REVISED MARCH 15, 2023

REVISED MARCH 22, 2023
REVISED MAY 3, 2023
REVISED NOVEMBER 1, 2023

Teacher Retention, Employee Compensation, and Maximizing Every Child’s Learning

 

Just the Facts - Superintendent’s Recommended FY 2024 Budget 

 

Teacher Retention, Employee Compensation, and Maximizing Every Child’s Learning

Just the Facts - Superintendent’s Recommended FY 2024 Budget 

Three specific focus areas of the Hampton City Schools (HCS) 2021-2026 Strategic Plan became a driving force during the development of the FY 2024 budget: 1) Maximize Every Child’s Learning, 2) Create Safe, Nurturing Environments, and 3) Attract, Develop and Retain Exceptional Staff.

To this end, the FY 2024 recommended budget includes a five percent (5%) compensation increase for all full-time staff as well as the majority of part-time positions, with no increase to the employee portion of healthcare premiums. Additionally, the recommendation includes a one percent (1%) bonus for all full-time staff as well as the majority of part-time positions. 

The November 1, 2023, recommendation includes an additional two percent (2%) compensation increase, in place of the 1% bonus, for all full- and part-time employees (with the exception of flat rate and temporary positions) effective January 1, 2024.

The recommended budget also includes adjustments to the teacher salary scale and other support staff positions and investing in additional personnel (e.g., teachers, instructional assistant, administrator) to meet the academic needs of our young people.

Additionally, the recommended budget includes the increase of the division’s minimum hourly rate to $12.50.

The Superintendent’s Recommended FY 2024 Budget recognizes the importance of the effective and efficient management of fiscal resources and ensures recurring costs have sustainable funding based on revenue projections. 

Q: How is the school system funded?

A: Sixty-six percent (66%) of the recommended School Operating budget comes from state funds and state sales tax. State funds (and state sales tax) are received through the Virginia Department of Education (VDOE). Two main budget drivers for state funding are the Local Composite Index (a state measure to determine a locality's ability to fund education costs) and Average Daily Membership (average student enrollment as of March 31).

Thirty-two percent (32%) of the recommended School Operating budget comes from local funds from the city of Hampton. The city allocates funding to the school division using a funding formula in which 61.83% of residential-related taxes (i.e., real estate, personal property, utility taxes) are provided to Hampton City Schools.

The remaining two percent (2%) of the recommended School Operating budget comes from federal and miscellaneous funds. Federal funds come from Federal Impact Aid and the JROTC program. Miscellaneous funds come from various sources (e.g., Medicaid Reimbursements, cell towers, indirect cost). 

Q: What are the priorities that drove the development of the FY 2024 budget?

A: The School Board identified competitive compensation, teacher and support staff retention, Academies of Hampton, facility and capital improvements, school safety, and increasing student achievement as priorities for this budget cycle.   

Q: The Governor's budget includes a 5% raise. Will I receive a 5% raise?

A: Yes. The Governor’s budget included a five percent (5%) raise for FY 2024 (beginning July 1, 2023) for Standards of Quality (SOQ) funded teachers and support staff. It is important to note that the SOQ are determined by the Virginia Department of Education and serve as a set of mandatory guidelines for staffing that all school divisions must follow to provide a minimum level of education services. School divisions (including ours) provide students with more than just the minimum educational experience. This requires additional teachers and staff above the minimum standards. SOQ-funded positions represent roughly 71% of all HCS positions in the School Operating fund. That leaves 29% of HCS positions not covered by the state supplement. All HCS teachers and staff are essential to the success of our school division and it is important to offer the same salary increase to all positions (SOQ-funded positions and non-SOQ-funded positions). Therefore, Hampton City Schools recommends a five percent (5%) raise for FY 2024 (beginning July 1, 2023) for all full-time employees and the majority of our part-time employees. For every one percent (1%) raise provided to employees, it costs HCS $1.7 million. The impact on the budget will cost Hampton City Schools $8.6 million.

 

Q: How will the recommended budget impact employee salaries?

