Report highlights rising costs, declining enrollment, and opportunities to improve how education dollars are spent.
NEW ORLEANS – The Pelican Institute for Public Policy has released A Framework for Meaningful, Lasting Reform of Louisiana’s K-12 Education Funding System, a comprehensive white paper offering a roadmap for the Legislature’s new Minimum Foundation Program (MFP) Task Force, the Board of Elementary and Secondary Education (BESE), and lawmakers.
A gubernatorial executive order redirecting $168 million within the MFP to fund teacher and school-support-worker stipends triggered a controversy that exposed broader questions about Louisiana’s education funding system, which has grown more expensive and complex even as student enrollment has declined.
The numbers tell the story. The cost of the MFP has risen from $3.63 billion in 2014-15 to more than $4 billion in state dollars today. The report also notes Louisiana’s per-student education spending is the highest among Southeastern Conference (SEC) states. Meanwhile, the number of administrative staff in public school systems increased 19.3 percent between 2014-15 and 2023-24.
The report emphasizes that the Legislature’s MFP Task Force’s review is a welcome and overdue response, but must go beyond adjustments to the funding formula and address the structural issues affecting how Louisiana funds education.
“The purpose of education funding is not to sustain institutions. It is to help children succeed,” said Daniel Erspamer, CEO of the Pelican Institute. “In 2027 and beyond, BESE and lawmakers have a real opportunity to accelerate academic gains and meet our kids’ diverse learning needs. We encourage them to act boldly, put students first, and spend taxpayer dollars wisely.”
The report identifies five areas for meaningful and lasting reform:
- Separate the base from the priorities. Distinguish the true base cost of education (Levels 1-2) from the policy priorities layered on top of it (Levels 3-4, which together exceed $980 million), commission an independent costing study, resume official education forecasts, and explore a performance-based funding component.
- Fix how the state funds employee compensation. Move away from blanket across-the-board raises, which have totaled nearly $924 million in state-funded raises and stipends since 2020, and toward strategic, differentiated pay.
- Capitalize responsibly on new local revenue. Help school systems distinguish recurring revenue from temporary windfalls as economic development projects come online.
- Fund real operational transitions. Support districts facing enrollment decline, chronic low performance, or achievement plateaus through state-approved optimization plans.
- Fully fund LA GATOR alongside these reforms, not after them. Reprioritizing existing dollars can create room to support all Louisiana students’ educational needs, including those seeking access to non-traditional options through LA GATOR, where thousands of students remain unserved.
The full white paper is available here.
About the Pelican Institute for Public Policy
The Pelican Institute for Public Policy believes every Louisianan should have the opportunity to flourish. Our mission is to research and develop policy solutions to address the most significant barriers to opportunity in Louisiana. We educate the public about the benefits of individual liberty and free enterprise, turning great ideas into powerful policy solutions that make a meaningful difference in people’s lives. Learn more at https://pelicanpolicy.org.