School budget update: state boost of roughly $13.6M, board discusses where to allocate funds and one‑time staff bonuses

City and district staff told the board on May 13 that the recently adopted state budget produced an estimated net increase of about $13.6 million for Virginia Beach City Public Schools, and administration recommended priorities for that new money.

Key numbers and recommended allocations: Chief Financial Officer Crystal Pate said the additional state package includes roughly $9.5 million in Standards of Quality basic aid and $2.7 million in a special-education add-on, among smaller items, for a total net state increase of about $13.6 million. Administration suggested applying the new dollars first to the required special-education add-on ($2.7M), restoring proposed SEON reductions (approximately $4.8M), increasing teacher compensation (administration proposed boosting the instructional entry-rate supplement to 3% plus a 1.5% step for a combined 4.5% increase equal to about $4.1M), and adding $2.0M for CIP PAYGo.

Onetime bonuses and staff distribution: The state also authorized one-time funds intended to be paid to SOQ-funded positions; administration recommended distributing a $775 bonus to employees on the instructional scale and $525 to employees on the unified scale for FY25, funded fully by state one-time dollars. During board discussion multiple members expressed interest in sharing the one‑time funds with all full‑time employees (instructional and non‑instructional) rather than restricting them by pay scale; early board sentiment favored a roughly equal per-person distribution (board members discussed a $650 equal split), citing fairness to custodial, transportation and food‑service staff.

Other budget items and timing: Pate said the city’s draft budget included a projected $2.9M tied to the locality revenue-sharing formula that could be directed to the CIP. Staff emphasized the urgency of board direction because personnel contracts must be finalized and distributed before the summer break; board action on the final operating budget and CIP is scheduled for the May 27 meeting and the city council will consider the school budget after that.

Federal grants and other items: The board heard an overview of routine federal grant applications (Title I, II, III, IV and Title I D) that administration will post for public comment and bring back for approval; the 2025–26 budgets for those grants will be finalized later this summer when award amounts are determined.

Ending: Administration asked for board feedback on priorities and signaled it will return with final budget documents and a proposal for distributing the onetime bonuses at the May 27 meeting.