A: The budget includes a five percent (5%) salary increase for full and part-time employees. This does not include temporary positions, as well as some part-time teaching positions. Additionally, the minimum hourly rate will increase to $12.50.

Additionally, the FY 2024 budget includes teacher salary scale adjustments and support staff adjustments. The total investment is $2.4 million and is outlined below.

• $2.0 million for teacher scale adjustments as outlined below (in addition to the employee raise)
  • Step 0 - $53,000 starting salary 
  • Steps 1-24 add $317
  • Steps 25-29 add $8,200
  • Step 30+ add $1,200
• $289,000 to increase instructional assistant compensation (in addition to the employee raise)
• $83,000 to increase administrator compensation (in addition to the employee raise)

On November 1, 2023, the School Board approved an additional two percent (2%) compensation increase for all full- and part-time employees (with the exception of flat rate and temporary positions) effective January 1, 2024. The total investment is over $2.0 million for January 1, 2024 through June 30, 2024.

The updated FY 2024 Compensation Plan is in progress. 

Q: Will my health insurance premiums change next year?

A: No. There will be no increase to employee contribution rates for healthcare.

Q: What is the recommended budget for the Academies of Hampton (AoH)?

A: The budget for the Academies of Hampton is $1.5 million within the School Operating fund. 

Q: Are there position changes planned for the FY 2024 budget? 

A: Yes. The FY 2024 budget includes a net increase of 11 positions (13.5 teachers, 1 instructional facilitator, 6 instructional assistants, 1 school security officer, 1 bus route specialist, 1 bus driver, 1 administrative secretary, 1 human resources recruiter, 1 Chief Academic Officer and the reduction of 15.5 vacant positions). See the complete list of position changes in the FY 2024 Proposed Budget Book on page 28.

Q: Are there changes to the work calendar for the FY 2024 budget?

A: Yes. The recommended budget includes changes to the work schedules for three (3) employees beginning with the 2023-2024 school year. Specific employees impacted by these changes will receive direct communication from the Human Resources department.

Q: Is there a reduction in the number of PreK slots for HCS next year?

A: No. The Virginia Department of Education contributes funding under the Virginia Preschool Initiative (VPI) program to provide educational services for At-Risk four-year-olds. State funding is based on a funding formula, which in part is based on the number of slots given to each school division by the state. For FY 2023, HCS was allocated 652 slots. For FY 2024, HCS will be allocated 656 slots. 

Q: Were any instructional programs eliminated in the FY 2024 budget? 

A: No. There were no instructional programs eliminated in the FY 2024 budget.

Q: Are there other reductions in the FY 2024 budget?

A: Yes. The FY 2024 budget includes $15.4 million of reductions due to the removal of one-time payroll (e.g., FY 2023 Federal Pandemic Relief Bonus) and non-payroll expenditures (e.g., FY 2023 capital projects) from the budget. These funds were repurposed to fund the initiatives outlined above. See more information on budget reductions in the FY 2024 Proposed Budget Book on page 33.

Q: How can I find out more information on the proposed budget?

A: Click here to view the FY 2024 recommended budget presented on March 1, 2023.  

Click here to view the updates to the FY 2024 recommended budget presented on    March 15, 2023.  

Click here to view the updates to the FY 2024 recommended budget presented on    March 22, 2023.

Click here to view the updates to the FY 2024 recommended budget presented on    May 3, 2023.

Click here to view the updates to the FY 2024 School Board budget presented on November 1, 2023.

Q: What are the next steps for the recommended budget?

A: The General Assembly will finalize the state budget. We will then review our FY 2024 budget and make changes as needed. If there are any adjustments to the budget, these will be presented during future School Board meetings. On March 8 and March 15, the School Board will hold Public Hearings on the FY 2024 budget. The School Board is scheduled to vote on the FY 2024 Superintendent’s Proposed Budget on March 22. Once approved, the FY 2024 budget will be submitted to the city for approval. 

The 2023-2024 revised budget presented and approved by the School Board on November 1, 2023, will be submitted to the city for approval.