Since the inception of the city of Roanoke’s school funding policy in 2011, Roanoke City Public Schools has annually received 40% of most local tax revenue. This has allowed the school division to deliver on promises made to the community, such as maintaining competitive salaries and benefits to attract high-quality educators, investing in capital projects such as school renovations and new construction, and enhancing student opportunities through programming. Most importantly, it has taken politics out of the equation and allowed the school board and school division to work together with Roanoke City Council and city administration for the good of students, staff, families and our city.
The predictability and stability of the current funding formula allow for efficient budget planning and ensure long-term sustainability for programs that benefit students and the entire city. This stability was crucial to RCPS’ ability to be strategic with one-time federal pandemic funding, which enabled the Equity in Action plan to become a reality. The plan led to the creation of the Charles W. Day Technical Education Center, will centralize central office staff, and will establish the Booker T. Washington Center for Community Empowerment and Education. These initiatives promote equity and strengthen the bonds between schools and the community, benefiting students, staff and the city for generations to come.
A well-funded school system benefits everyone. Research shows increased per-pupil spending leads to higher graduation rates, better wages for adults and lower poverty rates. Additionally, studies indicate a strong link between well-funded schools and reduced crime rates. Every dollar invested in education yields significant social returns, ultimately saving taxpayers money in the long run.
Proposed revisions to the funding formula would replace the guaranteed 40% of actual revenues with an uncertain application process. At the end of the fiscal year, when actual revenues collected are known, the city and the schools “true-up.” Often, these actual funds are higher than the initial projection, so the schools receive their share of these dollars. Occasionally, the actual revenues collected are less than projected, which means RCPS refunds the city any excess funding originally received. This funding policy ties the outcomes of the schools and the city together, and both organizations are true partners in good times and bad.
City council is now proposing to revise the funding formula so RCPS would only receive 40% of projected funds. If actual revenues exceed projected revenues, RCPS would not be guaranteed to receive these dollars, often referred to as the “true-up,” as it currently does, and would instead have to go through a competitive application process for the potential to receive up to the full 40% of actual revenues. RCPS would still be responsible for any deficit between projected and actual funding in years of hardship.
This change to the funding policy would jeopardize RCPS’ ability to plan strategically and ensure stability for core programming. Additionally, relying solely on projected funds could impact the school division’s ability to address unforeseen needs. Two years ago, the school board approved the use of the true-up to add more than 25 additional safety and security measures, which may not have been possible otherwise. In other years, these dollars have been placed for use in capital projects.
School division leaders must proactively and responsibly plan for large capital projects, such as the upcoming Preston Park Elementary School replacement. Because RCPS has been able to save using these true-up dollars, a significant amount of the construction costs will be paid for out-of-pocket instead of borrowing, which will allow the project to be completed on time and allows the city to complete other projects simultaneously.
Unlike many neighboring school divisions that are reliant on year-to-year negotiations, the current funding formula provides a stable and predictable revenue stream for RCPS. This stability allows the school board and division leaders to anticipate future needs and allocate resources effectively, maximizing the impact of every dollar spent. Planning strategically ensures long-term viability for core educational programs that benefit students year after year. This predictability fosters a sense of security and allows everyone to focus on what truly matters: student achievement.
RCPS prioritizes fiscal responsibility. The Fiscal Services Department consistently receives clean audits and awards for its diligent financial practices. Every department justifies budget items based on the strategic plan, ensuring taxpayer dollars are used effectively.
It is anticipated that city council will vote on this issue on May 13; therefore, we urge city council to maintain the current school funding formula. This formula is a cornerstone of our success, allowing RCPS to fulfill our promise of providing a high-quality education for every student in Roanoke city. A stable funding formula is an investment in the future of our city, one that benefits students, staff, families and the entire Roanoke Valley.
Eli Jamison is chair of the Roanoke City School Board. Verletta White is superintendent of Roanoke City Public Schools.