Postsecondary & Workforce Readiness Programs

Joint Budget Committee. The bill creates a postsecondary and workforce readiness funding model that includes 3 types of funding: Start-up funding, innovation grant funding, and sustain funding. The state board of education (state board) is authorized to adopt rules concerning these funding sources.

For the 2025-26 budget year through the 2027-28 budget year, the department of education (department) will determine each local education provider's start-up funding, which is used for eligible expenses that are associated with developing and implementing a postsecondary and workforce readiness program. Start-up funding gradually phases out and repeals after the 2027-28 budget year.

Beginning in the 2028-29 budget year, innovation grant funding is for eligible expenses that are associated with developing and implementing a postsecondary and workforce readiness program. Local education providers that are required to adopt a priority improvement plan or a turnaround plan, or authorize schools that are required to adopt a priority improvement plan or turnaround plan, for the current or prior budget year and demonstrate, or authorize a school that demonstrates, a low level of attainment on the postsecondary workforce readiness indicator for the prior school year are eligible for innovation grant funding.

Sustain funding is used to reimburse local education providers' expenses for students who, in the preceding budget year, successfully satisfied postsecondary credit, industry-recognized credential, or work-based learning requirements. For the 2026-27 budget year, of total sustain funding, a certain percentage is for reimbursing postsecondary credit attainment, reimbursing industry-recognized credentials, and reimbursing work-based learning. For the 2027-28 budget year, and budget years thereafter, the state board may adjust the percentages for these categories.

The bill repeals the accelerating students through concurrent enrollment program and career development success program after the 2025-26 budget year. Upon passage, the bill repeals the:

• Concurrent enrollment expansion and innovation grant program; and
• John W. Buckner automatic enrollment in advanced courses grant program.

The bill makes conforming amendments necessary to reflect these changes.

The bill requires the department to convene a working group that includes educators to report its findings and recommendations concerning the effectiveness of the teacher retention and preparation program and the pathways in technology early college high schools.

(Note: This summary applies to this bill as introduced.)