(1) For the 2026-27 budget
year, and each budget year thereafter, the department shall use this section to
determine each local education provider's postsecondary and workforce readiness
sustain funding. To the extent possible, the department shall use existing data and
each local education provider shall provide data to the department to inform the
department of each local education provider's sustain funding amount.
(2) (a) A local education provider is eligible to receive reimbursement for
students who, in the preceding budget year, successfully satisfied postsecondary
credit, received an industry-recognized credential, or satisfied work-based learning
requirements as specified by state board rule. A local education provider is eligible
to receive multiple reimbursements for one student. A local education provider is
eligible for reimbursement for students who are enrolled in a p-tech school or
participating in a TREP program.
(b) (I) For the 2026-27 budget year, the department shall divide the total
amount of sustain funding for reimbursement into the following categories:
(A) Twenty percent of the total amount of sustain funding for reimbursement
for postsecondary credit attainment;
(B) Forty percent of the total amount of sustain funding for reimbursement
for industry-recognized credentials earned;
(C) Thirty-five percent of the total amount of sustain funding for
reimbursement for work-based learning; and
(D) Five percent of the total amount of sustain funding to offset the direct
and indirect costs incurred in administering the sustain funding.
(II) Notwithstanding subsection (2)(b)(I) of this section, if money that is
allocated to a category is not expended because of insufficient demand, the money
may be reallocated to another category to satisfy that category's demand.
(III) This subsection (2)(b) is repealed, effective July 1, 2028.
(c) (I) For the 2027-28 budget year, and each budget year thereafter, the
state board shall determine the percentages of the total amount of sustain funding
for reimbursement assigned to the postsecondary credit attainment, industry-recognized credentials, and work-based learning categories; except that the five
percent of the total amount of sustain funding to offset the direct and indirect
costs incurred in administering the sustain funding must not be changed. The
percentages for each category are determined by state board rule.
(II) In determining the percentages of the total amount of sustain funding for
reimbursement assigned to each category pursuant to subsection (2)(c)(I) of this
section, the state board shall consider the availability of postsecondary and
workforce readiness opportunities offered by local education providers, student
participation, and evidence of student outcomes.
(III) Notwithstanding subsection (2)(c)(I) of this section, if money that is
allocated to a category is not expended because of insufficient demand, the money
may be reallocated to another category to satisfy that category's demand.
(d) A local education provider may receive funding from one or multiple
categories described in subsection (2)(b)(I) of this section in each budget year;
except that in a budget year when the general assembly does not appropriate a
sufficient amount to fully fund the distributions required pursuant to this section,
the department shall reduce the amount of each eligible local education provider's
distribution by a proportionate percentage of the amount required to fully fund the
distributions required pursuant to this section.
(3) (a) A local education provider shall use sustain funding for expenses that
are associated with maintaining and expanding its postsecondary and workforce
readiness program that aligns with the state's workforce demands or priorities.
Categories of eligible expenses include, but are not limited to:
(I) Program planning and design;
(II) Course materials, technology, and equipment;
(III) Professional development, certification, authorization, or licensure;
(IV) Contracting with an entity or hiring school staff to support the
development and implementation of a postsecondary and workforce readiness
program;
(V) Individual career and academic plan resources, as described in section
22-2-136, and supports, including academic and career advising and exploration;
(VI) Costs associated with concurrent enrollment; and
(VII) Wages for employed apprentices participating in registered
apprenticeships.
(b) Local education providers are encouraged to collaborate with each other
to maximize economies of scale and expand student access to a postsecondary and
workforce readiness program.
(4) The state board shall adopt rules governing:
(a) Additional eligibility requirements for a local education provider to
receive funding pursuant to this section, including criteria that constitute a
student's successful satisfaction of postsecondary credit, industry-recognized
credential, or work-based learning requirements. Eligibility requirements may vary
based on the type of local education provider.
(b) Categories of eligible expenses, and eligible expenses within the
categories;
(c) Reimbursement eligibility and rates, including limits on a local education
provider's annual total reimbursement and annual reimbursement from one or
multiple categories, based on local-education-provider-specific features or other
features;
(d) Requirements of a local education provider that receives funding
pursuant to this section; and
(e) Any other rules deemed necessary by the state board for the purposes of
this section.
(5) (a) A school district that authorizes a charter school shall forward to the
district charter school an amount equal to one hundred percent of the sustain
funding amount that the school district receives for a student who is enrolled in the
district charter school and who satisfies the criteria that constitute the student's
successful satisfaction of postsecondary credit, industry-recognized credential, or
work-based learning requirements.
(b) The state charter school institute shall forward to an institute charter
school an amount equal to one hundred percent of the sustain funding amount that
the state charter school institute receives for a student who is enrolled in the
institute charter school and who satisfies the criteria that constitute the student's
successful satisfaction of postsecondary credit, industry-recognized credential, or
work-based learning requirements.