Appropriations panel weighs K–12 budget changes including $38.5M transportation boost, proposed $2M cuts

Appropriations Committee · February 10, 2026

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Summary

Lawmakers and education officials reviewed proposed K–12 budget adjustments: a $38.5 million increase for pupil transportation and broad formula shifts, while some one-time programs face cuts such as a $2 million reduction to a character-education appropriation.

Lawmakers on the Appropriations Committee reviewed a series of proposed adjustments to the K–12 and early-childhood education budget, balancing large formula increases with cuts to one-time initiatives.

Officials told the committee the budget includes a roughly $38,500,000 increase to the pupil-transportation grant to help districts manage operational costs, and cited a separate substantial formula adjustment tied to a state health-benefit rate change that the department estimated at about $200,000,000. Department staff described most items as formula adjustments; they said the transportation funding will help maintain operational coverage near historical levels.

Department representatives also detailed program-level changes. An increase of $500,000 would expand grants to school systems to encourage authorization of locally approved charters, bringing total charter-authorization grant funds to $1,000,000 — enough, the department said, to support at least four new local charters at a minimum. Special Needs Scholarship funding was amended with $14,500,000 proposed for FY27; the department said the scholarship program has served roughly 5,500–6,000 students in recent years and has been in place since 2009.

At the same time, the governor's proposed budget would eliminate a $2,000,000 one-time appropriation for a character-education program (Leader in Me). The department told the committee it supports the program and reported that the initiative reaches about 283 schools and approximately 300,000 students, and that "we are seeing reduced absenteeism by up to 25%" alongside gains in math, literacy and school climate.

Committee members asked for further documentation and data on program outcomes and on the implementation impacts of the formula changes. Staff agreed to provide additional reports and lists of prior grant applications and awards when requested.

The hearing covered many line items and staff answered members’ questions about enrollment and program details; no formal votes were taken at the session.