Superintendent presents FY26 budget with cuts after smaller-than-expected state revenue

Powhatan County school leaders on March 11 presented a balanced fiscal year 2026 operating plan to be submitted to the Board of Supervisors, but acknowledged the budget required reductions after state revenue estimates proved smaller than anticipated.

Mrs. Holloway, the presenter identified as the budget lead, told the board staff had removed all additional budget requests submitted after the initial plan except three items the division considered required: a reading specialist position, cybersecurity upgrades and a middle-school girls soccer team. Holloway said adjustments based on the Virginia Department of Education's recalculation tool produced a net revenue increase of $675,341 but left the division short of its earlier request, so additional cuts were needed to balance the plan.

As part of the reductions staff eliminated an alternative-education request, removed local textbook funding included as an "additional request" and proposed cutting three instructional assistants. Holloway stated the three instructional assistants were budgeted at about $42,500 each. She also said the local textbook reductions referenced a line that staff identified as approximately $209,025 in total (staff text read aloud; board members asked for a spreadsheet to confirm the figure).

Board members asked for clarification of multiple line items. One board member said she would not vote to approve the budget without a detailed spreadsheet showing the numbers; another asked whether specific state and local revenue sources had been counted in the balancing calculations. Holloway and Superintendent Dr. Teigen said they would provide additional documentation and noted the submitted FY26 plan can be amended if the governor's budget or the Board of Supervisors provides additional funds.

Holloway warned that if the division receives new students with disabilities requiring instructional assistants, the elimination of three IAs could require further adjustments or the district would need to restore positions. She also said reductions could affect field trips and other discretionary items if higher revenue does not materialize.

The board approved the consent agenda, which included this budget submission, by a 3-2 roll call. One board member recorded a Nay for the budget portion and asked finance staff to circulate the requested spreadsheet.

What remains: finance staff will provide the detailed spreadsheet to the board and the division will revisit the budget as county and state revenue decisions change.