York County school leaders propose 3.25% average pay increase as health costs surge

York County School Division officials presented a FY27 operating budget proposal March 24 that would fund a 3.25% average across-the-board pay increase for licensed and non-licensed staff and targeted raises for roles the division says are hardest to fill.

Dr. Carroll, the division presenter, told the school board that the proposal focuses on mandated services, staff compensation and training, and student-facing investments. "Every dollar spent on public education is an investment in both our civic and economic systems," Dr. Carroll said, arguing the district must be "good stewards" of local tax dollars while meeting expanded state requirements.

Chief Financial Officer Mr. Bowen walked the board through revenue assumptions and per-pupil comparisons, saying York County spends roughly $2,800 less per pupil than the state average while posting strong outcomes in third-party measures. He attributed the division's efficiency to a mix of staff, county support and a highly engaged family population.

The compensation package is budgeted at just under $4 million. In addition to the 3.25% average increase, the division proposes a 2% add for paraeducators, 2.5% for bus assistants and 5% for custodians; it also includes a salary-market adjustment line for lower-paid job grades identified in the quadrennial review.

The presenters warned of a substantial health-insurance risk. "Our consultant says that we should be considering a 19% increase in health care," Dr. Carroll told the board; the draft budget contains a 10% placeholder (~$2.3 million). Board members asked staff to identify options—ranging from plan design changes to administrative adjustments—that could find roughly $2 million in savings so employees do not shoulder the full increase.

Mr. Bowen said the division's self-funded plan has seen a recent spike in high-cost claims (more than 10 individual claims exceeding $300,000 this year) and sharp pharmacy-cost growth, noting the plan ran about $26 million last year for employees and dependents combined. Board discussion highlighted tradeoffs between higher premiums, higher deductibles and preserving take-home pay.

State funding assumptions are a key variable. The division's working FY27 numbers incorporate the governor's proposed budget and the General Assembly proposals under negotiation; presenters emphasized much of the House's supplemental money would be one-time flex funding while the Senate proposed more recurring compensation support. The board was told the working budget uses approximately $6.5 million of additional state and local resources and does not request new local tax support at this time.

The presentation also outlined planned expenditure reductions (about $2.6 million) achieved mainly through attrition and IT consolidations, producing roughly $9.1 million in total new or repurposed resources available to balance FY27 operations.

Next steps: staff will refine health-plan cost options, incorporate the General Assembly's final budget after its veto session, and bring a revised budget back to the board for adoption in mid-May.