Hopewell schools approve budget

May 29--HOPEWELL -- After Hopewell City Council passed the city's budget on Tuesday, the city's school board followed suit and adopted their budget Wednesday afternoon. All school board members were present for the vote except Shirl Jefferson.

The school system was appointed close to $52 million in the city's funding. The city funds 31 percent of Hopewell schools' operating fund; 56 percent of their operating fund comes from the state and that budget is pending.

Superintendent Dr. John Fahey again expressed his thanks to the City Manager Mark Haley and City Council at the beginning of the meeting.

"The budget allowed us to get a 2-percent cost of living allowance and two of the positions we requested, so we're very, very pleased," Fahey said.

He added that the other aspect of the budget is to redo the salary scales.

"... We were really working to bump our starting salary scales and to make them in line and competitive with other school divisions. I think we made a valiant effort in that respect," Fahey said.

Other than the cost of living increase, Fahey said there was no major difference in the budget when compared to other years.

With the 2-percent increase, Hopewell schools are now closer to other divisions when it comes to salaries. Both Prince George and Colonial Heights didn't give their employees raises, according to Director of Finance Monique Barnes.

The starting salary for teachers in Hopewell is $40,998 annually; with a master's degree, the salary is $43,648, Barnes said.

Barnes added that the starting salary for teachers in Prince George is $40,683 annually; with a master's degree, the starting salary is $42,683, "providing that they have not had to reduce this to set the scales."

In Colonial Heights, the starting salary for teachers is $40,215 annually; with a master's degree, the starting salary is $41,715. However, this figure may change if the city has to lower the starting salaries.

Because of the pay raise, City Council did not cover increased health care premiums for city or school employees. School board member Larry Joyner suggested pooling resources with other localities to try and get lower premiums.

Melody Bage, director of personnel, said all health care is risk management and that when compared to other school districts, Hopewell makes sure they're looking out for their employees.

"When we got together with the small school divisions that are our size, their school boards have not been as nice to them as you have been to our employees and their benefits are not rich, and they would not commit to the levels of insurance and the levels of coverage that we have and they wanted to leave their employees much more vulnerable than we would ever agree to do," Bage said.

Bage added that if the school system cannot offer affordable care for employees as defined by the Affordable Care Act, the school division would be fined. She said they were willing to talk with other localities, but would not compromise coverage for their employees.

The school system has moved to health savings account (HSA) options, which puts them ahead of the game, Fahey said.

Barnes said the school system currently offers two HSA plans, one with a $3,000 deductible and another with $2,500 deductible, in addition to a co-pay plan.

HSAs are beneficial because premiums are lower and if a teacher leaves, they can take the remaining amount of the HSA with them and it's theirs for the rest of their lives, Bage said.

This year the budget was a "moving target" challenge and adjustments had to be made, Fahey said. He stressed the importance of the state budget being passed in Richmond.

"We're anxious to get contracts out so we can get signatures and get people locked in for next year," he said.

- Katherine Johnson can be reached at 804-722-5154 or [email protected].

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