By Heather Michon
Correspondent
Fluvanna County Public Schools (FCPS) officials say rising costs for pay, health insurance, and special education are likely to drive a challenging budget cycle heading into Fiscal Year 2027, even as enrollment edges higher and state funding remains unpredictable.
During the budget seminar on Tuesday (Oct. 14), Superintendent Dr. Peter Gretz and new Finance Director Gemma Soares presented the School Board with early projections and trends shaping next year’s spending plan.
Despite years of work to increase compensation and improve retention, pay remains the district’s top concerns.
“We were never able to close those gaps,” Gretz said of recent pay adjustments. “Divisions that had the resources to respond gave their own increases.”
Neighboring counties continue to outpace Fluvanna in salary scales, creating what Gretz called “year-over-year vigilance” to stay competitive in recruiting and retaining teachers and staff.
Adding to the pressure are health insurance premiums, which Soares said are expected to rise again next year.
The division has not yet received word from the Virginia Department of Education on whether the state will offer any offsetting funds. “We don’t have any information to share with you about what to expect from the state,” she told board members.
The division’s special education (SPED) population also exceeds surrounding school districts. “We do have the highest SPED rate of those divisions being compared,” Gretz noted. “I’m stunned by the SPED bit.” Serving those students requires additional staffing, aides, and transportation costs—often without state reimbursement to ease the burden on the budget.
Other pressures include technology and infrastructure needs, such as outdated network switches and aging school facilities, as well as student support positions like attendance staff and school security officers that have been funded temporarily through grants or one-time carryover money. Maintaining those roles beyond this year will require local funding.
Enrollment continues to grow modestly, particularly in elementary grades. “We were projecting 3,195 this year,” Soares said, “what we actually saw was about 60 kids more,” all in grades K to 7.
Even slight growth, she added, can require additional staff or classroom adjustments.
Inflation adds another layer of complexity, with rising costs for transportation, utilities, and supplies eating into the division’s discretionary spending.
Gretz said the goal is to link these fiscal realities to the division’s strategic plan and community priorities as budget drafting begins later this fall. “The key is maintaining momentum while being realistic about what our resources will allow,” he said.
The School Board will continue refining the FY27 proposal over the coming months before submitting it to the Board of Supervisors early next year.
Carryover funds
Another topic of conversation was what to do about the $443,500 in carryover funds.
Carryover funds are unspent dollars from the previous fiscal year that a school division can request the county to re-appropriate for specific one-time expenses such as equipment, maintenance, or safety upgrades.
The carryover list included funding for a School Resource Officer, a School Security Officer (SSO) at the middle school, attendance support positions, PSAT testing costs, and several technology and facility projects.
“The purpose is to allocate funds to needs that directly support school safety, instruction, and operations,” Soares said.
James Kelley (Palmyra) said the proposal “articulates our interest in having safe schools and investing in student outcomes,” adding that most items on the list represented long-term maintenance and technology needs delayed by previous budget cycles.
Other items in the package include a $100,000 network switch replacement, $45,000 for auditorium audiovisual upgrades, $50,000 for a Central Elementary bathroom renovation, and $25,000 for a FuelMaster Live fuel monitoring system.
The motion to approve the carryover list passed 3-0 with two members not present.
