Superintendent warns of $25 million budget gap, pledges no school closures

Superintendent Dr. Mark Shanoff told the Osceola County School Board that the district is facing significant fiscal pressure and declining enrollment, largely linked to the Family Empowerment Scholarship program. "We need to rightsize our billion-dollar operations," Shanoff said, adding that the district is targeting "about $25 million for the upcoming year."

Shanoff outlined a shift away from an allocation-based budgeting model toward site-specific, zero-based budgeting so school leaders can prioritize spending that best serves their students. He said district departments and schools will be asked to adapt to funding constraints, and that the district is examining vacancies and normal attrition before considering reductions in force. "We do not plan on closing any schools," he said.

The superintendent told the board the district remains a vendor for Step Up For Students, the administrator of the Family Empowerment Scholarship, and is actively trying to recruit students back into district schools. He said federal funding projections (including Title I and other grants) will be factored into planning but cautioned that flexibility enjoyed in previous years has diminished as ESSER federal funds phase out.

Board members asked for clarity on which services could be affected and how savings would be achieved. Shanoff emphasized that funds tied to specific student needs (for example, ESOL/ESSE add-on FTE) must be expended on those services and that capital and operational funds will be managed separately. "School-based budgeting is based on the FTE that a particular school is projected to earn," he said, noting the district intends to protect constitutionally required services.

Why it matters: The budget plan would affect how resources are allocated across Osceola County schools and may change school-level programs and staffing decisions. The superintendent framed the changes as an effort to preserve classroom services while adapting to structural funding shifts.

What happens next: Shanoff said the district will continue planning with school leaders and return with implementation details; routine budget and staffing steps were discussed as part of ongoing board oversight.