The Lake Wales Charter Schools Board of Trustees adopted the 2025–26 budget on Aug. 12 after the district’s chief financial officer and superintendent outlined a constrained fiscal picture and proposed uses of reserve funds to balance one‑time costs.

Why it matters: The district accounts for seven charter schools. Staff described flat state revenue per student, increasing personnel costs and the expiration of pandemic federal grants as key factors constraining budgets. Trustees approved a budget that includes a modest, systemwide instructional cost‑of‑living increase and limited reserve draws to cover identified needs.

Key figures and decisions presented: CFO Ricky Smith and interim financial staff summarized the adopted budget and related financials. Highlights presented to the board included:
- Revenues across funds were broadly flat compared with the prior year, with an increase of about $1 million tied to an enrollment rise of roughly 114 students (approximately a 2.2 percent enrollment increase).
- The adopted general fund budget reflects an embedded 2 percent cost‑of‑living increase for instructional staff and a 1 percent increase (up to $1,000 cap) for non‑instructional staff. Pay‑for‑performance remains suspended for this year.
- Federal CARES funding that previously supported operations declined (staff cited roughly $1.9 million phased out over prior years). Grant and special‑revenue changes reduced available special revenues by several hundred thousand dollars.
- The budget presentation included a planned draw on reserves to cover approximately $1,557,005 to cover a cleaning contract, partial ESE program funding and social‑worker salary support; $774,007.37 of that total relates to completion of the Bot North campus construction costs that were funded as an internal loan from the general fund.

CFO commentary and audit status: Ricky Smith said the year closed near budget and that the presented results are unaudited; the district is undergoing its annual audit and final audited figures will be provided when available. He also noted a typographical error in the financial package’s balance‑sheet line item (a formatting/line error that does not change the consolidated totals) and that some DOE grant reimbursements remain under review and may augment revenues after the audit.

Trustee discussion: Trustees expressed concern over ongoing reserve draws and urged staff to seek revenue enhancements and cost reductions to reverse the trend. Trustees discussed the Bot North internal loan repayment schedule and the importance of protecting long‑term reserves while using them deliberately for one‑time or capital needs.

Board action: The board approved the 2025–26 adopted budget and the June–July financial reports by voice vote during the regular meeting. Trustees asked staff to bring any material new grant revenues that arrive under DOE review back to the board for allocation decisions, likely during a revised budget process.

Ending: Trustees and staff emphasized that while reserves allow the district to fund near‑term needs, long‑term sustainability will require monitoring, potential expense adjustments and pursuit of new revenues.