SB 437 — Fair State Aid Formula Act of 2026
Last action — To Finance
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1Introduced
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2In Committee
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3Passed Senate
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4Passed House of Delegates
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5To Executive
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6Enacted
This bill died with 2026 Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Summary
Fair State Aid Formula Act of 2026
Bill Text
What changed in the latest version
251 added · 104 removedPlain-language change summary
The updated version of Bill SB 437 adds provisions to increase funding for special education students in West Virginia public schools. Specifically, it establishes extra financial support based on the needs of these students while ensuring that this funding is used solely for direct educational purposes and monitored by the West Virginia Board of Education. Additionally, the bill temporarily lifts penalties on school districts regarding staffing ratios for the 2026-2027 school year, which is significant for maintaining flexibility during the transition to the enhanced funding model. These changes aim to improve educational resources for special needs students and ensure that funds are used effectively.
CS for SB 437 WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 437 NOTE By SenatorSenators DeedsDeeds, [IntroducedMorris, Januaryand 16,Hamilton 2026;[Reported February 13, 2026, from the Committee on Education] CS for SB 437 A BILL to amend and reenact §18-9A-2 and §18-9A-19 of the Code of West Virginia, 1931, as amended, relating to public school district funding;
referredadding additional weighting for special education students for purposes of determining each county school district's net enrollment used to calculate the Committeecounty's onbasic Education;foundation program;
andrequiring thencalculations of the additional funding due to the Committeeadditional onweighting Finance]for Intr.special education students to be made after all other calculations under the definition of "net enrollment" are made;
SBproviding 437that 2026R2004block Agrant BILLprovisions applicable to repealmost §18-9A-1,state §18-9A-2,aid §18-9A-3,do §18-9A-4,not §18-9A-5,apply §18-9A-6,to §18-9A-7,funds §18-generated 9A-8,by and §18-9A-9 of the Codeadditional ofweighting Westfor Virginia,special 1931,education asstudents; amended;
andlimiting toadditional amendexpenditures theof codefunding generated by addingthe aadditional newweighting article,for designatedspecial §18-9H-1,education §18-9H-1a,students §18-9H-2,to §18-9H-3,only §18-being 9H-4,spent §18-9H-5,on §18-9H-6,direct §18-9H-7,instruction §18-9H-8of andspecial §18-9H-9,education relatingstudents toand establishingprohibiting theexpenditures Fairon Statefacilities, Aidadministration, Formulaor Acttraining; of 2026;
providingrequiring anWest equitableVirginia methodBoard of distributingEducation stateto aidmonitor the expenditures to countyensure boardsthe offunds education;are spent only for allowable purposes;
recognizingand providing that a school district cannot be penalized for the additional2026- costs2027 associatedschool withyear rural,only small,for andnot high-needmeeting schools;the applicable minimum ratio of professional instructional personnel per state aid-funded professional educators, or the number employed, whichever is less.
and promoting fairness, transparency, and adequacy in education funding.
§18-9A-1.§18-9A-2.
Legislative findings;
public school support plan.
[Repealed.] §18-9A-2.
[Repealed.]For §18-9A-3.the purpose of this article:
Total(a) state“County basicboard” foundationor program.“board” means a county board of education.
[Repealed.](b) §18-9A-4.“High-density county” means a county whose ratio of net enrollment, excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(6) of this code, of the definition of “net enrollment”, to the square miles of the county is equal to or greater than 20.
Foundation(c) allowance"Level I special education students" are primarily served in general education classrooms with academic and/or behavioral support from special education teachers or 1 CS for professionalSB educators.437 instructional staff.
[Repealed.]These §18-9A-5.students require adaptation to content, methodology, or delivery of instruction to access the general education curriculum.
FoundationLevel allowanceI forstudents servicemay personnel.require additional related services or assistive technology to access the general curriculum.
[Repealed.](d) §18-9A-6."Level II special education students" may engage in general education settings with significant one-on-one or small group support.
FoundationThese allowancestudents forrequire fixedintensive charges.and explicit instruction to integrate academic and functional skills and may require a wide range of related services and support to make progress.
[Repealed.]Assistive §18-9A-7.technology may also be required for students to access the general education curriculum and communicate with some adult support.
Foundation(e) allowance"Level forIII transportationspecial cost.education students" require close and significant adult supervision to safely and effectively access general education settings.
[Repealed.]These §18-9A-8.students require extensive instruction and adult support to access the general education curriculum and extensive related services and support are needed to address complex needs of the students.
