Pasco County Schools is pursuing a new federal tax credit program that could help fund tutoring, summer learning and STEM enrichment for district students.

Superintendent John Legg told the school board Sept. 22 that the district has spent months exploring how to benefit from the Education Freedom Tax Credit, a provision of the One Big Beautiful Bill Act signed into law by President Donald Trump. The program takes effect Jan. 1, 2027, as first reported by the Hernando Sun.

Beginning on that date, taxpayers can make qualifying cash contributions to approved scholarship-granting organizations, or SGOs, and claim a nonrefundable federal income tax credit of up to $1,700 per taxpayer.

Unlike programs limited to private school tuition, the federal scholarships can also cover qualified education expenses for eligible students who attend public schools. Pasco officials said the money could support district-provided tutoring, summer learning, STEM enrichment and career and technical education certifications.

Pasco looks to capture scholarship dollars

Legg said the district wants to partner with an approved SGO and seek "some degree of exclusivity" so scholarship dollars flow to Pasco programs rather than outside providers.

"The key for me is typically government is slow," Legg said at the Sept. 22 meeting. "And if government is too slow, that $250 million won't come to us. It'll go to other folks."

The $250 million figure was Legg's characterization. The district has not released a breakdown showing how it was calculated, and officials acknowledged they do not yet know how much money Pasco students could ultimately receive.

Federal implementation rules also are not final. The U.S. Treasury Department and IRS released proposed regulations Oct. 1 as the federal government prepares for the program's January launch.

Board members asked whether Pasco could become an SGO itself. Legg said he was reluctant to take on the complex federal tax administration involved while the program is new.

The presentation was informational, and the board did not vote.

Gov. Ron DeSantis announced Jan. 28 that Florida would participate in the federal program. Thirty states had opted in by September.

Teacher pay plan covers 20% of staff

At the same meeting, the board approved a state-required plan distributing new salary funding to teachers with at least 10 years of full-time experience in Florida public schools. Chief of Staff Kevin Shibley said the allocation covers only about 20% of district employees.

United School Employees of Pasco President Jeff Larsen called the state's restrictions "unfortunate" and said negotiations for the remaining 80% of employees are continuing.

"I want to be very clear — we're not done negotiating," Larsen said.

District switches health insurers

Pasco County Schools also is switching medical carriers from Florida Blue to UnitedHealthcare effective Jan. 1, 2027. Employees' required contributions will not increase, though the district's share remains under negotiation.

Employees can choose between an HMO and a Surest plan.

The district's next regular board meeting is scheduled for Oct. 6 at 9:30 a.m.