This bill mandates that school districts with more than two thousand students allocate at least ninety percent of the funding generated through the state equalization guarantee distribution directly to the public schools within their district. If a district fails to meet this allocation requirement, it will face restrictions on its unrestricted operational cash balance, with specific limits based on the district's program costs. Additionally, the bill requires school districts and charter schools to develop evidence-based spending plans aimed at improving academic outcomes for at-risk student populations, including Native American, low-income, English learner, and special education students.

Furthermore, the bill allows the Public Education Department to intervene in schools that do not show adequate progress in improving outcomes for these at-risk groups. It establishes a framework for tracking and reporting academic outcomes tied to funding, and if a school fails to make adequate progress for three consecutive years, the department will contract with experienced educators to revamp the school's programming. The bill also includes amendments to financial reporting requirements, ensuring that school districts with larger student populations report on how they allocate state funding to enhance academic outcomes for at-risk students. The provisions of this act will apply to the 2026-2027 through 2030-2031 school years, with a delayed repeal of certain sections effective July 1, 2031.

Statutes affected:
introduced version: 22-8-13.2