During the March 11, 2026 work session, the School Board reviewed health insurance, updated state revenue projections, and refinement of the budget priority list. 

Review the presentation 
Insurance spousal exception presentation
Priority list
Watch the meeting

🏥 Health Insurance and Benefits

Health insurance remains one of the most significant cost drivers in the upcoming budget. The proposal presented to the School Board reflects a strategy designed to balance rising healthcare costs while limiting the impact on employees.

The current recommendation includes:

• 10% increase in employee premiums
• The division absorbing a larger share of the total premium increase
• Possible consideration of a spousal exclusion
• Possible addition of a new Employee + Children coverage tier

During the work session, the insurance consultant reviewed a potential cost saving option known as a spousal exclusion. A spousal exclusion is a health insurance eligibility rule in which a spouse may not enroll in an employee’s health plan if the spouse has access to health coverage through their own employer. This policy is sometimes considered by employers as a way to manage health plan participation and costs.

Staff also presented the option of adding a new Employee + Children coverage tier. This option would allow employees who cover multiple children, but not a spouse, to select a plan that better reflects their household coverage needs. Currently, approximately 23 employees enrolled in the Family plan could benefit from lower costs if this option were available. However, shifting those employees from the Family tier to the Employee + Children tier would reduce premium revenue to the health insurance fund by approximately $200,000. This coverage tier could be implemented with or without a spousal exclusion and would provide flexibility for employees whose spouses obtain coverage elsewhere while the employee continues to cover their children under the RCPS plan.

📊 State and Local Revenue

Staff also presented updated revenue projections based on the latest Virginia Department of Education funding worksheets and state budget proposals. While the final state budget has not yet been adopted, current estimates indicate that state funding for RCPS is expected to increase compared with the current year. The final amount will depend on the budget adopted by the General Assembly and signed by the Governor. Both the House and Senate budget proposals are now available for analysis. Although the House budget is higher overall, the operating funds available to school divisions are slightly lower in the House proposal, so staff recommends using the House estimates for planning purposes until the final state budget is adopted.

Staff also provided an updated estimate from the revenue sharing formula of $3.72 million in new funding based on updated population growth calculations. However, the county indicated it would not be able to maintain the typical transfer amount this year. As a result, there will be a $3 million reduction outside of the revenue sharing agreement, reducing the increase from the county to only $724,914.

🎯 Priority List

The budget priority list continues to be refined and categorizes requests as funded with new general fund revenue, other available funds, or unfunded for the current year. The proposal currently includes a 3.5% employee raise, reflecting the School Board’s continued focus on supporting and retaining employees.

👣 Next Steps in the Budget Process

The budget process will continue with additional work sessions and refinement of revenue assumptions. Key upcoming milestones include:

• March 30 – Budget Work Session #4 (if needed)
• March 31 – School Board adoption of the 2026-2027 Annual Budget
• April 28 – Budget presentation to the Board of Supervisors
• May 12 – Board of Supervisors first reading of the ordinance
• May 26 – Board of Supervisors second reading and final adoption

During the February 24, 2026 work session, the School Board reviewed health insurance, compensation, state and local revenue updates, and the priority list.

Review the presentation 
Insurance actuarial costing presentation
Health insurance comparison with neighbors
Watch the meeting

🏥 Health Insurance and Benefits

The work session began with an external actuarial review and consultant presentation focused on the division’s self-insured health plan. The analysis highlighted that self-insurance continues to provide cost advantages compared to fully insured models, with estimated savings of 10% to 15% while allowing the division to actively manage plan design, vendors, and high-cost claims. 

Claims trends show continued growth in medical and prescription costs. Total net paid claims increased from approximately $17.5 million in 2023 to $21.8 million in 2025, reflecting an average annual increase of 11.4%. High-cost claims are a significant driver, with the number of claims exceeding $250,000 increasing from 4 in 2023 to 8 in 2025. The actuarial forecast projects total medical and prescription costs of approximately $27.2 million for fiscal year 2027, representing a 9.8% annual trend. Total projected plan costs, including administrative fees and stop loss coverage, are estimated at approximately $27.8 million. 

The School Board also reviewed monthly claims activity and reserve balances. Current projections show reserves declining during the year, with estimated ending reserves of approximately $2.3 million for 2026 and a projected increase to approximately $6.35 million in 2027 based on proposed funding levels. 

Two premium scenarios were presented. Option A reflects a higher combined increase, while Option B reduces the employee impact but increases employer costs. Budget impacts across funds were outlined, with total additional costs ranging from approximately $3.4 million to $4.2 million depending on the option selected. 

A regional comparison of health plans confirmed that Roanoke County Public Schools remains competitive in premium structure and benefit design relative to neighboring divisions, while continuing to evaluate plan design, contributions, and cost sharing strategies. 

