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Finance director outlines $1.6M compensation study cost and 24% health-insurance spike ahead of FY26 budget
Summary
Poquoson staff presented the FY26 budget context: governor's proposed 3% pay increase, a compensation study with an estimated $1.6 million full-implementation cost, and a projected 24% health-insurance increase that could add more than $500,000 to the district budget; the board will consider the superintendent's proposed budget in February.
Poquoson City Public Schools staff presented a finance update on Jan. 21 outlining state proposals and local budget pressures as the district prepares its FY26 spending plan.
The district’s finance staff said the governor’s proposed biannual budget includes funding for a 3% salary increase in FY26 for positions funded by the state. Separately, the district’s recently completed compensation study showed that fully implementing the recommended updated salary plan would cost about $1.6 million. The presentation broke that figure into roughly $1.4 million to implement a teacher step plan and about $200,000 to implement a unified plan for other staff.
Why it matters: Board members said the compensation study helps quantify long-discussed pay gaps with neighboring divisions and that achieving the full plan would be phased if included in the superintendent’s proposed budget.
Other budget details: The finance report said projected health-insurance premium increases are currently estimated at about 24%, which the presenter said would increase benefits costs by “a little over $500,000.” The district has issued requests for proposals for medical and dental plans and expects responses in early February to inform the FY26 budget. The budget will be based on an average daily membership (ADM) of 2,038; any ADM growth would increase state funding. The General Assembly was still in session and scheduled to adjourn Feb. 28; final state funding could change until the assembly completes budget reconciliation.
Board process and timing: The superintendent’s proposed FY26 budget will be presented Feb. 18, followed by a public hearing in March and board discussion leading to potential approval. The district noted the compensation study will be provided to board members (with narrow redactions) because the consultant’s dataset included individual names and salaries.
Quotes and context: The finance presenter said the compensation study “shows the comparisons by division and then the average,” and board members discussed phasing to reach a regional average. No formal budget action was taken at the meeting; the board will consider the superintendent’s proposed budget in upcoming meetings.
