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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; returning unspent balances for several programs (including computer science and two early‑literacy software contracts) to the income tax fund; and reducing ongoing funding in programs with growing balances. Hudson listed larger programs in the line item, including a “school safety and support grant program that received a hundred million dollars 1 time,” the Utah Fits All scholarship (described as receiving about $82.6 million), software licenses for early literacy (about $12.7 million) and the Carson Smith scholarships (about $10.9 million).
Scott Jones, Deputy Superintendent of Operations at the Utah State Board of Education, urged the committee to review program outcomes before making reductions and recommended sustaining ongoing funding for the elementary reading assessment software tools and early literacy licenses. "USB staff recommendation to our board is that we sustain the ongoing funding portion of the elementary reading assessment software tools," Jones said.
Committee members asked clarifying questions about the Carson Smith program and the Opportunity Scholarship consolidation. Representative Perucci noted families’ concerns and emphasized that “we aren't dissolving that program.” Ben Leishman, who addressed statutory language around the old Carson Smith statute, said the LFA's recommendation targeted automatic annual increases in the legacy statute rather than eliminating services.
Nut graf: The discussion framed two competing priorities: the LFA’s recommendations to return or reallocate one‑time balances and to reduce funds where programs have underspent versus USBE’s request to preserve ongoing program funding based on outcome measures. The committee did not vote on these budget recommendations at the hearing; staff and board leaders were asked to provide additional information as the session continues.
Among clarifying details presented: the LFA identified specific one‑time appropriations from the stabilization account (e.g., $100,000,000 for school safety, $5,000,000 for assessment‑to‑achievement, and $6,000,000 for K–12 computer science from the 2024 session) and proposed targeted transfers and small rescissions. USBE staff described distribution methods for software licenses and reading assessment tools and said statewide distribution to K–3 students was a program strength.
The subcommittee took no formal vote on LFA’s recommendations during the session. The matter remained under review and staff were asked to provide additional detail on program performance and statutory language before any appropriation action.
