Roanoke County schools present FY2026–27 budget as supervisors press on insurance and enrollment figures

Susan Peterson, director of finance for Roanoke County Public Schools, presented the school division’s adopted fiscal year 2026–27 budget to the county Board of Supervisors on April 28, saying the package prioritizes instruction and student supports while responding to rising costs.

Peterson told the board the budget as presented was adopted by the school board March 31 and that the increase is largely driven by state funding. She said personnel remains the largest share of costs, representing roughly 76% of the budget, and outlined targeted investments in special education, behavioral health and counseling. To balance the plan, she said the division deferred some capital maintenance, textbook adoptions and scheduled bus replacements that would otherwise have occurred this year.

The presentation included line-item figures for functional categories: instruction, noncategorical benefits (health and post-employment benefits), operations and maintenance, debt and transfers, technology, pupil transportation and other items. Peterson said the budget reflects a 4.5% total compensation increase and that the division is passing through only a 10% portion of higher employee health insurance premiums to staff while absorbing the remainder.

Why it matters: public schools are the largest component of the county’s budget and decisions about local contributions and timing of state aid will determine what services are funded and whether deferred capital needs must be accelerated later.

Board questions and clarifications

Supervisors pressed staff for detail on several points. Members asked how the state budget timing could affect county planning; Peterson and board members noted the General Assembly had not finalized its budget and that any changes at the state level could require revisiting projections. The board also asked about average daily membership (ADM) figures used for funding. Peterson cited the March preliminary ADM and contrasted it with current enrollment numbers, explaining that ADM is an average used for state funding and does not capture every category of student (for example, some high‑need students and preschool populations are excluded from the ADM calculation).

Supervisors also asked about the health insurance fund. During the exchange Peterson and staff used multiple figures that appear inconsistent in the transcript: one line referenced a roughly $500,000 change in a specific line item, while another referenced a $4.6 million increase in the health insurance fund’s reserves for claim payments. Board members and staff agreed that insurance costs are a significant driver of year‑over‑year increases and suggested continued collaboration between county and school purchasing to try to mitigate future rate pressure.

Capital projects and program planning

The board and staff discussed the capital improvement program and the feasibility work for renovating Burton (an alternative education facility). Peterson said feasibility work is underway and that capital project timing is subject to change depending on need, available funding and planning timelines. Board members raised questions about debt load and whether grade‑configuration changes (for example K–8 models) or shared services might produce savings; staff said research and further analysis would inform such decisions.

Public comment: property tax critique

During the public hearing on the proposed operating budget, David Corey of Ashme Drive addressed the board to criticize the property tax system and called it unfair. “Being taxed on money I did not receive is in no way defensible or moral,” Corey said, urging consideration of alternate ways to share revenue burdens, including a user tax. He did not propose a ready implementation plan but urged the board to consider the equity of current assessments.

What’s next

Peterson’s presentation was accepted for consideration by the supervisors; the board noted the county must still await final action by the General Assembly and later must adopt an appropriation ordinance to fund schools. Supervisors said they may need to meet again depending on state budget timing.

Sources: Presentation by Susan Peterson, Roanoke County Public Schools; public comment by David Corey; board discussion at the April 28, 2026 Board of Supervisors meeting.