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Officials outline state budget gains and a possible 1% sales‑tax referendum to fund school construction
Summary
CFO Crystal Pate briefed the board on the recently negotiated state budget, projecting preliminary additional operating funds and describing a new authorization that would allow localities to ask voters for a 1% sales tax dedicated to school construction; staff estimated a roughly $13 million preliminary operating increase and warned final allocations depend on VDOE calculations.
The school division's chief financial officer, Crystal Pate, told the board the General Assembly conference report includes substantial new K‑12 investments that could meaningfully affect Virginia Beach City Public Schools.
Pate said the conference report funds a 4% salary increase for state‑recognized instructional and support positions in each year of the biennium, includes approximately $158.4 million for special education over the biennium, and provides $519 million in school construction grants statewide. The General Assembly also authorized all localities to hold a referendum on an additional 1% local‑option sales tax dedicated to school construction; Pate's preliminary estimate was that such a tax could generate $80–90 million annually for Virginia Beach if the city pursued the referendum and voters approved it.
"Based on our preliminary review of the distribution sheets received last night, we estimate state operating revenue could increase for the operating budget over what was approved in the current fiscal year by approximately $13 million," Pate said, while emphasizing that final numbers will come from the Virginia Department of Education's official budget calculation tool. The division plans to present detailed recommendations to the board in July and seek City Council action on any amended budget in August or September.
Earlier in the meeting Daniel Hopkins, director of Business Services, reported interim finance items including approximately $15.2 million in federal impact aid payments and a year‑over‑year increase of about $940,000 in stop‑arm enforcement revenue from bus cameras, which Hopkins said helped offset other changes in miscellaneous revenues.
Board members asked how potential new state funds might be applied — including restoring positions previously funded by grants, increasing pay‑go funding for capital needs, or shoring up human‑resources priorities. Pate advised that some funds are targeted (for example, construction grants and special education add‑ons) while others would provide additional flexibility; she recommended waiting for VDOE's calculation tool before detailed allocations.
The board signaled interest in exploring options, and staff will return with recommendations during the July meeting cycle.
