York County CFO outlines budget calendar; warns of federal grant risk and highlights stabilization funds
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Summary
CFO Bill Bowen reviewed the FY27 budget calendar, state revenue signals and local fund balances, noted a recommended 2% VRS rate decrease (potential $1.5M benefit if approved), and cautioned about proposed federal cuts that could remove Title II/III funding (approx. $278,000 impact). He said the revenue stabilization fund is about $10.5M and will absorb some transfers to support CIP cash needs.
Bill Bowen, York County Schools' chief financial officer, presented a budget outlook at the Dec. 15 work session that outlined the FY27 calendar and key fiscal drivers. Bowen said the governor's budget release and the General Assembly session in early 2026 will shape K-12 funding for the division.
He highlighted several notable points: the Virginia Retirement System board has recommended a 2% decrease in employer rates that, if approved by the governor and General Assembly, could reduce the division's VRS cost by roughly $1.5 million. Bowen also said the local composite index (a state metric that affects each locality's share of education costs) decreased 0.36 points; he estimated that if that rate had applied to the current budget it would shift roughly $480,000 in cost to the state.
On fund balances, Bowen said the division closed FY25 with an operating fund balance of $4.59 million, impact-aid reversions of $2.46 million, and an unobligated fund balance of $1.51 million that has been committed to textbooks, CIP and transportation vehicles. He said the revenue stabilization fund stands at about $10.5 million and will be increased by the impact-aid reversion to just over $12 million; staff plan to use $2 million in stabilization cash toward the Tab High project.
Bowen warned of a potential federal risk: Department of Education proposals could eliminate or reduce Title II and Title III grants, which would represent an estimated $278,000 loss to the division if enacted. He described that scenario as possible but not likely given limited congressional momentum to eliminate those programs.
Board members discussed the sustainability of grant-funded positions and the need to consider long-term local funding if grant streams end. Bowen said staff will continue to monitor state and federal developments and will return with budget proposals as the fiscal process advances.