Composite index increase may impact Charles City schools by $345,000 in state funding

An increase in Charles City’s local composite index (LCI) according to Virginia’s Department of Education (VDOE) may have significant financial ramifications on the county and school’s budget for fiscal year 2016-17.

Superintendent of schools David Gaston announced the change during a Dec. 9 joint meeting between the school board and the county’s board of supervisors. Gaston remarked that VDOE identified a change from .4432 to .4906 in the LCI, the equivalent of a .474 increase that may present more of a financial challenge for the upcoming fiscal year.

“That change will result in a reduction of $230,000 in state funding,” said Gaston referencing the unpleasant news. “Unfortunately, that reduction is being expected to be picked up by the locality, i.e. the board of supervisors.”

Gaston continued, saying that VDOE also expects the average daily membership (ADM) of the schools to drop to 647 for the next school year. That reduction would result in an additional $115,000 of state support being taken away, bringing the total to $345,000. Increases to health insurance and VRS (Virginia Retirement System) rates are also contributing factors that will be under consideration for the superintendent when he presents his budget to school board members on Dec. 15.

District 3 supervisor Floyd Miles Sr. continued to address the issue of Charles City’s classification according to the LCI, reiterating the designation of being listed as urban is incorrect and has had major financial implications on the locality.

“I’ve been fighting a long battle on this issue and for us to be looked as urban while neighboring New Kent is rural makes no sense,” Miles said. “I’ve fought it when I was a member of the General Assembly and I continue to push for this change.

“The only way you can change the designation is during the census year,” he continued, pointing to 2020 as the earliest the LCI could be amended. “I am reaching out to our representatives and hope others do as well because this has an impact on our county.”

After the meeting, Gaston commented about school staff making necessary adjustments for next year’s proposed budget.

“The staff has worked on the budget for the upcoming year and all I can say right now is that we are accounting for the changes,” the superintendent said. “As I told the board of supervisors, the budget I will present will be one of needs to help our schools continue to grow in an upward and positive direction.”