TALLAHASSEE, Fla. \u2013 The state stepped in last week to help manage the distressed finances of two rural school districts, and that could be just an inkling of what\u2019s to come, state leaders say, as enrollment continues to decline.<\/p>\n
\u201cUnion and Glades (counties) are the canary in the coal mine,\u201d said Sen. Jennifer Bradley, R-Fleming Island, who represents Union County.<\/p>\n
Last week, the Florida Department of Education appointed a financial board to both Union and Glades counties\u2019 school districts to help with \u201coperations, management and finances and to make recommendations for financial recovery,\u201d because their projected fund balances were below 2 percent.<\/p>\n
State law requires school districts to maintain a 3 percent fund balance.<\/p>\n
According to Union County School Board meeting records from February, the district has a $1.4 million deficit caused by the reduction of students, based on the third calculation of the Florida Education Finance Program.<\/p>\n
[WATCH: Florida audit reveals school voucher system cost millions]<\/p>\n
The FEFP is the formula the state uses to distribute money to public school districts. One of its main components is student enrollment data, which is calculated at different times throughout the year.<\/p>\n
The third calculation showed Union schools had 2,146 students, or 103 fewer than the previous calculation. The drop meant the district was due $947,000 less than anticipated.<\/p>\n
For Glades schools, there were 1,921 students, a decline of 46 students from the previous calculation, which put a $337,000 dent in their anticipated funds.<\/p>\n
Union schools officials point to the state\u2019s universal voucher program, which offers scholarships to any K-12 student in Florida, as the main reason for the declining enrollment, even though Union County has few private schools.<\/p>\n
\u201cWhile some students move to other districts and states, many of them are going to homeschool settings and private schools,\u201d said Mike Ripplinger, Union County Schools superintendent. <\/p>\n
\u201cWe have seen an increase in private school and homeschool options with the growth of the scholarships available to parents offered by the State of Florida,\u201d he added. \u201cWhile these options for education have always been available, I believe the financial incentive due to the scholarships available has drawn more parents towards these options.\u201d<\/p>\n
Ripplinger said the last time the district experienced major financial stress was in 2000.<\/p>\n
[WATCH: Florida public schools face leaner budgets, declining enrollment amid scholarship growth]<\/p>\n
The superintendent for the Glades County School District, Alice Barfield, said the district was grateful for the state\u2019s help. <\/p>\n
\u201cWe fully embrace this collaboration and are committed to working closely with the State to strengthen our financial position and ensure long-term stability for our district,\u201d Barfield said.<\/p>\n
Bradley said she could not recall another instance of a school district falling into financial emergency, other than Jefferson County in 2016. Because of mismanagement, Jefferson County schools were taken over by the state and managed by a charter company until 2022.<\/p>\n
\u201cWhat we\u2019re dealing with in Union County is not due to mismanagement,\u201d Bradley said. \u201cThe school district has taken steps for the last three years to try to make cuts, make reductions in order to cure their financials.\u201d<\/p>\n
Ripplinger said the district has been in danger of being below the 3 percent fund balance threshold throughout the school year. <\/p>\n
\u201cWe have been taking steps to reduce our expenditures as much as possible to mitigate our situation while still providing the required educational and supplemental services to our students,\u201d he said.<\/p>\n
This spring, the district eliminated benefits for school board members, canceled bus service for more than 60 daycare students and reduced the school supply budget.<\/p>\n
The district also explored taking out a loan to cover expenses for the rest of the school year.<\/p>\n
Florida legislators tried to pass a bill that would have included a \u201cschool district stabilization\u201d fund for this issue during this year\u2019s session, but the House never considered it.<\/p>\n
The bill (SB 318) set up accountability measures for the Family Empowerment Scholarship, taking recommendations from a state auditor general\u2019s report that found a \u201cmyriad of accountability challenges\u201d with Florida\u2019s K-12 school voucher system.<\/p>\n
The report showed overspending and delays in scholarship payments that resulted in a funding shortfall and a system without proper controls to verify where students who received the voucher payments were being educated.<\/p>\n
The stabilization fund included in the bill would have distributed money to school districts if the state money appropriated for the current year was not sufficient.<\/p>\n
\u201cIf the money is going to follow the student, it has to be transparent, and the system that we create has to work, and right now it\u2019s not working,\u201d Bradley said.<\/p>\n
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