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Okaloosa schools cite enrollment drop, $43M in scholarship outflows and look to cuts to balance budget
Summary
Superintendent Marcus Chambers told the board the district faces declining enrollment driven by Family Empowerment Scholarships (FES), falling birth rates and demographic shifts. He and staff outlined a 10‑year enrollment forecast, estimated local scholarship outflows of roughly $43 million and recommended administrative restructures and further fiscal measures.
Okaloosa County School District Superintendent Marcus Chambers told the board at its Dec. 8 workshop that declining enrollment combined with money flowing through the Family Empowerment Scholarship (FES) program is creating a significant fiscal challenge for the district.
Chambers said the district’s current student body stands at 27,829 and noted that, across Okaloosa, state‑funded scholarships — including FES and PEP allocations — reduce the number of students for which the district receives state FTE funding. “There are 4,935 scholarships in Okaloosa,” Chambers said during his presentation, adding district staff estimate roughly 3,300 FES recipients and about 1,633 other scholarship allocations.
Why it matters: the district presented an illustrative tally showing about $30,000,000 associated with FES and…
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