Florence 1 presents $208.9 million budget first reading; board told millage increase ties to SRO, facility needs

Florence School District 1 presented the first reading of its proposed FY2025–26 operating budget on the board’s May meeting, with total revenues of $208,942,723 and a proposed operating millage that administrators said would rise from the current 210.7 mills to 213.72 mills.

“Total budget revenues are going to be $208,942,723,” said Laura Shao, who led the budget presentation. Shao told trustees the district expects roughly $74,270,002 in local tax revenue (about 36% of total revenues), the remainder from state aid and transfers; she also listed an $8 million (4%) revenue increase over the prior year.

Shao said the increase in operating millage proposed this year is largely tied to security costs the district currently funds locally. “Contracted services for security personnel is costing the district $1,600,000 this year. That is all being paid by local tax dollars,” Shao told the board, and she said those costs equal the three mills the district is asking for in the budget presentation. Shao noted the district had staffed SROs in middle and high schools before statewide funding initiatives and therefore did not qualify for some state SRO reimbursements.

The finance presentation broke down major spending areas: personnel and benefits at about $177,000,723; teacher salaries as presented at $124,427,403; direct student services (therapists, medical transport and contracted special services) totaling multiple millions, including a reported $7,500,000 in outsourced direct services. Shao said state aid to classroom for teachers is roughly $98,000,000, creating a local shortfall of about $26,000,000 that local taxpayers must cover.

Shao described other budget items and planned investments: a modest $600,000 increase for technology (licenses and software), continued funding for transportation and maintenance, $1,500 one-time pay increases for many staff groups, and an expanded operational budget for the new Pointer Medical Magnet School opening January 1 (including salary/fringe for an executive director and added utilities). She told trustees the district spent about $18,000,000 with local Florence County vendors last year.

On district fiscal health, Shao and administration highlighted improvements in the annual state risk assessment—where a lower score is better: the district’s risk score moved from 27 to 12 in earlier years, had been 11 for three years, and was reported at 10 this year; administrators said their target is 9. They also noted the district’s Moody’s score was 2.85 (double-A2) and that a small change in assessed value per capita could move the district toward a 2.68 score and closer to a double-A1 rating.

Board members asked clarifying questions about enrollment assumptions and the effect of state legislative decisions. Administrators said they expect a small enrollment decrease at the 135-day count tied to early high-school graduates and confirmed the 45-day count was the basis for current projections.

Shao said the district continues to absorb state funding shortfalls for services such as Medicaid-related transfers and pre-K programs and that the district’s operation depends heavily on local tax revenue because federal funds are not included in the general fund. She described changes in state funding mechanics that have left local taxpayers responsible for portions of compensation and benefits, and she previewed discussion points that will be part of the public hearing process leading to second reading and certification of the millage in June.

Ending: The board received the first reading; no vote on the final millage or budget adoption occurred at the meeting. Administration will provide additional detail during the budget process, with required public hearings and a June second reading and certification schedule.