Portsmouth school board approves proposed FY 2025–26 operating budget, calls on city to cover $6.7 million shortfall

The Portsmouth Public Schools Board unanimously approved a proposed operating budget for fiscal year 2025–26 at its March 27 regular meeting, but board members pressed city leaders to provide roughly $6.7 million more than the city manager's proposal to fully fund planned staff compensation increases.

Board approval followed a staff presentation of revenue and shortfall figures. Finance staff said the division's total revenue baseline was $78,746,746, which had included a contingency tied to last year's state salary increase. After adjustments staff said the city's base revenue contribution for the coming year stood at about $75,642,160; the city manager's proposed budget added approximately $5,736,165 to local revenue, bringing local funding to about $81,000,003 and leaving the division about $6.7 million short of the school board's proposed spending plan.

That shortfall matters, members said, because the board's request was intended to cover a compensation study and step increases designed to retain and recruit staff. "We are neither asking for wants; we are asking for needs," Vice Chair Atkinson said during the discussion. Several board members urged constituents to follow city council action and asked council members to reconsider the city manager's recommendation.

Superintendent Dr. Eli Bracey III told the board that, if the city's proposal remains unchanged, he would review existing programs and present "unpopular recommendations" to reduce spending. "I'm gonna have to take a hard look at some existing programs and make some unpopular recommendations to the board," Bracey said.

Board members described potential consequences if the additional local funding does not materialize. Members noted classroom coverage by long-term substitute or virtual instructors and cited the division's difficulty retaining teachers without competitive pay. "We pay you very well year one through four. You get your training, you get paid, then you leave to get paid more somewhere else," one member said, arguing that compensation is a driver of turnover.

Motion and vote: Vice Chair Atkinson moved to approve the proposed operating budget; Miss Sessoms seconded. The board carried the motion on a roll-call vote described in the meeting as unanimous among members present.

The board's approval at this meeting is a step in the budget process; the division will forward the proposed operating budget to the city and continue negotiations and public advocacy to secure additional local funding. The board and staff repeatedly urged residents and stakeholders to follow the city council's deliberations and contact council members about the funding gap.

Acknowledging the uncertainty, finance staff and board members said they would return with specific recommendations if the city does not increase support. The superintendent said any program reductions he might recommend would be presented to the board for consideration.

Votes at a glance: the board approved the proposed FY 2025–26 operating budget by unanimous roll call. The motion to approve was moved by Vice Chair Atkinson and seconded by Miss Sessoms.