Bill
HB 5453
HB 5453 shifts WV school funding to a base block grant starting 2029-30 ($6,100/student; charters $8,600) plus a new Supplemental School Aid Fund for special needs.
HB 5453 Summary — West Virginia 2026 Regular Session
Jurisdiction: West Virginia
Bill title: To modify the school aid funding formula
Overview
HB 5453 proposes a major revision to West Virginia’s school aid funding system. It introduces a new two-part framework (a base funding model and a supplemental/oversight structure) and outlines a transition timeline from the current formula to a block grant-based base funding and a dedicated Supplemental School Aid Fund for special needs and other needs. The bill emphasizes reporting and legislative oversight to monitor administration and prevent maladministration.
1) Purpose and intent
- Replace or supplement the current school aid funding formula with a revised method that stabilizes base funding and creates dedicated supplemental funding for special needs and other district needs.
- Ensure ongoing reporting and legislative oversight to ensure funds are used appropriately and efficiently.
- Phase in changes from 2026-2027 through 2029-2030, with a defined minimum enrollment floor for certain counties and a higher base for charter schools in the long term.
2) Key provisions and changes
A. Base funding
- 2026-2027 to 2028-2029: The current school funding aid formula remains in use.
- 2029-2030 and thereafter:
- County boards of education receive a block grant of $6,100 per enrolled student.
- Counties with fewer than 1,200 enrolled pupils are funded at the minimum level of 1,200 pupils for base calculations.
- Public charter schools are exempt from the 1,200-pupil minimum.
- Public charter schools' base funding increases to $8,600 per student starting in 2029-2030 and continuing thereafter.
- Note: The base funding structure is intended to consolidate and stabilize funding sources for districts and charters, with district-level enrollment driving the block grant total.
B. Supplemental funding for special needs (Tier II and Tier III)
- Effective 2029-2030, a new Supplemental School Aid Fund is created and funded by the Legislature.
- Allocation per pupil:
- Tier II special needs students: $3,050 each
- Tier III special needs students: $6,100 each
- Primary purpose: Benefit Tier II and Tier III students, with potential use for other purposes as described in subsection (c).
C. Additional supplemental funding (subsection c)
- Starting in 2029-2030, districts may request funding for special cases through the Supplemental School Aid Fund.
- Eligible uses include extraordinary expenses related to:
- Transportation
- Vocational and technical education centers
- Alternative learning centers
- Pilot programs
- Distribution is discretionary and depends on available funds and state decisions.
D. Application and distribution process (subsections e and f)
- Districts must submit written requests detailing the needs and basis for additional funding.
- The State Department of Education (SED) may allocate funds according to demonstrated needs and the classifications in subsection (c).
- LOCEA (Legislative Oversight Commission on Education Accountability) will review fund distributions at least annually; SED prepares the report.
E. Oversight and accountability (subsection g)
- Funds are generally at the district’s discretion but subject to legislative oversight.
- Maladministration defined: failures such as insufficient reserve balances, late or inaccurate financial reporting, or expenditures exceeding revenue without corrective action.
- The Legislature can restrict funds to districts with maladministration findings.
3) Who is affected
- County boards of education: transition from current formula to block grant funding starting 2029-2030; enrollment-based budgeting; minimum enrollment protection for counties under 1,200.
- Public charter schools: separate funding track; higher long-term base per pupil; not subject to the 1,200 minimum.
- Students with special needs (Tier II and Tier III): direct per-pupil supplemental amounts; focus of the new supplemental fund.
- School districts generally: potential access to additional funds for transportation, CTE centers, alternative learning centers, and pilot programs through the supplemental fund.
- State Department of Education and LOCEA: increased reporting and oversight responsibilities.
4) Timeline and procedural notes
- 2026-2027 to 2028-2029: Maintains current funding formula.
- 2029-2030: Implementation of base block grant ($6,100 per enrolled student) for counties; charter schools receive $8,600 per student; creation of Supplemental School Aid Fund (Tier II and III).
- 2029-2030 onward: Distribution of Tier II/III funds; potential discretionary funding for additional needs; annual LOCEA review of fund distributions.
- Public charter schools: continue funding under current formula in 2026-2029, then receive the new base funding terms starting 2029-2030, with the $8,600 per pupil rate.
Note: The bill includes typical transition language (strike-throughs and underlines indicate amendments) and has been advanced through multiple readings and committee actions, with Senate concurrence sought upon passage in the House.
Compiled from official sources — confirm details with the bill’s official record.
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