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Agency of Education seeks $2.73 billion for FY2027 as Medicaid and federal grants decline
Summary
The Agency of Education (AOE) presented a $2.73 billion FY2027 request, citing a 3.9% increase driven by base education payment estimates, personnel cost pressures and reductions in federal pandemic funds; staff also proposed five limited-service positions and a reappropriation of expiring ARPA funds to shore up literacy work.
The Agency of Education presented its fiscal 2027 budget request of $2,730,000,000 and told the joint House and Senate Education committees the ask represents about a 3.91% increase over current levels, driven mainly by projected growth in the base education payment and personnel cost increases.
Sean (AOE finance staff) said the request reflects a reduction in federal pandemic-era funding and a $17.4 million decrease in special funds tied to the transfer of Medicaid school-based services to the Agency of Human Services. He described the AOE operating budget (personnel, contracts, operations) as…
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