Schools present $45.6 million in one‑time funds; board proposes $38.5 million for capital projects

Bridal Pate, introduced to council as the schools’ chief financial officer, told the City Council that Virginia Beach City Public Schools’ unaudited FY24–25 year‑end figures show a total reversion of $38,094,580 and that the school division’s share of the city’s revenue‑sharing surplus is roughly $7,464,613 — producing about $45,559,193 available for reappropriation. "This request is about strengthening our foundation," Pate said, explaining the mix of late‑arriving federal impact aid, Medicaid reimbursements and state sales‑tax true‑ups that pushed revenues above budget.

Pate outlined components of the variance: approximately $5.6 million in unexpended debt service tied to a delayed bond sale; about $2.8 million in federal revenue above projections driven by impact aid and Medicaid reimbursements; roughly $2.8 million in state sales‑tax above budget; and a $400,000 propane bus rebate recorded in the "other revenues" category. She said the school operating‑fund reversion is approximately $21,100,000 (about 2.18% of the adopted operating budget), with additional reversions in the athletic fund (~$391,000) and the Green Run Collegiate fund (~$344,000), and a total unaudited reversion of $38,094,580.

Under Virginia law, Pate noted, unappropriated local funds revert to the governing body for reappropriation; the division’s and city’s revenue‑sharing agreement then allocates the surplus between the parties. The school board approved a spending plan that allocates most one‑time funds to capital priorities: approximately $38.5 million for the capital improvement program, including $23.6 million toward a Princess Anne High School replacement project; $4.4 million toward a payroll‑system replacement (the project has an estimated total cost of $22–25 million and a tentative go‑live date of 07/01/2029); $1.2 million for Jericho Road demolition; and $5.8 million to strengthen the division’s health‑insurance fund reserve to a two‑month target.

Dr. Robertson (school superintendent), who addressed council during the Q&A, said the health‑fund infusion is intended as a one‑time, restricted reserve to avoid creating an ongoing operating obligation. "We do not consider this new spending," Robertson said. "We see it as risk management to ensure the division can meet future claims without using the operating budget on an ongoing basis."

Council members praised the division’s budgeting accuracy and thanked staff and the school board for directing one‑time funds to multiyear capital needs rather than recurring expenses. Several members pressed for ongoing reporting on the health fund and for clarity about which items had already been appropriated in the six‑year CIP versus which will be transferred into the school reserve special‑revenue fund.

The school presentation and the board‑approved allocation came with caveats: the figures reported are unaudited and final reversions will be determined after the fiscal‑year closing process in August. Pate said the Department of Education’s final calculation tool and July sales‑tax postings produce year‑end adjustments that are then reconciled during the audit and close process.

Next steps: council will consider the school board’s reappropriation request and any required appropriation ordinances; Pate and Robertson said they will provide reports on implementation and health‑fund performance as the division closes FY24–25 and finalizes audited figures.