Warren County School Board Discusses Budget Cuts, Retention Bonuses, and Health Insurance at Work Session

At its April 23 work session, the Warren County School Board faced difficult decisions about its proposed budget for the 2025-2026 school year. Superintendent Dr. Chris Ballenger presented updated financial scenarios, retention bonus options for staff, and explained the impact of no new local funding.

Having to consider a worst-case scenario of a flat funding amount from the Warren County Board of Supervisors, Ballenger outlined the serious trade-offs possibly required. The school division expects to receive $76,437,018 in revenue for fiscal 2026, combining state and local funding. However, with salary raises, benefits, and non-labor costs, the division faces a possible deficit of $54,642 that must be closed.

The biggest challenge comes from health insurance costs. A 10.1% premium increase is projected, and under the current “level funding” situation, employees would shoulder the full cost. Ballenger said this could have major effects, especially on staff morale. “If insurance rates go up too much, we could have a different issue to deal with,” he told the board.

In the original proposed budget, Ballenger had included a 3% salary increase plus a step increase, funding for several new positions, full coverage of the health insurance increase, funding instructional support roles that were previously paid for with Covid era money, and a contribution to the textbook fund. But without extra county funding, many of those items would need to be cut.

Under level funding:

• All employees would receive a 3% pay raise, inclusive of a step.

• Employees would carry the entire 10.1% health insurance increase.

• Additional requested positions, salary scale adjustments, textbook funding, and Covid-era extra instructional aides would be removed.

Board members discussed trying to ease the burden. Some scenarios would have the division cover 3%, 5%, or 7% of the health insurance increase instead of none. Covering more of the cost would require cuts elsewhere.

Board member Melanie Salins raised concerns about the ranking of budget priorities. She said student support, especially in reading, should come first. “If we’re in the business of educating children, it makes me sad to see these reading positions so low on the list,” Salins said.

Salins also emphasized the need to adjust priorities based on limited funding. “The question is not whether everything is important,” Salins said. “It’s how we prioritize with the limited resources we have.”

She noted that the Board of Supervisors has publicly expressed interest in seeing the school system focus more on student achievement, particularly reading improvements.

Meanwhile, Vice Chairwoman Antoinette Funk and Board Member Thomas McFadden discussed the importance of working with county officials during the budget process. McFadden explained that compromise was necessary. McFadden emphasized that Warren County Public Schools must operate within the broader context of the county’s financial realities, noting that budgets “are not made in a vacuum.”

Another sensitive discussion involved a proposed retention bonus. Ballenger proposed using state-provided bonus funding to offer a $750 payment to each returning full-time employee. The board supported including retiring staff members in this bonus, recognizing their long service to the division.

Board Chairwoman Kristen Pence stressed that the School Board must maintain full authority over how it uses its funds. “It’s concerning,” Pence said, emphasizing that the board must retain full control over its internal priorities.

Some board members discussed a recent informal message suggesting the School Board could receive a 3% increase in county funding if it agreed to certain conditions, such as prioritizing student support roles and reading initiatives. While some saw this as a reasonable compromise, others raised concerns about the need to protect the board’s independence under Virginia law.

No final votes were taken at the meeting. Pence and others reminded attendees that the School Board will not approve a final budget until June, giving time for the public to provide feedback.

The county is expected to advertise its budget proposal in early June. The General Assembly has also not yet finalized a state budget, creating further uncertainty.

The board ended the public meeting with a closed session to discuss personnel matters. Afterwards, it approved several new hires, promotions, and resignations.