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Authorizer says $499,000 was a one‑time grant; requests mixed general/special fund authority
Summary
An agency that oversees charter schools told the appropriations committee a $499,000 payment in FY25 was a one‑time grant for equipment and training, not recurring federal or CSP funding, and asked for flexibility to spend a FY26 budget composed of 70% special funds and 30% general funds amid revenue fluctuations.
An agency representative (Agency official, S1) told the appropriations committee that a $499,000 line in FY25 was a one‑time special grant from Senator Hyde‑Smith’s office for equipment and training — including virtual reality tools — and was not part of the recurring Charter School Program (CSP). “That was not a CSP. That was actually a special grant,” the presenter said, adding that each school received equipment and training and that no operating money was included in that award.
The presenter said the CSP is no longer awarded to the agency and that a nonprofit now holds that program. Committee members were told that FY25 was the first year without a CSP and that the agency did not receive any general fund appropriation in FY25. The presenter highlighted the fiscal challenge: special funds collected (just over $1,000,000 in the most recent year) cannot by themselves sustain a roughly $1.4 million budget.
When asked how the FY26 request would be financed, the agency official said the budget proposal sought authority for 30% of the budget to come from the general fund and 70% from special funds. The presenter explained the timing of special‑fund receipts — they arrive once a year in October and November and are tied to the school funding formula — which requires a cash cushion to operate year‑round.
Committee members pressed the agency on higher contractual and salary amounts. The presenter said salary increases in the FY26 appropriation reflected hiring doctorate‑level staff and a planned sixth position; contractual spending rose in part because roughly 30% of that line pays direct technical assistance to charter schools, and outside CPAs and legal experts were contracted for financial and legal reviews since no attorney is on staff.
The agency warned that proposed legislation (referenced in committee discussion as House Bill 2) could materially affect agency operations and revenues and asked for continued dialogue with lawmakers during the session if revenue‑affecting bills move.
The committee did not take formal action during the exchange. The agency said it would follow up with requested details and thanked members for questions.
