Superintendent briefs board on state budget and local implications, including potential $1,000 bonus

Chesapeake School District staff updated the board Feb. 24 on the state budget process, how recent House and Senate amendments compare with the governor’s proposal, and implications for the superintendent’s proposed fiscal-year 2025–26 budget.

Finance staff reported interim financials for January: total realized revenue of $54,400,000 for the month, including $30,600,000 from the state and $23,500,000 from the city; overall revenues and expenditures were within expected ranges. Enrollment is trending below fall counts but remains higher than the division’s average daily membership budget assumption; March enrollment will affect final fiscal-year 2024–25 revenue.

On the state budget, staff summarized that the House and Senate proposed removing the support-position cap (raising funded support positions per 1,000 students from 24 to about 27.89) and recommended additional special-education support. The Senate proposed a one-time $1,000 bonus for Standards of Quality (SOQ) instructional and support positions, estimated to add $4.4 million to the amended current fiscal year; applying a $1,000 bonus to all contracted employees would cost the district roughly $7 million. The conference budget included removal of the support-position cap and the special-education add-on and funded competitive grants for school construction.

Using distribution estimates, staff said the House scenario would provide roughly $15 million more than the superintendent’s proposed operating revenues and the Senate scenario about $10.4 million; the conference budget aligned more closely with the Senate scenario. The district outlined two options if a bonus is approved: request an appropriation to spend the incremental revenue or use current-year savings combined with the appropriation to fund a prorated $1,000 bonus by FTE status.

Staff described the next steps: the governor will review the conference budget by March 24; the district will hold a second public hearing on March 10 and ask the board to adopt the proposed FY25–26 budget and request one-time funds; the board will receive a budget update April 7; after city council appropriations in May the board will reconcile final changes and adopt the budget.

Board members asked only clarifying questions during the presentation; staff said they would continue to monitor state action and report impacts for local budget planning.