Budget Director Shelley Wright presents FY26 budget with focus on schools and public safety

The Hanover County Board of Supervisors convened on March 12, 2025, to discuss the proposed fiscal year 2026 budget and capital improvements program, which spans from fiscal year 2026 through fiscal year 2030. Budget Director Shelley Wright presented key highlights, revealing a general fund budget of $413.1 million, marking a 6.9% increase from the previous year. This budget primarily focuses on personnel costs, which constitute a significant portion of expenditures, including funding for local schools.

Wright emphasized that the school operating fund would see an 8% increase, aimed at supporting merit increases, teacher pay adjustments, and health insurance changes. The budget also allocates $29.4 million for capital improvements, reinforcing the county's commitment to public safety with an investment of $111 million. Additionally, human services remain a priority, with funding directed towards mental health and social services, as well as tax relief programs for the elderly and disabled.

The anticipated ongoing revenue for the fiscal year is projected at $393.7 million, driven by market factors in housing and favorable interest rates. However, Wright noted a slowdown in revenue growth from real property, personal property, and sales tax, indicating a shift towards a more normalized growth pattern, which had been anticipated in the county's five-year financial plan.

The meeting also touched on the importance of federal and state funding, particularly in human services, which accounts for 41% of total state and federal aid. Wright highlighted the reliance on federal funding for various programs, including school nutrition and community services.

In addition to budget discussions, the board members expressed a desire for a workshop on March 26 to delve deeper into school capital planning and boundary adjustments. Concerns were raised regarding the prioritization of school replacements and the implications of redistricting on community members. Board members emphasized the need for clarity on these issues to effectively communicate with constituents.

The meeting concluded with a consensus on the necessity of the upcoming workshop, where further discussions on budget amendments and school projects will take place, ensuring that the board remains aligned with community needs and expectations.