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Lee County sees modest FEFP gains but ends FY26 with an operating shortfall; taxable values will decide FY27 flexibility
Summary
District budget staff told the board that the FEFP fourth calculation cut district funding (about $6.6M net) while the state’s first calculation added gross dollars; after adjustments the district projects about a $47M remaining operating shortfall to be addressed with budget choices and certified taxable values due July 1.
District budget leaders told the School Board on June 9 that recent state funding calculations and local property valuations have left the district with limited near‑term flexibility and a multi‑million dollar operating gap.
Assistant Director Matt Aosta and Sarah Cox summarized FEFP calculations and fiscal outlook. The district’s fourth FEFP calculation (February survey) showed an unweighted FTE decline of about 699 (from roughly 109,416 to about 108,717), which reduced categorical and base funding. “Our unweighted FTE was a decrease of about 699,” Cox said.
Why it matters: the FEFP calculations drive state funding for operations and schools; changes in FTE, program cost factors and the comparable wage factor can raise or lower district allocations. The district presented a projection from April showing a $92.4 million operating shortfall for the general fund, of which staff proposed bridging $45.4 million with a capital transfer. That plan left a residual gap of about $47 million heading into FY27.
Cox and Aosta walked the board through the details: the state’s first calculation (part of its FY27 budget) added roughly $38 million in gross funding to Lee County but included $15.3 million attributable to Family Empowerment Scholarships and other restricted items that the district cannot treat as discretionary revenue. After backing out restricted amounts, salary allocations and other earmarks, staff estimated roughly $8.3 million in potential discretionary funding — but stressed that final results will depend on certified local taxable values on July 1.
They also explained mechanics that reduce or increase county allocations: the comparable wage factor (a county‑specific multiplier) fell for Lee County, which reduced the effective base student allocation increase; program cost factors for certain high‑need categories changed and affected categorical allocations.
Board members asked about the timing of school budget allocations and the district’s process to true up school budgets after day‑14 and the October FTE survey; staff confirmed those routine adjustments. Cox said some new funding drivers (teacher salary increase allocations) come pre‑restricted by statute and the district must spend them according to state direction.
What’s next: staff will incorporate the property appraiser’s certified taxable values after July 1 and return with tentative budget figures. The board will see the tentative budget and millage schedule in late summer under the statutorily mandated timeline.
