Deputy Commissioner for Finance and Administration Elizabeth Bentley Smith told the Board of Regents on Oct. 1 that the current higher education budget across all means of financing is $1,320,000,000 and the staff recommendation for the FY26–27 state general fund request is an increase of $119,000,000.

“Those are all means of financing,” Bentley Smith said, describing the $1.32 billion figure as the combined total for state general fund, IAT, tuition and fees, federal funding and statutory dedications. She said the requested $119 million increase would support initiatives across two‑ and four‑year institutions as well as specialized campuses.

Bentley Smith outlined the staff priorities inside the request: $50,000,000 for formula institutions (two‑ and four‑year), $20,000,000 for specialized institutions (health sciences centers, law and agricultural centers, Pennington Biomedical Center), $10,000,000 for need‑based GO Grant funding and $14,500,000 for the MJ Foster Promise program. The presentation also identified investments for workforce ($20,000,000), campus/cyber security and related center support ($5,000,000 and additional campus safety funding), $4,000,000 for START software tied to cybersecurity protections, and smaller one‑time requests for textbook affordability and hunger‑free campus efforts.

Bentley Smith referenced an upcoming constitutional amendment to be voted on in April 2026 that, if enacted, would pay off an unfunded actuarial liability and could free an estimated $81,000,000 for redistribution to higher education; she cautioned that the $81 million figure is an estimate, not a firm commitment.

Regents asked how new formula allocations would be applied if the requested formula funding is approved. Regent David asked whether the new funding would be applied “to the new funding formula.” Bentley Smith said, “So, if we receive funding specifically for the formula, then per board approval, we would use the the funding formula. Mhmm. The new, funding formula. So, yes.”

During discussion, Regent Aubrey offered an amendment to add $5,000,000 for teacher apprenticeship and teacher preparation programs, saying, “I just wanna offer this an amendment that we ask for an additional $5,000,000 for teacher apprenticeship, teacher preparation programs.” The board approved the amendment by voice vote and later approved the overall FY26–27 state general fund operating budget request for higher education as revised.

Why it matters: The request focuses state general fund increases on formula support, targeted affordability and workforce development measures and cybersecurity/campus safety; the board’s final letter and priorities will be part of the November 1 submission to the commissioner and will be used in advocacy with the legislature.

The Board’s action: Senior staff recommended approval and the board approved the FY26–27 state general fund operating budget request as amended (added $5,000,000 for teacher apprenticeship/teacher preparation).