Chesapeake board adopts updated FY25-26 budget, authorizes $750 one-time bonus and $10 million transfer authority

The Chesapeake School Board unanimously approved an updated proposed operating budget for fiscal year 2025-26 and several related financial actions, including a $750 one-time bonus for eligible contracted employees, up to $10 million in budget transfer authority, and a request that the City Council reappropriate any fiscal-year 2023-24/2024-25 reversions back to the school division.

Miss Glod presented the interim financial reports for March and April 2025, saying total realized revenue for March was $53,600,000 ("which included $30,000,000 from the state, 23 and a half million dollars from the city, and the remaining balance from other local revenues and the federal government") and for April $57,000,000 ("31,000,000 coming from the state, 23 from the city, and additional funds from other local revenues and the federal government"). She also noted receipt of $2,100,000 in federal impact aid and reported spring enrollment at 39,545, an increase of 93 students compared with the ADM assumption of 39,452.

The board discussed the state budget changes and local revenue developments before Superintendent Doctor Cotton outlined recommended uses for increased city and state funds, including elementary common planning time, additional resource deputies and vehicles funded through a sheriff's office partnership, administrative support for schools, five additional general classroom teachers, continued modern classroom implementation, HR recruitment and retention initiatives, and a 1% compensation adjustment to produce a 4% effective increase for teacher and unified staff (resulting in a $56,564 starting teacher salary in the recommended plan). Doctor Cotton also explained a pay-schedule transition supplement equivalent to one week's pay in FY25-26 for employees who elected a 12-month pay option.

The board approved using approximately $20,700,000 in one-time funds: roughly $8,300,000 from fiscal-year reversions and nearly $12,400,000 from the city's actual over-budget revenues. One-time funds were earmarked for items such as the pay-schedule transition supplement, turf field and track upgrades, a new school-bus routing solution, security and restroom renovations at some elementary schools, and other maintenance and infrastructure needs.

On compensation, the board approved the recommended one-time bonus of $750 to contracted employees who were on contract as of May 15, to be paid prior to June 1. Doctor Cotton explained the $750 figure reflected state funding that did not cover a full $1,000 for all district employees; neighboring divisions may provide different amounts. The board also authorized transfer authority of up to $10,000,000 to close out non-personnel line items that exceeded budgeted amounts. Finally, the board voted to request that City Council reappropriate any FY24-25 reversions back to the division so the schools can use those funds in FY26 budget development.

The action was moved by Kim Scott and seconded by Norman Poole; the motion carried with all board members voting yes.