The Broward School Board agreed Tuesday to pay $108 million to local charter schools by 2027 — about $67 million in original debt and about $41 million in accrued interest.
The payment plan resolves an issue that got the Broward school district in trouble with state officials, but creates a new budget dilemma that could impact employees. The board decided to postpone that conversation until next Tuesday.
The school district’s debt to charter schools, which are schools funded by taxpayers but managed by private entities, stems from a voter-approved referendum the school district pushed in 2018.
FROM MARCH: Florida education officials say Broward Public Schools owe about $80 million to charters
At the time, Broward County voters agreed to raise their property taxes over the next four years, among other initiatives to increase compensation for teachers and other workers and improve school safety. The school district used most of the money, sharing only about $4.6 million of the total $453.6 million generated with 21 charter schools with an enrollment of at least 900 students.
Last fall, some of the charter schools sued the district over the money, arguing that a 2019 state law required the district to share the money with all charter schools. The Florida Department of Education intervened in late March and ordered the school district to resolve the disagreement.
In April, the school board approved a payment plan and on Tuesday they greenlighted the details of that agreement. The $67 million will come from a referendum approved in 2022 and interest will come from the district’s general fund. The $41 million interest comes from an annual interest rate of 12%.
FROM APRIL: Broward Public Schools will start paying off charter school debt. But the state will still monitor
Debra Hixon, vice chair of the board, criticized the high stakes.
“There is no negotiation here,” she said. “We were forced to just take it on the chin.”
She and another board member, Allen Zeman, also expressed concern about the budget impact on district employees such as teachers, because if referendum funds go to debt, there will be less to pay teachers, school safety and auxiliary officers and counselors on the field of mental health care. .
Superintendent Howard Hepburn said they would discuss these details at next Tuesday’s board workshop.
