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Orange County school board previews FY27 budget with 3% raise proposal and steep insurance increase
Summary
Board presenters laid out a FY27 budget that includes a proposed 3% raise for all employees (estimated ~$1.5M), an anticipated 21% employer health insurance increase (estimated ~$1.25M), and a $1,500 state bonus that requires a local match (local share estimated at $668,000); a public hearing is set for March 30.
The Orange County Public Schools Board received a detailed FY27 budget presentation on March 17 outlining revenue assumptions, major cost drivers and next steps for approval. Superintendent Dr. Hornick and budget staff said the budget is being built conservatively while the Virginia General Assembly finalizes the state budget and the official calc tool.
Budget staff said declining enrollment (average daily membership) reduces state revenue and that the division is proposing a 3% pay increase for all employees, which staff estimated would cost the division almost $1,500,000. They also said the board should plan for a worst‑case employer health insurance premium increase of about 21%, which staff estimated would cost roughly $1.25 million on the employer side. "We would like to do a 3% raise for all employees," a presenter said; "the cost of the division... is almost $1,500,000 to provide that 3% raise."
Staff also discussed a state‑funded $1,500 bonus for eligible employees that requires a local match. The presenters estimated the local share at about $668,000 and said the remaining $456,632 would come from the state. "The remaining 456,632 would be coming from the state," staff said when outlining the bonus cost split.
Revenue assumptions were intentionally conservative. Budget staff said they used a combination of the governor’s proposal and house and senate proposals where appropriate, explaining they are projecting a "worst case scenario" until the General Assembly passes a final budget and the calc tool is issued. The presentation listed federal revenues (shown as $2,215,037) and a projected SOQ increase of about $1,928,000 among state revenue changes.
On the expenditure side, staff said the roughly $5.586 million increase in the operating request is concentrated in instruction (primarily salaries and benefits), along with increases in administration, transportation, operations and maintenance, and technology. Staff highlighted one‑time and recurring items including bus replacements (five regular and five special‑needs buses in the debt schedule), additional school leadership positions (a second assistant principal at Locust Grove Middle School and a dean of students at Orange County High School) and ongoing special education costs.
Officials said the board will hold a required public hearing on the proposed budget at its March 30 meeting and plans to seek approval at the March 30 work session; they warned final numbers may change after the General Assembly acts. "We will have to come back to the school board to revisit the budget once the final revenue stream from the state and the locality are ultimately worked out," Dr. Hornick said.
Board members thanked staff for the presentation, raised questions about how the public will understand the difference between adopted and revised FY26 figures, and urged continued advocacy with state legislators because uncertainty at the state level affects local planning.
The division will present the budget at a March 30 public hearing before seeking board action at the scheduled March 30 work session; the board may amend the budget after state figures and the calc tool are finalized.
