001Mhm. >> We'd like to call our special meeting to order. Ms. Davis, if you would call the roll, please. >> Mr. Stephen L. Pierce, Sr. Mr. [clears throat] Hal B. Moss, Sr. >> Here. >> Mr. Kenneth O. Pritchett, >> Here. >> Mr. Corey Tucker, >> Here. >> Ms. Joyce Proctor, >> Here. >> Mr. Bernard J. Landry, Jr. and Mr. Adrian T. Dance, Sr. >> Here. >> Can you put the agenda up? >> Okay, we'll move to B approval of the agenda. Is there a motion to accept the agenda? >> So moved. >> Moved by Mr. Miles. Is there a second? >> Second. >> Ms. Proctor, all in favor? >> Aye. >> Opposed? Motion carries. Next, we'll move to 1C, pledge of allegiance. >> Stand. I pledge allegiance >> to the flag >> of the United
002States of America, and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. >> Okay, next we'll move to number two, superintendent's and staff report, 2A. >> 2A. >> Thank you, Board Chair Pritchett, and school board members. This afternoon, we are here to we will have our first presentation, which will be a follow-up to our FY originally FY 2027 school division budget. I'll bring to the podium for presentation Dr. Matthias Graywood, who is our chief financial officer. He will come forward, and he will go through our previous presentation that what we brought to the school board and the city council related to um the priorities and the alignment of our budget that we presented for approval. And so, that will again be our FY 27 budget that
003we originally proposed to the school board, and then later to um city council. With that, I'll turn it over to Dr. Graywood. >> Good afternoon, um Board Chair Pritchett, Vice Chair Tucker, school board members, Superintendent Brown, Petersburg community. Um we're here to go over um briefly um the presentation we uh put forth uh in March uh for our budget, and try to uh uh situate how we got here and what we're trying to do today. The Code of Virginia states that um the Code of Virginia is what determines the uh the mode the mode for creating the budget for the school board and this is what it says. It shall be the duty of each division superintendent to prepare with the approval of the school board and submit to the governing body or bodies appropriating
004funds for the school division by the date specified in 15-2-2503 the estimate of the amount of money deemed to be needed during the next school year for the support of the public schools of the school division. The estimate shall be set up the am shall be set up the amount of money deemed to be needed for each major classification prescribed by the school Board of Education and such other head headings or items as may be necessary. The key to remember is that um we need to present a needs-based budget. This is the agenda the old agenda, but we're just going to talk about Code of Virginia and the PCPS 5-year strategic plan, FY27 budget, enrollment trend, K-3 class size reduction, revenue trend, and cost drivers. We would also talk about the calendar and then close
005out. The strategic priorities, these are the five. I'll just go over them briefly. Student achievement is number one and wellness and support um number two, talent acquisition, development, and retention number three, operational excellence and infrastructure number four, fiscal stewardship and resource management number five, family engagement and community partnerships. These were the key initiatives we identified for FY27. For FY27, we had requested 2.79 million for salary increases and comp class. We requested two added seats at CodeRVA, about 26,264. We requested one full-time um This was adjusted, I think, coordinator for operation for 124,000. And we requested 150,000 for after-school activities. Total initiatives were 3.09 million. These are new initiatives. These are the enrollment trends that we've identified where enrollment had gone up, you know, steeply and is now in decline and is projected to go, um,
006to stay in decline for the foreseeable future. We talked about K-3 class size grant. We lost about 2.5 million in K-3 class size, um, grant and we're currently working on, uh, ways to get that, um, to qualify for K-3 class size grant in the near future. General revenue changes for, uh, from 2024 to 2027, we've identified that between 2024 and 2025, um, and 2027, um, there's been a change over year over year about 5.6 million that, um, is now trending in the opposite direction. Going forward, we we anticipate that there's going to be loss of revenue. Year over year. General funds 01, we identified that, um, the revenue we were requesting was about 70 million for the year. Currently, we anticipate that all the state and federal portions of this would be would be would
007be accomplished. But for the city's portion of the 15.9, this was adjusted later to about 16 million. We're not going to get that. We would actually the city has approved in its operation budget about 13 million for us. There's a gap of close to 3 million that needs to be funded. Revenue for food service 02 and 07, we anticipated a budget of 4 million for food service and a revenue of 11 million for grants. And this was the total budget that we submitted, which is about 139 million. This was adjusted, you know, right off the top to remove the 53 million that we anticipated for the new school construction. We were told and we got the understanding that that's going to be a separate supplemental issue. And to recap, general funds about 70.1 million, nutrition
008fund about 4 million, grants fund about 11 million. This was the VRS reduction and local composite index change that we talked about. Basically, the VRS reduction is going to result in some savings about 385,000. And because of the local composite index change, there's going to be a switch of about 440,000 from the state contribution to the local locality. Cost drivers. These were the main cost drivers. Uh Um, liability insurance is going to go up 5% and health insurance about 28% salary increase of comp and class about 2.8 million. The health [clears throat] insurance issue we we we dealt with, we had to adjust uh deductibles from 500 and 1,000 from 250 and 500 to 1,000 and 2,000. The Alvarez and Marsal uh study we talked about uh some of the issues we dealt with and
009some of um um to to a great extent most of this has been accomplished. Each one of these items is significantly uh implemented as of now. These are the items we identified and had to cut from our budget in order to balance it because of the revenue shortfall we uh experienced in December. 16.5 vacancies were identified and deactivated in order to balance our budget. And currently we have in the house and the Senate um versions of the budget additional revenue to the tune of 2.5 million for the house, 1.1 million for the Senate that after the adoption of the budget we would know exactly which one of them um we would have to incorporate into the budget. This is the calendar and we're here today um May 27th trying to adopt the final budget. Okay.
