This bill amends the current law regarding the cost of providing an opportunity for an adequate education by changing the annual cost per pupil and the differentiated aid amounts for specific categories of students. The bill specifies that for the biennium beginning July 1, 2027, the annual cost per pupil will increase from $4,100 to $4,438. Additionally, the bill raises the differentiated aid for students eligible for free or reduced-price meals from $2,300 to $2,441, for English language learners from $800 to $866, and for students receiving special education services from $2,100 to $3,203.

The fiscal impact of this bill is significant, with an estimated increase in state education trust fund expenditures of approximately $27 million per year, which includes about $25 million for district adequacy and $1 million each for charter schools and education freedom accounts. The changes in per pupil adequacy rates will affect state aid to school districts and payments for charter schools and EFAs. The bill is set to take effect 60 days after its passage, with the intent that FY 2028 will be the first year of impact, aligning the effective date with the new funding calculations.

Statutes affected:
Introduced: 198:40-a
HB1826 text: 198:40-a