States frequently make changes to their K-12 funding formulas. We have identified 39 enacted bills in 2023 and 22 so far in 2024 that alter K-12 funding formulas in our State Education Policy Tracking tool. These changes are often relatively small tweaks to the existing structure such as salary increases or other inflationary growth.
However, in 2024, Colorado and Mississippi enacted significant K-12 funding reforms — joining other states that have done so in the past five years like Maryland, Massachusetts, Nevada and Tennessee. In both Colorado and Mississippi, the new formulas are student-based models, 
which allocate funds to districts based on each student’s unique learning needs.
These models have become increasingly attractive to lawmakers because they offer distinct advantages in terms of transparency, local autonomy and student equity.
Colorado enacted H.B. 1448, which creates a new school funding formula starting in the 2025-26 school year to be phased in over six years — although, if enacted, the governor’s budget proposal would extend the phase-in to a seventh year. This overhaul, years in the making, multiplies the base per student amount, currently set at $8,496 per student, with weights that direct additional resources to student groups and districts. For additional information, see the summary prepared by Colorado’s Legislative Council staff.
Colorado Formula Funding Weight Increases for Student Groups
- Students from low-income backgrounds: 25% or 32% (was 12%).
- English learners: 25% (was 8%).
- Students in special education classes: 25% (new).
- Locale factor: 2.5% - 25% (new).
- Cost of living: applied to full base amount (only applied to personnel costs).
Mississippi adopted H.B. 4130, which establishes the Mississippi Student Funding Formula starting in 2024-25 to replace their 27-year-old formula. The new formula sets the base amount of $6,695 per student, adjusts for inflation through 2028 and includes a three-year hold harmless policy for school districts. In addition, the state will shift from attendance to enrollment for counting students for funding purposes and update their counts of low-income students. For additional information, see the summary prepared by the Mississippi Department of Education.
Mississippi Student Funding Formula Funding Weight Increases for Student Groups
- Students from low-income backgrounds: 30% (was 5%) and adds concentration factor of 10% (new).
- English learners: 15% (new).
- Students in special education classes 60% - 130% (replaces resource-based approach).
- Career and technical education: 10% (new).
- Sparsity: 0-8% (new).
Other states have made major shifts in 2024 as well. Missouri enacted S.B. 727 that increases minimum teacher pay from $25,000 to $40,000, creates the Teacher Baseline Salary Grant fund and phases in a new student count method that incorporates both attendance and enrollment counts rather than just relying on attendance. Virginia passed S.B. 272 to differentiate support for English learner students based on English proficiency level by increasing staffing support for students with the greatest learning needs.
Replacing complex K-12 funding systems that impact so many diverse communities and have been refined over decades is not an easy undertaking. Colorado and Mississippi show that states can overcome these challenges and significant change can be achieved with leadership and community support.