FoundationThey allowancemay foroften professionalrely studenton supportassistive services.technology to access the general education curriculum, communicate, and acquire daily living skills with significant adult support.
[Repealed.](f) Intr.“Levies for general current expense purposes” means 85 percent of the levy rate for county boards of education calculated or set by the Legislature pursuant to §11-8-6f of this code.
SB(g) 2026R2004“Low-density §18-9A-9.county” means a county whose ratio of net enrollment, excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(6) of this code, of the definition of “net enrollment”, to the square miles of the county is equal to or greater than five but less than 10.
Foundation(h) allowance“Medium-density forcounty” othermeans currenta expensecounty andwhose substituteratio employeesof andnet facultyenrollment, senates.excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(6) of this code, of the definition of “net enrollment”, to the square miles of the county is equal to or greater than 10 but less than 20.
[Repealed.](i) ARTICLE“Net 9H.enrollment” means the number of pupils enrolled in special education programs, kindergarten programs, and grades one to 12, inclusive, of the public schools of the county.
FAIRNet STATEenrollment AIDfurther FORMULAshall ACTinclude: OF 2026.
§18-9H-1.CS for SB 437 (1) Adults enrolled in vocational programs:
ShortProvided, title.That net enrollment includes no more than 2,500 of those adults counted on the basis of full-time equivalency and apportioned annually to each county to support Advanced Career Education programs, as provided in §18-2E- 11 of this code, in proportion to the adults participating in vocational programs counted on the basis of full-time equivalency: Provided further, That beginning with the 2021 fiscal year and every year thereafter, a career technical education center may only receive the funding for enrollment as authorized by this paragraph if the center has satisfied the requirements of §18-2E-11 of this code;
This(2) articleStudents mayenrolled bein citedearly childhood education programs as theprovided "Fairin §18-5-44 of Statethis Aidcode, Formulacounted Acton the basis of 2026."full-time §18-9H-1a.equivalency;
Purpose.(3) Additional weighting for special education students as follows:
The(A) LegislatureOne-tenth herebyof declaresa thatpupil allshall childrenbe inadded Westfor Virginiaeach arelevel entitledone tospecial equitableeducation educationalstudent; opportunities.
It(B) isTwo-tenths theof intenta ofpupil thisshall articlebe to:added for each level two special education student;
(1)and Establish(C) aThree-tenths fundingof systema thatpupil recognizesshall differencesbe inadded studentfor needseach andlevel localthree fiscalspecial capacity;education student;
(2)(D) ProvideCalculations adequateof supportthe foradditional ruralfunding andgenerated isolatedunder countiesthis wheresubdivision educationalshall costsbe made after all other calculations set forth in this subsection are higher;made;
(3)(E) PromoteThe transparency,provisions accountability,in §18-9A-19 providing that each county board shall receive its allocated state aid share in the form of a block grant and stabilitythat these funds distributed in fundingthe allocations;form of a block grant are exempt from expenditure requirements and limitations contained in this article do not apply to the additional funds generated by this subdivision;
(F) The additional funding generated by this subdivision may only be spent on direct instruction of special education students and (4)may Narrownot disparitiesbe inspent opportunityon amongfacilities, counties.administration, or training.
§18-9H-2.The state board shall monitor the expenditures made using the funds generated under this subdivision to ensure these funds are spent only in accordance with this paragraph;
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Definitions.and (G) For the school year 2026-2027 only, a county school district may not be penalized for not meeting the applicable minimum ratio required by §18-9A-4(b).
