The Levy County School Board adopted a tentative millage rate of 5.332 and approved a tentative budget resolution after a presentation by district finance staff that outlined enrollment declines, rising personnel and insurance costs, and expected revenue losses from scholarship programs.
During the first of two public hearings on the budget, district finance presenter Miss Lake explained that the total tentative millage rate the board approved includes a required local effort (RLE) of 3.084 mills, a basic discretionary operating millage of 0.7480 and 1.5 mills for capital outlay, for a total tentative millage of 5.332. "The total tentative budget rate we'll be asking for approval for tonight is 5.332, which includes 1.5 for capital outlay and 0.7," Lake said during the presentation. The board adopted tentative millage resolution 2601 by motion and voice vote.
Lake told the board the district faces a budget deficit driven by declining full-time-equivalent (FTE) enrollment, growth in scholarship and voucher programs, rising health insurance and Florida Retirement System (FRS) costs, and inflation. She said scholarships and voucher programs have cost the district an estimated $5.2 million for the upcoming budget cycle and noted that the state education budget increased scholarship funding with no enrollment cap. "We're estimating a loss for this budget cycle, which is, 5.2, almost 5,300,000," Lake said.
Specific figures presented by staff included a second-state-calculation net state and local increase of $504,000; the district is expected to pass along a TSIA amount of $191,350 for salary obligations. Lake said the district added a $75,000 textbook-adoption expense as it adopts new elementary ELA materials for kindergarten this year. The presentation also showed enrollment changes from May 2020 to May 2025: district enrollment down 64 students, charter schools down 3, and homeschool enrollments up about 245 students.
Lake described current fund balances and pressures. The capital outlay fund starts the year with about $8.7 million in fund balance, projected revenues of $8.6 million and expenditures of $11.1 million, leaving a projected ending balance of about $6.2 million; the change reflects paybacks and planned expenditures. Lake said the district is in the final payment year on a payback tied to Chiefland Middle-High School of a little over $2 million. Food service projections show a beginning fund balance around $2.6 million, projected revenues of $5.6 million and expenditures of $6.4 million leaving an ending balance near $1.7 million; staff noted federal rules limit how large a food-service fund balance may be. Lake also warned the district's self-insurance fund may require a permanent transfer to restore required reserves if claims stay high.
Board member Mister Lott moved to approve the tentative millage and later moved to adopt the tentative budget and resolution 2602; both motions passed by voice vote. The board also approved the tentative budget in the first public hearing and set a final budget hearing date (noted by staff as September 11 for the final hearing).
Superintendent remarks following the budget presentation thanked staff and administrators for work through budget challenges and said district leaders would monitor the budget and reserves closely. Board members thanked staff and foundation supporters for professional development and local partnership efforts.