York County CFO warns FY27 depends on late state budget work; potential small compensation uplifts possible
June 08, 2026 | YORK CO PBLC SCHS, School Districts, Virginia
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Bill Bowen, York County School Division chief financial officer, updated the board June 8 on the uncertain FY27 state budget and the division's planning steps.
Bowen said the governor asked state finance staff to revise the revenue forecast late in the fiscal year, producing roughly $1.5 billion of additional revenue over two years. That revision narrowed some concerns but a roughly $1 billion difference remained between the House and Senate budget proposals. "That is our hope, but we'll have to wait and see," Bowen said about receiving a completed budget before June 30.
He told the board the division placed a budget resolution on the evening's business agenda to memorialize recent non-state actions and explained timing risks: once the legislature approves a budget, the Department of Education issues a cap tool that typically takes seven to 10 days to calculate final allocations. Delays in that process could push local budget certainty into early July.
Bowen summarized potential allocations in House and Senate proposals that would affect the division: the House's package includes approximately $3.9 million in one-time flexible funds (described as nearly $3.9 million in onetime money for FY27) and additional recurring items totaling about $4.6 million on the House side; the Senate proposal includes additional recurring increases (including funding tied to a larger state compensation increase) that Bowen estimated would add roughly $1.4 million in the division's totals under the Senate scenario. Bowen flagged the difference between the House's one-time-heavy approach and the Senate's recurring funding as a reconciliation concern.
Board members asked about contingency plans should the legislature fail to pass a budget by June 30. Bowen said he believes a late agreement is likely but noted that the county has approved local funding, which could be used to continue operations if necessary. He also said the division has flexibility because some state-directed bonus funding can be carried into FY27.
Bowen said that if more state revenue is confirmed, the division's priority would be to use recurring funds to support compensation increases for employees and that any change requires coordination across finance and HR systems to implement before the first payroll.
The board did not approve new budget decisions at the work session; Bowen's report framed timing and trade-offs for upcoming action by the board once final state numbers arrive.
Bowen said the governor asked state finance staff to revise the revenue forecast late in the fiscal year, producing roughly $1.5 billion of additional revenue over two years. That revision narrowed some concerns but a roughly $1 billion difference remained between the House and Senate budget proposals. "That is our hope, but we'll have to wait and see," Bowen said about receiving a completed budget before June 30.
He told the board the division placed a budget resolution on the evening's business agenda to memorialize recent non-state actions and explained timing risks: once the legislature approves a budget, the Department of Education issues a cap tool that typically takes seven to 10 days to calculate final allocations. Delays in that process could push local budget certainty into early July.
Bowen summarized potential allocations in House and Senate proposals that would affect the division: the House's package includes approximately $3.9 million in one-time flexible funds (described as nearly $3.9 million in onetime money for FY27) and additional recurring items totaling about $4.6 million on the House side; the Senate proposal includes additional recurring increases (including funding tied to a larger state compensation increase) that Bowen estimated would add roughly $1.4 million in the division's totals under the Senate scenario. Bowen flagged the difference between the House's one-time-heavy approach and the Senate's recurring funding as a reconciliation concern.
Board members asked about contingency plans should the legislature fail to pass a budget by June 30. Bowen said he believes a late agreement is likely but noted that the county has approved local funding, which could be used to continue operations if necessary. He also said the division has flexibility because some state-directed bonus funding can be carried into FY27.
Bowen said that if more state revenue is confirmed, the division's priority would be to use recurring funds to support compensation increases for employees and that any change requires coordination across finance and HR systems to implement before the first payroll.
The board did not approve new budget decisions at the work session; Bowen's report framed timing and trade-offs for upcoming action by the board once final state numbers arrive.
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