AsCS usedfor SB 437 (4) A pupil may not be counted more than once by reason of transfer within the county or from another county within the state, and a pupil may not be counted who attends school in this article:state from another state;
(1)(5) "BaseThe per-pupilenrollment amount"shall meansbe modified to the statewideequivalent averageof costthe toinstructional provideterm coreand educationalin servicesaccordance perwith student.the eligibility requirements and rules established by the state board;
(2)and Weighted(6) pupil"For meansthe apurposes studentof assigneddetermining anthe additionalcounty’s weightingbasic factorfoundation program only, for any county whose net enrollment as determined under §18-all 9H-4other provisions of this code.definition except subdivision (3) of this subsection is less than 1,400, the net enrollment of the county shall be increased by an amount to be determined in accordance with the following:
(3)(A) "LocalDivide revenuethe capacity"state’s meanslowest thecounty totalstudent estimatedpopulation revenuedensity aby countythe maycounty’s generateactual forstudent publicpopulation education.density;
(4)(B) "RuralMultiply isolationthe factor"amount meansderived afrom costthe adjustmentcalculation appliedin §18-9A-2(i)(6)(A) toof countiesthis thatcode meetby the criteriadifference inbetween §18-9H-51,400 ofand thisthe code.county’s actual net enrollment;
(5)(C) "StudentAdd needsthe index"amount meansderived afrom compositethe indicatorcalculation includingin theparagraph share(B) of low-incomethis Intr.subdivision to the county’s actual net enrollment and increase that total amount by 10 percent;
SBand 437(D) 2026R2004If students,the Englishnet learners,enrollment andas specialdetermined educationunder students.this subdivision is greater than 1,400, the calculated net enrollment shall be reduced to 1,400;
§18-9H-3.and (E) During the 2008-2009 interim period and every three interim periods thereafter, the Legislative Oversight Commission on Education Accountability shall review this subdivision to determine whether these provisions properly address the needs of counties with low enrollment and a sparse population density.
General(j) state“Professional aideducator” formula.shall be synonymous with and shall have the same meaning as “teacher” as defined in §18-1-1 of this code, and includes technology integration specialists.
The(k) State“Professional Aidinstructional Allocationpersonnel” (SAA)means fora eachprofessional countyeducator boardwhose regular duty is as that of educationa shallclassroom beteacher, determinedlibrarian, asattendance follows:director, or school psychologist.
SAAA =professional (Baseeducator Per-Pupilhaving Amountboth ×instructional Weightedand Enrollment)administrative –or (Localother Revenueduties Capacityshall ×be 0.9)included +CS Equityfor AdjustmentSB +437 Ruralas Isolationprofessional Factor.instructional personnel for that ratio of the school day for which he or she is assigned and serves on a regular full-time basis in appropriate instruction, library, attendance, or psychologist duties.
§18-9H-4.(l) “Professional salaries” means the state legally mandated salaries of the professional educators as provided in §18A-4-1 et seq. of this code.
Student(m) weighting“Professional factors.student support personnel” means a “teacher” as defined in §18-1-1 of this code who is assigned and serves on a regular full-time basis as a counselor or as a school nurse with a bachelor’s degree and who is licensed by the West Virginia Board of Examiners for Registered Professional Nurses.
TheProfessional following student weightingsupport factorspersonnel shall apply:also include professional personnel providing direct social and emotional support services to students, as well as professional personnel addressing chronic absenteeism.
GeneralFor educationall studentpurposes –except 1.00for Low-incomethe –determination +0.30of Specialthe educationallowance –for +0.80professional Englisheducators languagepursuant learnerto §18-9A-4 –of +0.40this Careercode, andprofessional technicalstudent educationsupport –personnel +0.15are At-riskprofessional earlyeducators. learner (Pre-K–3) – +0.20 Rural small-school adjustment – +0.10 to +0.25 §18-9H-5.
Rural(n) isolation“Service andpersonnel” small-schoolmeans adjustment.all personnel as provided in §18A-4-8 of this code.
(a)For Countiesthe meetingpurpose atof leastcomputations twounder this article of ratios of service personnel to net enrollment, a service employee shall be counted as that number found by dividing his or her number of employment days in a fiscal year by 200: Provided, That the followingcomputation criteriafor qualifyany service person employed for thethree Ruraland Isolationone-half Factorhours (RIF):or fewer per day as provided in §18A-4-8a of this code shall be calculated as one-half an employment day.
(1)(o) Population“Service densitypersonnel <50salaries” persons/sqmeans mithe (2)state Averagelegally busmandated routesalaries >15for milesservice (3)personnel Enrollmentas belowprovided 2,000in §18A-4-8a of (4)this Fewercode. than three high schools (b) Eligible counties receive a supplemental $250–$600 per pupil adjustment based on transportation and staffing costs.
§18-9H-6.(p) “Sparse-density county” means a county whose ratio of net enrollment, excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(6) of this code, of the definition of “net enrollment”, to the square miles of the county is less than five.
Minimum(q) “State aid eligible personnel” means all professional educators and maximumservice aidpersonnel levels.employed by a county board in positions that are eligible to be funded under this article and whose CS for SB 437 salaries are not funded by a specific funding source such as a federal or state grant, donation, contribution, or other specific funding source not listed.
