Santa Rosa County residents will not see an increase in property tax millage to support public schools, despite an anticipated reduction in state funding of nearly $3 million.
A local effort millage increase was not part of the tentative 2026-27 millage and budget approved by the Santa Rosa County School Board during a public hearing held July 28 at Woodlawn Beach Middle School.
A final public hearing is set for 5:30 p.m. Sept. 10 at Central School. The school board will vote on a final budget for fiscal year 2026-27 following the hearing. Santa Rosa County District Schools’ budget year runs Oct. 1 through June 30.
Santa Rosa Schools Supt. Karen Barber recommended the passage of a $321.5 million operating budget and a $527.5 million total budget on July 28.
She also recommended a total of 5.403 mills, which includes a 3.1550 local effort millage (a decrease from 2025-26’s 3.166 mills), 0.7480 discretionary operating millage and 1.5 mills (the same as 2025-26) for basic discretionary capital outlay millage.
The school district will still collect more property taxes during the 2026-27 year due to higher valuations, Katherine Jones, SRCDS assistant superintendent of finance, told school board members at a July 21 budget workshop. In fiscal year 2025-26 the school district collected $21.5 million in ad valorem tax revenue. This year, the district is projected to collect about $22.5 million.
In 2026-27, the district is also receiving $8.38 million in additional revenue that includes a $633,859 Florida Department of Education declining enrollment supplement, $2.3 million from insurance premium holidays, $1.8 million more in Medicaid, as well as food service indirect costs.
Jones noted those additional funds will allow the school district to maintain a 5.01% fund balance for the upcoming school year if there are not any unexpected expenditures. The fund balance is used as a contingency for emergency expenses and to calculate the district’s Financial Condition Ratio (FCR). State law also mandates that school boards maintain a sufficient contingency fund.
School board members had been concerned they might have to decrease the district’s fund balance from 5% to 4% in order to balance the budget for the upcoming school year.
Based on FDOE enrollment calculations for the 2026-27 school year, the school district is projected to see a $2.9 million decrease in state funding, but a $3.7 million increase in property tax revenue.
At a June pre-budget workshop, school board members agreed to cut about 45 employee positions from the 2026-27 school year budget. Over 70% of the school district’s budget is used for salaries and benefits for employees.
Barber said the cuts would include 0.6% in supplemental instructional positions, 4% in administrators and 3% in educational support positions. No reductions will be made in the district’s classrooms that would raise the state-mandated 18:1, 22:1 and 25:1 student-teacher ratios, Barber added.
The school district was aiming to cut $3 million from its 2026-27 operating budget. The staff cuts will result in a $2.2 million reduction in expenditures. Another $800,000 would be cut from current contracts for purchases and other types of supplemental support.
During the July 21 workshop, Jones said based on the most recent Florida Department of Education FTE calculations, SRCDS total enrollment is projected to increase to 31,250 for the 2026-27 school year, a jump from 31,077 in the 2025-26 school year.
However, that increase will be for students receiving Family Empowerment Scholarships, students who are counted among the county’s student population but who attend private or charter schools and do not contribute to public school coffers.
During the 2025-26 school year, 3,261 students received scholarships. This upcoming year, 450 more—or 3,711—students are projected to receive the scholarships.
Students enrolled in Santa Rosa public schools are projected to drop to 27,439 for the 2026-27 academic year, down from 2025-26 when the district had 27,718 students.
Santa Rosa Acceleration Academy, an alternative education program, is also expected to increase its enrollment to 100 students this upcoming year, up from 98 students last year.
“Overall, the district increased by 173 but that includes the Family Empowerment Scholarships students and the acceleration academy students. So if you’re just looking at face value and not doing a drill down, it looks like we increased by 173 (student) but that’s not really what the district increased but what the overall Santa Rosa County increased,” Jones explained. “The district really decreased by 279 (students).”
This article originally appeared on Pensacola News Journal: Santa Rosa schools balance budget despite enrollment, state funding declines
Reporting by Mary Lett, Pensacola News Journal / Pensacola News Journal
USA TODAY Network via Reuters Connect
By Mary Lett, Pensacola News Journal | USA TODAY Network
