DC Prep board approves FY26 budget with teacher pay increases and seven special-education hires

The DC Prep PCS Board of Trustees voted to approve the fiscal year 2025–26 budget at a board meeting after a presentation by finance staff. The plan trims and prioritizes investments in staff compensation, special-education staffing, curriculum improvements and limited capital work while assuming several funding items from the mayor’s proposed budget.

The vote followed a detailed presentation by Dan Fine, who described key investments and assumptions. “The budget includes a salary scale increase of 3 and a half percent for all teachers and campus leaders and 2% for all other campus staff,” Dan Fine, staff member, said. He also described a retention bonus for returning staff, the purchase of a new reading curriculum and classroom-library improvements, and funding to acquire a site that would be renovated in later fiscal years. “We anticipate spendings approximately $14,000,000 in this current fiscal year to acquire a location to renovate,” Fine said, adding that construction costs would be budgeted in FY27 and FY28 and that some acquisition details would be discussed in closed session because they are part of a confidential negotiation.

Why it matters: the budget sets compensation and staffing for the coming school year, adds seven special-education teachers to respond to increased IEP needs, and allocates limited capital dollars. Board members said they were prepared to adopt the plan after committee review.

Details of the proposal and fiscal assumptions - Compensation: a 3.5% salary-scale increase for teachers and campus leaders and a 2% increase for other campus staff; retention bonuses for returning staff. - Staffing: seven additional special-education teachers included to support students with IEPs; headcount budgeted at 420 staff. - Curriculum and supports: funding for a new reading curriculum and substantial classroom-library investments; continued funding for the junior teacher program and a marketing firm to support enrollment. - Enrollment and funding assumptions: budget assumes flat enrollment at roughly 2,180 students and that the D.C. Council will adopt the mayor’s proposed funding, including a 2.74% per-pupil baseline increase and additional workforce funding that DC Prep estimates would amount to about $1,400,000 in teacher compensation payments if adopted. - Federal/private funding and capital: assumed decrease in federal pandemic-relief funding (ESSER); private fundraising budgeted at $1,700,000; capital expenditures of roughly $1,000,000 for an HVAC replacement at Edgewood Elementary and a playground upgrade at Benning. - Cash and operating results (proposed): operating cash flow approximately negative $1,000,000; net cash flow negative about $7,000,000 (driven by acquisition costs); net operating income about $3,700,000; net income about negative $3,500,000; projected end-of-year cash approximately $35.5 million.

Board review and vote The finance and real estate committee recommended board approval. After questions and discussion, Patrick (board chair) called for a motion to approve the FY25–26 budget as presented. A motion was made and seconded; the board approved the budget by roll call. Tamika (board member) recorded a second to the budget motion. The board chair announced that the motion carried.

Votes at a glance - Motion to approve the meeting agenda and prior meeting minutes: approved (ayes carried; Emily was noted as having dropped the call). See vote record in the actions array. - Motion to approve fiscal year 2025–26 budget as presented by finance staff: approved by roll call. - Motion to move into closed executive session: approved by roll call (see actions array for details).

Next steps and context Board materials include a 10-page attachment with detailed line items, and staff told trustees they evaluated risks to local funding and enrollment and sought a balance between conservative forecasting and investment in students. The acquisition noted for an Edgewood renovation will be discussed in closed session because it is part of an ongoing confidential negotiation, according to staff.