Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance Budget topic
No spam. Unsubscribe anytime.
Hendry schools CFO outlines budget uncertainty, suggests boosting reserves amid late state counts
Summary
CFO Adams told the board that late state budget calculations and several revenue uncertainties have left the district with a projected variance and prompted a recommendation to consider raising restricted fund balance from 6% to 9% for brick‑and‑mortar funds; no board vote was taken.
Chief Financial Officer Adams briefed the board on the district’s fiscal position, saying a late state legislative session and delays in official enrollment and funding counts have created uncertainty for the 2025–26 budget.
Adams said the state’s “first calculation” was released late on a Friday night and the second calculation is required July 19; a previously expected “fourth count” does not appear likely. Because of the timing and several variables, Adams said the district is preparing conservatively and that preliminary calculations showed about a $3 million variance in the fund balance compared with earlier plans. He described that change as arising from an FTE shortfall tied to slower student growth than forecast and higher completion rates in the district virtual program, among other items.
To protect reserves, Adams proposed—without seeking an immediate board motion—that the board discuss raising the district’s restricted fund balance for Hendry brick‑and‑mortar operations from 6% to 9%. He said the district currently holds a 6% reserve (above the state’s required 3%), but the dollar value is smaller than it appears when actual budgets are not large. Board members asked timing and implementation questions and Adams said staff would return with concrete numbers when the state’s counts are final and the district completes the rollover.
Adams also reviewed health‑insurance risk and the district’s decision to be self‑insured. He said Hendry has been “very fortunate” with claims to date, that reinsurance covers the largest claims but leaves district liabilities below the reinsurance threshold, and that the district joined the Florida School Board Health Insurance Trust (the “fleet”) to reduce exposure over the next one to two years. He warned other districts that had not prepared for high claims had needed to cover millions from general funds.
Adams described several internal budget strategies taken this year to reduce pressure on the general fund, including: using allowable capital transfers for certain salary positions; right‑sizing allocations based on class‑size formulas; moving 15% of custodial salaries tied to cafeteria cleaning to food‑service funding (which he said freed roughly $4 million for other uses); and relying on Educational Enrichment Allocation positions where permitted by statute. He said federal grants (including ESSER) have ended and that grant funding uncertainty remains.
No board action was taken. Adams recommended staff return with final numbers and a potential formal proposal on the reserve target after the state’s second calculation is released.
