Delaware Proposes New Funding Formula to Boost Support for High-Needs Students

Delaware’s legislative task force has proposed a new school funding formula aimed at increasing financial support for high-needs students. The Public Education Funding Commission presented its updated plan to the state House and Senate Education committees on March 6, 2024. This overhaul seeks to replace the outdated unit-based funding model, which has been in place since the 1940s, with a more flexible and transparent system.

The proposed funding formula would maintain the core structure of the existing model while simplifying the distribution process. It is designed to allocate additional resources specifically for low-income and multilingual learners. According to Laura Sturgeon, the Commission Chairperson and state senator, this change is essential for improving educational outcomes in Delaware. Sturgeon noted that neighboring states such as Maryland, New Jersey, and Pennsylvania are achieving better performance metrics, including higher test scores and graduation rates, partly due to their greater investment in student funding.

The task force’s proposal could result in an increase of between $200 million and $400 million for the fiscal year 2026 budget, which currently stands at approximately $2.3 billion for education. Sturgeon indicated that the state has the flexibility to decide the amount of investment, with options ranging from tens of millions to hundreds of millions.

Under the current unit-based system, funding is largely determined by specific student characteristics, such as grade level and special education needs. The existing opportunity funding of around $66 million for fiscal year 2026 targets low-income and multilingual learners. This funding initiative was established by former Governor John Carney in 2017 following a lawsuit filed by education and civil rights advocates in 2018. The suit alleged that Delaware was consistently underfunding its disadvantaged public school students. A settlement in 2020 made opportunity funding a permanent fixture, reflecting the state’s commitment to addressing these disparities.

A report by the American Institutes for Research revealed that Delaware has underfunded its neediest students by an estimated $600 million to $1 billion. Nick Johnson, director of operations for the Polytech School District, emphasized that a potential investment of $400 million would significantly increase funding for multilingual learners from approximately $1,000 to nearly $4,000 per pupil. Similarly, funding for each low-income student could rise to about $5,000.

The new funding formula is structured around three categories: base, opportunity, and operational funding. Sturgeon highlighted that this streamlined approach narrows down the previous 32 funding streams, making it easier for districts to understand and utilize the resources effectively. Mike Griffith, a senior researcher at the Learning Policy Institute, noted the importance of targeting at-risk students, including those experiencing homelessness, to ensure they receive the necessary support.

Despite the optimism surrounding the proposed changes, some lawmakers, including state senator Eric Buckson, expressed skepticism about the necessity for new funding at this moment. Buckson indicated that the focus should first be on implementing the proposed changes before assessing the need for additional financial resources.

The task force aims to present a solid legislative proposal to the General Assembly by April 2024, allowing lawmakers to consider it before the session concludes on June 30.

In related developments, Cindy Marten, Delaware Education Secretary, provided an update on the state’s literacy initiatives, revealing that over $10 million has been invested in programs aimed at improving student literacy rates. This effort follows Governor Matt Meyer‘s declaration of a “literacy emergency” last year, triggered by a marked decline in eighth-grade reading scores.

As Delaware lawmakers prepare to return to session, they will address several pressing issues, including education funding, property reassessments, and rising health care costs. The outcomes of these discussions could have lasting impacts on the state’s educational landscape and the students who rely on it.