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Senate finance receives FY26 education budget briefing; minimum foundation program remains largest line item

2903168 · April 8, 2025
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Summary

Senate Fiscal Division presented Department of Education FY26 executive budget details, noting a general-fund dip tied to one‑time COVID and stipend reductions and that the Minimum Foundation Program remains the state’s largest K‑12 expenditure.

May Sue of the Senate Fiscal Division briefed the Senate Finance Committee on April 7 on the Department of Education’s FY26 executive budget recommendation, describing funding shifts driven by one‑time federal COVID dollars and the nonrecurrence of prior teacher stipends.

"The FY 2026 recommendation includes about $200,000,000 reduction of the general fund that's related to the one‑time teacher stipend we put in the budget for the last two years," May Sue told the committee. She summarized major means‑of‑finance changes across department agencies and said most of the department’s funding is concentrated in two programs: the Minimum Foundation Program (MFP) — state‑funded aid to local school systems — and subgrantee assistance, largely federal flow‑through grants.

Sue said FY26’s recommended totals decline by roughly $1 billion from FY25 actuals largely because federal COVID funding is not recurring; earlier federal inflows raised FY24 and FY25 totals. She noted recommended FY26 increases for some targeted items, including an expansion of a LA GATOR student award program, a $50 million general‑fund increase for that program in the executive recommendation, and other discretionary investments such as apprenticeship funding and bus‑driver training.

On the MFP, the fiscal analyst told senators the program’s FY24 actual was the highest on record, backed by federal infusion in prior years, and that FY26 shows a sizable drop because the one‑time stipend was not included in the executive recommendation. "Under the other charges [MFP] you also have $49,500,000…$30,000,000 related to accelerated tutoring, $17,500,000 for differentiated compensation, and $2,000,000 for apprenticeships and internships," Sue said.

Senators pressed department officials on the budget’s structure and questions about lottery proceeds used for MFP. Department officials said lottery proceeds fund a small portion of MFP and that means‑of‑finance swaps were used in the executive proposal to maintain the program’s recommended level.

No committee votes occurred at the hearing. Senators requested additional detail on program-specific spending, long‑recurring items removed from FY26, and parish‑level early‑childhood enrollment counts included in the department’s supporting materials.