As the General Assembly launches a new study of weighted student funding (WSF), the Public School Forum is preparing to release findings from more than two years of research and comprehensive stakeholder engagement. The report offers several key considerations for policymakers as North Carolina evaluates whether and how to reform its school funding system.
What is WSF?
Weighted student funding is an approach to school finance that allocates dollars to districts based on student population and need. A WSF formula provides a base amount of funding to all students with additional funding stacked on top for defined characteristics through both student and community weights.
For example, a student who is economically disadvantaged would receive the base amount plus additional funding for their socioeconomic status. The additional weighted funding reflects the increased costs associated with educating students with additional needs, whether that be serving students who are economically disadvantaged, have a disability, are English language learners, or require other services.
Key Takeaways from the Study Group’s WSF Modeling
Through scenario model comparisons, the study group developed a number of key takeaways for consideration of a weighted student funding formula in North Carolina:
- Significant investment will be required to transition to WSF. Keeping the same amount of funding but changing how it is distributed would lead most traditional public school districts to lose funding. At a time when North Carolina ranks last in the nation for funding effort, stakeholders agreed that improving the funding formula cannot replace the need for adequate overall investment.
- Districts that would lose funding under a revenue-neutral model tend to be smaller in size and often in lower-wealth areas. Modeling consistently identified Hyde and Tyrrell counties as outliers because of their very small enrollment and comparatively high per-pupil funding. The study group reached strong consensus that these districts would likely require a hold harmless provision or separate allocation under any new funding model.
- Higher-investment models offer greater equity and opportunity for district innovation. By providing additional resources, these models would allow districts to better meet the needs of students while giving local leaders greater flexibility to invest in strategies that reflect their communities.
Policy Considerations
While the study group does not recommend a specific weighted student funding formula, the report outlines policy recommendations and identifies several issues that require further study before North Carolina considers implementation. Questions surrounding position allotments, adequacy, implementation strategies, and unfunded state mandates remain central to the conversation.
A weighted student funding formula can improve how education dollars are distributed, but it cannot solve North Carolina’s longstanding school funding challenges on its own. Both the amount invested in public education and the way those dollars are allocated will ultimately determine whether a new funding model achieves its intended goals. As state officials continue the conversation around a new funding formula, the Forum and study group participants remain committed to supporting those discussions through stakeholder engagement, scenario modeling, and ongoing policy analysis.
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