As part of the General Assembly’s Conference report budget and Governor Youngkin’s May 2 final actions for the 2025 General Assembly Session, VACo’s top funding priority was achieved by the functional elimination of the cap on recognition of K-12 support positions. This action provides $222.9 million in FY 2026 in funding to local governments to fund positions at a ratio that corresponds with prevailing local practice. This action has been long sought by VACo and its advocacy partners during the 15 years the cap has been in place. The General Assembly had made incremental progress recently to close what was originally a more than $400 million gap in funding. With this final action, the level of support position funding from the state has been restored to pre-Great Recession levels.
As previously reported, VACo and advocacy partners worked with the Joint Subcommittee on Elementary and Secondary Education Funding to ensure that the repeal of the support cap was the top recommendation of the subcommittee to the General Assembly. This follows the recommendations from the landmark 2023 Joint Legislative Audit and Review Commission (JLARC) study, which revealed that state support for K-12 education in Virginia was being underfunded by billions of dollars. While the functional elimination of the support cap represents a significant first step, there is more work to be done to improve education funding in the Commonwealth.
Additionally, the finalized budget contains approximately $53 million in FY 2026 for a special education add-on. This is a major development as local revenues cover 69% of the cost of special education in Virginia, with the remaining 19% and 11% being paid by the state and federal government respectively. The joint subcommittee also made a recommendation to the General Assembly to invest additional funding in this area.
Lastly, the finalized budget contains $360 million in grant funding for school capital needs. VACo has advocated annually for additional funds in this area of critical need as well as additional tools for localities to raise needed revenues. Though the Governor ultimately vetoed legislation that would have expanded school construction financing options to localities across the Commonwealth, continued investments are greatly needed.
VACo thanks the General Assembly, the Governor, and our members for the advocacy and leadership on these issues.
VACo Contact: Jeremy R. Bennett