Bedford school board talks budget highlights, top capital projects

Because a state budget has not yet been approved in Richmond, public schools are unsure exactly how much money they will receive from the state — as such, budget discussion still is preliminary, division staff emphasized. However, BCPS Superintendent Marc Bergin and Randy Hagler, chief financial officer, still anticipate a boost in state funding.

The current, preliminary budget amount for fiscal year 2024 totals a little more than $129.1 million.

The end of reversion money from Virginia remains at the forefront of school budget discussions.

Following the Town of Bedford’s reversion from a city, Bedford County’s local composite index (LCI) was frozen for a period of 15 years as part of the agreement. The school division’s state funding is determined by the LCI, and the lower that number, the better, according to BCPS staff. Once the LCI resets to the actual number, the schools will lose about $8 million in state funding.

Bedford’s LCI is currently set at 0.31, not the actual LCI, which is 0.44, according to BCPS documents.

Every 1% change in LCI has a $600,000 impact on amount of state funding, according to a financial analysis by Hagler last year.

To mitigate the impact of this impending funding loss, the division, with contributions from the county, has set aside some money every year in the maintenance reserve fund. In fiscal year 2024, $3.3 million total will be added to this, Bergin said.

The board also wants to expand middle school sports programming and career and technical education opportunities. Starting next year, the electrician program will return to Susie G. Gibson Science and Technology Center, accomplishing a goal the board set months ago. Cybersecurity course offerings will also be added, Bergin said.

Also starting next year, the division will fully fund exam fees for students of Advanced Placement courses and pay tuition costs for all dual enrollment courses available in the division’s schools.

Employee compensation, including the restoration of formerly frozen pay steps, remains a priority for the board, implementing the results of a pay and compensation study conducted a couple years ago. Included in the upcoming budget is a 5% pay increase for state-supported school employees.

The board also discussed the division’s capital improvement plan on Tuesday.

The school division needed to identify projects of top priority so it could calculate an estimated price tag to bring before the Bedford County Board of Supervisors.

“The board of supervisors would like us to bring a package, how much are we asking for the board of supervisors to assist in these improvements,” Bergin said.

Knowing what the school division needs for its prioritized CIP projects will assist the county in deciding on tax rates to advertise.

“Debt service is all on the county side,” Hagler said.

The top five CIP project priorities over the next five years are, in order: replacing the canopy systems at Liberty and Staunton River high schools, with sidewalk and lighting replacements included; significantly renovating the auditoriums at Staunton River and Liberty high schools; getting a gym at Bedford Primary School; working on a bus garage; and bringing athletic improvements like new turf and bleachers to sports fields and facilities.

In all, Hagler said the board would need $38.2 million in county support to fund these projects. It is this amount the school board will request from the board of supervisors.

“To me, that is a very small percentage of the overall need,” said District 4 representative Marcus Hill.

County officials have said the Bedford County will need some revenue increases to fund both necessary county CIP projects, and support certain school division CIP projects over a 10-year period, based on a financial analysis from the financial consulting firm Davenport — and those revenues will need to come at least largely from taxes. Real estate tax is the county’s biggest revenue stream, according to Davenport’s presentation given earlier this month.

Other projects on the horizon the school board is keeping its eye on include expansion needs at Forest zone elementary schools, and significant renovations to some of the division’s oldest school buildings. The board plans to make the county staff and board of supervisors aware of these additional needs in future years.