Halifax County finance committee reviews $167 million FY2027 budget; flags school project and staffing concerns

At a May 6 Finance Committee meeting, Halifax County officials reviewed the proposed FY2027 budget, which Interim Finance Director John Montoro said "totals approximately $167 million," and focused attention on unresolved school project costs and a cluster of proposed recurring staffing additions.

The committee examined major aggregates in Montoro's presentation, including roughly $17 million in transfer and carry-forward funds, nearly $40 million in General Fund operating expenses and about $19 million earmarked for the school operating transfer. Montoro said approximately $18 million was allocated to complete the current school project, which includes demolition of the old high school. He noted the original project carried an estimated $4 million shortfall that had been supplemented through various funding sources.

School officials' request for an $870,000 bus-replacement allocation drew discussion. Montoro said the schools plan to adopt a structured replacement program of about four to five buses annually to reduce long-term maintenance costs; the committee also discussed sourcing used buses from Fairfax County as a cost-saving option.

County Administrator Ron Brade reviewed multiple proposed new positions across county departments — including a deputy administrator, IT and HR staff, a procurement/grants position, a community information officer, and an erosion and sediment control inspector in Building Inspections. Committee Chair D. Witt warned the committee that adding many recurring operational positions in a single year would increase recurring costs and suggested phasing hires. "Many of the deficiencies identified during the forensic audit stemmed from understaffing," Supervisor J. Oakes said, linking staffing requests to audit findings.

Montoro outlined several capital and special funding allocations, including proposed uses of the solar revenue capital projects fund (about $300,000 for a public works roll-off truck, contributions to volunteer fire departments and roughly $180,000 for Edmonds Park development). He said about $2 million was budgeted for airport projects such as taxiway and hangar improvements, with most airport work expected to be largely grant-funded rather than paid from the General Fund.

Chair L. Roller and Committee Chair D. Witt emphasized the need to reconcile the 1% sales tax fund balance to determine how much can be applied to the athletic complex and demolition projects. Members raised concerns about interest earnings and possible arbitrage that could require repaying federal funds if not properly accounted for; staff committed to reconciling records with the Treasurer's Office and school finance staff.

The committee also reviewed remaining ARPA obligations. Brade said Nancy Spencer had been managing ARPA reporting and that approximately $1.5 million remained to be spent before federal deadlines. Members raised concerns about delayed equipment deliveries, including a rescue squad vehicle, and discussed options with ARPA representatives if deliveries threatened federal expenditure timelines.

On personnel costs, the committee discussed a proposed 2% salary increase and anticipated Constitutional Officer bonus reimbursements through the Compensation Board. Members noted the proposed budget assumes the County will absorb roughly a 7% increase in employee health-care costs, a key factor for retention and morale.

Montoro estimated the County's assigned and unassigned General Fund balance in FY24 at about $60 million but said final FY2025 balances had not yet been fully analyzed; he told members he believed the County remained in a generally strong financial position while acknowledging that unresolved school-project balances were the most significant financial concern moving forward.

Before adjournment, Supervisor J. Oakes moved to adjourn; Committee Chair D. Witt seconded and the motion passed unanimously, 2-0. The meeting adjourned at 1:58 p.m.