REVISED March 27, 2024

REVISED June 5, 2024

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

Just the Facts - Superintendent’s Proposed FY 2024-2025 Budget 

Three specific focus areas of the Hampton City Schools (HCS) 2021-2026 Strategic Plan became a driving force during the development of the FY 2024-2025 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 2024-2025 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 recommendation also includes adjustments to the teacher salary scale as well as other targeted compensation adjustments.

The budget also includes investing in additional personnel (e.g., teachers, instructional assistants, assistant principal, secondary ELA curriculum leader) to meet the academic needs of our young people.

Additionally, the budget includes the increase of the division’s minimum hourly rate to $14.00.

The Superintendent’s Proposed FY 2024-2025 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 proposed 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-two percent (32%) of the proposed 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 two percent (2%) of the proposed 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 2024-2025 budget?

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

Q: The General Assembly Budget includes a three percent (3%) salary increase. Will I receive a three percent 3% salary increase?

A: No. The General Assembly Budget includes a three percent (3%) compensation increase for FY 2024-2025 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 71% of all HCS positions in the School Operating fund. That leaves 29% 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).

 

Based on the General Assembly budget and additional funding from the local governing body, instead of the three percent (3%) compensation increase, Hampton City Schools proposes a four percent (4%) raise for FY 2024-2025 (beginning July 1, 2024) for all full-time employees and the majority of our part-time employees. 

For every one percent (1%) raise provided to employees, it costs HCS $2.0 million. The impact on the budget will cost Hampton City Schools $7.7 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 2024-2025 budget includes teacher salary scale adjustments, targeted compensation adjustments,  and the increase of the minimum wage to $14.00. The total investment is $3.6 million and is outlined below. 

• $3.0 million for teacher scale adjustments (in addition to the employee raise)
• $0.4 million for compensation adjustments (in addition to the employee raise) as the result of work schedule changes for select employee groups
• $0.2 million for compensation adjustments to select supplements and stipends

The proposed FY 2024-2025 Compensation Plan can be found here.

Q: Will my health insurance premiums change next year?

A: No. Even though health insurance coverage is increasing substantially (a 21% increase), there will be no increase to employee contribution rates for healthcare. Hampton City Schools will be absorbing this increase in cost for the 2024-2025 fiscal year. 

Q: Are there position changes planned for the FY 2024-2025 budget? 

A: Yes. The budget includes a net increase of 223.2 positions (representing positions added during the current school year, combined with new positions for the 2024-2025 school year) within the School Operating fund (Fund 50), to include a reduction/reclassification of 12 positions. As itemized below, the net increase in positions includes 191 custodial services staff members beginning in 2024-2025. 

Position changes include but are not limited to:

• Positions added due to student enrollment
  • School Counselor (1)
  • Librarian (1)
  • Teachers (7)
• Positions added due to student needs
  • Instructional Assistants (15) - Individual Education Plan (IEP) driven
  • English Language Learner Teacher (2) 
  • Special Education Teachers (5) 
  • School Counselor (1)
• New positions
  • Science Lab Coach (1)
  • Assistant Principal (1)
  • Secondary English Language Arts Curriculum Leader (1)
    
• New custodial services positions
  • Custodial Area Supervisors (3)
  • Custodians (187)
  • Driver (1)

Q: Are there changes to the work calendar for the FY 2024-2025 budget?

A: Yes. The budget includes changes to the work schedules for select employees beginning with the 2024-2025 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: Yes. 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 2023-2024, HCS was allocated 656 slots. For FY 2024-2025, HCS will be allocated 618 slots. 

Q: Were any instructional programs eliminated in the FY 2024-2025 budget? 

A: No. There were no instructional programs eliminated in the FY 2024-2025 budget.

Q: Are there other reductions in the FY 2024-2025 budget?

A: Yes. The FY 2024-2025 budget includes $16.6M of reductions due to the contingency funds reset to $3M, a $532K one-time cost reduction for traffic warning and flashing signs for schools, reallocation of $10.2M for “ALL-In” Program and $965K for VPSA technology funding to the Reimbursable Projects (Fund 60). 

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

A: Click here to view the FY 2024-2025 proposed budget presented on March 6, 2024.  

Click here to view the updates to the FY 2024-2025 proposed budget presented on March 27, 2024.

Click here to view the updates to the FY 2024-2025 approved budget presented on June 5, 2024.

Q: What are the next steps for the budget?

A: The General Assembly will finalize the state budget. We will then review our FY 2024-2025 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 13 and March 20, the School Board will hold Public Hearings on the FY 2024-2025 budget. The School Board is scheduled to vote on the FY 2024-2025 Superintendent’s Proposed Budget on March 27. Once approved, the FY 2024-2025 budget will be submitted to the city for approval. 

The 2024-2025 revised budget presented and approved by the School Board on June 5, 2024, will be submitted to the city for approval.