Department of Education seeks $179.3 million for FY2026 as it moves federal positions onto the local budget and warns of expiring grants

The Virgin Islands Department of Education asked the Senate Committee on Budget, Appropriations and Finance on June 30 to approve a proposed FY2026 general‑fund appropriation of $179,316,999, telling senators the increase over FY2025 is primarily driven by personnel and fringe obligations, the local absorbtion of positions previously funded by federal grants, and the return of recurring operating costs to the general fund.

Commissioner Dionne Wells Hendrington said the recommended FY2026 general‑fund budget includes $108,276,622 for personnel and $54,845,776 for fringe benefits. She told senators the department is funding 1,954 full‑time equivalent positions across the territory. The department explained the personnel increase reflects both the continuing implementation of negotiated salary adjustments and deliberate steps to move some school‑based roles previously paid with federal funds to local funding to protect positions from the uncertainty of expiring federal grants.

Why it matters: Department leaders said the shift to local funding helps stabilize core school operations, but it increases the territorial obligation and makes grant management and timely federal reimbursements critical to avoid future gaps.

Key points from testimony

- Personnel and fringe: The department said personnel services make up about 60% of the requested budget; the FY2026 fringe allocation increases 8.9%, largely because when positions shift to local funding their associated fringe (retirement, health insurance, Social Security/Medicare) also becomes a local obligation.

- Supplies and operating costs: The testimony described an 83% increase in the supplies allocation versus FY2025 because some recurring operating costs previously covered by federal American Rescue Plan (ARP) funds must now be covered by the general fund (janitorial supplies, vehicle supplies, food/catering for the School Food Authority and other recurring needs). Utilities were budgeted at $7.5 million, down from $8.5 million in FY2025, and the department warned utility costs remain an area of exposure.

- Grants and expiring federal funds: The department manages 22 federal grants totaling about $115.5 million across US Department of Education and USDA programs. Officials said they are actively obligating funds that will expire on federal schedules: the testimony identified roughly $8.6 million needing obligation soon, and program leads reported weekly status meetings and spending plans to accelerate obligations. The department asked the committee for patience while it completes obligated revisions that require US Department of Education approval.

- School construction, FEMA/ODR work: Commissioner Hendrington said the department is continuing Hurricane Maria/IRMA recovery and new school projects with the Office of Disaster Recovery and FEMA, with multiple designs in progress and several awards to design‑build contractors. She said the Clarence A. Richards replacement and other projects are moving through design and procurement.

- Staffing and retention: The department reported about 37 separations (retirements and resignations) during the most recent school year and identified approximately 174 employees eligible for retirement in the coming period. Leaders said recruiting is a top priority. They cited a "grow your own" paraprofessional‑to‑teacher initiative (with the Department of Labor and University of the Virgin Islands) to help fill teacher shortages.

Committee follow‑ups and next steps

Senators sought more detailed actuals (allotments vs. expenditures) and asked for lists of outstanding vendor payments, grant revision status and confirmed timelines on FEMA/ODR construction work. The department agreed to provide the committee with up‑to‑date actuals, vendor lists and a status schedule for grants that risk expiration.

Ending

Commissioner Hendrington said continued funding is necessary to retain staff, maintain school food and operations, and keep hurricane‑recovery projects moving. "Prioritize education. Fund our future," she told the committee, asking senators for timely approval of the FY2026 local appropriation and help completing the federal drawdowns that support capital and grant work.