010That was a recap of how we got here and we would go into the next uh item we have. >> Thank you, Dr. Greenwood. So, before you begin, I just want to call attention to our for our board members that this is going to be the placeholder budget that we put in place um that we are asking that you consider adopting at this moment as a pure placeholder until we get the final numbers from our from the state and then at that point we are um looking forward to city council going back in and also taking a look at our budget and considering funding us with the remaining funds that we need in order to fully fund the budget that we presented back in May during our work session, which is a total of 86
011million, which included all of the key things I want to highlight again. It included the Code RVA seats that we said that we would add. It included the after school activity bus that we've heard so much about that we want to increase the number of students who are participating so that they had a ride home. It also included, number one, first and foremost, it was our comp and class so that we could um overhaul our compensation and classification system so that we could continue to recruit um you know, our staff members and also take care of the staff members who have been in Petersburg for a long time. And then um anything else, Dr. Greenwood, that was on there? I think those were the those were the primary initiatives that we wanted to really fund
012this year. And so, of course, that that number is not in this budget at this moment. The 16 million is not included in this placeholder budget um that we would like. And so, again, we are hopeful that once the state comes in and provides us with any additional money, I just want to call attention to the board that that will be one-time funding. That will not occur every fiscal year from what I understand, it's just one-time funding. So, whatever we get, we'll be able to apply it this year, but it may not it's not going to be applicable next year and years after. Is that correct, Dr. Graywood? >> Yes, we requested um 16 million from the city. Um this place of hold a budget that they've uh adopted has 13 million in there for
013to fund the the the schools. Um that represents about 1% increase from what we were funded last year. And um they've indicated that we would do a reconciliation after the state budget has been approved so that um the differential between our request of the 16 million and the 13 million that they've included in their operating budget would be um would be funded. So, the state budget as they were presented between the um the two houses um would include additional revenue for us. Um >> to the Can we go back if I'm able to to project if we can go back to the slide that shows what is proposed from both the Senate and the House just as a reminder of what the potential could be from the one-time one-time funding. >> Oh. At the last
014time we did this as of when this was presented, the House had about 2.5 million in additional revenue in its bill. Um the Senate bill has 1.1 had 1.1 million in there. Um some or most of this is um one-time funding. And if you look at the the uh house side of it, some of this money is categorical. We can only use it for what it says what it states here. We can't use it for general or other things. So, once um the state budget is approved, I imagine there's going to be some reconcili- reconciliation between the final numbers of revenue and what we had in our budget, and then what the city has um allocated for us, and we would determine what the differential is. In order to um implement comp and class, we
015would need assurances and the full revenue to back comp and class. Implementing comp and class is going to require recurring expenditure. Uh we estimated 2.9 million this year. That number is going to be permanently added to the baseline and increase every year. We cannot fund it with one-time funding. So, the request we made to the city is going to require recurring uh expenditure to foot uh comp and class. So, there needs to be conversations to determine whether we would be fully funded for comp and class, not only for this year, but going forward every year. >> And >> Thank you, Dr. Greenwell. Can I just ask a question just for um just follow up? So, in this house and Senate amendments, we see the amounts that are proposed, right? And so, for compensation supplement, right?
016Yesterday at City Council meeting, I've heard um >> [sighs and gasps] >> City Manager March ask about So, that's compensation supplement. Is that funding, if we were to get the house version of the money, does that does that compensation supplement help with proposed raises that the board had already approved just as a part of our basic um budget? Would that be able to offset some of that? And would that give us any additional funds that would it would it replace some of the funds that we were already going to use in our budget? Um and then that frees us up to have some money cuz we're only getting a 1% increase on this placeholder budget. So, basically we are pretty much where we are like where we are today. >> I wouldn't read too much
017into this. Um all we were trying to do is to show uh between what our current projections are and when this is approved, how much additional we anticipate to get. But, that all depends on the final numbers that are in the budget. So, when we get those final numbers, we would uh come back to the school board and provide um a breakdown and some analysis. >> Mr. Tucker, do we know if there's a deadline on the code the two code RV A seats on as to when um like a deadline for the latest we can add those seats? >> Um uh I I don't know programmatically. >> We signed off on it. So, So, we have to We're going to have to find the money. >> [laughter] >> Yes. >> Okay. >> Yes. >> Good.
