State Department of Education seeks funds for IT upgrades, higher FBA projection and maternal leave support; proposes $3 million for historical Bible sets

Superintendent Walters and senior staff presented the State Department of Education’s FY 2026 budget and explained several supplemental and new requests during testimony before the Senate Appropriations Subcommittee on Education.

Key budget requests and explanations

- IT and data modernization: The department asked for $5 million to upgrade the state’s student-information aggregation system known as “the wave,” including infrastructure and security upgrades. Department staff said parts of the wave require upgrades to read district systems more reliably and to provide near‑real‑time reporting — shortening the time districts now wait to see errors and resolve data issues after the October 1 student count. Staff projected a 1–2 year timeline to complete the upgrades; smaller, lower-cost security items were also identified for earlier work.

- Flexible Benefit Allowance (FBA)/health premiums: Walters told senators that growth in both certified and support personnel and a higher insurance premium have driven the department’s revised FBA projection. The department reported an increased personnel count on the October staff snapshot (support personnel rising to 37,200 in October and projected to 39,000 by year end; certified personnel projected above 54,800) and cited a roughly 5% increase in the highest medical option premium. Taken together, the department said the combined supplemental need for FBA and personnel-driven premium increases is sizable; the department previously sought $73 million and later communicated projections nearer $85 million total for FBA-related adjustments (official supplemental requests were to be reconciled with October/January enrollment and personnel counts).

- Maternity-leave revolving fund shortfall: Walters said the department is about $3.1 million short to cover maternity-leave claims from the revolving fund; Tulsa Public Schools had not yet submitted claims in the first year and that district’s eventual claims were expected to increase the cost.

- School security and infrastructure: The department requested $500,000 to continue school-security training, signage and other safety supports and also requested funds for infrastructure modernization to improve data accuracy and public reporting.

- Required assessments: Walters said vendor costs for statewide assessments have grown and the department increased the appropriation requested for required assessments to cover higher vendor fees.

- “Bibles in schools” line: The department’s submitted budget included a $3 million request described in testimony as a state purchase and distribution of “historic reference” sets (Bible, Constitution, Declaration of Independence) for classroom use. Walters described guidance that would limit use to historical context. Senators raised legal and constitutional questions about potential litigation and requested confirmation that administrative legal counsel would be funded for defense; Walters said legal costs would be handled from the department’s administrative budget.

- Teacher empowerment and lottery-funded incentives: Walters and senators discussed the Teacher Empowerment program (a lottery-funded teacher incentive program). Walters said the fund had grown because participation varies by district and noted the subcommittee’s interest in ensuring the available educator-authority funds are used; senators discussed redirecting unused portions of the fund to K–12 or to other educator incentives if districts do not use the program.

Questions from senators focused on what the department would prioritize if full requests are not funded. Walters said student-facing services — classroom instruction, advising, mental-health and other student supports — would be prioritized. He said administrative trimming and hiring freezes were options.

The subcommittee asked for additional detail on software licensing, the wave modernization plan and the department’s October personnel snapshots before final appropriation decisions. No committee vote occurred during the hearing.

Why it matters: The department’s requests include IT modernization to shorten reporting cycles that affect district accountability and funding reporting, an FBA increase linked to growing personnel counts and higher premiums, and a controversial instructional materials request that senators flagged for constitutional review and potential litigation.