Mathews supervisors debate $1.1 million school budget request, urge state action on composite index

Mathews County supervisors spent the session pressing school officials for details about a roughly $1.1 million increase the school division requested and debating how much of that cost local taxpayers should bear.

"Every $206,000 increase in expenses is a 1¢ increase in the real estate taxes," a supervisor said during the discussion, noting that the countyreal estate tax rate is currently 56¢. The presenters said a $1,100,000 increase would translate to about a 5¢ rise in the county real estate tax rate if fully funded locally.

The discussion centered on two linked problems: operating costs, chiefly salaries, and capital needs that would be financed through long-term debt. Supervisors heard that Mathews Countysalary scales lag neighboring localities: the countyminimum pay scale is about 20% below surrounding jurisdictions, the midpoint about 26% below, and the top of the range roughly 30.7% below, according to a recent staff study presented to the board.

School leaders and supervisors also flagged declining enrollment and its effect on state revenue. Staff projected state funding of roughly $5.9 million at an average daily membership (ADM) of 750; an anticipated ADM of 725 was projected to reduce state revenue to about $5.8 million, a decline supervisors were told of approximately $166,000.

The board discussed options for addressing pay-scale compression and the top of the teacher salary range. One superintendent said the division is considering a salary-scale assessment and potential structural changes such as slightly larger step increases or a targeted longevity bump at 20 years of service.

Capital requests included a proposed new fire station estimated preliminarily at $6 million to $8 million. Supervisors said they will meet next week with bond counsel to refine the amount of debt the county can afford and how long-term debt payments would interact with operating taxes.

Several supervisors urged caution about using property-tax increases to cover both operating and debt costs. One supervisor said the county faces a projected $3.7 million shortfall in the broader county budget and asked schools to prioritize cuts where possible, including a suggestion to reduce the local request by 10 percent.

Discussion also covered non-tax ways to increase revenue and competitiveness: updating building and zoning fees, assessing business licenses or fees for short-term rentals (the county currently gets about $180,000 annually from short-term rental receipts), and pursuing municipal water and smaller lot-size options on county-owned land near the high school to support attainable housing and population growth.

Multiple supervisors pressed for coordinated lobbying to change the stateLocal Composite Index (LCI), citing a Joint Legislative Audit and Review Commission (JLARC) study that recommended revisiting Virginiaschool funding formulas. Several speakers urged forming a coalition with other rural localities and engaging state legislators and senators cited in the meeting.

No final action was taken on the school budget request at this meeting. The board scheduled additional work sessions, and staff were directed to provide more detail on the local share of any proposed salary increases, the specific capital cost estimates, and options to reduce the local request.

"I move we adjourn," a supervisor said at the end of the meeting; the motion was seconded and approved by voice vote.

Why this matters: Mathews County officials described a tension between maintaining competitive teacher pay and benefits, meeting capital maintenance needs, and protecting taxpayers on mostly fixed incomes. The board focused on refining numbers, seeking outside counsel on long-term borrowing, and building a statewide lobbying strategy to change the LCI before future budget cycles.