Senate Fiscal review: Department of Education recommends FY26 budget with $1 billion drop; LA Gator rollout depends on vendor contract

The Senate Finance Committee’s fiscal staff on April 15 presented the Louisiana Department of Education’s FY26 executive budget recommendation and answered questions about the department’s programs and the new Louisiana Gator educational savings/ESA program.

The fiscal presentation, delivered by May Sue of the Senate Fiscal Division, said the FY26 recommendation shows an approximately $1,000,000,000 decrease from FY25. May Sue attributed the change mainly to expiring federal COVID-related dollars and a $200,000,000 reduction tied to a two‑year, one‑time teacher stipend. She also summarized the department’s means of finance: about 65% general fund, 29% federal, and roughly 5% statutorily dedicated funds, with the Minimum Foundation Program (MFP) and subgrantee assistance accounting for the largest shares of spending.

The budget packet lists a number of program adjustments: removal of one‑time COVID and stipend funding; a $50,000,000 proposed increase for the LA Gator program’s awards/admin in FY26; a $93,500,000 total allocation for LA Gator in the executive presentation scenarios; and smaller increases for early childhood, apprenticeship and bus operator training items. May Sue noted carryforwards and excess authority reductions that also affect the bottom line.

Why it matters: the department’s budget is dominated by MFP…