Schools with declining enrollment could face an additional financial pinch next year if lawmakers approve HB 1150.

The legislation eliminates a component of the state funding formula that was designed to soften the financial blow of declining enrollment. For districts with shrinking student counts, the state will calculate state aid by using the average enrollment from the two previous years. Enrollment averaging, often termed ‘declining enrollment aid,’ was instituted in a major formula revision in 2007.

According to education department calculations, the move could cost schools $5.1 million.