001Good afternoon, Board Chair Pritchette, esteemed members of the school board, staff, families, and members of the Petersburg community. Thank you for joining us tonight for the public hearing on the fiscal year 2027 superintendent's proposed budget. My goal this evening is to simply walk you through the budget in clear plain language, explain what is driving costs and how this proposal supports our students, our staff, and the long-term stability of Petersburg City Public Schools. We begin with the legal foundation for this process. Under the code of Virginia, every school division must prepare and submit estimate of the funds needed to operate our schools for the upcoming fiscal year. That estimate must be organized by major state classifications and reflect what it truly takes to run our schools. Tonight's presentation is part of that transparent process, sharing with
002you what we need, why we need it, and how it connects to our responsibilities under state law. Here's our road map for this evening. We will talk about our strategic priorities, FY27 budget initiatives, enrollment trends, K3 class size reduction, revenue trends, VRS and local composite index index impacts, major cost drivers, the&m assessment recommendations, uh how to mitigate our shortfall in revenue, job vacancies, fund balance, House and Senate amendments and dialogue with the community. We'll move steadily through these and pause in key moments and connect the numbers back to students and staff. Our strategic priorities. As we move into the FY2027 budget, it's important to ground our work in the strategic priorities that guide every decision we make as a division. These priorities reflect what our community has told us matters most and they anchor both
003our investments and our long-term planning. Our budget is not just a spreadsheet. It is a reflection of our five-year strategic plan and our values as a community for FY 2027. Our strategic priorities remain student achievement, wellness and support, talent acquis acquisition, development and retention, operational excellence and infrastructure, fiscal steward stewardship and resource management, family engagement and community partnership. Every decision in this budget is tied back to these priorities. uh FY 2027 budget initiatives. Our budget includes several key initiatives that directly support students, staff, and day-to-day operations. These initiatives total 3 million and they include salary increases and compensation and classification study 2.8 million. two added seats in code RVA 26,000 one full-time operations coordinator 124,000 after school activity bus and drivers 150,000 these investments help us strengthen instruction expand opportunities for students and support the
004operational needs of our schools a few important notes about these amounts insurance rates increase will be absorbed by PCP PS salary amounts are averages of comparable positions and not exact numbers. All amounts include frame benefit cost. These initiatives reflect our commitment to supporting students, investing in staff, and maintaining the services our community depends on. Enrollment history and forecast. Enrollment is one of the biggest drivers of school funding. Over the past decade, Petersburg's enrollment has moved up and down from under 3,800 students and at some point it's 4,100 in 2024. We are now forecasting a gradual decline to about 3,900 students in FY2027 with slight changes in the years that follow. Because state funding follows students, declining enrollment means decline in revenue even when our fixed cost like buildings, transportation, and core staffing remain largely the
005same. That tension is a major theme in this budget and we need to account for that. K3 class size reduction grant. We continue to qualify. Uh we continue to look for opportunities to uh get the uh K3 class size reduction grant back. But for FY2027, um the grand funding of 2.2 million will not be uh coming to us from VDOE because we don't qualify. General fund revenue change between 2024 to 27. This slide tells an important story. From fiscal year 2024 through fiscal year 2026, our general fund revenue increased each year. for FY 2027. However, we see a decline of about 20 262,000. Even with a 2.9 million increase in the city's revenue uh transfer because of compent class that we're requesting, state revenue declines more than offset that gain. At the same time, the
006construction of the new school requires 53 million in budget authority which will be added to the capital projects fund. So we are balancing two realities. A flat declining operating budget and a major capital investment in our facilities. General revenue fund. Here's a breakdown of our general funds revenue. State revenue decreases by 3.2 million. City revenue increases by 3 million. Federal and other revenues remain flat or slightly down. Overall, the general fund decreases by about 0.4%. Across FY 2026 and 2027 combined, we experience a cumulative loss of about 6.8 million in state revenue. This is a significant headwind. Food service and grant funds. Our food service fund increased due to higher federal reimbursements while state and other revenues in that fund shift downward. Our grants fund remains relatively stable with modest increases in federal and state
007grants and small decreases in other sources. These funds are restricted. They must be used for specific purposes like nutrition and targeted programs. They are essential supports for students, but they cannot be used to solve general fund challenges. When we look at all funds together, the total budget increases from about 85 million to 139 million. That large increase is driven almost entirely by the reactivation of the capital projects fund to account for the 53 million construction of the new school. It is important to emphasize this is a one-time capital investment not an ongoing increase in operating funds for classrooms and staff. VRS reduction and local composite index change. Two major state level changes affect our budget. Virginia retirement system rate reduction. The rate drops from about 14.27% to 12.2% of covert payroll saving us around 385,000.
