Studying Weighted Student Funding for North Carolina
As mandated by the North Carolina General Assembly, the North Carolina Collaboratory’s (NC Collaboratory) Office of Learning Research has convened a Work Group of experts to develop a strategy to move the State to a weighted student funding model. Basis is proud to partner with the NC Collaboratory to lead the research and facilitation of this Work Group.
Why Consider a Weighted Student Funding Formula?
In 2026, the North Carolina General Assembly mandated that the NC Collaboratory convene a Work Group of public education finance experts to study a potential transition to a weighted student funding formula. North Carolina currently funds K-12 schools through a mix of position-based, categorical, and program-specific allotments. Over time, that system has become complex and difficult to navigate, and the rules attached to each allotment can make it hard for districts to direct resources where students need them most.
A weighted student funding formula offers a different approach: a base amount for every student, plus additional funding through weights that reflect differences in student need, educational cost, and district circumstances. Done well, it can bring greater transparency and local flexibility while directing more resources to the students and districts with the greatest needs. This study builds on recent work by the John Locke Foundation and the Public School Forum of North Carolina, which, from different vantage points, reached the same conclusion: the current system needs significant improvement.
By the Numbers
Comparison States
Basis will conduct comparative case studies of approximately 10 states that have adopted, revised, or implemented student-based funding systems. The purpose is to examine how other states have approached similar policy and implementation decisions, the tradeoffs associated with different approaches, the types of accountability systems adopted, and the lessons their experiences offer for North Carolina’s transition.
Work Group Meetings
The Work Group will convene six times between October 2026 and May 2027. Throughout the process, updates will be shared to provide visibility into the Work Group’s discussions, key considerations, and decisions as they take shape. The final report for the study is due to the legislature no later than July 15, 2027.
Stakeholder Interviews
Basis will conduct up to 50 in-depth interviews to inform the study. Interviews will prioritize perspectives from across North Carolina’s education community, including individuals with relevant experience in school finance, education policy, district operations, and implementation.
Why The Study Matters
Changing how a state funds its schools is a highly consequential decision for policymakers. Every choice, from the size of the base amount to which students generate additional weight to how the change is implemented, ripples out to hundreds of schools and the students they serve. Our research approach and simulation model will show us the impact and consequences of each potential change in the transition to a weighted student funding formula.
Lessons from states that have made the switch, along with interviews of North Carolina stakeholders, add context that simulations alone can’t provide. The result will be a funding strategy grounded in evidence that gives NC legislators, district leaders, school finance officers, and families confidence that the State’s investment will reach the students who need it most.
Resources and Updates
Resources and updates will be posted here following Work Group meetings.
Work Group Meeting 1