City and schools push earlier budget schedule; officials explore revenue formula and 1% sales tax for school construction

City and school leaders used a joint work session to discuss aligning the city’s budget calendar with the school division’s budget request and to explore longer-term funding options including a revenue-sharing formula and a possible 1 percent local sales tax for school construction.

City staff presented a revised annual budget calendar that moves key milestones earlier in the year: council sets priorities in July, the administration issues budget instructions in September, departmental and constitutional-office hearings are in January, and the city manager delivers a recommended operating budget no later than the second council meeting in March. Public hearings and adoption typically occur between the March recommendation and the first council meeting in May.

City staff asked the school division to provide its funding request earlier than in past years — preferably by mid‑January and no later than mid‑February — to give the city roughly a 30‑day advance window for analysis and public engagement prior to the March budget submittal. The city noted that its timeline is constrained by City Code deadlines that require the manager to deliver a recommended budget by a specified date in March.

Council members and school board members discussed two related issues. First, several members said a revenue-sharing formula could provide more predictability for both the city and the schools and allow longer-term planning. Supporters said a formula would make revenue expectations more transparent and would remove some political friction from year-to-year allocation decisions. Opponents or cautions raised two practical constraints: state funding amounts for the upcoming fiscal year are often not finalized until late in the calendar year or after the General Assembly concludes its session, and some school board members said adopting earlier local budgets in the past has left the division at a competitive disadvantage when neighboring districts raise pay or benefits after seeing Newport News’ adopted budget.

Second, members discussed pursuing state authorization and local voter approval for a 1 percent local sales tax dedicated to school construction. School and council officials said state legislation would be required to allow a local referendum that gives a school board or locality authority to impose such a sales tax for school construction; councilmembers asked the school board to work with the local legislative delegation and prepare a request for the General Assembly.

Participants proposed forming a working group or charging the council or finance committee to study revenue‑sharing models and produce options for review. City and school staff said models from peer communities could be adapted and that any proposal would be shared with both governing bodies before being recommended publicly.

City and school leaders acknowledged practical limits to completing all decisions before the March submittal; they agreed to pursue earlier submission dates where possible, study formula options this year, and continue regular liaison meetings to coordinate transportation, capital and operating needs.