WJCC board reviews FY26 year‑end projection, healthcare costs and proposed FY27 budget including retention bonuses

The Williamsburg‑James City County School Board on May 5 reviewed its fiscal‑year 2026 year‑end projection and early proposals for the FY27 operating budget, including a proposed employee retention bonus and multiple salary and stipend adjustments.

Finance staff reported projected FY26 revenue of about $190.7 million and projected expenditures of roughly $188.7 million, leaving an estimated $2 million (about 1.1% of the total budget) expected at June 30. Administration said any remaining balance would be earmarked for the division's healthcare reserve to help stabilize costs after the division transitioned to a self‑insured plan this year.

"We are projecting approximately $2 million remaining at June 30," the finance presenter said, noting that the funds would support the health‑care reserve.

Officials emphasized that the health‑care fund is now managed on a self‑insured basis and that claims timing creates volatility in the year‑to‑date snapshot. Administration said the county reappropriated about $2.2 million to the reserve and recommended conservative funding to manage future claim fluctuations.

Board members were shown trend data that finance consultants presented: medical and pharmacy claims have risen sharply, with pharmacy costs increasing from $5.1 million to $7.5 million in the rolling 12‑month period and specialty medications comprising nearly half of current pharmacy spend. Based on current trends and consultant guidance, staff recommended a 16% illustrative rate increase for employer/employee contributions in 2026–27 to maintain reserves.

Against that fiscal backdrop, staff proposed an employee retention bonus tied to contract renewal: $1,500 for employees working six or more hours per day and $1,000 for those working less than six hours, payable to employees who sign contracts by June 12. Administration estimated the total cost at about $2.9 million, to be funded with approximately $2.85 million from operating funds, $96,500 from child nutrition services and $18,000 from state‑operated program funds.

Human resources leaders also described proposed FY27 compensation moves drawn from a multi‑year Bolton pay study: phase two adjustments to teacher scales, a 4% increase on the unified scale for many U01–U10 positions and a 3.5% increase for higher grades, expanded contract days for certain specialists, and a 15% stipend increase across roles to better align with market pay.

Superintendent Dr. Kever framed the proposals as balancing fiscal stewardship with strategic investments in staff retention and recruitment. Board members asked clarifying questions about reserve targets, the timing of state budget actions and how proposed increases would affect long‑term commitments.

Administration said state budget decisions (House vs. Senate proposals) could change local revenue assumptions and that the board will consider final action as state funding is finalized. The board did not take action on the FY27 package at the May 5 meeting; staff said formal budget approval is planned for the May 19 meeting.