LAND O’ LAKES – Pasco County Schools is trying to finalize its 2025-26 fiscal year budget despite some challenging variables from state and federal governments.
Staff has brought forward a $2.3 billion tentative budget to the school board. This represents a 2.3% increase from the 2024-25 budget and includes $1.1 billion for the general fund (primary operating fund) and $671.5 million budget for capital projects (construction/facilities fund).
“They are working,” Superintendent John Legg said of his team. “They put their numbers together, and it just seems like within a couple of hours, they have to adjust it because more information is coming.”
Legg said it seems like the district keeps getting new information due to the state budget being late and the federal government reviewing grants.
Tammy Taylor, chief financial officer for Pasco County Schools, met with the school board July 22 to explain some of the state and federal impacts on the budget.
Student enrollment
Pasco County Schools projects traditional schools will see a 638-student decrease this coming year as interest grows in charter and private schools.
Taylor said the district expects to get $3.6 million less in funding due to declining enrollment.
The district expects charter school enrollment to grow by 1,645 students. This comes as three new charter schools open in 2025-26: Imagine School at Trinity, Pinecrest Academy Connerton and Pinecrest Academy Connerton Middle School.
The district also anticipates an increase of 1,645 students receiving the Florida Empowerment Scholarship, a program that helps families pay tuition for private schools.
Taylor said the district accounts for approximately 79% of enrollment in the county with charter schools at 11% and Florida Empowerment Scholarship at 10%.
Florida Empowerment Scholarships
Funding for the Florida Empowerment Scholarship has grown from $33.9 million in 2023-24 to $51.2 million in 2024-25 to $71 million in 2025-26.
“These funds are included in our budget,” Taylor told the scholar board. “It’s very difficult when we’re looking at balancing the budget and reserves when there’s this large sum of money in here that really never comes to us and becomes part of our budget.”
Taylor said the state didn’t budget enough for the scholarships in 2024-25, resulting in the district waiting on $1.5 million in anticipated revenue.
“Our desire would be to see FES scholarship students as their own school, similar to Florida Virtual School, so the funds are not included in our budget,” Taylor said. “It would be much easier across the state if they were set up as their own schools but we’ll see what happens.”
Employee health insurance & retirement rates
The district will contribute $8,801 per employee this year for health insurance. Taylor said this represents a 40% increase over the past 10 years.
“The fund is experiencing a very bad year and is expected to have a $15 million shortfall,” Taylor said. “Discussions are still ongoing and subject to negotiations to bring the plan back into compliance with the required reserves.”
In total, the district expects to pay $112,807,393 in health insurance expenses for 2025-26.
The district is also seeing an increase in retirement rates.
Pasco County Schools projects $76.2 million in retirement expenses compared to $75.8 million in 2024-25 and $72.5 million in 2023-24. Five years ago, the district’s retirement expenses totaled $48.7 million.
Florida Education Finance Program changes
Finance staff has had to adjust to state changes to funding categories, such as instructional materials, reading allocation and classroom supply funds.
Another change, made this year, involves “academic acceleration options” that includes Advanced Placement, International Baccalaureate and similar programs.
Taylor could not say at this time how this would impact the district.
Federal Funding
Taylor said that $6.3 million in federal grants are being held for review.
This includes line items for supporting effective instruction/teacher retention ($3.5 million), student support and academic enrichment ($1.9 million), language instruction for immigrants ($798,099) and migrant education ($83,840).
Not getting this funding will result in staff going back to the school board with budget changes. As many as 56 positions are funded through these allocations, Taylor said.
The district has received grants that were originally withheld, including the 21st century community learning centers ($2.5 million). Grant funding related to adult general education was received but reduced from $845,536 to $406,432.
Millage rates
The district will vote on a budget with a total millage levy of 6.274 mills, which is a 0.057 decrease from the previous year.
Taylor said the owner of a $350,000 home would pay $2,039.05 in school taxes, a decrease of $18.53 from 2024 millage rates.
Salary referendum revenue
Pasco County voters approved a referendum to allow the school board to levy up to one mill in each of the four years of the referendum to increase salaries for teachers, bus drivers, nutrition staff and custodians.
This has allowed a starting teachers’ salary to increase by $2,500 with an average teacher supplement of $5,800.
“The district is very thankful to the voters for their trust and support of the school district in this effort,” she said. Without these funds, it would be an even more challenging year and the district could not remain competitive with our surrounding counties.”
The district projects $64,129,768 in projected revenue in 2025-26 from this move.
School board reacts
School board members did not express shock at Taylor’s presentation.
District 2 Member Colleen Beaudoin credited Taylor and her team for keeping the board in the loop for several months.
District 3 Member Cynthia Armstrong appreciated the staff’s conservative approach to budgeting, noting how preparing for worst-case scenarios positions Pasco County Schools better than other school districts.
Superintendent John Legg reiterated that the biggest variable involves getting health insurance wrapped up from the previous year and forecasting for next. Legg said the district may get updated information about this in the coming days.
The district is required to hold two public hearings for the budget. The first hearing, scheduled for July 29, is to adopt a millage and tentative budget. The second hearing, scheduled for Sept. 9, is to adopt the final millage and budget.
“Employee salaries and benefits is the largest portion of the district’s budget and it accounts for over $667 million,” Taylor said. “Over 90% of the budget is appropriated to instruction and school level programs. A small percentage of our budget is going to other areas.”