018Cuz I don't want I I don't want the kids impacted. >> I I I don't think we're in jeopardy of that happening. We just need to until we get due to reconciliation with the city. >> Yeah. >> Yes. >> Thank you. That a great way. So this 2.5 or this 1.1, so just just for scenario purposes if we were to get the house version, that's 2.5 million and I know that it's categorical though, is that correct? So that means we would not be able to spend automatically for us just to go and say, "Hey, we can take 2.5 and pay for our comp and class, which is 2.9" and ask the cuz I've heard, "Oh, you might only need $400,000 left." No, you can't is categorical, so we can't just apply it and say, "Hey,
019we're going to take care of our people and do this with that money in its pure form like that. >> I actually like the the house version better. If you look that one-time flex if that actually happens, we could be very flexible with that, but I don't want to be speculating here because we don't know what's going to end up in there. So once that's done, we will provide you analysis on what that means to us and going forward. >> Sorry, any other questions? >> Okay. >> I'm okay. >> We can move on to the next document, please. This document is an attempt to explain um and to show our actual budget that needs to be adopted today. So um we can see that the general fund now adopted by the city is about 67.4
020million. Everything else we had in the original budget does not change. The only thing that changes is the city contribution, which is 13.1 million. We requested 16 million, but in this placeholder budget, they approved 13 million. But this is subject to change based on the information we've heard from them. So, once the state budget is done, and we do the reconciliation and figure out what the differential is, we will talk to the city, do a reconciliation, and determine the addition of amount that they should be funding us, and then we will do a supplemental budget. And the 4 million for the 02 fund, nutrition fund, still stands because there's no city contribution towards that. The grants fund of about 11.8 million still stands. And the capital projects fund is now zero because we had put
02153 million for building the new school, but we were subsequently informed that that's going to be a separate budget budgetary issue. So, we've zeroed it out. Can we scroll down to the next page, please? So, this is a recap of the total fund for FY 2027. General fund would be 67.4 million. Nutrition fund, about 4 million. Capital projects fund, zero. And our grants fund, about 11 million. Coming up to a total of 83.3 million. This is the budget as it stands today that needs to be adopted. Questions. >> Thank you, Dr. Gray. With Mrs. Proctor. >> Um you made reference to it, but I didn't understand it about the school. Uh how's that's going to be handled? >> It's going to be handled separately from this main operating budget for FY 2027. We've estimated it's
022going to cost 53 million. We would have to create that budget, have it taken to the city to be adopted, and then treated separately from this operating budget. >> Is Is there any assurance that it will be there? >> Yes. Um there there two funding uh sources for the school construction. There's a school construction grant that VDOE has already approved us for. And there's an added component which is called a literary loan. Those two have different um different requirements, and we're currently working through those to make sure we uh we secure the funding. But the grant has already been approved. The literary loan requires additional steps in order to qualify for it, but we anticipate we will get close to about 25 million for that loan. It's a low interest loan that needs to be
023um applied for by the city. It's going to be on the city's books. We the school division can't uh incur debt. So the school division would have that 25 million on their books, and we anticipate maybe close to maybe close to 19 million in SCAP uh grant, and then any differential between those would have to be in uh incurred by the city. >> Okay, thank you. >> Thank you. >> Any other questions? Okay. Thank you, Dr. Graywood. >> Thank you. >> Okay, board members. Next we move to number 3A, [music] the adoption of the budget, Ms. Noel. Graham. >> Okay. Thank you, Mr. President, school board members. It is the superintendent's recommendation that the school board approve the PCPS FY27 placeholder budget in the amount of 80 83 million 303,855 dollars as provided. >> Thank
024you. You've heard the superintendent's recommendations and motion to accept. >> So moved. >> Moved by Mr. Mayo, second. >> Second. >> Mr. Dance, all in favor? >> I. >> Opposed? Motion carries. Any announcements? You're good. You're good. >> Also then Vernon Johns had it over there at 5:00 for eighth grade graduation, right? >> Is it It is at 5:00, yeah, and then >> Is it 5:00 but the earlier? Anybody know the time on that? >> I'll be at I will be attending Virginia State. They have the McCollum Jennifer McCollum, congresswoman, she's she had a art contest and our students at Petersburg High placed. So, they they will be honored tonight along with other students throughout her district. She checked it. It is. You know what time? >> You know the time now? 5:00. Okay. >>
025That's the only announcement I >> Yes, I'd like to announce that uh Mr. >> Go ahead. >> She said it's at I'm sorry. She said where is it? >> It's at PHS. >> Oh, it's going to be at >> PHS, it's not at Vernon Johns. I said Vernon Johns. >> Excuse me. >> Vernon Johns at PHS. That's what I wanted to make sure. >> [laughter] >> Okay. >> Uh I just like to announce that uh Mr. Chambers lost his brother, Mark Chambers, David Chambers' brother. He passed away, yeah. He's a retired bus mechanic for Petersburg City Public Schools. >> Yes, and we received it this morning. And so, Ms. Burrells is doing a lot of it the family. >> Okay. Thank you. Motion to adjourn. Moved by Mr. Smalls, second. >> Second. >> Ms. Tucker,
026all in favor? Aye. Opposed? Motion carries. You all enjoy your day.