008For the local composite index, it increased from.2076 2076 to 2152, which means the state expects the city to contribute more. This results in a loss of about 440,000 in state funding and an increase in that same amount from the city side of things. So, while we gain some savings from VRS, we lose more through the LCI change. Cost drivers for FY 2027. This is where the pressure builds. The evergreen compensation and classification study implementation would require 2.8 million and provides at least a 3% increase for every employee. Health insurance. We recently learned that our health insurance premiums would increase by about 28% or about 2 million. One of the largest single year increases we have seen. Liability insurance would go up by 5%. Health insurance options. We explored the local choice TLC as an alternative
009uh health insurance option. The projected savings are not that much, which would be around 200,000 and switching plans would require us to maintain a 1.2 million reserve to protect the division during the transition. We will continue to evaluate options, but for FY2027, this budget must absorb the 28% increase in health insurance premiums while we plan for longerterm solutions. the&m report. We continue to uh implement the&m report recommendations and using these findings as a road map for uh for um for reforming the finance uh function to balance the 2027 budget in the face of declining state revenue and rising costs. We took two major steps. We eliminated the 500,000 uh budget development reserve and removed the one-time FY2026 cost. These actions allow us to present a balanced budget without cutting core instructional programs, but they they
010also reduce our flexibility to absorb future shocks, job vacancies, and deactivated positions. Another part of our strategy has been to carefully manage vacancies and deactivate positions that we think we could do without. We have reviewed vacant positions to determine which are essential to student learning and operations and which can remain unfulfilled. We've deactivated se select positions that no longer align with our c current structure and that we can uh sustainably do without. Our goal is to protect classrooms and direct student services first while tightening in areas where we can consolidate House and Senate amendments at the state level. The General Assembly's House and Senate budgets include amendments that could affect our funding. While the final numbers are still being reconciled, these amendments may adjust state support for K12 generally, provide targeted relief or grants in
011specific areas, and potentially offset some of the shortages we facing. We are monitoring these amendments closely. As the state budget is finalized, we will update our projections and if possible bring forward adjustments that benefit our students and staff. This is our updated budget calendar and so this is something that came as a result of um feedback we received from the school board the last time we had the work session. Um, fund balance is something we've we've talked about for over a year and we still haven't implemented. This is this is lifted exactly from last year's uh public uh hearing. And what it says is um in 2020 the city po passed an ordinance allowing the school division to keep any remaining fund balance for capital improvements. In 2023 that ordinance was rescended. In 2024 the
012city swept about 6.1 million of PCPS fund balance and used a portion for the fieldhouse. Under the new approach, PCPS recovers 1.27 million from facilities future PCS. And this is another slide of what we recommended um last year and is as a result of the uh feedback we received from the school u school board to strengthen our long-term financial health. We are proposing several changes to our budget process. Maintain a3 million million dollar fund balance as a target. Use net income first to fund that balance and then to support capital and technology needs. Implement a funded capital improvement plan, technology improvement plan. move fully to a needsbased budget where we start from what students need and um provide the budgeted numbers. We want to fully implement a capital projects fund for major construction and renovation.
