The Okaloosa County School District is facing a $4 million funding shortfall after enrollment fell 452 full-time equivalent students below projections, with kindergarten bearing the brunt of the decline.
- Assistant Superintendent John Spolski presented the enrollment figures during last Monday’s school board workshop, showing that approximately half of the decline are kindergartners.
“This is the environment in which we’re in,” Superintendent Marcus Chambers said. “We’re going to control what we can control and make decisions accordingly.”
The district attributes the decline to multiple factors including Florida’s Family Empowerment Scholarship program, which has grown dramatically. The number of scholarship recipients increased from approximately 1,800 students last year to about 3,000 this year, according to district officials.
The statewide scholarship program funnels nearly $28 million through the district’s budget as a pass-through, though Chambers noted that a large number of scholarship recipients never attended Okaloosa Schools.
“I’m all for family choice and parents’ ability to make educational choices that best suit their childs’ needs,” Chamber added. “It is my hope that we look at the funding formula for this program and examine the impact on school districts.”
The funding impact extends beyond enrollment numbers. When a student uses the scholarship, families can receive approximately $9,000 per child — money that can be used for private school tuition, homeschooling expenses or other reported costs such as educational field trips to theme parks, various lessons, musical instruments and P.E. equipment. (There is also a full list of requirements and prohibited items)
- “FES is becoming more of a reality, not just with Okaloosa Schools, but across the state of Florida, and school districts will begin experiencing challenges unlike in years past,” Chambers said following the workshop.
This year, the state implemented safeguards (such as (4) installment payments, reference lists) requiring families to provide withdrawal forms or proof of non-enrollment to ensure that students were not receiving the Family Empowerment Scholarship and attending their local public schools. If this were to happen, local school districts would not receive money (approx. $9,000) for those families who have already gotten the scholarship, which would negatively impact school budgets.
Beyond scholarships, the district faces other enrollment challenges. Birth rates have declined and housing costs have increased, affecting central and southern parts of the county, according to the presentation. At the high school level, students are taking fewer classes at the junior and senior level due to their ability to take online classes, dual enrollment and other options to fulfill their graduation requirements.
The district funds students based on two annual “date certain” capture periods – one in October and one in February. Students must be present during those specific weeks to be counted for funding. The October capture period ran from Oct. 6-10.
Julie Perry, Chief Financial Officer for the school district, said the district has already planned for the shortfall by setting aside reserves. The projection accounts for the fact that February enrollment is historically lower than October.
School Board member Brett Hinely asked whether the $4 million impact from less student enrollment represented a significant loss. Perry confirmed it did, though the district says they are positioned to weather the impact.
Board member Lamar White questioned whether the decline in student enrollment would continue due to FES.
- “I wouldn’t want to think that we’ll be down another 450 [students] next year or 900,” White said. To which Evanchyk said, “ This is not sustainable.”
The district maintains a seven-period school day at the high school level, which most Florida districts have eliminated for financial reasons, according to the District. Board member Linda Evanchyk, who said she would like to continue funding seven periods as long as the district was able to, asked Chambers to elaborate on why the district continues to offer a seven period day.
“You look at the opportunities that we have for our students and Okaloosa students are very competitive at Florida, Florida State, UCF, and you go forward to colleges outside our state,” Chambers said. “What colleges look at is, in essence, are you taking the most rigorous courses that your school can offer?”
The seven-period day allows students to take college-level classes (AP, AICE, IB), band, chorus, theater and career and technical education courses alongside academic requirements. However, the district only receives state funding for six periods.
Chambers told board members they should expect to see “some things that are a little outside of the box” in next year’s budget.
The Superintendent said he has been sharing enrollment data with the Champions of Education group and other community organizations and leaders, emphasizing the broader economic impact.
“This is a pivotal time in public education,” Chambers said. “We have to do what we need to do to still be a strong school district and we will. But with that will come tough decisions.”
Board members expressed concern about the sustainability of current trends and the impact on staffing. White noted that 452 students represents a significant number of teacher positions, though the district typically allocates fewer positions than enrollment would suggest to maintain flexibility.
Chambers explained that the strategic planning starts in March when Spolski reviews every school’s allocation. The district intentionally holds back positions, then Spolski “judiciously allocates” them where needed throughout the year. However, Chambers acknowledged that classes are tighter than in previous years.
The $4 million funding loss reflects more than just a simple per-student calculation. While the base student allocation increased by $47 this year to approximately $5,372 per student, actual funding depends on multiple factors including program cost factors, class size funding, supplemental academic instruction funding and local property taxes, according to the District.
- Perry said that when all funding sources are combined, the district receives an average of approximately $9,000 per student – the same amount families receive through the Family Empowerment Scholarship.
The complex funding formula means different students generate different amounts based on their grade level and programs. Elementary students have a higher program cost factor than high school students, and students in exceptional student education programs or English language learner programs generate additional weighted funding.
Despite the financial challenges, the district reported improvements in other areas. It moved from seventh to sixth place in the statewide Niche Report, which ranks all 67 Florida school districts. The ranking system evaluates state test scores, graduation rates, college readiness and teacher quality. The district also received another A ranking from the Department of Education, along with 9 Okaloosa County schools earning state excellence recognition.
“This is the best profession that folks can be in,” Chambers concluded. “I truly believe that because we make a difference and we will continue, like I said, to make decisions accordingly and still have a fantastic school district.”
One Response
Crack down on bullying in public schools and they will quit leaving. 2 nieces and multiple friends are homeschooling due to the bullying issues that aren’t dealt with at school or county levels in Okaloosa and Walton.