The School Board of Lee County approved the district\u2019s tentative 2026-2027 budget of $3.1 billion Monday.<\/p>\n
The budget includes the general operating fund at $1,220,903,783; special revenue budget at $122,735,083; debt service budget at $137,272,163; capital outlay budget at $1,414,450,429 and internal service budget at $226,935,021 for a total tentative budget of $3,122,296,479.<\/p>\n
Board members Melissa Giovannelli and Debbie Jordan voted against the approval.<\/p>\n
\u201cIn looking at this budget, I have a problem,\u201d Jordan said. \u201cI know it is a tentative budget. A $5 million increase in security because of overtime \u2013 that makes my head spin. I cannot do that. I know that some people love spending money. I do not like spending money.\u201d\u00a0<\/p>\n
The proposal shows a drop of $172 million in direct school funding, an increased budget for the central district department and decreases amounts for school maintenance and maintenance personnel.<\/p>\n
\u201cIt\u2019s a living budget and it changes every day,\u201d Jordan said. \u201cI can\u2019t agree with this.\u201d<\/p>\n
Giovannelli had concerns over sustainability as, over the last 10 years, the district has done transfers from the capital fund to operating with such transfers tripling from what the district has done in the past.<\/p>\n
\u201cWhen I looked at some of the differences \u2013 the money is coming out of the classroom. That is where our money is supposed to be \u2013 in our classroom,\u201d she said. \u201cI am still on the fence on this budget. To be perfectly honest I ran it through AI and AI did not give it a good rating and I don\u2019t think AI is wrong.\u201d\u00a0<\/p>\n
The $52 million capital transfer will cover $9.5 million for charter school PECO funding, $16 million for property casualty insurance; $15 million for school maintenance and maintenance personnel; $5 million in enterprise and instructional software; $2.5 million for white fleet vehicles for maintenance; $2.2 million for safety, planning, and IT personnel and $2 million for bus operators.<\/p>\n
\u201cThis is a financial strategy recognizing certain operational expenditures are capital related,\u201d Chief Financial Officer Sarah Cox said.<\/p>\n
Board Chair Amor Persons said the capital fund replenishes itself every year through taxes and the half cent sales tax.<\/p>\n
\u201cTransferring capital money for capital to the operating budget to be used for capital expenses is very logical,\u201d he said. \u201cIt\u2019s not being used for teacher salary, not being used for food service, it\u2019s only used for approved capital expenses. Transferring $52 million to cover $150 million.\u201d<\/p>\n
The board also passed the proposed required local effort millage of 3.023 mills, estimated to raise $498,553,688; basic discretionary millage of .748 mills, estimated to raise $123,360,291 and a capital outlay millage of 1.5 mills, estimated to raise $247,380,262.<\/p>\n
The total millage approved is 5.271 mills, estimated to raise $869,294,241.<\/p>\n
\u201cThe total millage rate to be levied is less than the roll back rate. It is a decrease in the rollback rate of 1.97%,\u201d Superintendent Dr. Denise Carlin said.<\/p>\n
The required local effort mills had a decrease of .048. This millage is required for Florida to participate in Florida\u2019s Education Finance Program.<\/p>\n
The Florida Education Finance Program, the primary funding source in the general fund, is $1.08 billion with approximately $111 million for the Family Empowerment Scholarships.<\/p>\n
It is a $40 million increase from the previous year.<\/p>\n
The base student allocation saw an $85 increase to $5,457.60 and the average funding per Full Time Equivalent is $9,852.<\/p>\n
Budget & Grants Director Kelly Letcher said the new millage rate will generate $5.7 million more than the previous year because of the tax rate.<\/p>\n
One mill is equal to $1 for every $1,000 of taxable valuation.<\/p>\n
For homes with a $100,000 taxable valuation, the new rate of 5.271 mills will result in a $3.53 increase; a $150,000 value will have a $5.29 increase, and a $200,000 home will have a $7.06 increase.<\/p>\n
Cox said the context of the tentative budget is based on enrollment numbers, changes to school allocation and transfer from the capital funds.<\/p>\n
\u201cThis is our tentative budget \u2013 it establishes the framework beginning July 1. It\u2019s not the final financial picture for our district. We will continue refining revenue and expenditures as continued information becomes available,\u201d Cox said.<\/p>\n
She said the challenges are expenditure growth; enrollment decline and long-term financial stability.<\/p>\n