Henry County Public Schools presents FY27 budget with 4% salary increase, asks local body to honor $207,000

Henry County Public Schools’ meeting on July 14 centered on the division’s proposed FY27 budget and the financial impact of a General Assembly‑mandated 4% salary increase.

Presenter (speaker 2) told the board the General Assembly’s enacted budget increases state revenue to the district compared with the governor’s introduced budget but that, after accounting for enrollment declines, "we are only receiving about a $100,000 more in state revenue" than last year. He said the General Assembly added roughly $2,074,000 compared with the governor’s proposal and increased the local share by about $615,000 compared with the governor’s introduced figures.

Why it matters: the presenter said the 4% pay raise for Standards‑of‑Quality (SOQ)‑funded positions will cost the division about $2,800,000. "The 4% salary increase for all employees results in approximate cost of $2,800,000 for our division," he said, and added that because the district’s compensation plans use different scales and steps the increase is implemented as a mix of scale increases plus step adjustments rather than a uniform flat raise.

The presenter provided specific pay figures: step 30 for teachers was raised to $76,394; starting salary (step 1) is $52,508; and a $2,500 stipend will be added for certain employees at the top step. He emphasized the stipend applies only "for those who are considered all step" (those at the final step), not to every employee.

Revenue and local ask: the presenter said last year the division received $83,460,000 in state aid and that next year’s state allocation is estimated at $83,564,000—an increase of about $104,000 attributable largely to lower enrollment. He said the district is receiving roughly $1,500,000 more from local sources because the local composite index rose (from 0.2247 to 0.388), which the Virginia Department of Education calculates using property values and income.

Noting debt‑service changes and category shifts, the presenter summarized expenditure movements: instruction up about $950,000; pupil transportation up about $170,000; operations and maintenance up about $80,000; facilities down about $50,000; technology up about $40,000; and debt service down roughly $285,000 after payoff related to Manheim Elementary School.

On funding requests, the presenter asked that the local appropriating body "honor the $207,000 that was given to us above local share" (previously approved at a local meeting), which he said would be included in the district’s total request and affect the local contribution sought for FY27.

Board exchange and next steps: following the presentation the chair invited questions; a board member asked about graduation‑rate measures and program costs. The meeting record shows the board then moved toward a closed session for legal consultation and security‑related discussion; no formal vote on the budget was recorded in the public segments provided.

The meeting’s next steps included scheduled future meetings (August 6 at 9 a.m.; September 3 and October 3 in the evening) and a planned closed session to consult with counsel under Virginia Code §2.2‑371.