The county School District’s proposed budget for the 2026-2027 school year tops out at $436.2 million, nearly $16 million higher than the current budget. But that district is hoping to actually reduce the school tax rate.
That’s because county properties have increased in value by a higher percentage than the 3.7 percent hike in the proposed school district budget.
Homesteaded properties in Indian River County were up in value by 4.71% this year, according to figures released by the county Property Appraiser’s office.
Under the proposed school tax rate for the coming year, the owner of a homesteaded residence with an assessed value of $385,000 will pay only slightly more in taxes –an additional $37.09. The owner of a non-homesteaded residence with the same assessed value will pay an additional $72.42 in school taxes next year.
Most of the district’s revenue comes from the property tax, also called ad valorem taxes.
Indian River County’s excellent public schools also get money from the Florida Education Finance Program, which doles out more than $30 billion in funding for public schools. Indian River County’s portion this year will total about $51 million, or roughly $9,338 per student, Bruce Green, the district’s chief financial officer, told school board members at their July 27 budget public hearing.
About $52.24 million is earmarked for capital improvements, a 1 percent increase over last year’s amount. About $5 million more will roll over from capital projects that are ongoing.
Some capital improvements planned for 2026-2027 include:
- Roof replacements at Gifford Middle School and Sebastian River Middle School, along with other construction and remodeling projects
- Purchase of delivery vehicles, maintenance vehicles, and 10 school buses
- Purchase of computers, electronic devices, hardware and software
- Single point of entry security enhancements at several campuses
- Upgrades to technology, security and fire alarm systems
Another $38 million is earmarked for employee health insurance and related costs, a 30 percent increase over this year. The cost for health benefits was initially expected to increase more than 100 percent, but the district modified the plans it offers, negotiated lower pharmacy costs and plans to encourage employees to make better use of the district’s onsite health center, said Kyra Schafte, the district’s director of communications and marketing.
The proposed budget also includes $1.1 million for raises for 350 teachers who have 10 years or more of in-classroom teaching experience. These dollars come from the state’s $1.5 billion Teacher Salary Increase Allocation, which was enacted by the Legislature in 2020 and comes to about $2,350 annually per eligible teacher, Schaft said.
The district will also give raises to the rest of the district’s 957 teachers, she said.
Voters approved a half-percent additional property tax by referendum in 2008 that funds teacher recruitment, school technology and campus safety. The tax generates about $11.2 million per year. The referendum must be re-approved by voters every four years. It will be on the ballot again in 2028.
“Our teachers are the most important investment we make,” said Superintendent of Schools David Moore. “Every compensation decision begins with that belief. While we are grateful for the state’s investment through the Teacher Salary Increase Allocation, we also recognized the importance of supporting the educators who were not eligible under the state’s guidelines. Every educator plays a vital role in the success of our students.”
The second and final public hearing on the proposed budget is set for Sept. 8 at 5 p.m. After the hearing, the board will adopt the final budget for 2026-2027.
