Nelson County adopts $98.59 million FY2025 budget after failed bid for extra school funding

The Nelson County Board of Supervisors on June 11 adopted the fiscal year 2025 budget, approving $98,588,140 in total appropriations after rejecting an amendment to add $350,000 to the School Fund.

The budget was presented by Linda K. Staton, director of finance and human resources, who told the Board the total funds amount was $98,588,140 and that certain published figures differed because of fund transfers and grant carryovers. The appropriation resolution matched revenues and expenditures at the same total.

Dr. Hester, superintendent of Nelson County Public Schools, had told the Board during public comment that a previously cited per-student expenditure of $30,000 was inaccurate and that the division’s most recent Virginia Department of Education figure was about $22,000 per pupil. She said a substantial increase in the state’s Local Composite Index (LCI), combined with the removal of hold-harmless funding, left the schools with an estimated $1.1 million shortfall before the budget was developed.

"The per pupil expenditure was about $22,000," Dr. Hester said, adding the figure includes grant monies and other elements that complicate direct comparisons. She warned the shortfall "would require decisions to be made that would have a negative and lasting impact on students, staff, schools and the division."

Supervisor Ernie Q. Reed proposed increasing the School Fund by $350,000 — suggesting half the money come from recurring contingency and half from non-recurring contingency — to give the schools additional flexibility for staff compensation and to blunt the LCI-driven shortfall. "The motion I would like to make, would be to add another $350,000 to that number," Reed said. The proposal drew discussion about the source of funds and the County’s reserve targets, but received no second and therefore failed.

Following the failed amendment, the Board proceeded with the original motion to adopt Resolution R2024-44, which passed by roll call (4-0). The adopted budget includes $33,765,576 for the School Fund (increased from an initial proposal by $1.4 million of school construction grant carryover), recurring contingency of $612,438, non-recurring contingency of $662,994, and other transfers described in the appropriation resolution.

The Board also approved the Fiscal Year 2024–2025 appropriation resolution (R2024-45), which formalizes the multi-fund appropriations and notes specific transfers such as $19,154,772 to the School Fund and $1,400,000 in State School Construction Assistance Program carryover funding.

The Board did not take additional action to provide the $350,000 Reed proposed; supervisors noted competing priorities and longer-term capital needs. The budget adoption satisfies the Code of Virginia requirement to wait seven days after a public hearing before adoption; the public hearing had been held June 4.

What happens next: the appropriation allows departments to begin the formal spending process subject to internal controls and further Board-directed appropriations; the Board and school leaders will continue budget conversations as state funding and the Local Composite Index implications evolve.