Gadsden school leaders say state funding recalculation cuts district revenue by roughly $1.8 million, risk breaching reserve threshold

Miss Brunner, the district finance presenter, told the school board the districts revenue projection has been reduced substantially after multiple state recalculations of FEFP funding. "We were reduced by over 1,000,000 and a half from the 2nd calculation to the 3rd calculation," she said, and "we just received the 4th calculation on Friday, and we were reduced even more, about 300,000." She added the cuts affect the general fund and do not touch grant-funded expenditures.

Board members pressed for details about how revenues and expenditures align. One board member asked whether specific revenue lines (for example, ROTC) should match expenditures; Miss Brunner explained that some revenues only fund a percentage of the associated expenditures and that "our revenues aren't gonna match our expenditures" because of the recalculations. She also warned the board that the district is projecting it will fall below the 2% fund balance threshold and said it may end the current fiscal year in the negative without state action.

On the cause, Miss Brunner attributed the reductions to a recalculation of state FEFP funding based on student enrollment. "It doesn't tell us the exact number of students, but I can get you," she said when asked whether the $300,000 related to lost students. Later in the meeting a board member said the district lost "over about 200 students" compared with last year.

Board members discussed next steps. Miss Brunner said the district will present its projections to the Florida Department of Education and request an appropriation that would bring the district to zero; she described that as a direct appropriation from the state rather than a loan or repayment. "Whatever number would get us to 0 is what the state would give us," she said, explaining that the district would then begin the next fiscal year with a 0% fund balance and must rebuild from there by spending less than it receives.

Several board members emphasized the role of enrollment declines and statewide policy in the shortfall. "We can't do no more than what the state allowed us to do," Mister Frost said, arguing the districts budget is strained because the state did not provide anticipated funds rather than because of local overspending. Other members cited school choice, charter schools and homeschooling as factors that have reduced the districts student FTE.

Board members asked for more detailed briefings and said they want deeper conversations about staffing, consolidation and maintenance spending before next fiscal year's budget is finalized. Miss Brunner and staff said they are drafting staffing adjustments and consolidation proposals (including the planned closure of Shanks) to align positions with enrollment, and they will track expenditures with a monthly expenditure tracker the board requested.

The board did not take formal action at the workshop. Miss Brunner said staff will prepare the districts projection for state submission and bring more detailed budget workshops and data back to the board for deliberation and possible decisions in the coming weeks.