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Board hears governor’s budget outlook; raises lowest pay step to meet new Virginia minimum wage
Summary
Superintendent and finance staff briefed the board on the governor’s proposed budget and district needs; the board approved a pay‑scale adjustment to bring the district’s lowest pay step into compliance with Virginia’s new $12.41 minimum wage.
Finance staff reviewed the governor’s proposed amendments to the biennial budget and discussed preliminary impacts for Franklin County Public Schools on Jan. 13. The presentation noted modest new state dollars in the governor’s proposal but a larger gap between projected new funding and the division’s requested operating and capital needs.
Budget headline from staff Sharon Tuttle (finance) said the district anticipated approximately $159,000 in new state funds under the governor’s proposal while estimating a need of roughly $4.8 million to fund compensation steps and identified operating needs. Enrollment projections and declining Average Daily Membership (ADM) were highlighted as drivers of state revenue.
Minimum wage and pay scale adjustment Separately, HR/finance staff presented an immediate administrative change after Virginia raised its minimum wage effective Jan. 1, 2025. The state minimum rose from $12.00 to $12.41 per hour; the district’s G1 pay grade step 1 was $12.00 and therefore below the new state minimum. The board approved an administrative update to raise G1 step 1 to $12.41 and to apply the district’s standard 2.5% step increment across the grade; staff estimated the remaining FY cost at about $6,000 and that roughly 42 regular employees are affected by the G1 grade plus approximately 38 substitute employees on that grade.
Why it matters - Budget pressure: District leaders said the governor’s proposal adds some relief compared with last year but remains inadequate to cover all identified compensation and capital needs, leaving the board to weigh priorities during budget season. - Pay compliance: The board acted promptly to keep the district compliant with state minimum‑wage law and to preserve the integrity of the step schedule.
Board action The board approved the G1 pay grade adjustment to $12.41 per hour and the step changes for G1 (voice vote; motion carried). Staff will incorporate the adjustment into payroll and analyze impacts for next year’s budget.
