Delaware moves to revamp 1940s school funding formula, could cost up to $200 million in 2028

Delaware is moving to overhaul its 1940s-era public school funding system, with a legislative push set for next week and an initial price tag that could reach $200 million in fiscal year 2028 to launch the first phase. On Monday, the Public Education Funding Commission, chaired by Sen.

Laura Sturgeon, D-Brandywine Hundred, voted to approve making a new hybrid funding formula into law. Sturgeon and House Education Committee Chair Rep. Kim Williams, D-Stanton, are sponsoring two bills: one to revamp the formula and another to extend the commission’s work.

Supporters of the blended model say it would keep the unit-based foundation of Delaware’s current approach while simplifying how dollars are distributed and giving districts more flexibility in spending. The plan would add weighted funding for low-income students and multilingual learners in addition to existing weights for special education.

Those groups are currently supported through a separate pot of money known as Opportunity Funding. Preparing for implementation would cost $2.8 million in fiscal year 2027. The state will likely need to identify up to $200 million in fiscal year 2028 to realize phase one, according to officials.

Those figures will be updated before phase one begins and could increase or decrease. The funding is designed to hold all districts harmless during the transition, ensuring districts with fewer disadvantaged students do not lose money as the new formula takes effect.

Education Secretary Cindy Marten said during Monday’s meeting that Gov. Matt Meyer has committed to including the necessary money in his next recommended budget to improve academic outcomes for the state’s most disadvantaged students. In a statement issued after the commission’s vote, Meyer said fixing the system is critical to the success of all schools.

“For far too long, our students have been given a broken school funding formula that distributes resources unfairly,” he said, adding that his administration looks forward to working with the General Assembly to complete the effort. The push follows a 2018 lawsuit by education and civil rights advocates who alleged chronic underfunding of low-income students, multilingual learners and children with disabilities.

The case was settled in 2020. A report produced as part of that settlement found Delaware would need to add between $600 million and $1 billion to reach educational equity, a benchmark that suggests the $200 million contemplated for 2028 could face political scrutiny and may require additional dollars over several years.

Marten argued that a formula designed in the 1940s no longer meets today’s needs. “Delaware has the opportunity to take a major step toward a formula that’s built on a simple truth — where there’s greater need, there needs to be greater investment,” she said. Lawmakers plan to introduce the bills next week, with phase-one funding to be finalized after updated cost estimates are completed.