- April 24, 2024
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Like other local government bodies, Flagler Schools is taking a financial hit from COVID-19: So far, the school district’s General Fund has lost $350,000 in expected revenue, the bulk of which — $250,000 — is a result of the closure of the district’s extended-day program.
The district is receiving federal CARES Act money to offset cost associated with COVID-19, according to a staff presentation during a July 7 School Board workshop. But that money can’t be used to make up for the loss of revenues that would have helped cover expenses like salaries. Instead, the money must be used to pay for purchases that the district has to make as a result of the virus.
“Do you think that there’s value, maybe, in sending a letter to Congressman [Michael] Waltz so he understands that the federal funding we’re received isn’t going directly for some things, especially food service?” board member Colleen Conklin asked.
“I think it’s also an issue across the state,” School Board Chairwoman Janet McDonald replied. “So an FSBA [Florida School Board Association] letter and have people know that it’s out there, so they can sign on and then use it as a unified message — I think it’s a good idea.”
The district is also seeing a revenue loss as a result of declining sales tax revenue, which the state collects and disburses to school districts.
The impact so far hasn’t been as severe as the district’s financial office had feared it might: District staff had predicted a 30% sals tax decrease for April, and the actual decrease turned out to be about 23%, with a similar decrease expected for May. Sales tax monies are disbursed about two months after they’re collected, so May’s haven’t come in yet.
Sales tax revenue for the month of June is expected to have increased as a result of the state’s reopening process.
And while the school’s capital expenses have been $457,000 lower this year than last, the school’s food service fund has taken a major revenue impact.
The district would typically serve about 3,500 breakfasts and 7,000 lunches; since COVID-19. closures, it’s been serving about 1,000 breakfasts and 1,000 lunches.
Expenses in that fund exceed revenues by $942,000, according to the staff presentation. The fund started with 467,000, but that still leaves about a $500,000 shortfall, which must be covered with money from the General Fund.
