greatest needs.
Tax Equity Supplement:
The final budget also includes $32M in “tax equity funding” to compensate the 50 Pennsylvania districts with the highest property tax rates that have felt compelled to increase taxes to try to remedy state underfunding.
Increased Basic Education Funding:
The budget includes an additional $225 million in funding benefitting all school districts to be distributed through the Basic Education Funding Formula and an additional $60 million in “Hold Harmless Relief” to the districts that were most disadvantaged by the existing basic education funding formula and its provision benefiting shrinking districts.
Special Education Funding:
An additional $100 million is allocated for special education services, ensuring better support for students with disabilities.
Cyber Charter Reimbursement:
$100 million is set aside to reimburse schools for payments to cyber charter schools, addressing a longstanding financial burden on districts. An adjustment in the formula for districts’ special education payments to charters effective next January will save districts an additional $34.5 million this school year and twice that amount in future years.
Career and Technical Education:
A $30 million increase for Career and Technical Education programs, along with $7 million for dual enrollment, expands opportunities for students to gain practical skills and college credits.
School Safety and Mental Health:
The budget provides $20 million for school safety improvements and $100 million for mental health resources in schools.
Student Teacher Stipends:
$20 million is allocated to support future educators, addressing the teacher shortage.
These appropriations are crucial to begin remedying the unconstitutional school funding system. The budget and accompanying school code language clearly outline a bipartisan agreement that an adequately funded education requires, at minimum, an additional $4.5 billion in state funding, distributed to the communities that need it most. The identification of adequacy gaps for each Pennsylvania school district represents a shift towards more equitable funding, particularly benefiting underfunded districts. So does the decision to make the new adequacy funding stream the largest of the new investments.
However, the budget falls short of fully addressing the court’s mandate. Moving forward, lawmakers must focus on:
1.
$20 million is allocated to support future educators, addressing the teacher shortage.
2.
Committing to consistent, substantial increases in education funding over the coming years at an accelerated pace to close the remaining adequacy gap.
3.
Recognizing that the courts have declared education to be a “fundamental right,” meaning that funding for schools should be based on need and not subject to competition from other budgetary priorities.
4.
Allocate additional funding for school facilities and Pre-K, which the school funding lawsuit decision determined were critical elements to a constitutionally compliant, thorough and efficient system of public education – and are areas of enormous need that the state has not addressed.
5.
Setting a flat rate for cyber charter tuition to save taxpayer money and align tuition payments to cyber charters with their actual costs.
While the 2024-25 budget represents progress, it’s clear that sustained effort and commitment from lawmakers are necessary to fully realize a constitutionally compliant, equitable school funding system in Pennsylvania. That’s why the message for lawmakers must continue to be, “Finish the Job.”
PA Schools Work Coalition Commends Codification of Adequacy Gap, Pushes for Timeline to Achieve Constitutional Compliance
HARRISBURG (July 11, 2024) – Following the passage of the 2024-25 fiscal year budget plan, the PA Schools Work campaign issued the following statement:
“The K-12 appropriation in this year’s agreed-to budget, while not at the levels of Governor Shapiro’s historic proposal and with no timeline toward a constitutionally compliant funding system, makes major investments in public schools that will provide new resources to students, including an unprecedented focus on investments in Pennsylvania’s most underfunded school districts. This funding is an urgent necessity that our coalition has been fighting for alongside many pro-public education legislators and on behalf of students for more than a decade: It will go a long way, particularly in the poorest school districts.
“Lawmakers enacted a school code that codifies a school funding adequacy gap of $4.5 billion, which must be filled to meet the constitutional requirement laid out in the Commonwealth Court ruling. This budget fills 10.9% of the adequacy gap, requiring significant investments in subsequent years.
“PA Schools Work applauds the House majority for their honorable attempt to move the Commonwealth toward a constitutionally compliant public school funding system with a dogged effort to include the seven-year plan in this budget agreement. With that chamber’s bipartisan passage of HB 2370, the House majority demonstrated the political will to stand up for public school students, educators and their communities, time and again — their plan created a clear, reasonable timeline and would have been a game-changer for students. Unfortunately, Senate majority leadership refused to take up the bill, leaving Pennsylvania public schools without a plan or funding timeline.”
“Governor Shapiro and both chambers of the General Assembly now have the responsibility to close the remainder of the gap within a clear, reasonable timeframe. Lawmakers must finish the job.”
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PA Schools Work is a non-partisan coalition of organizations from across Pennsylvania representing teachers and other educators; urban, suburban, and rural communities; and parents and community members working together to advocate for PA public schools, their students, and the communities they serve. PA Schools Work partners include: 412 Justice, ACLAMO, The ARC of Pennsylvania, Children First, Education Law Center, Education Voters of Pennsylvania, Keystone Research Center, Make the Road PA, PA Youth Vote, Pennsylvania Policy Center, Public Interest Law Center, Research for Action, Teach Plus PA, and the Urban League of Philadelphia. For more information on PA Schools Work, visit www. paschoolswork.org.
