Fluvanna schools present FY26 budget options as board weighs pay, health insurance and staffing

Fluvanna County School Board members and school division staff spent a seminar session Friday discussing draft options for the FY26 operating budget, centering on staff compensation, rising health insurance costs and a multiyear plan to rebuild leadership and program positions that were cut after 2011.

At the meeting staff presented three “buckets” of priorities: compensation (salary increases and steps), health insurance cost increases the division may need to absorb or pass to employees, and people and programs (school-based and central-office positions funded previously with one-time or federal grant dollars). The division’s preliminary materials estimated the gap between current staffing and an “ideal” structure at about $2,000,000 annually and flagged $731,000 in positions now funded with one-time “all‑in” carryover that will need sustaining when that funding ends.

Why it matters: compensation and benefits together make up roughly three‑quarters of the school division’s budget, so changes to raises or insurance cost allocations drive large swings in the FY26 outlook. Board members said they want a clear multi‑year roadmap and better materials to use in conversations with the Fluvanna County Board of Supervisors and the community.

What staff told the board

Staff said the governor’s template for school funding currently models a 3% across‑the‑board raise; staff prepared cost scenarios for 3%, 4% and a larger 6% adjustment that would be needed to close competitive salary gaps with neighboring divisions. The staff presenter noted the general assembly could change the template before the final state aid figures are set and that the division received a late technical update from Richmond the night before the seminar.

Health insurance was presented as a major budget pressure. Staff said carriers initially signaled a roughly 12% increase in premiums, later adjusted down toward 10%; staff modeled both figures. A staff presentation included an example that a teacher on a family plan currently could face monthly premiums in the range noted in the packet (staff cited a family cost figure of about $1,100 per month as a reference used in planning). The division modeled scenarios that either absorb the increased premium cost in the operating budget or pass some portion to employees; staff said passing a portion of the increase would reduce the division’s fiscal exposure but would reduce many employees’ net take‑home pay.

Staff also outlined central‑office and school‑level leadership shortfalls that have grown since 2011, including needs in curriculum support (literacy, math specialists), student services and special education, technology and finance. The “ideal” structure shown in the materials required roughly $2 million more than current recurring budgets to fund additional director/coordinator roles and specialist positions; staff described the $2 million figure as a planning target rather than a single‑year ask.

Cafeteria and food service

School food services were flagged as an immediate operational concern. After switching to the federal Community Eligibility Provision (CEP) that provides free breakfast and lunch to all students in participating schools, the division saw lower than expected participation in some cafeterias; staff said high school breakfast participation rose from roughly 100 to about 250 daily meals at one site but overall participation remained under the levels modeled for the CEP reimbursement. Staff reported cafeteria payroll and extended‑day staffing represent a large monthly expense (staff estimated cafeteria payroll with extended day near $100,000 per month) and said the division may need a temporary supplement in February to cover pay while they work on increasing participation and other operational changes.

Other budget items and costs discussed

- Positions currently funded with one‑time “all‑in” carryover total about $731,000; staff estimated carryover funds will offset part of that in FY26 but recurring funding will be needed thereafter. - The division listed a set of additional staffing requests (instructional coaches, behavior specialists, an HR director/coordinator, communications/public information support, technology and cybersecurity resources) as “below the line” priorities to add as resources permit. - Staff estimated one‑time costs or contract changes for items such as cybersecurity consulting (~$50,000), a FuelMaster upgrade for fuel management (~$30,000), and reinstating the PSAT program (~$24,000). - Transportation: roughly 67 bus routes were noted in discussion; adding a permanent substitute bus driver (an estimated $38,000 fully loaded) or additional bus aides were presented as options to stabilize daily service. - Athletics and activities: board members discussed costs for officials, security and hosting events and asked staff for rough estimates of the revenue tradeoffs for options such as free student admission nights.

Board direction and next steps

Board members asked staff to return with clearer visuals and a multi‑year roadmap showing current organizational structure, the proposed “ideal” organizational chart and the incremental cost to phase toward that target. Staff said they will model compensation scenarios (3%, 4%, 6% and possible one‑time bonus options), refine health‑insurance sensitivity analyses, and provide an updated worksheet reflecting any changes from the general assembly template. Board members also requested more regular updates on cafeteria finances and participation and asked staff to prepare materials the board can use in discussions with the Board of Supervisors.

No change to formal policy was adopted. The board voted to adopt the meeting agenda at the start of the seminar and later approved a motion to adjourn; no budget ordinance or appropriation was finalized at the session.

What to watch next

- State budget action in Richmond (House and Senate budget templates and any adjustments to salary/benefit language). - Staff’s follow‑up budget worksheet and the requested organizational charts and multi‑year roadmap to present to the Board of Supervisors. - Cafeteria participation and the February payroll supplement estimate staff said they may need to request if participation and reimbursements do not recover.