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The FY 2024-25 state budget that landed on Gov. Josh Shapiro’s desk on July 11 continues a multiyear trend of historic funding increases for K-12 public education.
In the aftermath of the Commonwealth Court’s February 2023 decision finding that Pennsylvania’s public school funding system is unconstitutional, these funding increases are even more critical, and elected officials have responded to PSEA’s repeated calls for decisive action to fix the broken system.
“There’s nothing more important than investing in Pennsylvania’s public school students and the educators and support professionals who teach and serve them every day,” said PSEA President Aaron Chapin. “This budget continues a series of historic funding increases, which we absolutely need to fix our unconstitutionally broken school funding system.”
The new state budget includes an $811 million increase in total basic education funding, a $100 million increase in special education, a $50 million increase in school mental health programs, and $100 million for school facilities repairs.
The budget’s basic education funding increase for school districts, the key source of state revenue for Pennsylvania’s 500 school districts, continues four years of historic increases. Since FY 2021-22, these cumulative increases have added a total of $2.4 billion to K-12 public schools.
Led by pro-public education legislators and two successive pro-public education governors, this multiyear project is a significant investment in the total funding increase that the Basic Education Funding Commission’s majority report determined that the state needs to direct to public schools in order to address the school funding system’s unconstitutional inequities.
PSEA has been at the forefront of advocacy efforts to encourage elected officials to take this seriously and make these investments.
“Increasing public school funding and fixing our broken funding system have been PSEA’s top priorities for years,” Chapin said. “This work is clearly paying off, and we have more work to do.”
The amount of money the state spends on public schools is critical, but the way state law distributes that money to school districts is just as important.
Using the Basic Education Funding Commission’s majority report as a guide, the state budget made adjustments to the formulas used to send state money to public schools, based on the amount of money school districts spend per student and their relative tax effort. These adjustments will improve the predictability and stability of the formula. In addition, the state budget includes $100 million to reimburse school districts for some of the tuition they pay to cyber charter schools.
The final budget also includes $25 million for the new Grow Pennsylvania Scholarship Grant Program, in-state tuition incentives through the Grow Pennsylvania Merit Scholarship Program, and $20 million for the new student teacher stipend program.
The Grow Pennsylvania Scholarship Grant Program will be administered by the Pennsylvania Higher Education Assistance Agency, beginning in 2024-25. Under the program, Pennsylvania students who are enrolled in approved courses of study, including education, will be eligible to receive a $5,000 grant in exchange for agreeing to work in Pennsylvania for 12 months for every year a student receives a grant.
It also established the Grow Pennsylvania Merit Scholarship Program, which will allow the Pennsylvania State System of Higher Education to charge the in-state tuition rate for first-time, freshmen, nonresident students who commit to work in Pennsylvania after graduation. Eligible nonresident students must be enrolled in an approved course of study, which includes education, and agree to work in Pennsylvania for 12 months for each academic year a student receives a scholarship.