The Rockbridge County School Board approved its fiscal year 2027 budget last month, adopting a spending plan that includes pay raises for employees, full coverage of increased health insurance costs and funding for a new alternative education program.
The Board unanimously approved the division’s lineitem budget during its May 12 meeting.
The adopted budget totals approximately $39.8 million and is built around projected enrollment of 2,170 students, continuing a recent trend of declining student membership across the division.
Superintendent Phillip Thompson said the budget reflects the Board’s primary goals established during the budget development process: investing in employees and minimizing the impact of rising insurance costs.
“The RCPS School Board set priorities for FY27 that continue to invest heavily in its most valuable asset,” Thompson wrote in the budget’s executive summary, “along with working to minimize the cost of any insurance increases for our employees.”
The budget includes a 3% raise for all teachers and staff and fully absorbs a 7% increase in employee health insurance premiums, meaning employees will not see higher insurance costs deducted from their paychecks.
The spending plan also provides funding for the division’s new Rockbridge Pathways alternative education program, scheduled to begin operating in fall 2026.
The budget was approved before final state funding figures became available.
Thompson told Board members the General Assembly and governor had not yet finalized a state budget, requiring the division to rely on projected funding estimates.
Under current projections, the school division expects to receive about $275,553 in additional state funding compared to FY26, along with $463,193 in increased local funding support from Rockbridge County.
Thompson noted that amendments may be necessary once final state funding figures are released, potentially as early as this month.
The FY27 budget was developed using a projected average daily membership of 2,170 students, down from a projected 2,200 students in FY26. Despite that decline, the division’s priorities remained focused on employee compensation and retention.
The adopted budget allocates roughly 72% of expenditures to instruction, with transportation, operations and maintenance, administration, health services and technology accounting for most of the remaining spending.
According to budget documents, approximately 51% of the division’s funding is expected to come from the state, while about 45% will come from local sources. Tuition revenue and other sources account for the remainder.
In addition to employee compensation costs, Thompson said administrators adjusted fuel and other operational line items internally to address rising expenses.
The Board may revisit the budget later this year once final state revenue figures become available.
