(1) For the 2025-26 budget year through the 2027-28 budget year, the department shall use this section to determine each local education provider's postsecondary and workforce readiness start-up funding.
(2) (a) A local education provider's start-up funding is determined by a formula developed or adopted by the state board.
(b) The state board shall develop or adopt a formula to determine a local education provider's start-up funding. The purpose of the formula is to enhance equity in access to postsecondary and workforce readiness programs by allocating funds to local education providers whose characteristics are considered by the formula's factors and demonstrate the need for resources to achieve equity through developing and implementing postsecondary and workforce readiness programs. At a minimum, the formula must include factors that reflect the local education provider's:
(I) Participation in postsecondary and workforce readiness opportunities;
(II) Percentage of students who are enrolled in grades nine through twelve and are eligible for free or reduced-price lunch pursuant to the provisions of the federal Richard B. Russell National School Lunch Act, 42 U.S.C. sec. 1751 et seq.;
(III) Chronic absenteeism rate of students who are enrolled in grades nine through twelve;
(IV) High school graduation rate; and
(V) Dropout rate, excluding students who are or were enrolled in an alternative school.
(c) The state board shall establish a minimum number of students and a maximum number of students to be used as a part of the student count in determining start-up funding so that, notwithstanding the local education provider's actual student count used for purposes of determining start-up funding, a local education provider's student count is not less than the minimum number or more than the maximum number. The purpose of establishing a minimum number of students and a maximum number of students is to ensure that start-up funding is not disproportionately distributed.
(d) The data used for each factor of the formula must be the most recent data validated by the department.
(e) The formula may apply a different weight to each factor.
(f) The formula must apply a higher weight to previously low participation in postsecondary and workforce readiness opportunities.
(g) The department shall calculate and distribute the start-up funds determined pursuant to this section.
(3) (a) A local education provider shall use start-up funding for eligible expenses that are associated with developing and implementing a postsecondary and workforce readiness program that aligns with the state's workforce demands or priorities and supports students in successfully earning postsecondary credit or industry-recognized credentials, or successfully completing work-based learning requirements. 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; and
(VI) Costs associated with concurrent enrollment.
(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 start-up funding pursuant to this section. Eligibility requirements may vary based on the type of local education provider.
(b) The formula developed or adopted pursuant to subsection (2) of this section;
(c) Categories of eligible expenses and eligible expenses within the categories;
(d) Eligibility for, and distribution of, funding for eligible expenses within the categories described in subsection (3) of this section. Eligibility may require satisfaction of certain conditions. Eligibility and distribution rates may be categorized or limited based on local-education-provider-specific demographics or other features as specified by state board rule.
(e) Requirements of local education providers that receive funding pursuant to this section; and
(f) Any other rules deemed necessary by the state board for the purposes of this section.
(5) The department may not use more than five percent of the total amount of start-up funding in the 2026-27 budget year through the 2027-28 budget year to offset the direct and indirect costs incurred in administering start-up funding.
(6) This section is repealed, effective July 1, 2029.
Source: L. 2025: Entire part added, (SB 25-315), ch. 237, p. 1182, � 1, effective May 23.
22-54-204. John W. Buckner postsecondary and workforce readiness innovation grant program - creation - funding - rules. (1) Beginning in the 2028-29 budget year, the John W. Buckner postsecondary and workforce readiness innovation grant program is created in the department to provide grants to local education providers that:
(a) 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 a turnaround plan, for the current or prior school year; or
(b) Demonstrate, or authorize a school that demonstrates, a low level of attainment on the postsecondary and workforce readiness indicator for the prior school year.
(2) (a) The local education provider shall use innovation grant program funding for eligible expenses associated with developing and implementing a postsecondary and workforce readiness program that aligns with the state's workforce demands or priorities and supports students in successfully earning postsecondary credit or industry-recognized credentials, or successfully completing work-based learning requirements. 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; and
(VI) Costs associated with concurrent enrollment.
(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.
(3) (a) The department shall administer the innovation grant program, including reviewing the applications received pursuant to this section.
(b) The department shall make grant award determinations.
(c) In making grant award determinations, the department shall consider:
(I) Whether the local education provider is required to adopt a priority improvement plan or a turnaround plan for the current or prior school year;
(II) The concentration of schools of a school district, or the concentration of institute charter schools of the state charter school institute, that must implement a priority improvement plan or a turnaround plan;
(III) Whether the local education provider has been identified under the state accountability system as declining in performance; and
(IV) The local education provider's level of attainment on the postsecondary and workforce readiness indicator, as described in section 22-11-204, in the prior year.
(d) In making grant award determinations, the department may consider and prioritize grant awards to local education providers that have a higher than average percentage of students who are English language learners, that have a higher than average percentage of students who are enrolled in grades nine through twelve and are eligible for free or reduced-price lunch pursuant to the provisions of the federal Richard B. Russell National School Lunch Act, 42 U.S.C. sec. 1751 et seq., that are a rural or small rural school district, or that have a limited capacity to offer postsecondary workforce readiness programs.
(e) Subject to available funding based on annual appropriations, each grant awarded may continue for up to three budget years. The department shall annually review each grant recipient's use of the grant award and may rescind remaining grant funds if the department finds that the grant recipient is not making adequate progress toward achieving the goals of the intended use of the grant award.
(4) The state board may adopt rules governing:
(a) Application requirements;
(b) Additional eligibility and prioritization requirements for a local education provider to receive funding pursuant to this section;
(c) Eligible expenses within the categories described in subsection (2) of this section;
(d) Requirements of local education providers that receive funding pursuant to this section; and
(e) Any other rules deemed necessary by the state board for the purposes of this section.
(5) (a) The department may use not more than five percent of the total amount of innovation grant program funding to offset the direct and indirect costs incurred in administering the innovation grant program.
(b) Of the money annually appropriated for the innovation grant program, the department may expend an amount that is necessary to enter into one or more contracts with a public or private entity to provide the uses described in subsection (2)(a) of this section to multiple local education providers that are eligible for an innovation grant. The entity shall use research-based strategies and have a proven record of success working with schools under similar circumstances.
Source: L. 2025: Entire part added, (SB 25-315), ch. 237, p. 1184, � 1, effective May 23.