No(a) county(r) shall“State receiveboard” lessmeans than 90% of the statewideWest averageVirginia per-pupilBoard state aid, nor more than 115%, except where justified by §18-9H-5 of thisEducation. code.
Intr.(b) “County board” or “board” means a county board of education.
SB(c) 437“Professional 2026R2004salaries” §18-9H-7.means the state legally mandated salaries of the professional educators as provided in §18A-4-1 et seq. of this code.
Stabilization(d) “Professional educator” shall be synonymous with and transition.shall have the same meaning as “teacher” as defined in §18-1-1 of this code, and includes technology integration specialists.
No(e) county“Professional shallinstructional losepersonnel” moremeans thana 3%professional ofeducator totalwhose stateregular aidduty fromis theas precedingthat yearof duringa theclassroom firstteacher, threelibrarian, yearsattendance ofdirector, implementation.or school psychologist.
A Ruralprofessional Stabilityeducator Fundhaving isboth established,instructional fundedand fromadministrative generalor revenueother appropriationsduties shall be included as professional instructional personnel for that ratio of the school day for which he or she is assigned and excessserves severanceon taxa collections.regular full-time basis in appropriate instruction, library, attendance, or psychologist duties.
§18-9H-8.(f) “Professional student support personnel” means a “teacher” as defined in §18-1-1 of this code who is assigned and serves on a regular full-time basis as a counselor or as a school nurse with a bachelor’s degree and who is licensed by the West Virginia Board of Examiners for Registered Professional Nurses.
TransparencyProfessional student support personnel shall also include professional personnel providing direct social and reporting.emotional support services to students, as well as professional personnel addressing chronic absenteeism.
TheFor Departmentall ofpurposes Educationexcept shallfor publishthe andetermination annualof Statethe Aidallowance Equityfor Report,professional provideeducators apursuant publicto §18-9A-4 calculator,of andthis submitcode, biennialprofessional reportsstudent tosupport thepersonnel Legislativeare Oversightprofessional Commissioneducators. on Education Accountability.
§18-9H-9.(g) “Service personnel salaries” means the state legally mandated salaries for service personnel as provided in §18A-4-8a of this code.
Effective(h) date“Service andpersonnel” phase-in.means all personnel as provided in §18A-4-8 of this code.
ThisFor the purpose of computations under this article takesof effectratios Julyof 1,service 2026.personnel to net enrollment, a CS for SB 437 service employee shall be counted as that number found by dividing his or her number of employment days in a fiscal year by 200: Provided, That the computation for any service person employed for three and one-half hours or fewer per day as provided in §18A-4-8a of this code shall be calculated as one-half an employment day.
Implementation(i) shall“Net beenrollment” phasedmeans the number of pupils enrolled in overspecial threeeducation fiscalprograms, yearskindergarten (FY2026–FY2028).programs, and grades one to 12, inclusive, of the public schools of the county.
NoNet countyenrollment further shall receiveinclude: less total state aid than in FY2025.
NOTE:(1) Adults enrolled in vocational programs:
TheProvided, purposeThat net enrollment includes no more than 2,500 of thisthose billadults iscounted on the basis of full-time equivalency and apportioned annually to establisheach county to support Advanced Career Education programs, as provided in §18-2E- 11 of this code, in proportion to the Fairadults Stateparticipating Aidin Formulavocational Actprograms counted on the basis of 2026.full-time equivalency: Provided further, That beginning with the 2021 fiscal year and every year thereafter, a career technical education center may only receive the funding for enrollment as authorized by this paragraph if the center has satisfied the requirements of §18-2E-11 of this code;
The(2) billStudents providesenrolled anin equitableearly methodchildhood ofeducation distributingprograms stateas aidprovided toin §18-5-44 of countythis boardscode, counted on the basis of education.full-time equivalency;
The(3) billA recognizespupil may not be counted more than once by reason of transfer within the additionalcounty costsor associatedfrom withanother rural,county small,within the state, and high-needa schools.pupil may not be counted who attends school in this state from another state;
Finally,(4) The enrollment shall be modified to the billequivalent promotesof fairness,the transparency,instructional term and adequacy in educationaccordance funding.with the eligibility requirements and rules established by the state board;
Strike-throughsand indicate(5) languageFor thatthe wouldpurposes beof strickendetermining fromthe acounty’s headingbasic orfoundation program only, for any county whose net enrollment as determined under all other provisions of this definition is less than 1,400, the presentnet lawenrollment andof underscoringthe indicatescounty newshall languagebe thatincreased wouldby an amount to be added.determined in accordance with the following:
CS for SB 437 (A) Divide the state’s lowest county student population density by the county’s actual student population density;
(B) Multiply the amount derived from the calculation in §18-9A-2(i)(5)(A) of this code by the difference between 1,400 and the county’s actual net enrollment;
(C) Add the amount derived from the calculation in paragraph (B) of this subdivision to the county’s actual net enrollment and increase that total amount by 10 percent;
and (D) If the net enrollment as determined under this subdivision is greater than 1,400, the calculated net enrollment shall be reduced to 1,400;
and (E) During the 2008-2009 interim period and every three interim periods thereafter, the Legislative Oversight Commission on Education Accountability shall review this subdivision to determine whether these provisions properly address the needs of counties with low enrollment and a sparse population density.
