After 17 years without a systematic approach to funding schools based on student needs, the General Assembly decided in 2008 to develop a fair, equitable, and adequate formula to provide the funding necessary for all students to receive a quality education. That new approach was used for the first time in 2008-09. At that time, the legislature also approved a six-year plan to fully-fund the new education formula with an additional $2.6 billion.
Following an initial investment of state funds in 2008-09, the legislature has used federal stimulus funds to provide overall increases while decreasing the state’s own commitment of money to support basic education. Since 2007-08, the state contribution to basic education funding has decreased by $217 million or 4.4 percent. Since the first year of the formula (2008-09), it has decreased by 9.4 percent.
With the addition of federal Education Jobs funds this spring, as requested by the Corbett Administration, the state’s basic education funding to its school districts is now dependent on $1.043 billion in federal funds (including the federal stimulus program and the education jobs program). None of these funds will be available after June 30. If the General Assembly does not replace these funds in the 2011-12 state budget, school districts will face a billion dollar cut in funding.