Okaloosa projects 452‑student FTE shortfall; board hears state funding, scholarship and enrollment impacts

Superintendent Chambers told the School Board of Okaloosa County on Oct. 13 that district officials are tracking a projected shortfall of 452 full‑time‑equivalent students for the 2025–26 year and are preparing budget responses.

The shortfall matters because Florida school funding is calculated from two date‑certain FTE captures (October and February) and additional weightings that adjust funding for grade level, English‑learner status and career/technical instruction. "Enrollment in multiple school districts is is going down, and there's several factors to that. One of those factors being the availability of Family Empowerment Scholarships," Superintendent Chambers said.

The district's presentation, led by Mr. Spolsky, explained how weighted FTE is calculated and why absences or transfers during the date‑certain weeks reduce the district's funding. "Those two months, those very important months are in October and in February," Mr. Spolsky said. He gave sample calculations showing how students in different programs generate different weighted FTEs and noted the district captured a week in early October for its preliminary estimate.

Why it matters: the district's October estimate translates to fewer students counted in the state funding formula. District staff said the projected 452‑student deficit equates to an approximate budgetary impact the district described as "a little over" $4 million once all program weightings and local factors are applied. Chief Financial Officer Ms. Perry told the board the finance office builds reserves and plans for FTE fluctuations, but the gap still requires attention in the district's budgeting process.

Officials pointed to several drivers for the decline. District staff identified kindergarten enrollment as a disproportionate share of the drop and cited rising housing costs and lower birth rates as additional local factors. The Family Empowerment Scholarship (FES) program also continues to draw students out of district schools; district staff said the number of students using FES rose from roughly 1,800 last year to about 3,000 this year. "The vast majority of them never step foot in Okaloosa County ever," a district staff member said, describing the FES payments as a pass through from state accounting into non‑district schooling.

The board heard that the state calculates program cost factors from district expenditure reports and that the district has seen smaller cost factors for some grade levels in recent years. "They make middle school one, and then they adjust the others based on that," a district staff member said, summarizing the state's approach to program cost factors. Board members and staff discussed the district's 7‑period high‑school day and whether keeping that schedule remains financially feasible; the superintendent and staff said the extra course access afforded by a 7‑period day is a reason district leaders have retained it.

On accountability and collection, district staff said the Florida Department of Education has improved scholarship accounting this year and now provides lists of scholarship recipients so the district can reconcile who is no longer enrolled and avoid double‑counting. District staff also said the district will continue marketing and outreach — and may use targeted investments — to try to recapture students.

District staff emphasized process and timing: the state counts FTE from a defined week in October and another week in February, and those captures are not routinely reopened except under rare review. Mr. Spolsky said registrars and school staff rely on a detailed checklist and on the district's FTE team to ensure accurate reporting during those weeks.

The board asked for continued monitoring and for staff to return with budget options tied to the updated FTE projections. Superintendent Chambers said staff will plan conservatively and bring recommended adjustments when the board adopts its final budget.

The district also noted unrelated grants and recognitions during the meeting: a $210,000 workforce grant was awarded to two high schools for welding and applied cybersecurity programs, and the district rose in a national ranking (Niche) from seventh to sixth in Florida among the state's districts. Those items were presented as context for the district's broader strategy to retain and recruit students.

Next steps: staff said they will continue to refine the district's October and February projections, coordinate with schools to minimize schedule changes during date‑certain weeks, and report budgetary recommendations to the board as the district finalizes its 2025–26 budget.