In a surprising turn of events, the Broward School District is grappling with a sudden loss of $5.5 million in expected funding after the county’s tax collector withheld this amount from a voter-approved referendum. This unexpected financial blow further complicates the district’s ongoing struggle with a significant budget shortfall.
Tax Collector Abbey Ajayi informed the school district that her office is authorized by law to deduct a fee of about 2% from the $275 million generated annually by the 2022 referendum. The school district had already approved its budget for the 2025-26 fiscal year without anticipating this fee. Ajayi’s office reportedly sent a notification to the district in February 2025, but district officials claim they have no record of receiving such communication.
The lack of prior notice has left some members of the School Board frustrated. Superintendent Howard Hepburn is now seeking solutions, including the possibility of providing free office space for the tax collector’s office to mitigate the impact of this financial setback. In a letter to Ajayi, Hepburn emphasized the critical nature of the situation, stating, “This action comes at a particularly critical time. The District is currently managing an ongoing $90 million budget shortfall driven by declining enrollment.”
Despite multiple attempts to reach Ajayi and her office, there has been no response to inquiries regarding the matter. The referendum funds are crucial for financing teacher and staff supplements, as well as safety officers and mental health counselors. The unanticipated fee could lead to reductions in these essential services.
Board member Lori Alhadeff expressed her outrage, insisting that the funds should remain dedicated to schools and teachers. “This is unacceptable. Referendum dollars belong to our schools and teachers, and they need to be returned immediately!” she stated.
Another board member, Adam Cervera, echoed her sentiments, stating, “I’m outraged that they are taking money directly from the pockets of the students here. This is going to have a negative effect on the district. I’m pissed off.” Meanwhile, Nora Rupert has called for an investigation into the situation, suggesting that an external organization, such as Florida TaxWatch, could be enlisted to examine the matter. “There is no gray area when it comes to public tax dollars and how they are being used for our students, families, and employees,” she said.
The controversy surrounding referendum funds is not new for the district. Earlier this month, the School Board voted to end the practice of awarding substantial referendum supplements to the highest-paid staff members, a move that had sparked significant backlash. Members were reportedly unaware that high-paid employees were receiving these funds, which were intended to assist teachers and lower-paid staff.
Since its inception in 2018, the school district has relied on funds from referendums, with voters having renewed the initiative in 2022. Without voter approval in November of this year, the funding would cease.
Historically, the Broward County government managed the collection and distribution of referendum funds without imposing fees. However, a state constitutional amendment passed in 2018 necessitated the establishment of an elected tax collector’s office in counties that did not have one. Ajayi, elected in August 2024, began her term in January 2025, and her office has faced various disputes regarding tax revenue management since its inception.
The school district first became aware of the 2% fee while reviewing a financial report in early January. District spokesman John Sullivan noted that a finance manager had contacted the tax collector’s office to clarify what appeared to be a $5.5 million underpayment. In a response from Nadia Alcide, chief of staff for Ajayi, it was stated that the office transitioned to being funded through commissions and fees as of October 1, 2025, which impacted the district’s budget.
Sullivan later learned that the notification letter was sent to an office on Oakland Park Boulevard rather than the main office in downtown Fort Lauderdale. The district has been unable to locate any email correspondence regarding the fee, and Ajayi’s office has not yet provided a copy of the notification letter.
In her email, Alcide also mentioned that any unused fees collected would be refunded to local governments at the end of the fiscal year, as mandated by state law. However, Hepburn remains focused on finding a resolution that minimizes the impact on the district’s students and educators. He requested a meeting with Ajayi, emphasizing the necessity to protect the educational environment and the well-being of the children and professionals relying on these essential services.
