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SPONSOR: Sen. Sturgeon & Sen. Townsend & Sen. Lockman &
Rep. K. Williams & Rep. Chukwuocha
Sens. Cruce, Pinkney, Poore, Sokola; Reps. Berry, Bush,
Lambert, S. Moore, Morrison, Neal, Ortega, Romer,
Ross Levin, Kamela Smith, Snyder-Hall, Wilson-Anton
DELAWARE STATE SENATE
153rd GENERAL ASSEMBLY
SENATE BILL NO. 302
AN ACT TO AMEND THE LAWS OF DELAWARE RELATING TO PUBLIC EDUCATION FUNDING.
1 WHEREAS, the Public Education Funding Commission (PEFC) was established under Senate Concurrent
2 Resolution No. 201 (152nd General Assembly) on June 27, 2024, and then re-established under House Concurrent
3 Resolution No. 2 (153rd General Assembly) on January 21, 2025; and
4 WHEREAS, the PEFC was required to conduct a comprehensive review of public education funding for all
5 students and populations served by school districts and charter schools (public schools), to develop a roadmap of
6 recommendations to implement improvements to the public education funding system, and to serve as an ongoing body to
7 review the funding annually and recommend updates and changes; and
8 WHEREAS, the PEFC has been holding regular meetings, including public information sessions throughout this
9 State; and
10 WHEREAS, the PEFC has developed recommendations with the intent of creating a public education funding
11 system that increases adequacy, equity, flexibility, transparency, and accountability; and
12 WHEREAS, the PEFC has approved recommendations for a new public education funding framework, known as
13 the “hybrid model”; and
14 WHEREAS, the current public education funding formula is resource-based, providing appropriations for
15 positions based on student demographics; and
16 WHEREAS, the hybrid model combines the current resource-based system with a student-based, weighted funding
17 model; and
18 WHEREAS, the recommended hybrid model was approved after working drafts of a hybrid model were developed
19 by members of the PEFC and then shared with PEFC members and discussed at PEFC meetings and at the public
20 engagement sessions; and
21 WHEREAS, the hybrid model will improve equity in public school funding and facilitate gains in student
22 achievement by increasing flexibility in how public schools may use appropriated money; and
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23 WHEREAS, the 3 components of the hybrid model are base funding, opportunity funding, and operational
24 funding; and
25 WHEREAS, base funding provides appropriations for positions, weighted to maintain student to teacher ratios
26 based on grade level, special education status, and vocational programs; and
27 WHEREAS, opportunity funding is a flexible, per pupil appropriation that is based on the number of students who
28 are in low-income households, are multi-lingual learners, or both; and
29 WHEREAS, operational funding is a flexible, per pupil appropriation to support school operations that is weighted
30 for a variety of student demographics; and
31 WHEREAS, the hybrid model allows for continued refinement over time, including by modifying weights, adding
32 additional student demographics to the weighted categories, and changing the overall level of investment in public schools;
33 and
34 WHEREAS, the PEFC has adopted recommendations regarding the 3 components of the hybrid model and the
35 amounts of the initial weights embedded in the opportunity and operational funding components; and
36 WHEREAS, other details of the hybrid model have not been completed, including the changes to the equalization
37 formula; and
38 WHEREAS, accountability measures will be an important balance to the increased flexibility provided to public
39 schools under this recommended funding framework; and
40 WHEREAS, the recommendation of the hybrid model anticipates that implementation will be phased in,
41 estimating that with the hybrid model will be fully implemented and funded for Fiscal Year 2029; and
42 WHEREAS, the PEFC recommends that until the hybrid model is fully implemented and funded, public schools
43 should not receive a state appropriation that is lower than the amount the public school was appropriated for Fiscal Year
44 2027; and
45 WHEREAS, the PEFC also recommends the codification of the PEFC, to provide for continued transparency and
46 public discussion as the details of the hybrid model are finalized and the equalization formula is modernized; and
47 WHEREAS, the codification of the PEFC will also provide for the regular, ongoing review of the hybrid model to
48 ensure it is effective in providing more equitable public school funding and ensuring student achievement; and
49 WHEREAS, the Public Education Funding Commission will become a permanent public body upon the enactment
50 of Senate Bill No. 303 (153rd General Assembly); and
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51 WHEREAS, the PEFC anticipates completing the remaining details required under the hybrid model during 2026
52 so that legislation can be introduced in the 154th General Assembly, to revise Title 14 of the Delaware Code to adopt the
53 hybrid model; and
54 WHEREAS, implementation of the hybrid model will be delayed for another fiscal year if the Department of
55 Education waits until after the enactment of legislation adopting the hybrid model during the 154th General Assembly to
56 begin the process of making the necessary updates to computer systems, financial management processes, and developing
57 the required trainings; and
58 WHEREAS, the General Assembly finds that the PEFC recommended hybrid model is good public policy, that
59 implementation of the hybrid model should not be delayed any longer than absolutely necessary, and as such, it is good
60 public policy for the Department of Education to do all of following:
61 (1) Begin taking the necessary actions to implement the hybrid model, including entering into contracts for all
62 of the following:
63 a. Update computer systems.