💼 Compensation and State Budget Updates

The presentation included an overview of proposed compensation actions tied to the state budget. Both House and Senate proposals include an average $1,500 bonus or equivalent action and ongoing salary increases, with the Senate proposal including a 3% salary increase compared to 2% in the House proposal. 

Cost scenarios for local salary increases were also reviewed, with estimated net costs ranging from a reduction of $1.85 million for a 2% increase to an additional $2.3 million for a 5% increase, depending on the level of increase implemented. 

📊 State and Local Revenue

Crossover occurred Sunday February 22 and House estimates were presented, while Senate estimates by division were unavailable at this time. State budget proposals reflect increased overall funding, with total revenues projected to increase from the Governor's budget of approximately $7.5 million to approximately $13.3 million under the House proposal. However, actual budgeted revenues will depend upon final legislative action.

Local funding projections include an initial possible increase in the transfer from the County of approximately $4.4 million including $500,000 for CSA transfers that are returned to the County, driven by growth in local tax revenues and updated allocation calculations. This is an estimate based on known conditions at the time and subject to change as the County moves through their own budget process.

🎯 Priority List

The work session included an updated overview of priority areas aligned to the budget process. These priorities continue to focus on compensation, benefits, operational needs, and maintaining core instructional programs. Detailed review of departmental requests will continue in upcoming work sessions.

🛣️ Long Term Financial Planning

Long term planning remains a focus of the budget process, including sustainability and competitiveness of compensation, management of rising health insurance costs, and maintaining appropriate reserve levels. The discussion emphasized the importance of aligning annual decisions with multi-year financial impacts, particularly in areas such as benefits and compensation. 

👣 Next Steps in the Budget Process

The budget process will continue with additional work sessions, refinement of revenue assumptions, and development of the Superintendent’s proposed budget. Final adoption of the 2026 to 2027 budget will follow the established timeline later this spring.

During the principal meetings, staff provided an overview of the school division’s budget process, reviewed the fundraising and crowdfunding policy, and gave an update on the accounting system change.

💡Budget Overview

The RCPS budget is developed through an ongoing cycle of planning, adoption, implementation, and evaluation designed to align resources with student and operational needs. Funding for schools comes from a combination of state, local, federal, and other sources, with state and local funding making up the majority of revenues. Because funding levels are influenced by enrollment, state formulas, and economic conditions, the budgeting process focuses on balancing available resources with priorities identified by schools and the community. The largest portion of the budget supports employees who serve students each day, while remaining funds support facilities, transportation, technology, and other essential services necessary to operate schools safely and effectively. This process helps ensure transparency, accountability, and responsible long-term planning.

🤝Fundraising & Crowdfunding

All fundraising activities must be approved prior to beginning the fundraiser. The sponsor completes the Fundraiser Approval Form, the bookkeeper acknowledges the request, and the principal approves the fundraiser before any activity begins. This applies to school employees, clubs, athletic programs, and outside organizations such as PTA, PTSO, and booster groups.

Crowdfunding is permitted when donations are made in the form of items that support instruction or school programs. Platforms such as Donors Choose are allowed. Direct fundraising for money through online platforms is not permitted. All items received through crowdfunding become property of Roanoke County Public Schools and remain with the school. Schools should maintain documentation related to crowdfunding requests in accordance with existing procedures.

💻Accounting System Update

Implementation planning continues for TrackYourFunds and Givebacks. Trainings are scheduled for April 13 and April 14. Two short virtual preparation meetings will be held during the week of April 6 to allow bookkeepers to prepare in advance of training. Additional information will be shared as we approach the training dates.

During a regular meeting of the Employee Advisory Committee, staff provided an overview of the school division’s budget process.

💡 Budget Process, Revenues, and Expenditures

The RCPS budget is developed through an ongoing cycle of planning, adoption, implementation, and evaluation designed to align resources with student and operational needs. Funding for schools comes from a combination of state, local, federal, and other sources, with state and local funding making up the majority of revenues. Because funding levels are influenced by enrollment, state formulas, and economic conditions, the budgeting process focuses on balancing available resources with priorities identified by schools and the community. The largest portion of the budget supports employees who serve students each day, while remaining funds support facilities, transportation, technology, and other essential services necessary to operate schools safely and effectively. This process helps ensure transparency, accountability, and responsible long-term planning.

💰 Understanding Pay Scales

Staff also reviewed how salary scales are structured and how they support consistency and transparency in compensation. Pay scales are designed to provide equitable compensation for similar work and experience while supporting long term financial sustainability within a public budget. Steps within a scale recognize experience and career progression, and education levels may increase placement within the scale. Salary scales are adopted annually through the budget process, and adjustments depend on funding approved each year. When employees reach the maximum step, compensation may still increase through scale adjustments or other approved compensation changes, while maintaining long term sustainability of the overall budget.

