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Petersburg schools present needs-based FY27 budget with $2.8M compensation ask and looming K–3 funding loss
Summary
The Petersburg City Public Schools superintendent presented a needs-based FY27 draft that requests a roughly $2.8M classification/compensation implementation, totals $3.2M in new initiatives, faces a net general fund decline of about $262,000, and must address a projected $2.2–$2.3M K–3 grant loss tied to a shortfall of certified K–3 teachers.
The Petersburg City Public Schools board convened a budget work session on March 11 to review the superintendent’s proposed FY27 needs-based budget, staff said. Dr. Greywood, presenting the second work session update, said the request is framed as a needs-based estimate required by the Code of Virginia and is intended to show “what it takes to operate the division responsibly in FY27.”
Staff told the board the proposed FY27 initiatives total about $3.2 million, and the largest single component is $2.8 million to implement an evergreen classification and compensation plan designed to ensure a minimum 3% increase for employees and to address structural pay inequalities. “The needs-based request includes a significant increase in the city transfer and a major investment in our classification and compensation plan,” Dr. Greywood said, outlining the links between the compensation request and projected revenue needs.
Officials also flagged revenue pressures: state funding is expected to fall by roughly $3.2 million while the city transfer is modeled to increase by about $2.9 million, producing a net projected general-fund decline of approximately $262,000 for FY27. Staff noted a separate capital need for a proposed new school that would require roughly $53 million in capital authority routed through the capital projects fund, not the operating budget.
A central driver of the tight FY27 operating picture is the loss of K–3 class-size reduction grant eligibility under new state rules. Staff said the division stands to lose roughly $2.2–$2.3 million if it does not meet the stricter student–teacher ratios; to regain eligibility staff estimated they are short about 60 certified K–3 teachers. In response to board questioning, Dr. Greywood and other administrators said prior recruitment efforts included hiring bonuses and targeted initiatives but that the FY27 presentation does not currently show a line item large enough to recruit all 60 missing teachers.
To balance the proposed budget staff described mitigation steps including deactivating 16.5 vacant positions, eliminating a $500,000 development reserve, and removing one-time FY26 costs from the baseline. Staff said those measures were chosen to “protect classrooms and avoid reductions in student services.”
The board was given a timeline of next steps: a public hearing (noted as March 18), a joint budget meeting with the city March 31, the statutory April 1 deadline to deliver a budget to the city, a city council approval target of May 15 and a board adoption in May. Administrators said they will continue to monitor the General Assembly and bring any reconciliation funds back to the board with recommendations.
Action and next step: staff will provide additional per-pupil and recruitment detail requested by board members and will return with revised figures if state reconciliation provides additional funding.