64 b. Update financial management processes.
65 c. Develop required training for school districts and charter schools.
66 (2) Include elements of the hybrid model in the Governor’s Recommended Budget for Fiscal Year 2028 for
67 consideration by the 154th General Assembly.
68 NOW, THEREFORE:
69 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
70 Section 1. Transition to the hybrid model for funding public education.
71 (a) For purposes of this Section:
72 (1) “Hybrid model” means the public education funding formula under subsection (b) of this Section.
73 (2) “Public Education Funding Commission” or “PEFC” means the Public Education Funding Commission
74 established under 1 or more of the following:
75 a. House Concurrent Resolution No. 2 (153rd General Assembly).
76 b. Section 1727 of Title 14 of the Delaware Code, if enacted under Senate Bill No. 303 (153rd General
77 Assembly).
78 c. As otherwise extended or established by the 153rd General Assembly.
79 (3) “Public school” means any school district or charter school in this State.
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80 (b) This State should use the hybrid model recommended by the Public Education Funding Commission to
81 determine the amount of the annual state appropriations to public schools. The hybrid model has the following 3
82 components:
83 (1) Base funding, which are the weighted appropriations for the positions required to staff and operate a public
84 school.
85 a. The positions funded under base funding include teachers, instructional support positions, principals,
86 counselors, district office personnel, and administrative and clerical support.
87 b. Base funding is weighted to maintain student to teacher ratios based on the needs of the public school’s
88 students in regard to all of the following:
89 1. Grade level.
90 2. Special education status.
91 3. Vocational enrollment.
92 (2) Opportunity funding is a per pupil allocation, weighted based on the total number of enrolled students and
93 the number of students who are any of the following:
94 a. Members of a low-income household.
95 b. A multilingual learner.
96 (3)a. Operational funding is intended to cover costs associated with base funding and is a per pupil allocation,
97 weighted based on the total number of enrolled students and the number of students who are any of the following:
98 1. Members of a low-income household.
99 2. A multilingual learner.
100 3. A student with an individualized education plan or other special education status.
101 4. Enrolled in a vocational program.
102 b. The weights under paragraph (b)(3)a. of this Section are intended to be competitive regionally and
103 developed using research-based best practices regarding student needs.
104 (4) The most recent recommendations of the PEFC must be considered when the weights under paragraphs
105 (b)(2) and (b)(3) of this Section are calculated.
106 (5) The funding provided under paragraphs (b)(2) and (b)(3) of this Section must be used to meet the needs of
107 the students in paragraphs (b)(2)a., (b)(2)b., and (b)(3)a.1. through (b)(3)a.4. of this Section as follows:
108 a. A public school must determine how this funding can best support these students.
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109 b. Public schools have the flexibility to spend this funding so it is most effective in supporting these
110 students.
111 c. Each public school must report how this funding is spent to ensure accountability.
112 d. Each public school must establish appropriate internal controls to confirm that funds are spent on the
113 intended students. These internal controls must include the retention of all supporting documentation.
