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by Nathaniel Cline, Virginia Mercury
June 1, 2026
Virginia’s education leaders say they are optimistic about the proposed K-12 funding in the state budget, but their outlook is tempered by uncertainty as state leaders and the governor have yet to reach an agreement on a new two-year spending plan.
Passing a new budget as quickly as possible is crucial for education, leaders, and localities because it guides their priorities including funding programs, facility projects, and, most importantly, staffing during a nationwide educator shortage.
School boards are feeling the pressure as they collaborate with local officials and administrators to prepare for the upcoming school year.
“Budget certainty is critical for school boards and school divisions,” Gina Patterson, executive director of the Virginia School Board Association, representing the largest group of board members in the commonwealth, said in a statement to the Mercury.
“At this time, our hope is simply that state leaders can come to a resolution on the budget in a timely manner so divisions across the commonwealth can move forward with greater clarity and stability.”
The main issue delaying an agreement among lawmakers is how to handle revenue from one of the most successful industries — data centers.
The Senate passed a budget that would end data centers’ sales and use tax exemption and redirect an estimated $1.6 billion annually towards other areas, including education and transportation.
The House budget, however, would maintain the exemption, which is set to end in 2035. Gov. Abigail Spanberger aligns with the House budget and preservation of data centers’ tax break.
Meanwhile, the cost of living for Virginians has risen since the budgets were proposed, largely due to factors such as the start of a U.S. war with Iran, which has increased costs for food and gasoline. The state is also facing a July 1 deadline before government operations could shut down.
Neither chair of the House or Senate appropriations committees responded to the Mercury’s requests for comment on the status of budget negotiations.
Education carveouts in the budget
The packages proposed by both chambers include line items to support students, schools and employees. But they differ in how to do so.
In the House, lawmakers proposed a flat $1,500 one-time payment for eligible school employees in 2026, instead of a small percentage bonus. In addition, eligible employees would also receive a total 4% raise, with 2% increases in both 2027 and 2028.
The Senate proposal differs from the House plan by providing eligible employees with a roughly 6% raise over the next two years and increasing funding for teaching scholarships and residency programs.
Another area of interest for localities is financial assistance for school construction, which can be costly, especially in areas with a local composite index (LCI) that determines what each locality can pay for its schools.
If the language in the Senate budget is approved by the governor, the state would allow localities to approve, by vote, up to a 1% local sales tax to pay for school construction costs, a central factor in an ongoing debate about aging school buildings.
“It’s an important mechanism for addressing our school construction needs in the state, which really, the quality of our infrastructure, despite recent investments by the General Assembly, has been in continual decline,” Chad Stewart, director of government relations and research with the Virginia Education Association, said.
In special education, the House recommended an additional $1.7 billion over the previous biennium’s budget to support students with disabilities and those at risk. The funds would also help families access affordable early childhood education and promote stability for students, teachers and the K-12 system.
As part of the proposed investment, the House is dedicating $400 million in one-time use for school divisions to provide fiscal stability and meet local needs by funding school renovation, addressing teacher recruitment challenges, or continuing tutoring programs, including some created under a statewide initiative launched by former Gov. Glenn Youngkin’s administration.
The Senate recommended an additional $60 million to improve school operations and infrastructure.
Stewart said lawmakers have work to do to address the different ideas in both budgets.
“Virginia really needs an education budget that meets the moment and one that’s actually responding to our educator shortages, our staff vacancies, and the serious student learning challenges that schools have faced over the last six years.
Other investment recommendations made by the House include a $160 million increase in funding for students with disabilities. Compared to the House proposal, the Senate is recommending $118.7 million more for at-risk students, $12.8 million more in each of the next two years for special education services.
The House committee also recommended $163 million to create 11,591 additional early childhood slots to clear child care waitlists. Moreover, this investment is intended to ensure all families with incomes below 85% of the state’s median income can access affordable child care.
The House budget also provides funds to support employer partnerships to share child care costs.
The Senate proposed $50 million for a pilot program that would partner with businesses to expand early childhood care.
To support its commitment to high-quality education, the House is recommending dedicating $437.8 million to rebenchmarking and other technical updates.
Finally, the Senate budgeted $17.6 million to provide free school breakfasts and $1.3 million to review and possibly redesign the state’s school funding system.
Sarah Calveric, board president for the Virginia Association of School Superintendents, said the urgency of the matter “cannot be overstated” as lawmakers continue to deliberate.
“I believe the state budget doesn’t just serve as a financial document, it really is a foundation or a roadmap for educational planning, and of course, staffing,” Calveric said.
Delayed budget highlights existing challenges
If state leaders don’t finalize the budget by July 1, school leaders say there will be insufficient funding for special education, at-risk students, educator compensation and student services.
Even with the proposed raises and school funding, some education leaders said they’re unable to keep pace with inflation, rising costs, and broader economic uncertainty.
And without knowing how much they will have to work with over the next two years, hiring and retaining employees is harder for school districts. Some divisions have been able to address the matter with financial support from their localities, but others in tighter, financially strapped jurisdictions are not able to follow suit.
Depending on when the budget is settled, leaders said multi-layered processes between local school boards and government leaders are likely to delay approving budgets, hiring or allocating staff and starting or revising programs, among other things.
The pressure to maintain services increases as expiring grant funds may lead to program cuts, and school construction and infrastructure backlogs limit the ability to address local needs.
Lawmakers to reconvene
The House is scheduled to meet June 18 and the Senate on June 22. Both bodies will be armed with an updated budget forecast, ordered by Spanberger in May. The budget must be finalized by June 30 or the state government will lapse into a shutdown. Educators are watching the clock as they anticipate students’ return to school in the late summer.
“I think the timing is critical. I appreciate the thought that the General Assembly is putting into the process, but we are very eager and anxious to receive the green light to proceed,” Calveric said.
“This is a critical aspect to being in a state of preparedness and readiness for the 26–27 school year, and so we’re looking forward to hopefully receiving some positive outcomes in the very near future.”
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Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: info@virginiamercury.com.