013These changes would help us plan more responsibly and avoid the cycle of short-term fixes. This is as a result of the uh feedback we got from the conversations last time. It's not in the budget yet, but is a recommendation that we would need to discuss with the city at our work session coming up. Summary and framing of um our current budget situation. We are facing declining state revenue and rising cost especially in compensation and health insurance. The city has increased its support and we are grateful for that partnership. We are investing in staff compensation, class reduction and a new school while tightening in other areas. We are strengthening our financial systems and proposing process changes to support long-term stability. This budget is about balancing immediate needs with long-term responsibility. That's the end of the presentation
014and we'll leave we'll hear from the community on the proposed budget. >> Mr. Preacher. Thank you, Dr. Greywood. Before we get started with questions, Miss Brandon, do you have any comments before we open the floor up? >> Thank you, boy, and school board members. Thank you, Dr. Greywood for our recap of our FY27 draft proposed superintendent's proposed budget. We are really excited about this budget for this year because it does focus on our employees and a big portion of it focuses on of course our health care um that we have brought forward and we were able to get feedback. And so tonight we'll be making, you know, the recommendation as a part of the budget to make sure that we um can move forward with our second proposal which was to increase the deductibles for
015Anthem um to 1,000 and 2,000. Is that correct, Dr. Greywood? >> Yes, ma'am. >> And so that is a portion of this budget that if approved tonight to move forward to city council, that's the direction that we will be going for Petersburg City Public Schools for the next school year and I guess the outy years. um as each budget year comes up. Also just want to say that this budget of course prioritizes compensation and classification. And so it's really focused on you know raising the um the salaries if approved for our teachers. And so we've long said and I've had lots of conversations with board chair Pritchette who said conversations with the mayor and the city about raising the starting salary for teachers here in Petersburg. And so this budget, if approved with the additional
016compensation and classification funding, would start Petersburg teachers off um coming in um with zero experience at 60,000. And that is going to in my opinion, I think that is going to be a gamecher because we will continue to be able to attract um you know, highquality um teachers who want to come and we know it's not all about money, but it is about money and it's about compensation, especially in this environment. So, we are really really excited about that. But it'll also this compensation package will also if approved in the budget will also um take care of our people who have been here that have been here in the trenches in Petersburg and have not had any increases outside of the um raises each year. It'll allow us an opportunity to right set their salaries
017as well. And so that is some of the big portions of our budget um for today. And so thank you Dr. Greywood. I hope I didn't miss anything. I did come in on the conversation. So, I don't know if this presentation based on what we uploaded on Friday. Did it include the new numbers from the state? I know that they have they finalized those numbers. >> They haven't finalized the numbers. The um both chambers of the um legislature have not agreed to. So um they basically um adjoined the session signai and they will be returning um on the 23rd I think in April. >> Gotcha. >> So after that session we would know for sure what the numbers are. Our budget is based on all the revenue information we know as of today. >> But
018we do anticipate getting additional funding just we just don't know how much. Is that correct? >> Yes. >> And so we will be able to update Boyce Pritchard and school board members. I think we'll be able to update that information for the city when we do our work session on the 31st. I think at that time we're able to make changes before we take it to the the city council. Is that correct? >> We we don't know when they would decide. They'll be back on a special session and we uh we're anticipating that they would be able to reconcile and come up with final numbers. >> Gotcha. >> And we get those final numbers we would incorporate into the budget. But the budget is built based on what we know currently. >> Okay. Gotcha. Okay.
