Teacher Retention, Employee Compensation, Safety, and Maximizing Every Child’s Learning

Just the Facts - Superintendent’s Recommended FY 2025-2026 Budget

 

Three specific focus areas of the Hampton City Schools (HCS) 2021-2026 Strategic Plan were the driving force during the development of the FY 2025-2026 budget: 1) Maximize Every Child’s Learning, 2) Create Safe, Nurturing Environments, and 3) Attract, Develop and Retain Exceptional Staff.

To this end, the FY 2025-2026 budget includes a four percent (4%) compensation increase for all full-time staff as well as the majority of part-time positions, with no increase to the employee portion of healthcare premiums. 

The budget also includes investing in additional personnel (e.g., school security officers, teachers, instructional assistants) to continue to create safe and nurturing environments and to meet the academic needs of our young people.

The Superintendent’s Recommended FY 2025-2026 Budget recognizes the importance of the effective and efficient management of fiscal resources and ensures recurring costs have sustainable funding based on revenue projections. 

Q: How is the school system funded?

A: Sixty-six percent (66%) of the School Operating budget comes from state funds and state sales tax. State funds and state sales tax are received through the Virginia Department of Education (VDOE). Two main budget drivers for state funding are the Local Composite Index (a state measure to determine a locality's ability to fund education costs) and Average Daily Membership (average student enrollment as of March 31).

Thirty-one percent (31%) of the School Operating budget comes from local funds from the City of Hampton. The city allocates funding to the school division using a funding formula in which 61.83% of residential-related taxes (i.e., real estate, personal property, utility taxes) are provided to Hampton City Schools.

The remaining three percent (3%) of the School Operating budget comes from federal and miscellaneous funds. Federal funds come from Federal Impact Aid and the JROTC program. Miscellaneous funds come from various sources (e.g., Medicaid reimbursements, cell towers, indirect cost). 

Q: What are the priorities that drove the development of the FY 2025-2026 budget?

A: The School Board identified competitive compensation, teacher and support staff retention, coach stipends, Academies of Hampton Master Plan 2.0 (K-12), school safety, mental wellness, class sizes, and increasing student achievement as priorities for this budget cycle.   

Q: The Governor’s Amended Budget includes a three percent (3%) salary increase. Will I receive a three percent 3% salary increase?

A: Based on the Governor’s budget and additional funds repurposed within the existing budget, instead of the three percent (3%) compensation increase, Hampton City Schools proposes a four percent (4%) raise for FY 2025-2026 (beginning July 1, 2025) for all full-time employees and the majority of our part-time employees. 

The Governor’s Amended Budget includes a three percent (3%) compensation increase for FY 2025-2026 for Standards of Quality (SOQ) funded teachers and support staff. It is important to note that the SOQ are determined by the Virginia Department of Education and serve as a set of mandatory guidelines for staffing that all school divisions must follow to provide a minimum level of education services. School divisions (including ours) provide students with more than just the minimum educational experience. This requires additional teachers and staff above the minimum standards. SOQ funded positions represent roughly 64% of all HCS positions in the School Operating fund. That leaves 36% of HCS positions not covered by the state supplement. All HCS teachers and staff are essential to the success of our school division and it is important to offer the same salary increase to all positions (SOQ funded positions and non SOQ funded positions).

 

For every one percent (1%) raise provided to employees, it costs HCS $2.1 million. The impact on the budget will cost Hampton City Schools $8.4 million.

Q: How will the budget impact employee salaries?

A: The budget includes a four percent (4%) salary increase for full and part-time employees. This does not include temporary positions, as well as some part-time teaching positions. 

Additionally, the FY 2025-2026 budget includes reclassification and targeted compensation adjustments. The total investment is $0.8 million and is outlined below. 

• $0.6 million for compensation adjustments (in addition to the employee raise) as the result of work schedule changes for select employee groups and market adjustments
• $0.2 million for compensation adjustments to select supplements and stipends
  

The proposed FY 2025-2026 Compensation Plan can be found here on page 88.

Q: Will my health insurance premiums change next year?

A: No. Hampton City Schools is not projected to have an increase in healthcare costs. As such, there will be no increase to employee contribution rates for healthcare. 

Q: Are there position changes planned for the FY 2025-2026 budget? 

A: Yes. The budget includes a net increase of 55.70 positions (representing positions added during the current school year, combined with new positions for the 2025-2026 school year) within the School Operating fund (Fund 50), to include a reduction of 6 vacant positions and the movement of 7.7 positions from Fund 60 Reimbursable Projects to Fund 50.

Position changes include but are not limited to:

• New School Security positions
  • School Security Officers (19)
• Positions added due to student needs
  • Special Education Teachers (6) 
  • Instructional Assistants (9) 
  • Dual Language Teacher (1) 
  • Academy of Hampton Coach (6)
• New positions
  • Custodial Staff (8)
  • Health Services Supervisor (1)
  • Assistant Director of Human Resources (1)
  • Human Resources Technician (1)
  • Records Clerk (1)
  • Office Assistant (1)
    

Q: Are there changes to the work calendar for the FY 2025-2026 budget?

A: Yes. The budget includes changes to the work schedules for select employees beginning with the 2025-2026 school year. The specific employees impacted by these changes will receive direct communication from the Human Resources department.

Q: Is there a reduction in the number of PreK slots for HCS next year?

A: No. The Virginia Department of Education contributes funding under the Virginia Preschool Initiative (VPI) program to provide educational services for At-Risk four-year-olds. State funding is based on a funding formula, which in part is based on the number of slots given to each school division by the state. For FY 2024-2025, HCS was allocated 618 slots. For FY 2025-2026, HCS will be allocated 619 slots. 

Q: Were any instructional programs eliminated in the FY 2025-2026 budget? 

A: No. There were no instructional programs eliminated in the FY 2025-2026 budget.

Q: Are there other reductions in the FY 2025-2026 budget?

A: Yes. The FY 2025-2026 budget includes $15.3M of reductions due to the repurposing of payroll savings and the removal of one-time costs from the budget.

Q: How can I find out more information on the budget?

A: Click here to view the FY 2025-2026 proposed budget presented on March 12, 2025.  

Q: What are the next steps for the budget?

A: The General Assembly and Governor will finalize the state budget. We will then review our FY 2025-2026 budget and make changes as needed. If there are any adjustments to the budget, these will be presented during future School Board meetings. On March 12 and March 19, the School Board will hold Public Hearings on the FY 2025-2026 budget. The School Board is scheduled to vote on the FY 2025-2026 Superintendent’s Recommended Budget on March 26. Once approved, the FY 2025-2026 budget will be submitted to the city for approval.