Budget Process 2025-2026
Budget Process for Fiscal Year 2025-2026
The development of the annual school budget plan is a complex and detailed process. Each year, the school board and Dr. Cashwell strive to provide not only what our students and staff need, but also the resources and compensation they deserve and the quality learning opportunities that our community has come to expect from Henrico County Public Schools. As responsible stewards of taxpayer money, they start by reviewing divisionwide priorities and goals in the context of what can reasonably be expected when the state budget and local allocations are formalized.
At its April 17 meeting, the school board approved a 6% pay raise for all full-time employees returning for the 2025-26 school year. The increase, which includes a step increase and wage adjustment, is the largest school employee raise in the region.
More than 1,000 employees - including general and exceptional education instructional assistants, custodial workers, maintenance assistants and school-based school nutrition services staff – will also receive a market adjustment, bringing their total salary increases to between 13.8% and 19.3%. Additionally, extracurricular sponsorship stipends are increasing at least 6%, with some also receiving a market adjustment.
Temporary, part-time employees are not eligible for a step increase; however, they will receive the 3.628% wage adjustment.
With multiple funding sources, unfunded mandates and uncertainty about state aid for schools, putting together a spending plan is complex and sometimes challenging to understand. This page breaks down budget information so families, employees and stakeholders can easily see how the school division is funded and where HCPS plans to spend the money.
Breaking Down The Process
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The first step involves reviewing data and the division's strategic plan, Destination 2025. The School Board and superintendent also ask for public input on the budget.
- Strategic alignment: Priorities are aligned with the school division's strategic plan, focusing on goals such as student achievement, equity, safety and staff development.
- Reviewing data: Past budget performance, enrollment trends and anticipated changes in funding are analyzed to guide decision-making.
- Community engagement: Input from stakeholders such as parents, students, teachers and community members is collected through advisory group meeting and public hearings.
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Dr. Cashwell, the HCPS chief financial officer and the school division's leadership team create a draft budget that includes:
- Capital Improvement Plan: Funds long-term investments like new schools, renovations, and major equipment. (This plan is approved by the school board in November/December and presented to the Henrico County Board of Supervisors for review and inclusion in the municipal budget.)
- Superintendent's Recommended Operating Budget: Covers day-to-day expenses like teaching and learning resources, transportation, supplies, and utilities. Employee salaries are not included in the proposed budget. Because HCPS and Henrico County have a "Unified Pay Plan," employee salaries are part of the County's municipal budget.
- Reserve funds: Allocations for unforeseen expenses or emergencies.
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- School Board discussions: The School Board reviews the proposed budget, suggesting changes and ensuring that the proposal aligns with the division's priorities.
- Public input: Additional opportunities for public comment are provided to gather feedback.
- Revisions: Adjustments are made based on feedback and updated financial information.
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- School Board approval: The School Board adopts the budget after a thorough review and revisions. The spending plan is then sent to the Henrico County Board of Supervisors for consideration and allocation of funds as part of the County's annual municipal budget.
- Final approval of budget (with employee compensation): Once the municipal budget is approved by the Board of Supervisors, the School Board adopts its final annual spending plan that includes employee salaries and compensation.
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Once approved, the budget is implemented on July 1 at the beginning of the fiscal year. Ongoing monitoring includes:
- Financial oversight: Regular reports to track expenditures and ensure that funds are used as intended.
- Adjustments: Mid-year changes may be made to address unexpected needs or revenue changes.
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Throughout the process, the school division emphasizes transparency by posting budgets and updates on the division’s website, and conducting audits to ensure funds are spent responsibly.
What is in the school board's approved FY2026 budget?
The spending plan approved by the school board reflects a commitment to academic excellence, safety and wellness, and recruitment and retention of exemplary educators and staff. Division leaders have taken taking a conservative fiscal approach while providing innovative instructional programs, real-world experiences for students and wraparound services to support the whole child. Totaling approximately $734 million — a 4.2% increase over the current budget —the FY2026 spending plan makes a significant investment in instructional resources for students of all abilities, program growth at the Campus at Virginia Randolph and the expansion of the Opportunity Schools initiative with the inclusion of Harold Ratcliffe Elementary School and Brookland Middle School. The budget also makes permanent some essential programs and services that were previously funded through pandemic recovery grants.
FY2026 budget highlights include:
- A 6% across-the-board salary increase for all returning full-time employees.
- 53 school security officers (previously funded through pandemic recovery funds) and three security supervisors to support student and staff safety at all schools with particular focus on open-campus middle and high schools.
- 5 school counselors to support the second-year implementation of the Henrico CARES initiative.
- 83 positions associated with providing planning time at our elementary schools.
- 15 English as a Second Language instructional staff
- 52 positions to support expanded programming at the Campus of Virginia Randolph.
- An offset of increasing group health care premiums through an increase in the employer’s share, meaning employees will see little to no increase in calendar year 2025.
- New and increased extracurricular sponsorship stipends for employees.
- Expanded eligibility for participation in the Career Ladder expansion to include classified staff and leadership positions.
Additionally, more than 1,000 support staff members—including instructional assistants, custodial workers, and maintenance assistants—will receive market adjustments that will bring their total salary increases to anywhere from 13.8% to 19.3%. HCPS is also taking steps to increase compensation for School Nutrition Services (SNS) staff beyond the 6% raise while finalizing the department's self-supporting SNS budget.
Frequently Asked Questions
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HCPS and other public schools across Virginia are funded through a combination of sources, including money from the state budget, federal revenue and grants, and local money allocated by Henrico County government (general funds, meals tax and debt service funds). The chart below shows the general fund revenue source for the HCPS budget for fiscal year 2025.
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At its April 17 meeting, the school board approved a 6% across-the-board salary increase for all returning full-time HCPS employees. Additionally, more than 1,000 support staff members—including instructional assistants, custodial workers, and maintenance assistants—will receive market adjustments that will bring their total salary increases to anywhere from 13.8% to 19.3%. HCPS is also taking steps to increase compensation for School Nutrition Services (SNS) staff beyond the 6% raise while finalizing the department’s self-supporting SNS budget.
To help current and future employees better understand the pay plan, HCPS has created resources for them to learn more about placements on the pay scale and funding for salary adjustments.