School board give nod to $3.1 billion budget
Giovannelli, Jordan, vote no
The School Board of Lee County approved the district’s tentative 2026-2027 budget of $3.1 billion Monday.
The budget includes the general operating fund at $1,220,903,783; special revenue budget at $122,735,083; debt service budget at $137,272,163; capital outlay budget at $1,414,450,429 and internal service budget at $226,935,021 for a total tentative budget of $3,122,296,479.
Board members Melissa Giovannelli and Debbie Jordan voted against the approval.
“In looking at this budget, I have a problem,” Jordan said. “I know it is a tentative budget. A $5 million increase in security because of overtime – that makes my head spin. I cannot do that. I know that some people love spending money. I do not like spending money.”
The proposal shows a drop of $172 million in direct school funding, an increased budget for the central district department and decreases amounts for school maintenance and maintenance personnel.
“It’s a living budget and it changes every day,” Jordan said. “I can’t agree with this.”
Giovannelli had concerns over sustainability as, over the last 10 years, the district has done transfers from the capital fund to operating with such transfers tripling from what the district has done in the past.
“When I looked at some of the differences – the money is coming out of the classroom. That is where our money is supposed to be – in our classroom,” she said. “I am still on the fence on this budget. To be perfectly honest I ran it through AI and AI did not give it a good rating and I don’t think AI is wrong.”
The $52 million capital transfer will cover $9.5 million for charter school PECO funding, $16 million for property casualty insurance; $15 million for school maintenance and maintenance personnel; $5 million in enterprise and instructional software; $2.5 million for white fleet vehicles for maintenance; $2.2 million for safety, planning, and IT personnel and $2 million for bus operators.
“This is a financial strategy recognizing certain operational expenditures are capital related,” Chief Financial Officer Sarah Cox said.
Board Chair Amor Persons said the capital fund replenishes itself every year through taxes and the half cent sales tax.
“Transferring capital money for capital to the operating budget to be used for capital expenses is very logical,” he said. “It’s not being used for teacher salary, not being used for food service, it’s only used for approved capital expenses. Transferring $52 million to cover $150 million.”
The board also passed the proposed required local effort millage of 3.023 mills, estimated to raise $498,553,688; basic discretionary millage of .748 mills, estimated to raise $123,360,291 and a capital outlay millage of 1.5 mills, estimated to raise $247,380,262.
The total millage approved is 5.271 mills, estimated to raise $869,294,241.
“The total millage rate to be levied is less than the roll back rate. It is a decrease in the rollback rate of 1.97%,” Superintendent Dr. Denise Carlin said.
The required local effort mills had a decrease of .048. This millage is required for Florida to participate in Florida’s Education Finance Program.
The Florida Education Finance Program, the primary funding source in the general fund, is $1.08 billion with approximately $111 million for the Family Empowerment Scholarships.
It is a $40 million increase from the previous year.
The base student allocation saw an $85 increase to $5,457.60 and the average funding per Full Time Equivalent is $9,852.
Budget & Grants Director Kelly Letcher said the new millage rate will generate $5.7 million more than the previous year because of the tax rate.
One mill is equal to $1 for every $1,000 of taxable valuation.
For homes with a $100,000 taxable valuation, the new rate of 5.271 mills will result in a $3.53 increase; a $150,000 value will have a $5.29 increase, and a $200,000 home will have a $7.06 increase.
Cox said the context of the tentative budget is based on enrollment numbers, changes to school allocation and transfer from the capital funds.
“This is our tentative budget – it establishes the framework beginning July 1. It’s not the final financial picture for our district. We will continue refining revenue and expenditures as continued information becomes available,” Cox said.
She said the challenges are expenditure growth; enrollment decline and long-term financial stability.
To reach Meghan Bradbury, please email news@breezenewspapers.com