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The Lexington School Board reviewed a draft of its fiscal year 2026 budget on Feb. 13, with significant increases planned for teacher salaries, support staff wages, and student services. However, school officials emphasize that the draft remains highly preliminary, with key funding details yet to be finalized.
The total draft budget for FY26 stands at $10,018,197, reflecting a 4% increase over FY25. Should the preliminary figures stand, the School Board would be requesting $4.1 million from the city, a 9.67% increase in local contributions.
Among the key changes from the previous budget is a new teacher salary scale that would raise starting pay to $50,000 while providing raises ranging from 3% to 12% depending on a teacher’s placement on the scale. The proposal also includes funding for a new math specialist position, with the total cost estimated at $225,885, including benefits.
Support staff wages would also see an increase, with a new minimum pay rate of $17.63 per hour, aligning with the living wage calculation for Lexington. This adjustment is expected to cost $86,893.
Additionally, school nurses would be placed on a new salary scale, setting the starting pay at $30,000 for licensed practical nurses and $34,000 for registered nurses, at an estimated added cost of $2,576.
Administrators are also set to receive salary adjustments, with a proposed 4% raise for principals and directors to bring Lexington’s pay scale in line with neighboring school divisions. This change is expected to cost an additional $13,055.
Student support services would see enhancements as well, with funding allocated for a new special education paraprofessional and an expansion of a food service position from part-time to six hours per day. These additions would cost an estimated $27,376 and $10,206, respectively.
Finally, the budget accounts for a projected 10% increase in employee health insurance premiums, further impacting overall compensation and benefits within the division — though this is one of the figures most subject to change.
The draft also includes rising operational costs, such as increased utility expenses, contractual services, and a new stormwater fee, along with a $25,000 contingency fund.
Superintendent Rebecca Walters, in an email accompanying the presentation, stressed that this budget remains a work in progress, saying, “This draft is a very initial draft as we do not yet have final state funding, numbers from Rockbridge County High School, health insurance rates, etc. … The final draft for approval consideration will include updated numbers.”
The main roadblock to a final draft seems to be that state funding remains uncertain, making final budget numbers subject to change. The governor’s budget proposal includes a 3% raise for staff, along with a $1,000 bonus for eligible employees, but exact funding amounts have yet to be determined.
If state lawmakers, in conjunction with the governor, approve additional funding, it could help offset local costs. For example, proposed state budget changes could provide an extra $130,000 in state revenue through increased special education funding and teacher retirement cost support. However, until state budget negotiations conclude, the district remains in a holding pattern.
A final draft of the budget will be presented at the March School Board meeting for consideration, Walters said.
While no votes have been taken on the proposal, Board members largely supported the push for competitive salaries, acknowledging that Lexington must remain competitive in teacher and staff pay to attract and retain talent.
A joint meeting with City Council is scheduled for March 20, where school officials will provide further details on funding needs and potential adjustments.
