Superintendent lays out preliminary FY27 budget priorities as division grapples with higher testing rigor and rising contract costs

Superintendent Dr. Christopher Gurley presented a preliminary FY27 budget overview at a joint work session, telling the council and school board the plan is a needs‑based projection aligned to the division’s strategic plan.

Gurley said the division’s priorities for the coming year are compensation and retention, student supports and achievement, facilities maintenance and capital improvements, and expansion of early childhood programming. "This presentation will include projections of what we expect to be reflected in the FY '27 budget," Gurley said at the outset of the 90‑minute briefing.

Why it matters: city funding provides roughly 63% of the division’s revenue and the board must set local priorities before state figures are finalized. Gurley warned that the Virginia Department of Education’s new accountability system — and a later‑than‑normal release of results — limit the division’s ability to use those data to shape short‑term allocations.

Key fiscal figures and staffing: Gurley said salaries and benefits for FY26 total $91,900,000 (about 74% of the division budget) and that collective bargaining anticipates a roughly $4,700,000 increase in compensation. An early health‑insurance projection using an 8% trend produced an estimate of about $821,000. Gurley noted the VRS trustee rate published by trustees differs from the division’s current number and that the division will use the existing rate until the VDOE releases its budget calculation.

Enrollment, ELL and students with disabilities: Gurley reported a net enrollment decline of about 86 students over two years and explained a change in how the division reports English language learners — the VDOE figure of 924 includes students who have recently exited formal ELL programs but still require supports. The division serves 557 students with disabilities across settings, not counting privately placed students. Board members asked for follow‑up data showing how supports continue after students exit programs.

Accountability and achievement gaps: Under the new VDOE point system, most Charlottesville schools are near the 80‑point on‑track benchmark but subgroup performance drove categorical changes; Gurley cited examples where schools with scores close to thresholds moved categories because the new system does not round. "We received the results very late — we normally get these in August; we got them in December," Gurley said, urging patience as staff analyze implications for instruction. He emphasized targeted, systemwide interventions to address persistent reading and math gaps that disproportionately affect Black and economically disadvantaged students.

Operations and contracts: City and school operations staff reported contract‑cost pressures. The maintenance contract is projected using a five‑year average and staff cited a placeholder increase of roughly $394,003.79; transportation contract projections showed a five‑year average increase that would raise costs by approximately $487,062. Transportation managers described a severe driver shortage: a 58% vacancy rate in 30–39 hour roles and 32% overall, prompting ad‑hoc measures (managers and operations staff driving buses) and discussion of adding six 40‑hour positions. Staff noted bargaining‑unit and benefit implications for any reclassification of hours.

Capital planning and city partnership: The City School Facilities Planning Work Group is developing criteria for modernization and an updated Memorandum of Agreement (MOA) with the city is under revision; staff said the MOA will clarify service standards but not change the current scope of city services. Oak Lawn funding for a pre‑K center is in the CIP and funds are available, but feasibility and timing remain under assessment.

Next steps: Staff said the VDOE cap tool was expected imminently and that the board will hold a budget work session on Jan. 22 to prioritize the instructional requests staff submitted. Gurley and city staff emphasized that presented figures are preliminary and that the division is still determining its budget gap before proposing specific cuts or revenue requests.

Gurley and staff agreed to provide additional breakdowns on the composition of the $4.7 million compensation increase and to return with more granular proposals once VDOE numbers and internal budget reconciliations are complete. The joint session concluded with board members and city councilors asking for follow‑up materials on equity‑focused investments, early childhood options and possible workforce housing uses of school land.