Gov. Jeff Landry’s plan to redirect $168 million from Louisiana’s school funding formula into one-time stipends for teachers and support staff would, if approved, shave roughly 4–5% on average off state aid to many districts. The proposal dangles $2,000 for classroom teachers and $1,000 for support staff, while expressly excluding principals, many specialists and some administrators. District leaders warn the timing and method could force tough choices, from drawing down reserves to trimming programs in already tight parishes.
Per Office of the Governor, Executive Order 26‑047 directs the Department of Education and the State Board of Elementary and Secondary Education to identify non‑instructional allocations and reduce the Minimum Foundation Program appropriation by $168 million, then submit a budget adjustment to fund the stipends and associated employer retirement contributions. The order instructs that security, transportation and food services should remain intact and suggests districts use unassigned fund balances where feasible. The reduction would only take effect with written consent from two‑thirds of the elected members of both the House and Senate.
State education officials told BESE the cut would lower state aid to districts by an average of about 4–5%, and that some systems may need to draw down reserves to replace reduced allocations, according to New Orleans CityBusiness. Beth Scioneaux, the department’s financial lead, told the board an unassigned fund balance of about 7.5% of a district’s total budget is a best practice for hurricanes and other emergencies. In a statement, State Superintendent Cade Brumley said he is “reviewing the executive order and will work alongside the Louisiana Board of Elementary and Secondary Education on next steps,” the Louisiana Department of Education said.
How districts could feel the pinch
Superintendents and budget officers say the $168 million pullback cannot simply be carved out of “administration” without consequences; smaller or rural districts that lack large unassigned reserves could face layoffs or service cuts, the Manship School Statehouse Bureau reported. The Landry administration argues the system holds more than $1 billion in unassigned funds and that redirecting non‑instructional dollars will prioritize classroom employees, officials told the Louisiana Radio Network. That mismatch between districts with healthy reserves and those operating on thin margins will shape which schools are squeezed hardest.
Vote, timing and the money trail
The order does not take effect automatically. Under state law, the governor may reduce the MFP only with written consent from two‑thirds of the elected members of each chamber, and New Orleans CityBusiness reports lawmakers are scheduled to vote on the proposal on June 23, with ballots reportedly already sent and a 15‑day return window. If lawmakers approve, the state treasurer would move the $168 million into the Overcollections Fund and the Department of Education would have to seek spending authority from the Joint Legislative Committee on the Budget to access the money.
Legal mechanics
The move leans on La. Const. art. VIII, §13(B), which allows the governor to reduce the MFP appropriation only with the specified legislative consent. Executive Order 26‑047 makes the reduction contingent on that consent and sets an effective date of July 1 if approved. The order also allows the department to return any surplus to the MFP should the appropriation reduction exceed the costs of the stipends and employer contributions. Those steps mean even a yes vote will trigger more procedural hurdles before districts see the cash flow to teachers.
What to watch next
All eyes now turn to how BESE, local school boards and the legislature parse “non‑instructional” allocations this month, and whether the bipartisan task force Landry announced produces a path to permanent pay changes. Landry has framed the move as a way to “separate teachers from the bureaucracy” while pushing for a long‑term fix, according to the Office of the Governor, and school leaders across Louisiana will be watching the June 23 returns closely.
