HomeMy WebLinkAboutVirginia Beach City Public Schools Budget Presentation2026/27 School Board Operating
Budget and 2026/27-2031/32 Capital
Improvement Program (CIP)
April 14, 2026
Kathleen Brown, School Board Chair
Dr. Donald Robertson Jr., Superintendent
Crystal Pate, Chief Financial Officer
Melisa Ingram, Executive Director
Agenda
▪Changes to the Local Composite Index (LCI)
▪School Operating Fund Revenue Comparison
▪Compensation Adjustments
▪Health Insurance Premiums
▪Proposed CIP
▪Proposed Uses of Additional State Funding
▪Federal Revenue
▪Questions
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Changes to the Local Composite Index (LCI)3
0.40340.39250.39250.40460.40460.40820.40820.40590.40590.41380.41380.41722016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Historical LCI for VBCPS▪A state formula that outlines the
ability of each locality to pay for
public education
▪LCI ratios are recalculated with
each new biennial budget cycle
▪As the LCI increases, State
funding decreases
▪Localities may spend more than
their required amount
School Operating Fund Revenue Comparison 4
*State numbers reflect the Governor’s Proposed Budget presented on December 17, 2025.
**With the inclusion of Debt Service ($50,071,611) and PAYGO ($5M), total revenue equals $1,095,551,708
REVENUE SOURCE FY 2025/26
ADOPTED
FY 2025/26
APPROVED AMENDED
FY 2026/27
SEON
VARIANCE FROM
APPROVED AMENDED
Federal $14,744,107 $14,744,107 $15,494,107 $750,000
State $387,488,845 $401,073,914 $419,820,040 $18,746,126
State Sales Tax $94,290,730 $94,290,730 $95,257,382 $966,652
Local Contribution (RSF)$493,933,340 $491,953,917 $504,451,030 $12,497,113
Other Local $4,457,538 $4,457,538 $5,457,538 $1,000,000
TOTAL $994,914,560 $1,006,520,206 $1,040,480,097**$33,959,891
Employee Compensation Overview 5
Revenue
FY 2025/26
Adopted
FY 2025/26
Approved Amended
FY 2026/27
Proposed
Variance from
Approved Amended
Federal $14,744,107 $14,744,107 $15,494,107 $750,000
State $387,488,845 $401,073,914 $419,820,040 $18,746,126
State Sales Tax $94,290,730 $94,290,730 $95,257,382 $966,652
Local Contribution (RSF)$493,933,340 $491,953,917 $504,451,030 $12,497,113
Other Local $4,457,538 $4,457,538 $5,457,538 $1,000,000
Total $994,914,560 $1,006,520,206 $1,040,480,097 $33,959,891
Proposal FTE Amount Balance
Additional revenue from all sources $33,959,891
Part I & II non-personnel cuts $3,207,330 $37,167,221
Part I & II personnel cuts $2,040,208 $39,207,429
VRS fringe benefit rate updates $18,129,194 $57,336,623
Employer Health Insurance contribution increase ($9,228,824)$48,107,799
Additional Health Insurance contribution increase (Health Fund)($5,360,838)$42,746,961
Segal Teacher scenario A (2% entry + 1.5% step) ($14,885,012)$27,861,949
Teacher scenario A plus $1,000 to entry level (overall average increase 5.23%)($7,700,078)$20,161,871
Segal Unified scenario A (2% entry level + 1% for steps 1-14;1.5% for 15 and above)($8,506,154)$11,655,717
Unified scenario A plus an additional 1% to the entry level (overall average increase of 4.17%)($2,604,954)$9,050,763
Health Insurance Premiums
▪City and School staff meet together monthly with Mercer to review
health care data.
▪Actual rates have not been determined at this time, but the Schools
will stay in parity with the City rates.
▪Schools’ budgeted employer contribution for health in SEON was
based on Mercer’s projections using November 2025 data.
▪In the March Benefits Executive Committee meeting, we reviewed
Mercer's projections using January 2026 data, and the budgeted
employer contribution is still in line.
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Capital Improvement Program
7
Proposed FY2026/27-2031/32 CIP - Funding Sources 8
Proposed FY2026/27-2031/32 CIP - Funding Summary 9
10Timeline for PAHS
RFP to GMP
12 - 24 months
Selection
4 - 8 months
GMP to Completion
4 - 5 years++
P r o g r e s s i v e D e s i g n -B u i l d P r o c u r e m e n t M e t h o d
Where we are now
Proposed Uses of Additional State Funding
▪Final allocation of any additional state funds will be determined and
approved by the School Board.
▪PAYGO
▪Replace All In Grant Funding
▪Human Resources Funding Priorities
▪Health Fund Balance
▪Other areas selected by the School Board
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Federal Revenue
▪Federal revenues in the Categorical Grants Fund fluctuate annually based on
funding availability, spending trends, population changes,and student
demographic data
▪Given current-year funding levels, the projected costs for staff supported through IDEA Title
VI, Part B exceed the projected level funding, resulting in the need to reduce approximately
9.5 full-time equivalent (FTE) positions.
▪Because Title I, Part A funding is tied to poverty levels and state education costs, the recent
decrease in our economically disadvantaged student count has resulted in a projected $2
million reduction for FY 2026–27. Perkins allocations are still under state review, with
distribution decisions anticipated in June.
▪Rising costs have accelerated spending on multi-year awards,reducing the amount of funding
carried forward annually.
▪Federal funding has remained relatively flat while inflation continues to rise; the division’s
purchasing power has decreased.
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Questions/Comments/Discussion