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Legislative analysts recommend cuts, transfers in $140 million education contracted-initiatives line item
Summary
Legislative Fiscal Analyst staff reviewed the contracted initiatives and grants line item — about $140 million for FY2026 — and recommended returning or transferring several one-time balances and reducing ongoing funding for programs they say have growing unspent balances or underperformance.
Kiki Hudson, an analyst with the Legislative Fiscal Analyst’s office, told the Public Education Subcommittee that the contracted initiatives and grants line item has a funding base “around a hundred and $40,000,000” for fiscal 2026 and 27 active programs.
Hudson said the line item allocates grants and contracts to school districts, charters and private entities and that recent changes included large one‑time allocations from the public education stabilization restricted account and increases from the income tax fund for ongoing programs.
The LFA recommended several adjustments: rescinding $50,700 in appropriations tied to an autism awareness account because revenues and transfers are now managed by the Tax Commission and the DMV; transferring $126,200 from a hospitality and tourism education account into the ProStart culinary arts program;…
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