The Henry County Board of Supervisors received proposed amendments to the Fiscal Year 2027 budget Tuesday evening to address additional local funding requirements resulting from the recently adopted Virginia state budget.
If ultimately approved, the amendments would increase the county’s total Fiscal Year 2027 budget from $231,528,674 to $234,135,567, an increase of $2,606,893, reflecting additional state funding for public education and corresponding local matching requirements. The school division budget increased from $117,973,744 to $120,580,637.
County Administrator Dale Wagoner said the proposed amendments reflect the difficult balancing act local governments face when state budget decisions create new financial obligations after local budgets have already been adopted.
"When the Commonwealth finalized its budget, Henry County was required to revisit its own budget to comply with new funding requirements," Wagoner said. "Rather than simply adding new costs to taxpayers, we worked to identify operational adjustments, delayed hiring where possible, and strategically used available reserves to meet those obligations while preserving the services our residents expect."
Although the proposed amendments increase spending, much of the additional funding is required by state policy rather than new local initiatives.
The Commonwealth’s adopted budget increased compensation for constitutional officers and other state supported positions from the previously anticipated 2 percent salary increase to 3.5 percent, effective Aug. 1. To maintain equitable compensation across the organization, the Board is considering the approval of a 3.5 percent salary increase for all County and Department of Social Services employees, which would replace the previously approved 2 percent adjustment that was scheduled to take effect July 1.
The state budget also provided $2,152,791 in additional funding to Henry County Public Schools. While the additional state funding benefits local education, it also increases the county’s required local contribution by $615,361 under Virginia’s school funding formulas.
Included within the state’s funding package is a 4 percent salary increase for state funded school positions. Because the increase to the school budget exceeds one percent, the Board also scheduled a public hearing for Aug. 26 at 6 p.m. to consider the required amendments to the school budget.
Rather than relying solely on additional recurring revenues, county staff recommended a number of operational changes to help absorb the increased costs imposed by the state’s budget.
The recommendations include using $225,000 previously reserved during the budget development process and delaying several planned personnel additions, including the new Fiscal Technician position until Jan. 1, 2027, the Sheriff’s Office Administrative Assistant until January 1, 2027, and the Community Standards Officer until Sept. 1, 2026.
Additional savings would come from restructuring planned staffing within the Information Technology Department by reclassifying an existing network position to assume expanded cybersecurity responsibilities, changing the proposed new position to a desktop support role, and delaying its hiring until January 2027.
County staff also recommended modifying staffing plans within Public Safety by changing two of the four proposed new operational positions from paramedic level to EMT level. Remaining costs would be absorbed through anticipated vacancy savings, primarily within the Department of Social Services and the Emergency Communications Center.
In addition, county staff recommended allocating $532,239 from the school’s local carryover from FY 2025 to satisfy the FY 2027 local requirement created by the state budget. Those funds will also provide $123,878 in discretionary local funding for Henry County Public Schools.
In other matters, the board:
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*Conducted a public hearing and approved the rezoning of approximately 25.64 acres in the Horsepasture District from Agricultural District A-1 to Industrial District I-1. The applicant plans to construct a new terminal building that will enable the potential expansion of airport services. This process will also require a special use permit.
*Conducted a public hearing and approved the rezoning of approximately 0.2 acres from Suburban Residential District S-R to Office and Professional District B-3. The rezoning brings the existing use into compliance and will allow greater flexibility for other potential uses.
*Conducted a public hearing and approved the rezoning of approximately 5.7 acres from Suburban Residential District S-R to Agricultural District A-1. The applicant wishes to keep livestock on the property.
*Approved an additional appropriation of $75,000 from the Virginia Department of Housing and Community Development to prepare a preliminary engineering report for the Bassett Community Center and develop a plan for potential reuse of the property.
*Approved an additional appropriation of $89,066 from state asset forfeiture funds to purchase ballistic vests for the Sheriff’s Office. The Board also awarded a contract to Angel Armor, LLC for this purpose.
*Awarded a contract in the amount of $390,280 to Haley Ford to purchase replacement vehicles for the Sheriff’s Office.
*Awarded a contract in the amount of $75,758 to Print Elect to purchase 17 secure voting supply cabinets for the Registrar’s Office.
*Awarded a contract in the amount of $107,348 to MainMicro Technologies Corporation for the renewal of Microsoft Office 365 licensing.
*Awarded a contract in the amount of $208,318 to GCSEAC, Inc., to update the 911 Center’s radio console equipment.
*Approved an additional appropriation of $838,000 from the one percent sales tax fund to replace electrical switchgear systems at Fieldale-Collinsville Middle School and Laurel Park Middle School.
*Approved an additional appropriation of $75,026 received from a School Security Officer Grant through the Virginia Department of Criminal Justice Services to fund an additional school security officer position at the division’s high schools. The grant requires a match of $23,533, which will come from the division’s existing budget
*Approved the items of consent.
*Heard an update on the delinquent tax collection efforts.
*Received the Virginia Association of Counties (VACO) Achievement Award for the annual Coat Drive for Kids. The annual drive was created and is spearheaded by Debra Buchanan, of the Horsepasture District.
*Rescinded the previously adopted two percent salary increase effective July 1 for full-time employees and adopted a 3.5 percent salary increase effective August 1.
*Scheduled a public hearing for the Aug. 26 meeting to receive public input on the 2026-2027 budget. The board is having to change its 2026-2027 budget as the General Assembly adopted its state budget on June 29.
*Approved using $5,000 of district impacts funds for events in the Iriswood District.
The Virginia Association of Counties presented its Achievement Award for the county’s annual Coat Drive for Kids. Debra Buchanan, of the Horsepasture District, and Garrett Dillard, of the Iriswood District, accepted the award.
