Hillsborough school board adopts 2025–26 millage rates and $4.407 billion budget, citing added voted mill

Hillsborough County School Board members unanimously approved the district’s 2025–26 millage rates and the $4.407 billion adopted budget in a final public hearing Tuesday evening.

The board adopted a total package of 6.34 mills for fiscal 2025–26. That package includes the state-required local effort (3.092 mills), discretionary operating (0.748 mills), local capital outlay (1.5 mills) and an additional voter-approved 1.00 mill that takes effect this year and is intended to fund employee salary enhancements and academic program enhancements.

Why it matters: The additional voted mill accounts for most of the year-over-year increase in projected revenues. Finance director Jamie Lewis told the board the district projects $1.16 billion in local proceeds for 2025–26 (based on a taxable value of about $191.4 billion), an increase of roughly $220.9 million from last year; roughly $183.7 million of that increase is attributable to the new voted mill.

The budget: The board adopted an overall budget of $4,407,000,005.36 for 2025–26, including general fund and proprietary funds. The budget projects $2.3 billion in federal, state and local revenue and begins with a projected beginning fund balance of $293.3 million (about 16%). The proposed budget assumes a 96% collection rate for property taxes.

Board discussion emphasized balancing staff compensation, reserves and long-term stability. Member Gray and others asked questions about historical millage trends and the impact of property values. Lewis told the board that absent the newly approved mill the district would have seen a small net decrease in mills; the additional voted mill is the primary driver of the increase for 2026.

Fund balance and risk: The district reported an ending 2024 fund balance of about $293.3 million (16% of expenditures) and projects an ending fund balance for 2026 of approximately $226.5 million (10%). Finance staff said the decline from 16% to 10% reflects strategic uses of fund balance during the year, including salary and benefit increases and one-time investments. Board members and staff repeatedly emphasized maintaining a healthy reserve to protect the workforce and operations against enrollment declines, property-value shifts and other uncertainties.

Legal and technical background: Staff reviewed Trim law requirements and noted the Florida Department of Education’s role in calculating required local effort. The superintendent and finance staff said the district followed the statutory timetable and would submit the required documents to state agencies including the Florida Department of Education and the Hillsborough County Property Appraiser.

Next steps: The board also approved required resolutions adopting millage rates and authorized staff to take the ministerial steps necessary to comply with Chapter 200 (TRIM) requirements. Finance staff will continue to monitor fourth-calculation adjustments from the state and will report material changes to the board.

This vote was taken at the board’s final public hearing; public comment earlier in the meeting addressed the budget among many other topics.