019Thank you. And then my final comment is I just want to again for all of our listeners and to our employees to hear that for another year, Petersburg City Public School Board has has again decided to absorb all of the increases related to health care. We know that health care costs continue to go up exponentially. And of course this year ours went up 28% with Anthem. And so, um, again, that is a big benefit of working in Petersburg that we are absorbing those full cost, um, where that's not happening everywhere. And so, I just want to highlight that. And again, we will be moving toward the new support, but we will be able to keep Anthem and keep them provided with a great health care plan um, with the changes in deductibles, but the board
020will be absorbing all of the costs related to the increases. So with that, thank you for allowing us to bring the budget forward and I'll turn it back over to you, Poor Chair Bridgetette. Thank you. >> Thank you, Dr. Greywood and Miss Brown. This is a public hearing and at this time we'll open the floor for anyone wishing to speak. The sun the sun is in my face, so I really can't see who's sitting back there. That way, not the sun, but the glare. So, we're good. Okay. >> Yeah, we good. When did this >> We did receive some feedback online. U Miss Brown, I don't know if you want to read it into the record or not, but >> the feedback >> to acknowledge that we received some feedback. >> Absolutely. That's a great
021point. If you all want to read the feedback, as you or Miss Godboat, we were able to put out um a link um as recommended by the board to put a link out so that we could get feedback from constituents on the actual budget. And so we've been able to receive feedback. And so I'll ask that Miss Godbbo, our senior our senior um budget analyst, along with Dr. agree with our CFO to read through the feedback that we were able to get from our community and from our teachers related to our budget and anything included included in the budget for this for FY27. Thank you. >> Uh good evening uh board chair Pritchette, uh Vice Chair Tucker, Board Chair members, um Superintendent Brown, Petersburg community and leadership. Uh we received the FY27 budget feedback on
022today from uh people of the community that would like to uh express their responses uh for the FY27 budget. So classroom size feedback uh reads, "Thank you for the opportunity to provide feedback on the proposed two 2027 budget. As a secondary teacher, I am encouraged to see the class reduction grant and I'd welcome seeing that extended to the middle and high school classrooms as well. We also had compensation feedback which states, "I strongly encourage the board to consider a retention bonus for licensed staff who return as well as increase funding for afterchool programming. Our non-athlete students deserve productive outlets and will need to and will need to offer stipens to make staff participation sustainable. Is there a cost of living or general pay raise planned? Will the cost of health insurance retirement benefits stayed the
023same or increase? The healthc care feedback states, I think that we should remain with Anthem. The uncertainty that comes with the provider for the first portion option is unacceptable. Cantara did not work well for me. I would be denied claims where where necessary. I was going through a series of medical events while we were with Cintara. I pray that we continue with Anthem. Another commenter stated, "Please continue to utilize coverage through Anthem for individuals like me who have multiple chronic health conditions, including rare, uncommon disorders. Changing insurance providers wrecks havoc on our ability to maintain uninterrupted medical refills, appointments, and other health needs. Each time coverage is changed, new prior authorizations must be completed. billing issues occur and sometimes we are forced to change providers entirely. This produces an erroneous amount of stress, especially when
024experts in chronic illness are already difficult to find and even harder to get an appointment with. Furthermore, having an experience with multiple different insurance providers, Anthem is by far the most well-rounded and offers the broadest coverage. It is also much easier to budget for when we know what the monthly charges are going to be and it will not change within the year. With TLC, if any if any entity within the co-op leaves, our prices can go up without notice. Most educators can barely afford the coverage as it is, let alone if it unexpectedly goes up. It may cause people who have restricted budgets to skip the coverage costs entirely. Another commenter stated, "I appreciate the division's efforts to keep our monthly premium stable by absorbing the $24.59% rate increase. However, the jump from $250 deductible
025to a $1,000 deductible is a significant financial burden for staff. I would like to see the division offer a one-time FSA contribution or enhance wellness incentives to help employees cover these higher out-ofpocket costs. Another commenter stated, "Since 1990, I have chosen PO plans because a PO plan allows more control over my health and my decisions for choosing a provider. Sometimes we need immediate health care. HMOs and programs that require referrals hinder care. We know our bodies. We pay health insurance to these companies. Employers and employees should not be penalized with higher deductibles and organizational costs due to insurance companies wanting to have control over which doctor we see where we receive care and when we receive care and for what ailments big or small. For these reasons, I choose the PO option. Another commenter stated,
