CFO outlines $ federal funding portfolio for FY2026; board asks about Medicaid and nutrition impacts

Crystal Pate, chief financial officer for Virginia Beach City Public Schools, presented a high-level overview May 13 of federal funding reflected in the proposed fiscal year 2026 budget and answered board questions about Medicaid reimbursements, potential federal changes and school nutrition funding.

"The information being shared this afternoon reflects what we currently know with certainty. Should any of the information change, we will promptly update the school board," Pate told board members at the start of the presentation. She said the budget figures presented include carryover funding from prior years and that some figures differ between the operating budget and grant-detail spreadsheets provided to the board.

Pate outlined major operating and categorical federal funding proposed for FY2026, including Department of Defense special education funding ($1,800,000); Navy NJROTC personnel reimbursement ($225,000); Department of Defense impact aid ($2,500,000); Public Law 874 impact aid ($7,500,000) to offset lost property tax revenue on federal land; impact aid for special education ($838,000); Medicaid medical reimbursement ($1,700,000) and Medicaid transportation reimbursement ($212,000). She said Title I Part A is budgeted at $24,000,000, IDEA (Section 611) at $22,000,000, Title II Part A at $3,100,000, Title III language acquisition at $552,000, Title IV Part A at $2,700,000 and other grants including Perkins V and McKinney-Vento for homelessness.

Pate also reviewed non-title grants and DODEA-related funding such as a Spanish immersion grant ($200,000) and a World Language Advancement and Readiness grant ($1,300,000). She said the remaining balance of the HVAC coronavirus state and local physical recovery grant was $2,700,000 and that all pandemic-related funds referenced have been obligated.

On school nutrition, Pate said the district’s nutrition fund receives approximately $30,000,000 annually from the U.S. Department of Agriculture through multiple programs, including school breakfast, national school lunch, the child and adult care food program, the summer feeding program and USDA commodity donations.

Board member Dr. Green asked how Medicaid reimbursements are affected by staff participation in time studies. Pate said Medicaid medical reimbursements are influenced by staff cost, time-study results, service usage and Medicaid eligibility rates and confirmed the reimbursements can fluctuate depending on who participates in the time study.

Board member Miss Melnick asked whether grants with diversity, equity and inclusion components were at risk; Pate said the district had no information at that time indicating it was in danger of losing the grants and that the district was proceeding with applications and board approvals as usual.

A board member raised a question about recent reporting of USDA funding cuts to food banks and schools. Pate said most pandemic-era relief funds are completed and obligated; one HVAC-related grant remains on an extended timeline, but she was not aware of an immediate impact to food-service operations and offered to provide additional details to the board.

Pate summarized disbursement timelines and reporting requirements for the district’s federal funds: impact aid application windows, Medicaid cost-report deadlines, quarterly and monthly reimbursement schedules, and grant-specific reimbursement models. She noted some grants require local matching funds (for example, Adult Basic Education requires approximately a $45,000 match) and that some awards can span multiple years.

The presentation concluded with Pate inviting follow-up questions and offering to provide additional information to the full board.