Flagler board hears tentative 2025-26 budget projecting $9M fund balance, tighter staffing

The Flagler County School Board on July 22 received a presentation of the district's tentative 2025-26 budget that projects an ending general fund balance of $9,000,000 for June 30, 2025 and a projected June 30, 2026 balance of $7,500,000, district finance staff said.

The projections “are right where we pretty much thought we were going to end up,” the presenter said, and the district reported a financial-condition ratio of 6.9%, compared with the board policy target of 5.8%. That ratio is the district’s ending fund balance as a share of total revenues and is used to gauge fiscal health.

Board members were told the decrease from a roughly $13,000,000 balance in the prior year is largely the result of state revenue reductions in the FEFP calculations and the need to hire staff for expanded programs. “We are expecting to end in 06/30/2025 with an ending fund balance of $9,000,000,” the presenter said.

To close the gap for 2025-26, district leadership told the board it has taken three steps: holding some vacancies late in 2024-25, reducing most department budgets by up to 4%, and staffing strictly according to the district’s fall enrollment (FTE) forecast. Staff said the district’s FTE forecast projects a further decline of about 140 students for 2025-26, and schools were instructed that any staffing increases should wait until after the first 10 days of the school year because registrations typically change during that period.

The presenter said those measures are intended to spread budget impacts “district wide, not just ... on the backs of the schools.” The board was also told that the budget figures remain “a moving target” while the district completes fiscal-year closing work through September.

District staff reminded the board that other fund groups—capital, debt service and special revenues—also affect the overall financial picture and that detailed line-item budgets will be posted on the district’s online transparency page. The district will publish TRIM (Truth in Millage) advertisements on Saturday and hold a tentative public hearing on millage and the budget at 5:15 p.m. on Tuesday, July 29, the presenter said.

Board members asked for follow-up reports on wellness-center enrollment and insurance claims in August and were told those materials will be provided by human resources and the insurance consultants.

For now, the district described the 2025-26 general fund plan as conservative and said staff will return with answers if enrollment, grants or other factors change.

Less-critical details: the district’s presenter said the board previously approved a 10% health-premium increase earlier in the year; that change and the other reductions carried forward contributed to the projected balances. The district emphasized the budget documents and more detailed worksheets will be available online for public review ahead of the August budget work and hearings.