026I would like to see us keep Hansom health insurance. Another commenter stated, "I would like for the school division to keep our current health insurance, Anthem, for the FY2027 school year." Another commenter, "Please retain Anthem as our insurer with the increased deductibles. I believe changing to a TLC plan would not benefit the majority of the employees and it has many unknown factors that could lead to financial hardships for the employees and for the division. Another commenter noted option B for health insurance. Another commenter noted retaining Anthem would be more financially sound. Miscellaneous feedback we received, no pool. Another commenter noted, I I am concerned because wanting parents support the time you are holding this meeting are not in the best interest for working parents. And finally, we have staffing feedback. Additional classroom support would make
027a meaningful difference for behavior management, field trip supervision, and overall student experience. While our district carries a significant number of highly salary positions at the top level, there are teachers who routinely continue to cover the cost out of pocket. Field trips, student meals, and basic supplies. Teaching is a calling, but it shouldn't come with a personal financial cost. >> Thank you, Miss Thank you, Miss God. Um, Dr. Greywood, I do have a question about the wellness incentives. Have and and I'm not sure if the employees here receive some of those incentives, but have you looked into wellness incentives? Because I know with the plan that I had with the state, like for my medication, because I participate in the program, I don't have to pay anything for my medication. As long as I'm as long
028as I follow up with a nurse, like it's a nurse line and and they set up an appointment, they call you at home and go over your health and as long as you participate, my medications are paid for free. So, and that's an incentive that the state provides. Have we looked into any incentives? >> There might be opportunities for that. the uh the the admin we currently have is looking at opportunities for uh reducing further you know any out- of- pocket expenses for employees. >> Okay. >> The Pierce group. That's the Pierce group. Is that correct? >> Yes. >> So the Pierce group would be the organization that's building the plans for us and giving us the feedback. They would then determine working with Anthem >> what we can offer. We've talked to them about
029coming up with opportunities for reducing further any of these uh out- of- pocket expenses and um such thing is what they're looking at. They have wellness and you know one of the uh one of the commenters talked about FSAs or whether we could put you know some funds down. We we're looking at all uh configurations between the um the plans that we have that would make it cheaper for uh employees. Dr. G, I will forward the information because I know when I was asking about the state plan with board chair Pritchette, they have a lot of that information on there. So maybe we can pass that on to um and I think Dr. Gwood was on the email maybe on the email. >> Okay. That might be able to forward and say, "Hey, what's what's
030maybe comparable to some of that?" Okay. We've asked for them to look at all opportunities and that's one of uh the opportunities they're looking at for reducing out-of- pocket expenses. >> Thank you, sir. >> Thank you. I appreciate it. >> Thank you. Okay. At this time, board members, we will adjourn from our public hearing. Is there a motion to adjurnn? >> So move. >> Moved by Mr. Miles. Is there second? >> Mr. Pierce. All in favor? >> I opposed. Motion carry. This meeting is now adjourned and we we will return at 5 o'clock PM. Thank you. Thank everyone for being here. Yes. >> Good evening everyone. The time now is 5:10 p.m. and we would like to call our regular schoolboard meeting to order. Miss Davis, if you would call the role, please. >> Mr.
031Steven Pierre, senior >> here. >> Mr. Hal Mel, Senior >> here. >> Mr. Kenneth Pritchette >> here. >> Mr. Carrie Tucker >> here. >> Joyce Proctor >> here. Mr. Bernard Lundy Jr. >> here. >> Mr. Adrian T. Dance senior >> here. >> Thank you. Board members, we move to 1 A, approval of the agenda. If there are no corrections, I accept a motion. >> So move. >> Moved by Mr. Lundy, second by Mr. Pierce. All in favor? I opposed. Motion carries. 1B. Moment of silence. Miss Davis. The following are to be remembered during the moment of silence. Our PCPS student who passed away on Tuesday, March 9th, 2026. Miss Jacqueline B. Hopkins and family in the passing of her mother, Dr. Jacqueline J. Hopkins, retired PCPS employee on Wednesday, March 11th, 2026. and the family
032of Miss Gloria May Doy, retired PCPS employee, Friday, March 13, 2026. Thank you. At this time, we have a moment of silence. Thank you. Next, I ask that you stand for the pledge of allegiance and will be led by Mr. Pierce. >> To the flag, United States of America stands. >> One nation, indivisible, with liberty and justice for all. Thank you. Next we move to 1D correspondence. Miss Davis. >> The board received correspondence that reads with special thanks. This extra special thank you note sent to you today holds more appreciation than any words can say for you're among the nicest people I've ever known and you'll never be forgotten for the thoughtful thoughtfulness you've shown. Thank you for everything. Sincerely the family of William H. Steel III will coach Steel. Thank you Miss Davis. Next
033we move to number two.