The Mississippi State Auditor’s Office has recommended a series of reforms within the Mississippi Department of Education (MDE) to maximize efficiency and direct more funds to classroom instruction. The recommendations are part of Project Momentum, spearheaded by State Auditor Shad White (R-Miss.).

According to White’s office, Project Momentum identifies opportunities that could save taxpayers more than $335 million in fiscal savings. The report focuses on 13 state agencies, including the Mississippi Department of Education (MDE), which suggests it could save up to $135 million with the proper reforms.

According to the report, five primary reforms in the Mississippi Department of Education could save between $92 million and $135 million.

The savings would help offset Mississippi’s lower-than-average instructional spending, which currently accounts for only 58% of education funding — compared to a 60% national average. The auditor’s report argues that meeting the national average could provide Mississippi with an additional $200 million for student-focused initiatives.

Procurement Reform for Cost Efficiency

The Auditor’s Office identified the procurement process as a significant area for cost savings. Mississippi schools spend over $600 million annually on essential goods and services, yet the current decentralized procurement model limits the ability to leverage bulk pricing or obtain favorable terms. The report estimates that Mississippi could save between $44 million and $82 million by reforming procurement practices.

The recommended steps include standardizing procurement policies across districts and encouraging more frequent use of state contracts, often providing better pricing. The Auditor’s Office also suggested that Regional Education Service Agencies (RESAs), such as the North Mississippi Education Consortium, be empowered to negotiate contracts for school districts, allowing districts to benefit from volume discounts without sacrificing quality.

Centralizing Property Insurance to Reduce Costs

Another recommendation from the Auditor’s Office concerns centralizing property and liability insurance. Mississippi school districts spend $39 million annually on insurance, and prices vary significantly by district, especially those closer to the coast. By consolidating insurance coverage at the state level, Mississippi could save approximately $23 million each year and relieve districts from the administrative burden of managing individual insurance contracts.

Consolidating Administrative Services

Back-office operations also present an opportunity for substantial savings. The report highlights districts’ challenges in recruiting and retaining clerical and support staff. Many smaller districts struggle with the high administrative costs of managing human resources, finance, and facilities independently. The report suggests Mississippi could reduce redundancies and increase efficiency by sharing support services across districts, with estimated annual savings of $14 million.

Under this model, the Auditor’s Office recommends centralizing these functions to enable districts, especially rural ones, to benefit from specialized staff and reduce repetitive tasks. Comparable states with similar structures, such as Texas and Wisconsin, have successfully implemented shared-service models to cut costs without lowering the quality of administrative support.

Investing in Energy Efficiency

Energy costs are another significant expenditure for Mississippi schools, with the state spending about $107 million annually on utilities. The Auditor’s Office noted that Mississippi schools spend 60% more per student on energy than the national average, mainly due to aging infrastructure. The Auditor’s Office proposed that MDE support districts in implementing energy efficiency upgrades, such as better insulation, efficient HVAC systems, and LED lighting. These upgrades could save the state between $9 million and $14 million annually.

The report also recommends that schools explore federal funding options, such as grants under the Bipartisan Infrastructure Law, and consider partnerships with utility companies to offset upfront costs. By reducing long-term energy costs, the state could redirect these savings to support instruction and student services.

Streamlining Career and Technical Education Programs

Mississippi’s Career and Technical Education (CTE) programs were also reviewed. With over 60 programs offered across various sectors, CTE initiatives receive about $50 million annually. However, the Auditor’s Office found that many programs have low enrollment, which leads to inefficient spending. Consolidating these low-enrollment courses could save around $2 million per year, which could then be reinvested in high-demand areas like advanced manufacturing.

To drive this reform, the Auditor’s Office suggested prioritizing programs identified by AccelerateMS as essential for the state’s economy, such as health sciences and information technology. Streamlining CTE offerings would save money and help students better align their skills with Mississippi’s job market.

Enhancing Accountability and Oversight

To ensure savings are effectively reinvested in student services, the Auditor’s Office recommended stronger oversight of district spending, particularly in non-instructional areas. Suggestions included increasing scrutiny of administrative expenses and implementing caps on non-instructional growth. The Auditor’s Office further advised that funding restrictions, such as block grants for specific instructional purposes, could help direct more resources toward classrooms while providing districts with flexibility.