Petersburg school board hears FY26 budget plan; administration proposes passing state $1,000 bonus to all eligible employees

PETERSBURG, Va. — Petersburg City Public Schools officials presented their proposed fiscal 2026 budget at a March 5 public hearing, telling the school board the governor's introduced budget and enrollment growth are driving higher state revenue while the city transfer is expected to remain flat.

The presentation by consulting chief financial officer John Wallingford and current chief financial officer Dr. Mathias Greenwood laid out a revenue estimate based on the governor's introduced budget, an anticipated 3% staff raise adopted by the General Assembly, and a projected student enrollment increase of roughly 100'150 students per year. Wallingford said the governor's introduced budget would provide about $55.8 million in state funds, combined with a city transfer of about $12.3 million for a total near $68 million; house and senate amendments could push total revenue to just over $70 million.

Why it matters: The budget discussion centers on salary and benefits, which administrators said are the primary cost drivers for FY26. The board also heard staff requests for new positions, recruiting incentives and changes to the district's capital accounting and fund-balance handling.

Board chair Kenneth Pritchett opened the public hearing. Wallingford highlighted priorities that guided budget development: talent recruitment and teacher quality, strengthening financial infrastructure and internal controls, reducing chronic absenteeism, and addressing student social-emotional supports. He told the board health insurance costs and salary increases are the main upward pressures; staff modeled an 8% health-insurance increase, 3% utilities increase and a 3% state personnel raise.

State bonus, local recommendation: Greenwood explained the General Assembly's budget includes a one-time, $1,000 bonus for identified employees with no local match required. The division previously approved a $1,200 local retention payment; Greenwood said his recommendation to the board would be to pass the $1,000 on to the same category of identified employees (full-time and eligible part-time staff) so that, if approved, eligible employees would receive roughly $2,200 in total one-time payments. Greenwood estimated passing the additional $1,000 to all eligible employees would require roughly $200,000'$300,000 of additional division funds and said timing will depend on the governor signing the budget and subsequent school-board approval. The $1,200 payment already approved by the board is scheduled for the March 28 paycheck.

Staffing and recruitment proposals: The administration presented a list of proposed increases to the FY26 baseline, including salary- and non-salary items. Non-salary items include signing bonuses intended to recruit up to 50 certified teachers and baseline funding for the virtual academy and athletic trainers. The division proposes a $7,500 sign-on bonus for the first 50 fully licensed teachers who accept positions. Proposed new FTEs and role adjustments include a supervisor of counseling, dean of students at Pittman Academy, a full-time athletic director/assistant positions, additional HR staff, assistant budget director, data analyst, and building trades positions (plumber and electrician). Wallingford and staff noted some items are carryovers from interim staffing arrangements and may require formal job descriptions and board approval.

Fund balance and capital accounting: Wallingford told the board that in August 2023 the city swept $6.1 million from the school-division fund balance. Staff recommended the city allow the division to maintain a $3 million fund balance that would be preserved for capital projects and to implement a capital projects fund for accounting clarity.

Health insurance and benefits concerns from staff: Multiple public commenters and staff told the board health insurance has been a recurring concern. Commenters asked whether the division will rebid its insurance contract and whether changing plans will affect access to local providers. Superintendent Brown said HR will survey employees about coverage and that any major insurance changes would likely be implemented for FY27 (not July 1 of FY26) because of procurement and timing. She said principals and central office staff have reported employees expressing dissatisfaction with the current plan and that an RFP process would be required to change vendors.

Public comments and organizational questions: Employees and community members asked about restoring a Student Information System (PowerSchool) specialist position and a database administrator role that one speaker said had been cut earlier. Vera Lewis, who identified herself as a central-office PEA representative and 18-year employee, urged reinstating an SIS specialist to maintain data integrity. Other commenters asked for clarity on job descriptions for proposed positions and on how signing-bonus criteria will be applied. Superintendent Brown said an organizational chart will be released before the end of March and that updated job descriptions would be provided for new roles prior to final board action.

Timeline: The administration held the FY26 public hearing March 5. Wallingford said the superintendent's proposed budget will be presented to the board March 13 and the board is scheduled to adopt a budget on March 19 before a planned presentation to Petersburg City Council the first week of April.

Ending: The board took no final vote on the FY26 budget at the March 5 public hearing. Administrators said they will return with the superintendent's proposed budget and with requested job descriptions, cost estimates and any updates after the General Assembly and governor finalize the state budget.