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State budget raises Petersburg school revenue but most of it is already committed to required 4% SOQ raises
Summary
Chief financial officer Matthias Graywood told the joint meeting FY27 state revenue for the district rose by about $1.33 million, but approximately $1.09 million of that must fund a 4% SOQ‑mandated raise for SOQ positions, leaving about $242,000 discretionary; the superintendent will recommend adding 1% to a board‑approved 3% raise to reach 4% on July 15.
Mathias Graywood, chief financial officer for Petersburg City Public Schools, told the joint council and school board meeting that the final FY27 state budget increased state revenue for the district by approximately $1,330,000. Graywood emphasized most of that increase is legally committed to a 4% salary increase for SOQ‑funded positions, which he quantified at roughly $1,086,000, leaving only about $242,000 that the district could use at its discretion.
Graywood walked the joint group through two scenarios for the district's remaining request to the city: with the compensation-and‑classification (comp & class) work fully funded, the district's updated ask would leave a $2,100,000 gap relative to the city appropriation; without comp & class, the gap would be about $654,000. He said final numbers will be reconciled and included in the consolidated budget amendment process in September.
Immediate personnel action: the school board had already approved a 3% increase effective July 1; the superintendent plans to recommend an additional 1% on July 15 so all employees receive a full 4% increase in FY27 in alignment with state action. Graywood said the SOQ increase is a two‑year commitment (effective 07/01/2026 and 07/01/2027) and became law on 06/29/2026.
Classification & compensation study: Dr. Shamika Long Lane reintroduced the district's comp & class goals: create updated salary scales and placement guides, improve retention and internal equity, and raise starting teacher pay toward a $60,000 target. Several council members cautioned about vendor selection and past implementation errors and asked the district to ensure the comp & class rollout avoids omitting employees or producing costly corrections.
What comes next: district and city finance staff will finalize numbers for the July and September budget processes; council indicated it intends to fund the locally required portion of the 4% increase (the city appropriation change noted in the presentation) and to continue discussions on comp & class funding and any supplemental appropriation.
