Substitute House Bill No. 5212 (sHB5212 File No. 598) introduces significant changes to the funding model for Connecticut's educational programs, including interdistrict magnet schools, regional agricultural science and technology centers (vo-ag centers), the Open Choice enrollment program, and state charter schools. The bill eliminates existing grants for these programs starting in fiscal year (FY) 2025 for magnet schools and vo-ag centers, and FY 2026 for the Open Choice program, replacing them with new grants under the choice program. The new grants are partially phased in for FY 2025 and fully implemented from FY 2026. The bill also prohibits magnet schools and vo-ag centers from charging tuition to towns sending students to them from FY 2026, maintains a cap on tuition for FY 2025, and requires the State Department of Education (SDE) to calculate and provide grant estimates to relevant operators or towns annually. Most provisions are effective from July 1, 2024, with some effective upon passage.

The bill also revises the grant formulas for these educational programs, applying different weights to students based on factors such as eligibility for Free and Reduced Price Meals (FRPM) and English language learner status. It defines new terms for the grants, such as "foundation" amount, and specifies grant amounts for FY 2025 and FY 2026 for magnets operated by a school board and vo-ag centers. The bill includes a "sending town adjustment factor" to determine the financial contributions from towns sending students to choice programs. Additionally, the bill outlines changes to the tuition policies for magnet schools, including a prohibition on charging tuition from FY 2026, with certain exceptions, and requires annual reporting on tuition charged. The bill also ensures that magnet school students are counted in their town of residence for ECS grants and mandates full funding of the per-student state charter school grant from FY 2026, with a cost-of-living adjustment starting in FY 2027.