Board reviews revised five‑year capital improvement plan and draft tentative budget amid slowing growth and rising costs

Superintendent Connor and the district's finance and facilities teams briefed the board on June 17 on a revised five‑year capital improvement plan (CIP) and the draft tentative operating budget for fiscal 2025‑26, highlighting slower enrollment growth, rising construction and operating costs and the challenges of late state budget action.

Chief among capital priorities, district construction leaders said, are a full HVAC and science‑wing renovation at Northport High; completion of Oak Park wing renovations; a multi‑year expansion of the Sarasota Technical College (STC) campus (now supported by a $7.5 million federal subrecipient grant); and continued planning for a replacement auditorium at Sarasota High that planners currently estimate at about $75 million. Project timing was adjusted across the five‑year plan to reflect slower growth in parts of the county and to preserve flexibility for funding and debt service. "Our goal is to maximize our existing resources the best we can," Dr. Kemp told the board as she introduced the revised CIP.

Budget director Krista Curtner told the board the district built the draft 2025‑26 budget conservatively because the state presented its final figures much later than typical this year; the certified tax roll and the Department of Education's final FEFP (Florida Education Finance Program) calculations had not been released at the time of the workshop. The county's preliminary property‑tax estimate used in the draft was about 3% and the state FEFP increase for Sarasota appeared modest (about 1.33%–1.35% overall), Curtner said. Meanwhile the district faces higher non‑discretionary costs, including proposed utility increases and an anticipated 13% medical‑insurance rate rise. "The cost increases are far outpacing what we're receiving in additional revenues," Curtner said.

On cash‑flow and reserves, Chief Financial Officer Bonnie Penner said the district closed fiscal 2023‑24 with a general‑fund financial cushion above policy minimums and proposes a target fund balance of about 9% for the coming year to protect cash flow, noting that property‑tax collections typically arrive months into the fiscal year. Penner emphasized that the revised plan includes multi‑year funding of large projects to spread cost and preserve debt capacity.

Board members questioned the timing and placement of new schools and addition projects given pockets of under‑enrollment and recent participation increases in statewide scholarship programs. Several members urged more long‑range strategic planning and suggested the board and administration evaluate programmatic changes (for example, K‑8 conversions or targeted program offerings) to draw more families back to district schools. "We have to reimagine the middle‑school model," Superintendent Connor said, adding the district is preparing proposals the board will review in future workshops.

On specific project details, staff said Northport High HVAC and science wing work is ready to begin subject to the board's approval of architects and construction managers; STC Phase 3 funding reflects a $23.5 million total project budget including federal grant funds; Oak Park will finish a multi‑phase renovation; and several roofing and major systems projects were planned as multi‑year allocations across the five‑year CIP. Staff also noted smaller capital investments such as access‑control cards, MiAlert weapon‑screening rollouts, and rekeying projects tied to construction.

In the budget presentation, Penner reviewed the TRIM (Truth in Millage) calendar and public‑hearing schedule: the district will present advertised tentative millage and the tentative budget at a July 29 public hearing and the final budget and millage for adoption at a Sept. 16 hearing. She said the district will continue to refine the draft as final FEFP numbers and the certified tax roll are received.

What's next: staff will return to the board with detailed CIP project documents, architect/CM selection processes and refined budget numbers after the county certifies the final tax roll and DOE issues final FEFP computations. The board requested more long‑range modeling and community engagement on programmatic options to address underutilized campuses and enrollment shifts.

Ending: Board members thanked facilities and finance staff for the presentation and emphasized the need to balance new growth, deferred maintenance and operational sustainability as the district prepares for upcoming budget hearings.