Proposal would fund Wyoming schools using enrollment and cost estimates

Wyoming would calculate district funding using enrollment, staffing estimates, and education costs from the 2025 study. The funding formula would cover Wyoming public school districts, with estimates for teaching, student support, and school operations, adjusted for regional costs. Estimated salaries would guide funding calculations. Districts could use their own salary schedules, except for the superintendent compensation cap. Schools with separate administrations sharing one building would count as one school for funding, unless a law expressly allows separate allocations. If district enrollment fell more than 5% in the preceding school year, the calculation would use 95% of each school's enrollment from the year before that. Otherwise, it would use the immediately preceding school year's enrollment. The reserve calculation would count unrestricted balances above 30% of specified school funding through the fiscal year ending June 30, 2028, and above 20% afterward. Restricted building repair accounts and specified tax settlements would be excluded; excess balances would count toward state funding offsets or repayment calculations. Half of realized investment earnings would also count as district revenue for state funding calculations. Most provisions would apply July 1, 2026. Several counselor, nurse, and student support calculations would begin in school year 2027–2028. Inflation adjustments would start after the model's second school year, when provided by the legislature, at least once every two school years thereafter.

School districts would follow limits on instructional spending, building spending, and superintendent compensation. The instruction-only rule would cover funding calculated for teachers and related instructional staff. A superintendent's total compensation could not exceed 2⅓ times the district's average total teacher compensation. Districts could hire more or fewer instructional workers than the formula funds, hire classroom aides, or contract for teaching services. Technology, equipment, and instructional materials would not qualify as spending from the restricted instructional staffing money. School foundation money could not pay for major building repairs, replacements, or building projects, including when moved into a special reserve fund. The spending rules would apply July 1, 2026. The compensation cap would cover superintendent contracts entered into, renewed, or amended on or after that date.

School districts and boards providing shared educational services would participate in the state employees' and officials' group insurance plan. The requirement would cover Wyoming districts and boards of cooperative educational services. Retirees continuously covered before their employer joined would receive coverage through the state plan. Eligible employees could choose whether to enroll. Eligibility would exclude intermittent, irregular, and less than halftime workers, along with specified contract workers. Districts would receive employer-contribution reimbursements only for employees choosing coverage and only for the share of their salaries paid through the school funding formula, transportation funding, or special education funding. Up to $3,026,587 from the separate employee health insurance account would support implementation through June 30, 2028, with up to 11 permanent full-time jobs authorized. The governor could borrow up to $80 million from the legislative stabilization reserve account for insurance cash needs, without interest. Premiums would support full repayment in not less than 60 months from the first borrowing. Required participation would begin no later than July 1, 2027, and district reimbursements in school year 2027–2028. Implementation funding and borrowing authority would begin upon enactment; borrowing authority would expire June 30, 2028.

The Wyoming Department of Education would reimburse approved vehicle purchases, retirement costs, and special education placements, and provide career training equipment funding. Vehicle payments would cover district vehicles used mainly for school transportation and activities. Special education payments would include placements outside the district. Vehicle purchase reimbursements would use the department's base price and follow state purchasing rules. The proposal would set aside $20,565,955 from the public school foundation program account for remaining balances on previously authorized vehicle reimbursements. Retirement reimbursements would use the state employee contribution rate and cover only the share of salaries paid through the school funding formula, transportation funding, or special education funding. Career and technical education funding would provide $14,336 per full-time equivalent teacher, or $28,672 for schools with fewer than two such teachers. Legislative cost adjustments could apply. Districts could spend this money only on program supplies, materials, equipment, and equipment repairs. Transportation and special education calculations would exclude retirement costs handled under the separate retirement reimbursement rule and, beginning in 2027–2028, employer insurance contributions handled under the separate insurance rule. These provisions would generally apply July 1, 2026. Vehicle payments would be due within three months after the purchase month. Outside-district placements would be reimbursed quarterly in the year costs occur. The vehicle balance allocation would end June 30, 2028.

The Wyoming Department of Education would distribute mental health grants, while a legislative committee would study school funding needs. Grants would support Wyoming public school students. The study would examine mental health supports, school safety, meals, and technology, including possible responses to court directives. The $5 million would come from the public school foundation program account and supplement regular funding for student mental health needs. Grant shares would depend on enrollment. Districts receiving grants would report spending, students served, and service results. The $500,000 would come from the general fund and cover the study and committee expenses through June 30, 2028. Study money could not be used for other purposes; unused, uncommitted money would return as required by law. The mental health grant funding would not be included in the Department of Education's standard budget for the next two-year budget period. These sections would take effect upon enactment. Grants would cover school year 2026–2027. The study committee would remain in place until December 31, 2026.