Proposed Henrico Schools budget grows to $762.9M to include 5% raises for staff

Henrico officials have added $20.4 million to the proposed Henrico County Public Schools budget for the upcoming fiscal year to include 5% pay raises for all eligible staff members.

The total HCPS proposed budget now sits at $762.9 million, which represents an increase of 7.8% (or about $55.4 million) from the current year’s adopted budget.

Henrico County Manager John Vithoulkas announced the 5% pay raises for all eligible county employees on Wednesday afternoon as he unveiled Henrico County’s proposed $1.54-billion operating budget. A majority of the $1.063-billion general fund is slated to flow to Henrico County Public Schools.

“Funding of all of the priorities is difficult,” Vithoulkas said. “But I stand before you saying that our school system budget is fully, fully funded.”

The division’s general fund, which is used to operate day-to-day needs of the school system, is $602.7 million in the proposed budget.

Significant proposed additions to the school system’s budget include the funding of new specialty centers at Varina High School and Hermitage High School, 22 new licensed health positions and more teacher positions.

The school board held a public hearing to receive input on the proposed budget Feb. 24, but nobody showed up to speak. The school system's budget won't be finalized until after the board of supervisors adopts the overall county budget in April.

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The 7.8% increase to the proposed schools budget shows a new confidence in the county’s revenue. In 2020, Henrico County reduced its general fund budget for schools by about $4.5 million for FY 2021 in preparation for the possibility that local tax revenues would be significantly impacted by the pandemic. It wasn't nearly as substantial as officials anticipated, though, and revenues ended well above budget projections in 2021 because of the conservative approach.

Many of those reductions were restored in FY 2022, which started in July, by reinstating frozen positions and adding back funding for professional development and instructional supplies.

Now approaching FY 2023, county officials told the school division to develop its budget for 2023 assuming general fund revenues will increase by about $23 million. The Henrico School Board approved a $742.5 million budget last week. That target was based upon the comfort level of county budget officials with the county’s revenue growth, and the knowledge that former governor Ralph Northam included some significant increases for schools. The total budget increased to $762.9 million to include the 5% pay raises that Vithoulkas announced on Wednesday.

Northam’s initial budget proposal increased teacher pay about 5% a year in each of the next two budget years, for a total increase of 10.25%. Based on the state’s formula for determining each school division’s ability to pay education costs (largely based upon property values), HCPS pays for about half and the state pays the other half.

If any school divisions give their teachers a lower salary increase than supported by the state budget, they become ineligible to receive all of the SOQ direct aid associated with raises. So, a locality could grant smaller raises, but it would be leaving some state money on the table.

Henrico operates on a unified pay plan, whereby all eligible county employees receive the same percentage raise, although sometimes the county grants market adjustments for specific job classifications in addition to the standard across-the-board raises. For example all teachers received a 6.9% increase in 2021, which included a 4.8% market adjustment and a compounded 2% wage adjustment.

The raises proposed by Vithoulkas Wednesday would take effect July 1.

The state budget, which is not yet finalized, typically includes funding for teachers and other positions supported by the SOQ, such as counselors, social workers and nurses. When schools have positions that exceed SOQ guidelines, such as having more student health positions than the state minimum, those positions tend to be funded entirely by the county (if not supported by a federal grant, for example).

* * *Significant additions to the HCPS budget related to safety include the 22 new licensed health positions (including psychologists, social workers and nurses), as well as five school counselors.

In the academic area, budget additions include three English for Speakers of other Languages teachers, three LAMP (library, art, music and physical education) teachers, four gifted and talented teachers, two exceptional education reading teachers and more permanent substitutes

One highlight of the academic-related budget additions is the proposal to convert 40 more exceptional education instructional assistants from temporary to full time. The move will get HCPS back on track to address recommendations from the Holton report, said CFO John Wack at a Jan. 27 school board work session.

That 2018 report, led by former Virginia Secretary of Education Anne Holton, detailed the racial disparity in discipline in HCPS’ special education programs. It found that Henrico schools disciplined students with disabilities, particularly Black students, at higher rates than their peers of other races and ethnicities.

Other proposed budget additions include:

• safety and attendance bonuses for bus drivers;
• 11 full-time plus temporary bus assistants;
• eight maintenance positions to help address enhanced cleaning standards;
• the expansion of the Achievable Dream Academy to include seventh grade, as current sixth-graders advance;
• seven positions for expanded ACE Center programming;
• moving 10 Title VI-B (Exceptional Ed) classroom teachers to general fund;
• a Virginia Preschool Initiative increase;
• the lease of a site at Regency Square for adult education programming;
• tuition increases for Maggie Walker Governor’s School and CodeRVA;
• group health benefits – employer absorbing all cost increases;
• two HR specialists (recruiters);
• moving “some” bus drivers from 10-month contracts to 11-month contracts;
• eliminating out-of-county tuition for HCPS employees next school year;
• desk audit funding for support positions.

The proposed county budget will be presented at the March 8 board of supervisors meeting for consideration by that board. County supervisors will discuss and review the proposed budget this month before holding a public hearing about it and then voting in April to adopt a budget. Subsequently, the school board will formally adopt its budget.

The state’s budget is making its way through the General Assembly. Lawmakers have until March 12 to finalize the budget before session adjourns.

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Anna Bryson is the Henrico Citizen's education reporter and a Report for America corps member. Make a tax-deductible donation to support her work, and RFA will match it dollar for dollar.