HCPS proposes $333.1 million FY26–27 capital plan, seeks higher meals-tax allocation to offset inflation

Henrico County Public Schools staff presented a proposed FY2026–27 capital improvement plan (CIP) at the Nov. 13 work session requesting $333,100,000 in funding, an $8.1 million increase from the prior request, driven largely by inflationary pressures and aging building systems.

Mr. Pritchard said inflation has materially increased project costs: meals-tax reserve purchasing power has eroded (a 37.5% inflation effect noted since 2014), playground replacement costs are up about 22% per site since 2024, and school bus replacement costs have risen approximately 29.1% over the last four years. To address those increases and fund security projects, staff proposed increasing meals-tax allocations from $9,000,000 to $15,300,000—an additional $6,300,000—subject to the Board of Supervisors’ budget deliberations.

Board members asked for context and clarifications. Mr. Pritchard explained that at one time $1,000,000 funded four playground replacements; under current cost assumptions that same dollar amount funds three playgrounds, shifting the replacement cycle. Mister Irving highlighted cumulative meals-tax spending since inception ($96,690,470) and noted that meals-tax revenue has produced more than $110,000,000 in the last three years, framing the request in a revenue-versus-spending context.

Staff said the board will be asked to approve the preliminary CIP at the monthly meeting that evening; the proposal then goes to the county Board of Supervisors for consideration during their budget process and would return to the school board for final approval if supervisors approve allocations.

No formal board approval of the CIP occurred during the work session; staff presented the plan for board review and answered clarifying questions.