(j) “Sparse-density county” means a county whose ratio of net enrollment, excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(5) of this code, of the definition of “net enrollment”, to the square miles of the county is less than five.
(k) “Low-density county” means a county whose ratio of net enrollment, excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(5) of this code, of the definition of “net enrollment”, to the square miles of the county is equal to or greater than five but less than 10.
(l) “Medium-density county” means a county whose ratio of net enrollment, excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(5) of this code, of the definition of “net enrollment”, to the square miles of the county is equal to or greater than 10 but less than 20.
(m) “High-density county” means a county whose ratio of net enrollment, excluding any increase in the net enrollment of counties, pursuant to §18-9A-2(i)(5) of this code, of the definition of “net enrollment”, to the square miles of the county is equal to or greater than 20.
(n) “Levies for general current expense purposes” means 85 percent of the levy rate for county boards of education calculated or set by the Legislature pursuant to §11-8-6f of this code.
CS for SB 437 (o) (s) “Technology integration specialist” means a professional educator who has expertise in the technology field and is assigned as a resource teacher to provide information and guidance to classroom teachers on the integration of technology into the curriculum.
(p) “State aid eligible personnel” means all professional educators and service personnel employed by a county board in positions that are eligible to be funded under this article and whose salaries are not funded by a specific funding source such as a federal or state grant, donation, contribution, or other specific funding source not listed.
(q) (t) The amendments to this section during the 2019 First Extraordinary 2026 Regular Session of the Legislature shall be effective for the 2019-2020 2026-2027 funding year, and the provisions of this section existing immediately prior to the 2019 First Extraordinary 2026 Regular Session of the Legislature remain in effect for funding years prior to the 2019-2020 2026-2027 funding year.
§18-9A-19.
State Aid Block Grant Funding.
Beginning for the school year 2019-2020 and thereafter, each county board shall receive its allocated state aid share of the county’s basic foundation program as calculated pursuant to this article in the form of block grants.
Notwithstanding other provisions within this article, all funds distributed to a county board in a block grant shall be exempt from expenditure requirements and limitations contained within this article and a recipient county board may expend such funds in any authorized and allowable manner the county board deems appropriate, subject to the following:
Provided, That all (a) All expenditures shall be consistent with the provisions of all other articles of this code;
and (b) Additional funds generated by the additional weighting for special education students pursuant to §18-9A-2(i)(3) may only be spent in accordance with that subdivision.
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View plain text versions (2)
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Action History
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Filed for introduction
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To Education then Finance
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Introduced in Senate
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To Education
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Committee substitute reported, but first to Finance
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To Finance
Sponsors
- Morris · Cosponsor
- Barnhart · Cosponsor
- Tarr · Cosponsor
- Vince Deeds · Primary
- Bill Hamilton · Cosponsor
- Joey Garcia · Cosponsor
- Amy Grady · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 6 co-sponsors · 145 not signed on
Sponsors (1)
- Vince Deeds Republican
Co-sponsors (6)
- Morris
- Barnhart
- Tarr
- Bill Hamilton Republican
- Joey Garcia Democrat
- Amy Grady Republican
Not signed on (145)
145 members have not signed on to this bill.
Show all 145 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does SB 437 do?
- Fair State Aid Formula Act of 2026
- Who sponsors SB 437?
- SB 437 is sponsored by Morris, Barnhart, Tarr, Vince Deeds (Republican), Bill Hamilton (Republican), Joey Garcia (Democrat), and Amy Grady (Republican).
- What is the current status of SB 437?
- This bill died with 2026 Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 437?
- Track SB 437 free on One Click Politics — get push/email alerts when it moves.
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