Caroline County School Board adopts level-funded FY27 budget amid state funding uncertainty

The Caroline County School Board unanimously approved a level-funded fiscal year 2027 operational budget at a special meeting June 29, adopting a spending plan that county staff will revise after the state finalizes its budget.

Clerk Lisa Stevens presented the FY27 operational budget and summarized recent General Assembly action and governor amendments, telling the board that the state must finalize its budget by July 1 to avoid a shutdown. ‘‘I am pleased to present the fiscal year 27 operational budget for adoption,’’ Stevens said, explaining that CCPS must adopt a compliant budget now and then adjust categories when the Virginia Department of Education issues its calculation tool.

Why it matters: the state budget contains several adjustments that affect local schools. Stevens said the biennial budget increases compensation for SOQ positions from 2% to 4% and contains language that allows a proration of state funding if local salary increases do not match the full amount. The state also increased the at‑risk add‑on concentration to 37.85% and added roughly $60 million for infrastructure and operations statewide, raising the per‑pupil infrastructure figure cited in the presentation to $510.98.

The presentation listed additional special‑education funding increases (a statewide category increase of about $74.4 million and another $10 million targeted for students with intensive support needs) and noted the school breakfast reimbursement is expected to rise toward $0.50 per meal. Stevens said divisions will receive a VDOE calculation tool after the governor signs the budget and that CCPS cannot finalize its revenue allocations until that tool is published.

Board members focused questions on enrollment versus Average Daily Membership (ADM), a key driver of state funding. CCPS staff said the system will use a conservative ADM of 4,250 for FY27 budget calculations based on recent years’ trends but clarified that classroom enrollment is roughly 4,500 and the March 31 ADM reported to the state was 4,220.43. ‘‘When you have students coming in and out, that transient enrollment is what impacts your ADM,’’ Stevens said.

Several members also asked whether new state add‑on dollars carry spending restrictions; Stevens and Superintendent Dr. Sarah Calvaric both said add‑on funds (for example, special education) are targeted and should be used for those purposes. Calvaric added, ‘‘There will be no felt or seen disruption to services’’ because the division is accustomed to operating on approved estimates until state receipts arrive.

Local implications discussed included debt service (staff clarified the county handles school facility debt service, estimated in the meeting discussion at about $4 million) and a possible 1% local sales tax to raise an estimated $4.5–$5 million annually for new school construction; board members and staff sketched a timeline that would require supervisory approval to place a bond or tax referendum on an early‑voting ballot.

A motion to adopt the FY27 budget ‘‘as presented’’ passed on a recorded vote called by the clerk. The board then directed staff to recalculate the budget once the VDOE tool and final state numbers are available and to return with category adjustments and any recommended contract modifications.

Votes at a glance: the board recorded the FY27 operational budget as approved on June 29.

What’s next: CCPS staff will use the VDOE calc tool when released to update revenue estimates and pay‑scale calculations and will return to the board with a revised budget and recommended category adjustments. The board also discussed scheduling a July workshop and a proposed joint meeting with the Board of Supervisors to coordinate any local funding decisions.