Virginia has been using the same funding formula for its public schools since it was first adopted back in the 70’s. Now, a bipartisan group of legislators is looking to update that formula, but it won't be easy... or quick.
Virginia’s constitution says the state must fund public schools through the Standards of Quality, or SOQ. That’s a formula that counts staff needed for each school division, then applying cost assumptions to estimate each division’s needs, then cross checking with a locality's fiscal capacity, or Local Composite Index, to afford their share versus the state.
Yes, it’s very complicated. It also makes up about 30% of Virginia's budget, about $27 billion annually.
According to a 2023 JLARC report, the current model has left school districts underfunded. Mark Gribbin is an analyst with JLARC. He described one of the existing issues again during Monday's meeting.
“School divisions employ 51% more people than the formula thinks are needed," Gribbin said, noting additional conversations reveled an even more contrasting statistic. "The difference between the SOQ calculations and our VA Educator Work Group's recommended was even larger at 90%."
He said this issue plagues every division and position type.
Gribbin also knocked the use of the Local Composite Index, saying changes in populations or an area's taxable income can cause dramatic changes in school funding; he used Richmond's decline as one such example.
Part of the meeting examined how other state’s fund K-12. A student funding-based model is the most common: a funding goal is set for each child and different inputs modify that amount to determine how much the state or locality has to pay.
"Student-based models jump straight to cost per student, greatly simplifying the funding calculations," Gribbin said. It also uses less complicated math meaning there's less room for error.
"Calculations are tied directly to prevailing costs," Gribbin said of student-based funding. "It's also easier to implement and measure progress towards long-term goals such as increasing the amount of funding per-pupil."
But looking at other states also showed funding formula changes don’t happen quickly. Rhode Island, for example, took about a decade.
In the short term, Committee Chair and Hampton Senator Mamie Locke said she’ll look to roll back some 2008-recession era changes which put caps on how much support staff a school district could hire.
“We’re not in a recession; why can’t we go ahead and remove that cap?” she told Radio IQ.
Fairfax Delegate David Bulova was also interested in some short-term changes.
"We ought to be making some key investments in 2025 to show this is more than several years of policy debate," he said.
Both Democrats and Republicans appeared open to changes as long as it didn’t harm their districts.
Botetourt Delegate Terry Austin, a Republican, was among those hopefuls.
“We’ve got to protect the vulnerable school systems who are challenged today, as well as those in the more affluent parts of the Commonwealth,” Austin said before noting how hard it to adjust a system that's constitutionally prescribed. "It's extremely challenging, but it's necessary."
Equity in funding across the state was also a concern for Fairfax Senator Jennifer Boysko.
"How do students in Fairfax County get equalized with those in say, Lee County?" she asked Gribbin.
The analyst said using the student-based funding model would include an economy of scale adjustment — reflecting small counties like Lee County — while a Fairfax student would get a cost-of-labor adjustment.
Still, some were worried the legislature may fail to deliver on that promise of equity.
Rockingham County Senator Mark Obenshain joked that he has no history on education committees, so he was surprised to serve on the K-12 funding committee this year: "I come as a blank slate."
But he also wanted to make sure legislators weren't "throwing out the baby with the bathwater" when it came to funding formula changes.
"The regional funding of education, and some localities paying more than others is how we remain a world class Commonwealth for education," he said. "That's in peril here."
But Levi Goren, an analyst with the Commonwealth Institute, said the formula change would be more about making the funding process less complicated.
"It's very complex what we're doing now," they said of the current funding system. "If we move to a student-based formula it would be much simpler to calculate and explain."
As for how the new formula will actually manifest, Locke said it could come as several bills or budget amendments, and it may take many years to complete.
"The bottom line is our kids and what we can do for them," Locke said. "What are we doing and how can we do it better?"
Locke also promised statewide public comment sessions once the formula debate heats up, so keep an eye out for those in the coming months… or years.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
