The budget includes approximately $1B in new K-12 education funding.
HARRISBURG, Pa. — The 2025-26 Pennsylvania state budget signed by Governor Josh Shapiro on Wednesday included approximately $1 billion in new K-12 education funding, along with new reforms for cyber charter schools and how they are funded.
The budget includes $565 million for the state’s adequacy funding and tax equity payments through “Ready to Learn” block grants, fully funding the constitutionally required adequacy mandate for the second year in a row.
The budget also enacts the most significant reforms to date on payments to cyber charter schools throughout the Commonwealth, saving school districts $178 million.
The current funding formula for cyber charter schools is based on how much a regular school district budgets to educate each student.
The tuition is different for each student based on what public school district they live in, despite there being no difference in the education students from any district receive in an online-based school. The reforms are expected to mandate more even payments.
Cyber charter schools opposed the change, sending a letter to lawmakers Wednesday saying that the loss in funding would lead to two of the 14 cyber charter schools in the state would close if the budget were to pass.
An audit earlier this year by Auditor General Tim DeFoor found that surpluses for cyber charter schools had skyrocketed due to the uneven funding, and that schools had spent their money on items he believes are not necessary to the online education of students, including the renovation of 21 buildings and the purchasing of gift cards.
Gov. Shapiro said in his budget speech that the reform is based on fairness for all students and districts.
“If parents want to send their children to a cyber school, that’s fine,” Shapiro said. “But we shouldn’t be overfunding them at the expense of our public schools.”
Harrisburg School District Chief Financial Officer Dr. Marcia Stokes says she is relieved that money can finally flow to the district, with the district’s funding growing by 11.6% for the district in the new budget.
“It is going to help us build up our capital reserve fund to address those capital needs — expand after-school programming for our students, ensuring that the teachers that we have hired this year can remain and ensuring that we can plan for the future,” Stokes said.
Several local school districts saw significant increases in overall net funding.
Susquehanna Township School District saw a 23.2% increase, the largest in Pennsylvania for a K-12 district.
Cumberland Valley received a 20.4% increase, Palmyra received a 16.8% increase and Central Dauphin received a 17.8% increase among many others with double digit increases.
