In its Tuesday, May 7 meeting, the School Board adopted a resolution that amended an earlier budget proposal sent to City Council. The resolution paves the way for a 3 percent salary increase for employees, effective September 1. The increase would be executed this way: Base salaries would be increased by 2 percent and 1 percent would go toward the required Virginia Retirement System contribution.

This new scenario improves the recommended raise for employees, which originally stood at 1.34 percent with 1 percent being allocated toward VRS and 0.34 percent going toward base salaries. Chief Financial Officer Farrell Hanzaker noted that to make a 3 percent salary increase possible the school division had to close a $3.1 million funding gap. Here are the strategies being used to accomplish that:

• Debt service costs for the school division proved to be $1.5 million lower than what was originally projected. The savings will be allocated toward closing the funding gap.
• It has been recommended that $1.1 million be transferred out of the Sandbridge TIF into the operating budget. Typically these monies are transferred into the capital improvement budget to help address infrastructure needs.
• The school division will save $500,000 if the raise is executed in September rather than July. These savings will help address the funding gap.

Hanzaker told the School Board that school system leadership had discussed these plans with city leadership and the strategies being employed appeared to be viewed favorably. The City Council will adopt a final budget, which includes the school system’s operating budget today, May 14.