To modify the foundation allowance to improve instructional programs.
HB5438 amends West Virginia’s public school support law governing the “foundation allowance” for instructional improvement, instructional technology, and teacher and leader induction. The bill adjusts how these funds are calculated and distributed to county school systems, tying annual increases to the local share amount and allocating money by a mix of flat county amounts and enrollment-based formulas. It also preserves existing limits on how some funds may be used, such as the cap on central office noninstructional personnel under the instructional improvement allocation.
The bill adds or clarifies several funding uses within the foundation allowance. Counties may use instructional technology money for technology system specialists, and up to $15 million annually may be retained by the Department of Education to implement a replacement uniform budgeting and accounting system. The bill also provides funding to support dual credit, advanced placement, and international baccalaureate enrollment, and it expands support for teacher and leader induction and professional growth, including regional professional learning cadres, teacher leadership networks, and science-of-reading training for K-5 teachers. It further directs the Governor to include reappropriation language for unused balances so those funds can continue supporting these initiatives.
In practical terms, the bill changes state education finance law by revising §18-9A-10 and related funding mechanics for county boards of education. It affects how state aid is distributed, how much the Department of Education may retain for statewide systems and initiatives, and how counties may spend portions of their allocations. It also creates a grant mechanism for up to $1 million of the retained teacher-leader funding to help counties contract with outside organizations supporting math and science improvement or assistance for less-than-fully-certified teachers.
The overall sentiment around HB5438 appears strongly positive and noncontroversial. The bill passed both chambers unanimously, with no recorded dissenting votes in the House or Senate, and it was enacted to take effect July 1, 2026. The lack of opposition suggests broad agreement on the need to strengthen school funding formulas and targeted instructional supports.
No major points of contention are reflected in the available record, but the bill’s structure suggests the main policy choices were how much funding to retain centrally versus send to counties, and how to prioritize uses such as budgeting system replacement, science-of-reading training, teacher induction, and regional professional learning networks. The bill also places some discretion with the State Board and Department of Education through rulemaking and grant administration, which could be a point of interest for county boards and education stakeholders.
HB5438 amends West Virginia Code §18-9A-10, changing the state’s school foundation allowance formulas for instructional improvement, instructional technology, dual credit/AP/IB participation, and teacher and leader induction. It authorizes the Department of Education to retain up to $15 million annually from certain allocations for a replacement uniform budgeting and accounting system and for statewide education initiatives, while also allowing counties to use some technology and induction funds for specified purposes. The bill affects county boards of education, the Department of Education, and public school funding distributions statewide.
The bill appears to have enjoyed broad bipartisan support and little to no controversy. It passed the House and Senate unanimously and was enacted without recorded opposition. The voting history suggests general approval of the bill’s education funding priorities, including instructional support, teacher development, and literacy initiatives.
No significant contention is evident in the available materials, and there were no dissenting votes recorded. The main policy questions embedded in the bill are administrative and fiscal: how much money should be retained by the Department of Education versus distributed to counties, what uses should be permitted for instructional technology and induction funds, and how the new grant and reappropriation provisions should be implemented. Any disagreement would likely have centered on those allocation and oversight choices rather than on the bill’s overall purpose.