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OSPI to propose MSOC funding changes; board raises concern over transportation insurance exclusion

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Summary

A board development update outlined OSPI's draft plan to increase per-pupil MSOC funding and a possible redefinition that could exclude transportation insurance from MSOC calculations; the board discussed the potential local impact and next steps for advocacy.

Risa Poliquin, the district's WASDA/Lehi representative, briefed the board on proposed changes to the state MSOC (Materials, Supplies and Operating Costs) funding calculation and invited board input on the implications for the district.

Poliquin said the Office of the Superintendent of Public Instruction (OSPI) plans to draft a budget request for the 2026 legislative session that would add $100 per pupil above inflation for the 2026'7 school year. "OSPI is going to draft a budget request for the 2026 legislative session that includes a $100 per student of new funding above inflation," Poliquin said, quoting OSPI calculations and a WASDA analysis.

Poliquin summarized OSPI figures cited in the handout: $105,600,000 for the 2026 fiscal year and $81,800,000 for the 2027 fiscal year, with a projected additional $217,000,000 over the 2027'9 biennium if funding continues at that level. She also said OSPI's calculations project a MSOC funding shortfall of "over a $101,000,000."

Poliquin warned that proposed changes to the MSOC formula could exclude certain items currently treated as MSOC, and she flagged transportation insurance as a cost that could be reclassified out of MSOC. "Transportation insurance can often get lumped into a category of things that would be excluded, but that, in fact, is a true MSOC cost," Poliquin said.

The board discussed that the district's own MSOC disclosure — included in the budget presentation earlier in the meeting — shows a multi-million-dollar gap between MSOC revenue and MSOC-coded expenditures, a gap the district currently covers through other funding sources.

Poliquin said she has discussed the issue with OSPI staff and with Jenny Choi in the governor's office and that WASDA will continue to develop advocacy positions. She asked board members for ideas and invited further discussion after the meeting.

No formal board action was taken; the item was a briefing and request for input ahead of state-level negotiations and WASDA's General Assembly activity.