Osceola School Board sets 5.306 mills, adopts $2.098 billion tentative budget after public hearing

The School District of Osceola County on Tuesday set a proposed property tax rate of 5.306 mills and approved a tentative $2,098,464,591 budget for fiscal year 2025–26 after a public hearing at Gateway High School.

The board’s actions follow the required Truth in Millage (TRIM) process under section 200.065, Florida Statutes, and a staff presentation that explained the Florida Education Finance Program (FEFP), how mills are computed, and the effect on a sample homeowner. The millage the board adopted will generate revenue for general operating and capital outlay funds; staff said the proposed total rate of 5.306 mills is 1.02% higher than the rollback rate.

The proposed millage will help the district receive roughly $423,600,000 in state FEFP funding tied to required local effort and an additional $28,600,000 in compression funding if the district levies the full basic discretionary millage, according to the presentation by Chief Business and Finance Officer Sarah Graber. Graber also described how property taxes are calculated, noting a $25,000 homestead exemption where applicable and showing an example school-related tax roughly in the $1,060 range for a home in the slides shown to the board.

The public hearing drew statements from community members, including Erin Azarek, who told the board she and people in the community are “scared” after recent federal funding uncertainty and asked the board to hold a town-hall-style public briefing to explain the district’s proposed cuts and the budget timeline. Board members and staff responded during the hearing that federal Title II, III and IV funds had been temporarily withheld but were released by the federal government on July 25; staff said those funds are included in the 2025–26 budget being adopted tonight but warned that future federal actions could affect the next school year.

Board discussion also included staff explanation of fund-balance categories: nonspendable (inventory), restricted (externally restricted categorical funds such as state mental-health dollars), and assigned (board-allocated commitments such as multi-year contracts). Superintendent Dr. Shanoff and staff said the district expects to close fiscal 2024–25 with a planned drawdown of fund balance as part of a multi-year strategy that used federal ESSER/ARP stabilization funds previously, and cautioned that rating agencies review fund-balance trends when assessing bond ratings.

Votes at the hearing were recorded by roll call. The board adopted resolution 26-001 setting the millage (required local effort 3.048 mills; prior period funding adjustment 0.01 mills; discretionary operating 0.748 mills; capital outlay 1.5 mills; total 5.306 mills). Voting on resolution 26-001: Teresa Castillo — yes; Resaida Garcia — yes; Anthony Cook — yes; Heather Kay Hoon (chair) — yes; Paula Bronson — no. The resolution passed.

The board then adopted resolution 206-002 (described at the hearing as the tentative budget) for $2,098,464,591. Roll-call votes recorded at that item were: Teresa Castillo — yes; Anthony Cook — yes; Resaida Garcia — yes; Heather Kay Hoon — yes; Paula Bronson — yes. The board also voted to authorize the superintendent and staff to complete all TRIM-related tasks required by section 200.065, Florida Statutes; that motion was moved by Ms. Castillo, seconded by Ms. Garcia, and approved by voice vote.

Staff emphasized that while the proposed rate is slightly above the rollback rate, the district’s tax roll increased about 6.08% over the prior year, producing a net revenue increase even though the millage rate changed only slightly. Graber said funding per student in the proposed budget increases by $151 (about 1.77%) compared with the prior year, and that projected FEFP and local tax revenues for 2025–26 are about $35,300,000 greater than 2024–25 projections.

The board announced the final public hearing to adopt the 2025–26 budget will be held Sept. 9, 2025, at 5:30 p.m. at Gateway High School. The board chair scheduled no further action at this meeting beyond adopting the tentative millage and budget and authorizing staff to complete TRIM steps.