Frederick County schools get potential $3 million boost from state; board reviews budget funds and capital priorities

Frederick County Public Schools officials told the school board finance committee on Feb. 27 that early versions of the General Assembly budget could add roughly $3 million to the division's state funding, while staff reviewed baseline expense adjustments, capital priorities and several restricted funds ahead of the April budget adoption timeline.

The increase — based on House and Senate crossover versions of the state budget and described by staff as agreement across both chambers — would raise support-position funding and special-education support to pre-2009 funding levels for the division. "We think that estimates can be about $3,000,000 more," said Dr. Homer, during the committee presentation. School staff said they are awaiting the Virginia Department of Education's calc tool to determine the precise local impact for Frederick County.

That state timing matters because the county must appropriate local dollars before the division can spend them. Staff described scenarios in which the county sets an appropriation based on an estimated state share; if the final state award arrives later and is larger, the school division would return to the county to request re-appropriation. Committee members recalled turning back $720,000 to the Board of Supervisors last year rather than requesting to retain it.

Committee members also reviewed baseline adjustments proposed for FY26. Staff said they expect an 8% increase in employer health insurance premiums next year based on plan utilization; the division, which uses a self-funded plan, said it does not plan to shift the increase to employee premium shares. "We are not planning on passing this increase onto our employees, just on the employer share," said Miss Anderson.

School nutrition, textbook, debt-service and capital-project funds were discussed in detail. Staff said participation in the school lunch program has grown (about 61% of students), and the school nutrition fund request includes 3.5 additional full-time-equivalent positions to match that growth; staff estimated the program will serve roughly 1,200 meals a day. The school nutrition fund is supported primarily by federal programs, including the National School Lunch Program and the Community Eligibility Provision (CEP); for CEP schools, the division receives eligibility estimates from Social Services based on SNAP and Medicaid data.

On capital projects, staff presented a prioritized “cap” list and said the division requested roughly $14 million in needs-based capital funding for FY26, while acknowledging the county is unlikely to fund the full amount. Staff described ongoing large projects funded with bonds through the Virginia Public School Authority: James Wood High School renovation and addition (projected completion July 2025), the fourth high school (completion projected July 2029), Jordan Springs addition and Middletown Elementary addition and renovation (completion projected July 2028). "We borrow in amounts that give us enough cash to get through the next six months of the project," staff said when explaining bond issuance and the participation in VPSA financing.

Facilities leaders told the committee they prefer replacing entire systems rather than piecemeal fixes. "It's better to just go in and just replace the entire system," said Mr. Davis, when discussing fire-alarm and building-automation systems; he identified Millbrook and James Wood Middle School as two countywide priorities because of failing or aging equipment.

Staff reviewed several restricted funds: the health-insurance reserve (the division expects roughly $22.7 million employer share and $5.1 million employee share for premiums in FY26), the Special Grants Fund (state "All In Virginia" dollars used for high-intensity tutoring, Virginia Literacy Act implementation and chronic absenteeism interventions, with about $2.2 million remaining and funds that will sunset after next school year), the private-purpose fund (Bright Futures and scholarships; FCPS provides $1,995,000 to Bright Futures and Winchester Public Schools provides $105,000), and the Northwestern Regional Education Program operating fund (NREPP), where staff said enrollment changes and Winchester's withdrawal will reduce program FTE by 15 next year.

The presentation and committee discussion were informational only; no votes were taken on budget items. Miss Anderson closed the presentation by noting, "No actions required." The committee will hold further finance meetings ahead of the division's goal of adopting a full FY26 budget by April 15.

Looking ahead, staff flagged the need to track outcomes for tutoring and other grant-funded programs ahead of their expiration so the board can consider whether to transition any services to operating funds. Committee members asked for future briefings on bond financing mechanics and on data showing effects of employee health-clinic services on attendance and claims.