King William School Board accepts state bonus funds, approves 3% contracts and delays pay-scale compression

The King William County School Board on Tuesday accepted state funds to provide one-time bonuses to division employees and authorized staff to begin issuing contracts with a 3% across-the-board compensation increase while postponing scale/compression work until FY28.

School finance director Mrs. Mills told the board the division had signed the state certification and sought approval to accept $243,828 in FY26 SOQ bonus funding; the division would provide a required local match of $111,918 using savings from unfilled positions. The administration proposed giving $1,000 to full-time employees and $500 to part-time employees as a one-time payment in the June 30 payroll, contingent on employees signing a contract or acknowledgement of intent to return next year.

The action came amid an extended budget conversation with county officials. Superintendent Dr. Wagner introduced county administrator Derek Stamy and finance director Stacy McBride, who reiterated that the county had presented a recommended budget that included full funding of the schools but stressed ongoing revenue pressures and the need to limit sustained use of reserves. Stamy urged both boards to "sharpen our pencils" and seek operational savings and new revenue sources.

Board members also approved accepting $13,725 in state SOQ funds designated for the regional alternative education program to provide the same one-time bonus for those staff (no local match required for that item).

On FY27 compensation, staff proposed an alternative to previously planned scale/compression work paired with a 2% increase. To reduce the division's near-term reliance on split-levy reserves, the board agreed to issue contracts now with a 3% increase for all employees and defer the more costly scale/compression adjustments to FY28. The division said that change would lower the amount it would request from split-levy reserves by about $460,000 compared with the earlier plan that combined compression work with a 2% increase. The board approved a motion allowing staff to proceed with issuing contracts under those terms.

Board action: the motions to accept the state SOQ funds, accept the regional alternative education funds, and to authorize issuing contracts with a 3% raise and postponement of scale work were approved on voice votes during the meeting. The administration said the one-time bonus funds are FY26 money, the local match would come from savings in unfilled positions, and the bonus payments will be processed in the June payroll once certification and employee acknowledgement are completed.

What happens next: County staff said they expect firmer numbers "mid next week" and the boards agreed to continue face-to-face finance meetings and to coordinate on capital and operational priorities.