Postsecondary & Workforce Readiness Programs

The act 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) shall use a formula to 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 through the John W. Buckner postsecondary and workforce readiness innovation grant program, created in the department, is available to certain local education providers 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. Local education providers that are required to adopt a priority improvement plan or a turnaround plan, or that authorize schools that are required to adopt a priority improvement plan or turnaround plan, for the current or prior budget year, or local education providers that 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.

Beginning in the 2026-27 budget year, 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 available 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.

Beginning in January 2028, the department is required to annually report, as a part of its "SMART Act" presentation, findings regarding the effectiveness of consolidating the postsecondary and workforce readiness programs and funding streams.

By November 1, 2029, the department is required to report to the joint budget committee findings regarding the effectiveness of consolidating the postsecondary and workforce readiness programs and funding streams.

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

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

The act requires the department to convene a working group that includes educators to report its findings and recommendations to the joint budget committee concerning the effectiveness of the teacher retention and preparation program (TREP) and the pathways in technology (p-tech) early college high schools.

For the 2025-26 state fiscal year, the act:

• Adjusts appropriations made in the 2025-26 long bill;
• Appropriates $5,018,715 from the general fund and state education fund to the department for use by student pathways to implement the act; and
• Appropriates $160,073 from the general fund to the department for use by school quality and support to implement the act.
  (Note: This summary applies to this bill as enacted.)