Henrico County Public Schools proposes $27.7 million general fund increase for FY 2027 focused on benefits, staffing and facilities

Henrico County Public Schools on Tuesday presented a recommended fiscal year 2027 general fund budget that would raise spending by about $27.7 million, largely to cover higher employee health-care costs, add classroom and student-support positions and expand facilities staffing, Chief Financial Officer John Wack said during a public hearing.

The proposal would increase the district27s general fund by roughly 3.6% over the current year and grows the operating budget from all funds by about 3.3%, Wack said, adding that the recommendation does not yet include funding for salary increases.

Wack said the budget directs the largest single increase — roughly $18.6 million — to employee health-care benefits. It also includes an estimated $5.45 million to hire 50 English-language learner teachers and about $1.71 million to add 20 exceptional-education instructional assistants and seven teachers. The plan provides $1.44 million for new positions at Davis, Longan and Adams elementary schools and about $1.24 million to staff 17 positions tied to the Living building at Wilton Farm. Wack said utilities spending is expected to rise by about $3 million next year as the system adds space.

The recommended budget funds additional student supports and mental-health services, including more school counselors in the third year of the Henrico CARES Initiative and expanded telehealth in middle schools. Wack said the division is also shifting a specialist position serving McKinney-Vento students from grant funding into the general fund.

On operational savings, Wack listed reductions including nearly $8 million tied to rate reductions in the Virginia Retirement System and about $1.76 million in lower pension and retiree-health credit expenses. Other decreases include about $1 million in fuel costs for pupil transportation and roughly $545,000 in education, training and food budgets.

Wack acknowledged an administrative error in the posted budget packet and clarified the division will not reinstate parking fees, saying staff would carry forward revenue budgets from FY 2026 to FY 2027 and update the online document.

The recommendation preserves instruction as the largest share of spending — roughly 76% of general fund expenditures — and leaves salary increases for later consideration. "The recommended budget does not include funding for salary increases, which are a priority and will be considered in the county manager's proposal next month," Wack said.

Next steps: the school board is scheduled to consider the budget and any amendments on Feb. 26; Henrico County27s Board of Supervisors will adopt the county budget, and the school board plans to adopt the final school budget on April 16 after the county adoption.

No formal vote on the recommended budget occurred during the public hearing; the board will take action on the dates noted above.