Student population loss will decrease money flowing into the district to pay employees

Jan. 26--PANAMA CITY -- Bay District Schools faces possible operational losses of up to $51 million through next year because so many students have been displaced by Hurricane Michael.

According to officials in a district school board budget workshop on Thursday, operational losses are expected to be between $12 million and $17 million for the current fiscal year. The school district also expects to see operational losses between $24 million and $34 million next fiscal year. Officials attribute the expected drop in revenue to the loss of thousands of students since the hurricane.

"We're paid on the number of kids," said Chief Financial Officer Jim Loyed. "When you're talking about operational loss, that's salaries, that's jobs, that's lives."

Proper housing is essential to bring students back into the district.

"Everything is connected," said board member Ginger Littleton. "You're not going to come here for a school when you don't have a job and you don't have a home."

Bay District Schools, excluding charters, has lost 3,149 students because of Hurricane Michael, most of which came from the elementary grade levels, officials said.

The breakdown is as follows:

High schools -- decrease of 560 students (6 percent)

Middle schools -- decrease of 672 (14.5 percent)

Elementary schools -- decrease of 1,799 (17 percent)

Special schools -- decrease of 100 (9.5 percent)

Charter schools -- decrease of 368 (7.5 percent)

Pre-Ks -- decrease of 113 (14 percent)

Bay Virtual -- decrease of 9 percent

Home school -- increase of 231

The district also expects a drop in property tax revenue because of tumbling property values in the county following the hurricane. The estimated LCI millage is expected to fall between $1.2 million and $2.5 million for the next fiscal year.

Meanwhile, officials estimate district hurricane reconstruction costs will total $300 million. Those costs include building repairs, new construction, modular rentals, district vehicle repairs or replacements, and replacing destroyed contents.

The costs will be covered partially by $100 million in insurance proceeds.

Loyed described working with the Federal Emergency Management Agency as "a huge learning curve," but said he is confident hiring storm recovery consultants will be a huge asset. He also reminded the public, FEMA is a reimbursement program and should be utilized as a last resort, so exhausting insurance money is critical.

"It's going to be complicated, it's going to be difficult, but I'm confident," Loyed said.

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