Northampton schools present 2027 budget to Northampton Board

Northampton County Public Schools is asking county supervisors to consider an additional $336,000 for its proposed fiscal year 2027 budget, saying the request is largely driven by a sharp increase in the local composite index and rising operating costs.

During a budget presentation to the Northampton County Board of Supervisors Tuesday night, Superintendent Lisa Martin said the school division’s proposal is based on Gov. Glenn Youngkin’s proposed state budget from Dec. 17, 2025, since the General Assembly has not yet approved a final state spending plan.

Martin said the division is seeking a total local contribution of $15,262,477, which would be an increase of $1,635,840 over the current year. The county’s proposed budget, as presented earlier in the meeting, includes a $1.3 million increase for the schools, leaving a gap of about $336,000 between the county proposal and the school board’s full request.

A major factor in the school division’s request is the local composite index, or LCI, which determines how much of education funding must come from the locality instead of the state. Martin said Northampton’s local share has risen from 52 percent to 57 percent over two bienniums, including a 4.6 percent jump in the upcoming cycle.

That change alone adds $1,032,082 to the county’s required school contribution, she said.

Martin argued the formula places an outsized burden on small rural school divisions like Northampton, saying the state’s standards of quality funding model does not fully reflect the real cost of staffing and operating a rural system. She cited findings from the Joint Legislative Audit and Review Commission, which has studied Virginia’s school funding formula, and said 27 of the 31 school divisions that saw substantial LCI increases this cycle are small rural divisions.

She also said Northampton was one of only four divisions in the state to see back-to-back increases of at least .04 in consecutive bienniums.

Martin said the school system has been pushing for relief from state officials, including a request that Northampton be held harmless for this biennium while lawmakers rework the funding formula. She said those efforts have not yet produced results.

In addition to the LCI increase, Martin said the division is facing pressure from health insurance costs, salary needs and basic operations. The proposed school budget includes teacher and staff pay increases tied to the governor’s proposed 2 percent raise, continued salary decompression efforts, and funding to help offset a projected 25 percent increase in health insurance costs.

The superintendent said the budget also includes several priority needs, including a shared aviation and airspace lab school position with Old Dominion University, a local match for a reading specialist grant, an increase in clerical support for the middle school as the new school building opens in phases, an enterprise data services position and stipends for teachers who help international educators transition into the division.

Martin said the school division began the budget process facing a gap of roughly $2 million, but reduced that through internal adjustments, including shifting eligible positions and programs into at-risk funding and repurposing existing dollars. Even after those changes, she said, the division still needs the full $1.635 million increase to meet its needs.

She noted that the county’s current proposal of a $1.3 million increase would leave only about $83,000 after covering the local share of the 2 percent raise, the required at-risk match and the reading specialist match, leaving little room to absorb health insurance increases, contractual cost increases and staffing needs.

Martin said the school division is trying to remain fiscally efficient while protecting classroom services, employee compensation and student support programs.

Board members questioned Martin about the request, the future impact of the LCI and the division’s enrollment. Martin said total enrollment is about 1,275 students and said the school system is trying to increase average daily membership through efforts such as a virtual academy and charter course options for homeschool students.

She also said the division has reduced its bus fleet and is preparing to surplus unused buses through an online auction process.

During the discussion, supervisors also raised broader concerns about housing, jobs and the long-term ability to attract families and employees to Northampton County. Supervisor Jon Dempster said the LCI issue will likely worsen unless the county can create more affordable housing and attract more working families, which could help stabilize school enrollment and the local tax base.

Martin agreed that housing and school enrollment are closely tied, and said the school division is working with other small rural systems to press for changes at the state level.

The presentation ended with Martin urging county leaders to continue advocating with legislators and state officials for a revised school funding formula that better reflects the realities of rural divisions.