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Legislative staff cites unspent funds in statewide online education program; USBE warns contract impacts

Public Education Appropriations Subcommittee, Utah Legislature · January 29, 2026

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Summary

Legislative staff recommended two one-time reductions to the Statewide Online Education Program after carryforward balances; USBE officials said delays securing contractors caused unspent balances and warned reductions could lead to contract amendments or cancellations.

Kiki Hudson, staff presenting the Statewide Online Education Program (SOEP), outlined that the program allows Utah sixth through 12th graders to earn middle- and high-school credits through online course providers and that the FY27 income-tax allocation is approximately $5.9 million. She said the program's growth prompted a 2021 dedicated line-item and a 2023 split into three programs (homeschool support, small high school support, and administration).

The Legislative Fiscal Analyst recommended two one-time reductions—$211,300 and $117,400—after program performance targets were met and unspent funds remained from contractor delays. Scott Jones, deputy superintendent of operations for the Utah State Board of Education, told the committee that the unspent balances resulted from difficulties contracting vendors and intentional caution in choosing qualified providers; he said carryforward balances can occur when implementation lags and invoices are delayed.

USBE cautioned that applying a one-year reduction to ongoing appropriations can affect multi-year contracts: contracts are often structured with multi-year ceilings and invoices over time, so removing a one-time amount could require contract amendments or termination. Committee members asked for additional detail on statutory implementation dates and the mechanics of SEATS enrollment; USBE and the LFA agreed to provide follow-up contract-level details to the committee.