Revised March 18, 2026

Investing in Employees, Supporting Safety, and Maximizing Student Success

Understanding the Recommended FY 2026-2027 Operating Budget 

Three specific focus areas of the Hampton City Schools (HCS) Strategic Plan were the driving force during the development of the FY 2026-2027 budget: Maximize Every Child’s Learning; Create Safe, Nurturing Environments; and Attract, Develop and Retain Exceptional Staff.

To this end, the FY 2026-2027 budget includes a three percent (3%) 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 revised March 18 budget provides updated adjustments to the teacher salary pay scale.

This budget also includes prioritizing sustaining essential school security officer positions, instructional staff, and key instructional resources by transitioning these positions and resources from expiring grant funding to the operating budget to ensure their continued support.

The FY 2026-2027 Budget recognizes the importance of the effective and efficient management of fiscal resources and ensures recurring costs have sustainable funding based on revenue projections. 

FUNDING OVERVIEW

Q: How is the school system funded?

A: 67% State (VDOE + Sales Tax)

31% City of Hampton

2% Federal & Other

Approximately 67% of our funding comes from the Commonwealth through state aid and sales tax revenue distributed by the Virginia Department of Education. State funding levels are largely determined by two factors: the Local Composite Index, which reflects Hampton’s ability to contribute to education costs, and Average Daily Membership, based on student enrollment.

Another 31% of the budget is provided by the City of Hampton. Through the city’s funding formula, 61.83% of residential-related tax revenues — including real estate, personal property, and utility taxes — are allocated to support Hampton City Schools.

The remaining 2% comes from federal and other sources, including Federal Impact Aid, JROTC funding, Medicaid reimbursements, the HCS pharmacy, cell tower leases, and indirect cost recoveries.

BUDGET PRIORITIES

Q: What are the priorities that drove the development of the budget?

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

The community budget survey identified competitive compensation, school safety, and remediation as the top three priorities for the budget.   

COMPENSATION & BENEFITS - A COMMITMENT TO ALL EMPLOYEES

Q: The Governor’s Budget includes a two percent (2%) salary increase. Will I receive a two percent (2%) salary increase?

A: Leveraging the Governor’s proposed funding and strategically reallocating resources within our existing HCS budget, Hampton City Schools is recommending a three percent (3%) salary increase for FY 2026–2027, effective July 1, 2026. This increase applies to all full-time employees and the majority of part-time employees — exceeding the Governor’s proposed two percent (2%) adjustment.

The Governor’s budget provides a 2% increase for positions funded under the state’s Standards of Quality (SOQ). The SOQ, established by the Virginia Department of Education, outlines the minimum staffing requirements school divisions must meet to deliver core educational services.

However, Hampton City Schools goes beyond minimum standards to provide the comprehensive educational experience our students deserve. Approximately 62% of HCS positions are SOQ-funded, meaning 38% of our workforce is not supported 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).

Each one percent (1%) salary increase represents an investment of approximately $2.1 million. The proposed 3% adjustment reflects a total investment of $6.4 million in our employees.

Q: How will the budget impact employee salaries?

A: The budget provides a three percent (3%) salary increase for full and part-time employees. This does not include temporary positions, as well as some part-time teaching positions. 

In addition to the across-the-board raise, the budget allocates $2.6 million for strategic compensation adjustments and reclassifications. This includes: 

• $1.9 million for teacher scale salary adjustments
• $0.2 million for targeted compensation adjustments (in addition to the employee raise) related to work schedule changes for select employee groups and market adjustments
• $0.5 million for adjustments to designated supplements and stipends

Q: Will my health insurance premiums change next school year?

A: No. Hampton City Schools is projected to have a 7.5% increase in healthcare costs. However, the entire increase will be paid by HCS, and there will be no increase to employee contribution rates for healthcare. 

STAFFING AND POSITIONS

Q: Are there new positions planned for the budget? 

A: Yes. The budget includes the addition of three (3) new positions for the 2026-2027 school year, to include one (1) school security officer and two (2) dual language teachers.

Q: Are there changes to the work calendar for the FY 2026-2027 budget?

A: Yes. The budget includes changes to the work schedules for select employees beginning with the 2026-2027 school year. The specific employees impacted by these changes will receive direct communication from the Human Resources department.

PROGRAMS AND SERVICES 

Q: How many PreK slots will HCS have next year?

A: The Virginia Department of Education provides funding through the Virginia Preschool Initiative (VPI) to support services for at-risk four-year-olds. Allocation levels are determined by a state funding formula that includes the number of preschool slots assigned to each school division. For FY 2026–2027, the state allocation is 561 slots.

Q: Were any instructional programs eliminated in the School Operating budget? 

A: No. There were no instructional programs eliminated in the FY 2026-2027 School Operating budget.

REPURPOSED FUNDS

Q: Are there reductions in the budget?

A: Yes. The FY 2026-2027 budget includes $5.0 million of payroll savings that were repurposed in the budget.

NEXT STEPS

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

A: Click here to visit the Budget Information website.  

Q: What are the next steps for the budget?

A: The next step in the process is the final adoption of the state budget by the General Assembly. Once approved, Hampton City Schools will reassess the FY 2026–2027 proposed budget and make any necessary revisions. Any updates will be shared at upcoming School Board meetings.

The School Board’s vote on the Superintendent’s Recommended FY 2026–2027 Budget is scheduled for March 25. Following School Board approval, the budget will be forwarded to the City for consideration and final approval.