During a regular meeting of the Student Advisory Council, staff provided an overview of the school division’s budget process.

💡 Budget Process, Revenues, and Expenditures

The RCPS budget is developed through an ongoing cycle of planning, adoption, implementation, and evaluation designed to align resources with student and operational needs. Funding for schools comes from a combination of state, local, federal, and other sources, with state and local funding making up the majority of revenues. Because funding levels are influenced by enrollment, state formulas, and economic conditions, the budgeting process focuses on balancing available resources with priorities identified by schools and the community. The largest portion of the budget supports employees who serve students each day, while remaining funds support facilities, transportation, technology, and other essential services necessary to operate schools safely and effectively. This process helps ensure transparency, accountability, and responsible long-term planning.

🏛️State Revenue

Enrollment Trends and State Revenue Impact - Like many school divisions across Virginia, Roanoke County Public Schools continues to experience declining student enrollment. The 2026–2027 budget is built on a projected Average Daily Membership of 12,905 students, which represents approximately 255 fewer students than the prior year. This decline is estimated to reduce state revenue by roughly $2.2 million. Because state funding is largely driven by student counts, enrollment trends remain one of the most significant factors influencing available resources each year.

Local Composite Index and Ability to Pay - The Local Composite Index, or LCI, measures a locality’s relative ability to pay for public education and determines the split between state and local funding for Standards of Quality programs. The calculation uses true value of real property, adjusted gross income, and taxable retail sales, along with student membership and population data. For 2026, Roanoke County’s LCI declined to 0.3635, a decrease of 0.0163 from the prior cycle. A lower LCI results in a higher state share of funding. This change is estimated to increase state revenue by approximately $2.6 million, helping to offset enrollment driven losses.

Governor’s Proposed Budget Overview - The work session also included an overview of the Governor’s proposed budgets for fiscal years 2026 and 2027, including updated enrollment assumptions, revised LCI calculations, and statewide revenue estimates. These proposals provide an important planning baseline but remain subject to legislative action during the General Assembly session.

🎯Priority List

Following the state revenue discussion, the presentation introduced major priority areas and departmental request categories. These included contracts, benefits, human resources, instructional programs, special education, facilities and operations, technology, finance, and school board operations. Detailed review of these requests will occur in later budget work sessions.

🛣️Long Term Financial Planning

A portion of the session focused on long term planning to ensure sustainability beyond a single budget year. This includes fleet replacement, textbook adoption, technology replacement, capital maintenance, capital improvement projects, and nutrition equipment replacement. Maintaining these replacement plans helps avoid deferred costs and supports predictable budgeting over time.

👣Next Steps in the Budget Process

Upcoming meetings include advisory committee reviews, additional budget work sessions, a public hearing, and presentation of the Superintendent’s proposed budget. The School Board is scheduled to adopt the 2026–2027 Annual Budget on March 31, 2026, with subsequent consideration by the Board of Supervisors.

During a regular meeting of the Roanoke County Coalition of Parent Organizations, staff provided an overview of the school division’s budget process and discussed how school operations interact with parent and booster organizations in supporting students and schools.

💡 Budget Process, Revenues, and Expenditures

The RCPS budget is developed through an ongoing cycle of planning, adoption, implementation, and evaluation designed to align resources with student and operational needs. Funding for schools comes from a combination of state, local, federal, and other sources, with state and local funding making up the majority of revenues. Because funding levels are influenced by enrollment, state formulas, and economic conditions, the budgeting process focuses on balancing available resources with priorities identified by schools and the community. The largest portion of the budget supports employees who serve students each day, while remaining funds support facilities, transportation, technology, and other essential services necessary to operate schools safely and effectively. This process helps ensure transparency, accountability, and responsible long-term planning.

🤝 School Operations and Parent Organizations

Parent and booster organizations are important partners in supporting students and enhancing school programs. These organizations provide volunteer support and fundraising that help expand opportunities for students, while schools manage programs and purchasing through established division processes. To support transparency and accountability, parent organizations maintain their own financial and governance structures, follow applicable guidance in the Parent Organization Manual, and operate independently from the school division’s financial operations. Fundraising activities connected to schools also follow a consistent approval process through the sponsor, school bookkeeper, and principal to ensure activities are safe, coordinated, and aligned with school priorities. Working within these shared roles helps schools and families collaborate effectively while keeping the focus on supporting students.

📣 Budget Development Introduction

📋 RCPS Budget Process

📅Key Dates & Milestones for 2026-2027 Budget