114 (6) A public school should not receive a state appropriation for Fiscal Year 2028 that is lower than the amount
115 the public school was appropriated for Fiscal Year 2027.
116 (c) Notwithstanding the requirements under Chapter 13, Chapter 15, and Chapter 17 of Title 14 of the Delaware
117 Code, during Fiscal Year 2027, the Department of Education may do any of the following:
118 (1)a. Take actions necessary to implement the hybrid model, including entering into contracts to do any of the
119 following:
120 1. Support the continued work of the PEFC.
121 2. Make the necessary changes to computer systems and financial management processes.
122 3. Develop required training for public schools.
123 4. Launch a digital parent portal and develop and implement other resources to communicate and
124 explain the hybrid model to the public.
125 5. Implement the education accountability system under paragraph (c)(3) of this Section.
126 b. If a contract is for services related to implementing the hybrid model under paragraph (c)(1)a. of this
127 Section:
128 1. The Secretary of the Department may waive any or all provisions of subchapter VI of Chapter 69
129 of Title 29 of the Delaware Code, under § 6907(b) of Title 29 of the Delaware Code.
130 2. The Secretary of the Department must have the agreement of the Chair of the Senate Education
131 Committee and the Chair of the House Education Committee regarding the selected vendor before entering
132 into a contract for services under paragraph (c)(1)a.1. of this Section.
133 3. Subchapter I of Chapter 90C of Title 29 of the Delaware Code does not apply.
134 (2) In collaboration with the PEFC, incorporate elements of the hybrid model in the development of the
135 Governor’s Recommended Budget for Fiscal Year 2028 for consideration by the 154th General Assembly, including
136 the weighted funding calculations and expanded opportunity funding.
137 (3) In collaboration with the PEFC, create a robust education accountability system that promotes all of the
138 following:
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139 a. Public engagement, to increase transparency and awareness of disaggregated state and local public
140 education spending, school quality indicators, school improvement interventions, and student outcomes.
141 b. Regular public reporting that includes the amount of funding appropriated under the hybrid model as
142 follows:
143 1. To each public school.
144 2. The disaggregated operational funding and opportunity funding appropriated based on student
145 demographics.
146 c. Training for public schools, including school boards and the boards of directors of charter schools, to
147 ensure that appropriations align with local community needs and research-based best practices.
148 d. Oversight and technical assistance for public schools, to ensure that public schools spend
149 appropriations under the hybrid model as expected and required under law. Under the hybrid model, a public
150 school must spend appropriations in a manner that does all of the following:
151 1. Reaches the intended students.
152 2. Is incorporated into the public school’s educational strategy to improve educational outcomes.
SYNOPSIS
This Act recognizes that the Public Education Funding Committee’s (PEFC) recommended hybrid model formula
to determine public education funding is good public policy and that implementation of the hybrid model should not be
delayed any longer than absolutely necessary. As such, this Act provides authority for the Department of Education
(Department) to begin making the changes to systems that are necessary to implement the hybrid model for Fiscal Year
2028. This Act also encourages that, in collaboration with the PEFC, the Department incorporate elements of the hybrid
model in the development of the Governor’s Recommended Budget for Fiscal Year 2028 for consideration by the 154th
General Assembly. However, during this transition, a school district or charter school should not receive a state
appropriation for Fiscal Year 2028 that is lower than the amount that school received in Fiscal Year 2027.
The PEFC was established under Senate Concurrent Resolution No. 201 (152nd General Assembly) on June 27,
2024, and then re-established under House Concurrent Resolution No. 2 (153rd General Assembly) on January 21, 2025, to
conduct a comprehensive review of public education funding for all students and populations served by school districts and
charter schools (public schools) and develop a roadmap of recommendations to implement improvements to the public
education funding system.
The PEFC’s recommends adopting a new public education funding framework, known as the “hybrid model”, that
combines the current, resource-based funding formula with a student-based, weighted funding model. The hybrid model
will improve equity in public school funding and facilitate gains in student achievement by increasing flexibility in how
public schools may use appropriated money. The PEFC recommendations include accountability measures as an important
balance to the increased flexibility and that the equalization formula must be modernized.
Author: Senator Sturgeon
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