Flagler consultants: state budget gains offset by voucher growth and new mandates

Consultants from the Sarah Consulting Group told the Flagler County School Board on June 24 that while the district will receive a modest net funding increase from the 2025 Florida Legislature, rising mandates and voucher expansion will likely offset much of the gain.

John Serra, the lead consultant, told the workshop that statewide education funding grew unevenly: "There was a minuscule increase in the base student allocation — $41.62 — and no increases to safe schools and the mental health allocation." He said much of the new money flowed to school-choice vouchers and siloed add-on weights rather than to general operating budgets.

The consultants said statewide changes included tax-cut negotiations that slowed the session and produced large recurring cuts championed by the Florida House speaker; the final package included about $1.3 billion in recurring reductions compared with initial requests. Serra said the district’s local legislative delegation was responsive: "We are very lucky. Senator Leake ... Representative Sam Greeco — their doors were always open," he said.

Why it matters: the consultants estimated Flagler’s share of the new formula funding at roughly a 2.36% increase, equivalent to about $1.9 million in potential additional revenue. But board members and staff said compliance with new legislative requirements will force the district to spend an estimated $2.2 million next year, producing a funding gap the district must close in the upcoming budget cycle.

Details and district impact: Bob Serra and Superintendent Leshaka Moore explained that several programmatic changes will affect local budgeting and operations. Consultants noted Senate Bill 2510 (conforming bill) created special funding for expanded "schools of hope" and changed the way add-on weights (for ACE, IB, CAPE and other programs) are funded — moving them into a standalone, state-funded silo. The consultants said the Department of Education (DOE) will need to implement calculations to avoid double-counting students between districts and voucher programs; the consultants said the DOE is likely to use rulemaking to do that because final legislative language did not require an immediate calculation change.

The board discussed operational consequences. Member Derek Barr and Superintendent Moore both warned that increased Florida Retirement System (FRS) costs, health-care increases and fewer students in the district (the state reported a slight statewide enrollment decline) will magnify pressure on Flagler’s local budget. "This is a continuing theme of unfunded mandates that we have to manage here at the district level," Moore said.

Board next steps: the consultants said they will return to work with district staff on implementation and to provide more detailed calculations; the board asked staff to prepare those analyses and begin identifying legislative priorities for the fall and winter, ahead of the next session. The board also asked staff to make the consultants’ staff presentation available to district personnel and to schedule follow-up sessions for July to review rulemaking and operational impacts.

Ending: Board members thanked the consultants for the overview and said they expect a staff-level briefing on specific budget scenarios and the district’s options at the next workshops and budget meetings.