Chesapeake Public Schools reports January projections, warns enrollment decline will reduce state revenue

The Chesapeake Public Schools finance division on Tuesday presented January 2026 financial projections and an update on legislative proposals that could affect local funding.

Mrs. Gallaud told the board that total realized revenue for the period is approximately $57,000,000, which includes roughly $31,000,000 from the state and about $25,000,000 from the city; other local and federal sources make up the remainder. Projected January expenditures are about $52,000,000; when encumbrances are included the projection rises to approximately $90,000,000. “Both revenue and projected expenditures fall within the expected ranges for the month,” she said, while cautioning that reduced enrollment will decrease state revenue going forward.

January enrollment maintained the December ADM projection of 39,347 — 553 fewer than originally planned — and staff said March enrollment will be used to determine final state revenue. Mrs. Gallaud said year‑to‑date non‑personnel savings and vacancy savings have helped offset expected revenue declines so far, but spending will be curtailed if necessary to avoid exceeding appropriated or actual revenue.

Mrs. Gallaud also updated the board on a technology integration project: formal engagement between UKG (human capital management) and the finance division to upload personnel expenditure files into PeopleSoft began last week and staff anticipate completion before the end of the fiscal year, after which monthly comprehensive financial reports will resume.

On the state budget, staff compared House and Senate amendments to the governor’s proposed budget. Highlights described to the board included a House proposal for a $1,500 bonus for funded SOQ instructional and support positions (flexible in distribution) and a House proposal for one‑time flexible funding that could provide an estimated $13,000,000 more to Chesapeake Public Schools; the Senate proposed a similar $1,500 bonus with a 3% compensation adjustment and additional special‑education and at‑risk funding considerations. Board member John McCormick asked whether authorization for a proposed 1% sales tax for school construction would fall to the city council or the school board; Mrs. Gallaud clarified such action would be by the city council.

Mrs. Gallaud said staff will continue monitoring enrollments and expenditures and will report back as March enrollment data become available.