In a surprising financial twist, Broward County’s tax collector has decided to withhold $5.5 million from the Broward School District, money that was anticipated from a voter-approved referendum. This unexpected move has added another layer of financial challenge for a district already grappling with budget issues.
The School Board had approved the budget for the 2025-26 academic year without foreseeing that the county tax office, which began operations in January 2025, would levy a fee on funds collected from a 2022 referendum. This fee, amounting to roughly 2% of the annual $275 million generated by the referendum, came as a surprise to district officials.
In an email to the school district, Tax Collector Abbey Ajayi’s office asserted their statutory right to impose this fee, referencing a notification supposedly sent in February 2025. However, district officials claim they have no record of receiving this notice.
As tensions rise, some School Board members express their frustration, while Superintendent Howard Hepburn seeks potential solutions, including the offer of free office space for the tax collector’s operations. In a letter addressed to Ajayi, Hepburn highlighted, “This action comes at a particularly critical time. The District is currently managing an ongoing $90 million budget shortfall driven by declining enrollment.”
The tax collector’s office did not respond to repeated requests for comment made by phone and email on Friday.
The funds from the referendum are crucial for teacher and staff supplements, as well as safety, security, and mental health programs. The unexpected withholding of fees could lead to a reduction in these essential services, Hepburn warned.
Board member Lori Alhadeff expressed her disapproval, stating, “This is unacceptable. Referendum dollars belong to our schools and teachers, and they need to be returned immediately!” Similarly, Board member Adam Cervera voiced his anger, “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.”
Nora Rupert, another board member, called for a thorough review of the situation, potentially involving an external group like Florida TaxWatch to ensure transparency and accountability. She questioned how the district could face a $5 million fee without prior knowledge.
This incident marks the second controversy related to the referendum this month. Earlier, the School Board decided to stop providing the highest-paid staff members with significant referendum supplements, a move that revealed discrepancies in how the funds were distributed.
Historically, Broward County government managed referendum collections and disbursements without charging a fee. However, following a 2018 state constitutional amendment, counties were required to establish a tax collector’s office. Ajayi, elected in August 2024, assumed the role in January 2025 and has since been involved in disputes regarding tax revenue distribution.
District finance manager Todd Chelibashki identified the 2% fee discrepancy while reviewing a financial report. Upon inquiry, Nadia Alcide, chief of staff for Ajayi, clarified that the office’s funding model changed on Oct. 1, 2025, to include commissions and fees, as permitted by Florida statute.
Alcide claimed the district was notified in February 2025, but district spokesman John Sullivan reported that the correspondence was sent to an office on Oakland Park Boulevard instead of the main headquarters. Despite an email search, no evidence of communication from the tax collector’s office regarding the fee was found.
Alcide assured that any unused fees would be refunded to local governments at the fiscal year’s end, in compliance with state law. Nevertheless, Hepburn emphasized the urgency of resolving this matter to mitigate its impact on the district’s students and educators.
“We must find a resolution that limits the impact on the students and educators of Broward County,” Hepburn stated in his communication with Ajayi. “Our shared responsibility is to protect the educational environment, safety, and well-being of the children and professionals who depend on these services every day.”
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