Clay County School Board approves advertisement of tentative 2025-26 millage and budget amid state, federal funding shortfalls

Clay County School Board approved advertising its tentative 2025-26 millage rates and budget on July 22, voting 4-0 to place required public notices and set public hearings after a board presentation and lengthy staff briefing. The board’s action begins the statutorily required notice period for a tentative millage and budget that the district must publish before two public hearings; the first hearing was scheduled for July 29 at 5:05 p.m. at the Teacher Training Center at Fleming Island High School. Board members and staff said the budget is unusually constrained because of late state calculations and recent funding changes from state and federal sources. Chief Financial Officer Dawn Posey told the board that the Florida Department of Education’s late FEFP calculations and a prior-period adjustment produced a required local effort (RLE) of 3.024 mills that the district must levy to receive approximately $252 million in state education funding. Posey said the RLE includes a 0.008-mill prior-period adjustment the department added after issuing its July 18 calculation. Posey said the district’s tentative total millage rate to be advertised is 6.272 mills (the sum of required local effort, discretionary and capital levies). She described how the TRIM calendar and Department of Revenue certifications determined the timing of the notice and why staff updated attachments after the July 18 DOE certification. The CFO walked the board through key revenue and expenditure figures used in the tentative budget upload to DOE: the RLE of 3.024 mills is estimated to generate about $63.6 million; the basic discretionary rate of 0.748 mills about $15.7 million; the voted 1-mill operating levy about $21.0 million; and the capital outlay 1.5-mill about $31.6 million. Posey said the district’s combined estimated budget across all funds for 2025-26 is roughly $669 million. The district’s beginning general fund balance for the tentative budget was cited at about $14.5 million and an ending general fund balance budgeted at about $17.6 million (roughly a 4% unassigned/available balance as presented). Posey and board members emphasized recent unusual timing and reductions from state and federal sources: Clay County’s third FEFP calculation reduced district revenue by about $5.0 million; on June 26 the district’s final FEFP disbursement was about $647,000 short of the expected amount; and an announcement on June 30 that $7 billion in federal funds would be withheld would translate to roughly $1.5 million less for Clay County across Title II, Title III and Title IV programs if that withholding persists. Superintendent Thomas told the board the budget is “very tight” and that any unexpected declines in student counts or further funding reductions would come directly from fund balance. Thomas and Posey said staff would continue to monitor and adjust throughout the year and that the district prioritized classroom positions where possible. Board action: Board Member Hanson moved to approve advertising the tentative millage and budget; the motion was seconded by Board Member Gilhausen. The board voted aye unanimously (4-0); Board Member Clark was not present and was recorded absent. No amendments to the advertised figures were adopted. The advertisement package that will run in the local paper includes the budget summary, the notice of proposed tax increase (required because the total RLE exceeded the rollback rate), and the capital outlay notice listing eligible uses of the 1.5-mill capital levy. Posey said the capital outlay ad lists typical permitted uses, including construction, renovation, vehicle purchases and debt service for existing COPs. She said the district and auditors will later trace advertised projects to expenditures. The board’s approval starts the statutorily required public process; the board will hold at least two public hearings (first hearing July 29; final hearing September 11) before adopting final millage and budget amounts.