Highlands County schools warn of $2.6 million shortfall as enrollment falls; fund balance may drop below state minimum

Superintendent Dr. Longshore and district finance staff told the Highlands County School Board at a budget workshop that declining enrollment, growing outflows to Florida Empowerment Scholarship (FES) vouchers and rising health insurance costs have combined to create multi‑million dollar shortfalls in the district’s general fund.

Angelica Tenajero, director of business operations, said the district expects a $1.7 million budget gap tied to projected loss of 200 full‑time‑equivalent (FTE) students for 2025‑26 and reported that, between the start of the fiscal year and the district’s latest state calculation, FES diversions to vouchers rose from about $9.6 million to about $11.2 million. “There’s been more than $11,000,000 diverted to FES scholarships as of today,” Tenajero said.

The report to the board said Highlands lost roughly 112 FTE in 2024‑25 (the district’s third‑count enrollment) and is projecting another 200 FTE loss for 2025‑26 under the state model the district chose. Using the district’s base student allocation, the presentation tied that 200‑FTE projection to roughly a $1.7 million budget deficit; the materials and presenters then combined that with other drivers to arrive at a $2,615,000 total impact covering 2024‑25 and 2025‑26.

Why it matters: Tenajero told the board the district is projected to end the 2024‑25 fiscal year with a…