Santa Rosa County District Schools is the latest school district in the region to face significant budget constraints due to a loss in state funding. For now, the district is projecting $3 million dollars in cuts and is considering the elimination of dozens of positions as a start.
“It’s a total of about 45 positions that would be eliminated from next year’s staffing plan,” said Superintendent Karen Barber, pointing out that personnel make up the bulk (74%) of the district’s budget.
That would include staff reductions across the board, including district and school-level administrators, educational support positions and supplement instructional positions.
“Here’s the good news: this doesn’t mean 45 people lose their jobs,” stated Barber.
“Because through attrition and through offering those employees an opportunity to move to a different role that is required and necessary, employees will have an opportunity to remain employed next year, unless they’re retiring.”
The proposed staffing cuts would add up to about $2.2 million in expenditure reductions, leaving the district with about $800,000 in additional cuts, which Barber said will have to come of current contracts for purchase services or other types of supplemental support.
In a budget workshop last week, focusing primarily on the district’s general operating budget, it was pointed out that 67% of their general fund dollars come from the state, which is projected to decrease by $6.7 million, or 3.5%, from last year.
The loss in state funding is primarily due to a $5.4 million reduction from the Federal Education Finance Plan (FEFP), which funds the Family Empowerment Scholarship (FES) Program.
“What is a major cause for the FEFP funding loss? A big reason is the “Family Empowerment Scholarship Program (FES),” said Katherine Jones, assistant superintendent of finance.
The scholarship or voucher program is a state program that finances the education of students who are attending private school or are home-schooled. The funds, which total $9,226.70 per student in Santa Rosa, are removed from the district’s allocation and paid out directly to private schools or home school participants.
“Since FY 21, the FES FTE has grown over 6355%,” Jones stated, pointing to the rapid growth of enrollment statewide in the FES program, with the biggest spike coming in FY 23-24, when the income cap for eligibility was removed.
A Florida Auditor General audit of Step Up for Students, the organization administering the state’s private school voucher program, found state-level issues with the tracking of students and the money that’s supposed to pay for their education.
Districts across the state have complained about educating numerous students simultaneously listed in the FES database without compensation.
Sen. Don Gaetz of Niceville proposed a bill to fix some of the problems with the school choice voucher program, but it failed to get legislative approval.
Santa Rosa currently has 87 active students who are dual enrolled that they’re not getting paid for.
Other school districts across Northwest Florida are experiencing a similar situation.
In April, Escambia County Public Schools projected a loss of about 7,000 students to scholarships heading into the fall of 2026-27.
Overall, Escambia is projecting an $18 million revenue shortfall heading into next school year.
Currently, the district is reporting 335 dual-enrolled students being taught without state funding, a loss of about $3.2 million.
Superintendent Keith Leonard drafted a letter to the Florida Department of Education seeking reimbursement.
“We just want to get credit for the number of students that we do have,” said Leonard.
Escambia is considering consolidating and closing schools and staff reductions to address the budget shortfall.
In February, Okaloosa School Board members voted unanimously to close two elementary schools at the end of the 2025-2026 semester. The recommendation came from Superintendent Marcus Chambers, who cited declining enrollment, expanded school choice options, and rising costs as the reasons for the closures.
“It’s the last recommendation I would want to make,” said Chambers at the meeting before votes were called to close Longwood and Mary Esther Elementary schools.
Chambers said Okaloosa had to adjust its budget by $22 million in the last two years.
“This year, we will be north of $12 million again,” he said.
By that point, the district had already been working to cut costs and cut over $1 million at the district level, according to Chambers.
Another factor for districts is the state mandate that school districts maintain a general fund balance sufficient to address normal contingencies. The state threshold for Financial Condition Ratio (FCR) is 3%, with a requirement to notify the state Board of Education if it falls below that.
With the Santa Rosa School Board determining that their policy goal of 5% isn’t feasible for now, they’re targeting 4% for the upcoming ‘26-27 budget, which leaves them to find $3 million in expenditure cuts.
The districts will resume budget talks in the coming weeks, with Superintendent Barber to present a budget recommendation at the next meeting of Santa Rosa District Schools County on July 19.
“This is not going to be without some discomfort but...this is the position that we’re in,” she said.
