Boards Discuss Budget Needs At Joint Meeting
As Virginia lawmakers remain deadlocked on a state budget, Rockbridge County school officials say they are being forced to plan next year’s spending without knowing how much funding they will receive.
At a joint meeting last Thursday at the Innovation Center, the Rockbridge County School Board presented updated budget estimates to the Board of Supervisors, outlining more than $1.5 million in increased costs for fiscal year 2027.
“We’re waiting on Richmond like everyone else,” Superintendent Phillip Thompson said.
The General Assembly recently adjourned without reaching agreement on a budget, leaving local governments across Virginia in limbo.
The school division’s projected budget for FY27 totals $40.48 million, up about 3.5% from the current year’s $39.1 million budget. As in previous years, the vast majority of spending, about 72%, is tied to instruction, reflecting the system’s heavy reliance on personnel.
Enrollment is also projected to decline slightly, from an average daily membership of about 2,200 students this year to 2,170 in FY27.
School officials say maintaining competitive pay and benefits remains a top priority as costs continue to rise. Health insurance premiums are expected to increase by 7%, adding nearly $249,000 to the budget. While significant, the increase is lower than what the division faced last year, when officials anticipated a potential 19% spike before finalizing the FY26 budget.
Jason Kirby, the division’s finance director, said he had been told the 7% increase is among the lowest in the region. By comparison, County Administrator Spencer Suter said county employees had anticipated a 16% increase in health insurance costs, but instead saw a 23% hike.
Additional mandated increases, including workers’ compensation and insurance, bring total required cost increases to about $294,756.
Beyond required expenses, the School Board is seeking funding for a 4% salary increase for employees, totaling about $1.16 million.
That request comes after a similar gap last year, when the division initially sought a 5% raise but ultimately approved a 3% increase in the adopted budget. This year, the county’s finance committee has again planned for 3% raises across all employees.
Supervisor David McDaniel thanked the School Board for quickly providing updated figures, but noted that any decisions will depend on the state budget.
The division is also projecting roughly $68,500 in additional nonpersonnel costs, including fuel, technology and contracted services. Altogether, those increases bring the total additional funding need to approximately $1.52 million.
School officials presented three budget scenarios based on competing proposals from the governor, House of Delegates and state Senate. Under the most conservative estimate, based on last year’s governor’s proposal, the division would need about $1.13 million in additional local funding.
That figure drops to about $1.04 million under the Senate’s proposal. Under the House version, which includes a one-time $759,909 payment for non-recurring expenses, the additional need falls to about $516,000. However, officials noted that funding could not be used for ongoing costs and would not carry over into future years.
The uncertainty is especially significant because the school system relies almost equally on state and local funding. Current projections show roughly 50% of revenue coming from the state and about 45% from local sources, with the remainder from tuition and other funding streams. Until the state finalizes its contribution, local officials say it is difficult to determine how much of the burden will fall on county taxpayers.
School officials are also factoring in potential savings, including $120,000 from staff attrition, and a potential estimated $250,000 in retirement system savings that is dependent on approval by the General Assembly and governor.
Both boards say they will continue refining the budget while awaiting action from Richmond.
