BATON ROUGE, La. - Louisiana school districts may have to rework their budgets after the Louisiana State Board of Elementary and Secondary Education shifted millions in funds to teacher stipends or pay raises.
During a special meeting Thursday, BESE approved guidance for Gov. Jeff Landry’s executive order. The order requires teacher raises or stipends but changes how those funds reach local districts.
To fund the initiative, the state is reducing its monthly payments to school districts by an average of 5%. The executive order reroutes $168 million from the state’s Minimum Foundation Program—which typically covers general school operations—and converts it into one-time stipend payments for educators.
State Superintendent Cade Brumley described the move as an "unprecedented action."
While he expressed hope that teachers would benefit from the increased pay, he acknowledged the strain on local systems.
"I also want to recognize the position that local school systems are in right now, and that they're having to make difficult decisions on the best way to serve the students under their care, given the shift in funding," Brumley said.
The funding shift comes as the school year approaches, leaving administrators to determine which programs, services, or positions may need adjustments to compensate for the loss of general operating funds.
In Caddo Parish, the school board unanimously approved its own local stipend plan this week. The plan provides between $1,000 and $1,500 to eligible employees, following a 6% pay raise approved in June.
Carl McDaniel with Red River Teachers United spoke in favor of the local measure.
"That is an opportunity to make up for some of the lower-paid employees in our district that I do represent," McDaniel said.
Under the new state guidance, Caddo Parish will prioritize using its allocation to ensure eligible employees receive the state-mandated stipend by May 1.
District leaders say they intend to maintain essential services, including school security and transportation, despite the funding shift.
A legislative task force is currently working to establish a permanent and predictable funding solution for teacher salaries by the end of the year.
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