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Gadsden officials warn state funding cuts could push district below 3% fund balance
Summary
District staff reported a February FEFP recalculation that cut more than $1.5 million in revenue, prompting warnings of a potential financial emergency and calls for a daylong budget workshop and staffing‑plan review.
District finance staff told the Gadsden County School Board that a third FEFP calculation released in February reduced anticipated revenues — by staff estimate more than $1.5 million — creating the possibility the district could close the fiscal year below a 3% fund balance unless spending adjustments are made.
Mr. Key explained the district is analyzing the impact of the third calculation and that finance staff (including Kathy Sneads and Mrs. Bruner) have been examining spending and staffing plans to avoid a financial emergency. Mrs. Bruner told the board that final budgeting decisions depend on the State’s formal FEFP allocation and on completing the district audit, which she said is pending with the Auditor General’s Office.
Board members urged deeper review. Charlie D. Frost proposed a daylong workshop to go “line by line” through departmental budgets. Chairman Leroy McMillan asked whether scholarship programs — which can move students out of the district — contributed to funding losses; Mr. Key affirmed that losing students to scholarships reduces district funding because state allocations follow student enrollment. Mrs. Bruner said the district started the year on one funding projection but the third calculation produced cuts that created the deficit risk.
No formal budget reductions were approved at the meeting; staff were directed to produce further detail and a staffing plan to inform tentative budget decisions due by July 2026.
