Henrico board adopts FY2027 plan that preserves 3% staff raise while cutting $22.9M from general fund

Henrico County Public Schools adopted its FY2027 annual financial plan at the April 16 work session, approving a budget that funds a 3% across‑the‑board raise for returning staff while requiring a $22.9 million reduction to balance lower projected state aid and real estate tax revenue.

Finance staff member Mr. Wack told the board the adopted plan, effective July 1, 2026, reflects an expected $25 million increase in the general fund compared with the current adopted budget (about 3.3%), with instruction accounting for roughly 76% of general‑fund expenditures. He said the 3% raise will cost about $18.3 million and that the budget includes $22.9 million in reductions, including using a less conservative employer share of health‑care expenses and operational savings in technology. As part of the balancing adjustments, 62 full‑time positions — largely in English‑learner and special‑education areas — were moved to the county’s hold complement; staff said many of those positions may be restored if the Commonwealth finalizes additional state aid.

Board members praised the plan for preserving the raise while noting it is a reduction from the superintendent’s February recommendation. Chair Irving and other members underscored the division’s reliance on county support and the contingency that state funding could allow restoration of positions.

The board approved the adopted FY2027 annual financial plan by voice vote. Finance staff said the full FY2027 budget document will be shared with board members at the April 30 meeting.