Highlands County School District leaders are trying to avoid a state take-over of the district’s finances.

Florida law says a school district must have no less than 3 % of its budget tucked away as reserves. When funds dip below for an extended period of time, the state will take over finances.

That’s what has kept the Highlands County School Board concerned for months now. They have been meeting with the superintendent and leaders in finance to chip away as many expenses and positions as possible. Without drastically altering classrooms.

Few school districts have had their finances taken over by the state before. It is happening right now in nearby Glades County and in Union County in north Florida.

In January, Highlands dipped to 1.3 %. With the fiscal year’s end looming September 30, the reserve balance will be 2 % — a full point away from the necessary 3%.

School board members were presented with a tentative budget recently that tucked aside 3.4% for reserves. Though that tentative budget proposal should appease the state, keep the funds at that level could prove challenging. Over the past few years the school district has had to dig into its reserve account to pay out medical care costs.

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