Virginia Beach school board adopts $1.04 billion operating budget and $947 million CIP
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Summary
The Virginia Beach School Board unanimously approved the FY 2026-27 operating budget and a six-year capital improvement program on March 24, 2026. The operating budget includes targeted pay-scale increases and additional health fund contributions; both approvals are contingent on the state budget.
The Virginia Beach School Board voted unanimously on March 24 to adopt a $1,040,480,097 operating budget for fiscal year 2026-27 and a $947,329,209 capital improvement program covering FY 2026-27 through FY 2031-32.
Tiffany Jacobs, the division's director of budget, told the board the proposed operating budget reflects an estimated $34 million revenue increase over the amended FY 2025-26 budget and remains contingent on action by the General Assembly. "Once the state budget is passed and updated revenue information is made available, we will return to the board with recommended budget options," Jacobs said.
The adopted budget includes roughly $14.6 million in contributions to the health fund: about $9.2 million to cover projected employer contribution increases for 2027 and $5.4 million to rebuild the health fund reserve to the recommended two months of gross costs. Compensation adjustments are a central element of the proposal: the teacher pay scale provides a 2 percent increase plus a $1,000 entry bonus and a 1.5 percent step increase for eligible employees (an overall average increase Jacobs said is about 5.23 percent at an approximate cost of $22.6 million). The unified pay scale proposal includes a 3 percent entry increase that flows through the scale and modest step increases, producing an average increase Jacobs said of about 4.17 percent at an approximate cost of $11.1 million.
Melissa Ingram reviewed the CIP, outlining funding sources (paygo, reversion funds, bonds and a new PEG funding source for cable-access infrastructure) and confirming priority new construction projects remain funded in the six-year plan. Ingram said the plan includes funding for recommended campus additions and active solicitations for progressive design-build delivery models for future projects.
Vice Chair Weems read the operating-budget resolution and the board voted to adopt both the operating budget and the CIP; the clerk announced the motion carried with 10 ayes. Jacobs emphasized the administration will return to the board if revenue estimates change after the state budget is finalized.
Background and next steps: following adoption by the school board, the budget will be presented to Virginia Beach City Council (April 14), and the reconvened General Assembly will continue budget deliberations in a special session on April 23. The administration said the board should expect follow-up budget-option briefings once state action is definite.
Votes at a glance: the board recorded a unanimous vote (10-0) to adopt the FY 2026-27 operating budget and a unanimous vote (10-0) to adopt the FY 2026-27 through FY 2031-32 CIP. The resolutions will be transmitted to the mayor, each city-council member and the city manager.
