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Alexandria prepares first school budget under new funding-by-category system

Alexandria prepares first school budget under new funding-by-category system

Rule Changes Alexandria, VA local

Alexandria's schools project a $17 million shortfall as a $370.6 million capital plan and a state funding fight take shape

Yesterday: City and ACPS launch joint state funding effort

Overview

Updated 4 hours ago

Alexandria City Public Schools projects a roughly $17 million shortfall in its fiscal 2028 operating budget, the first written under the city's new nine-category funding system. Mid-year transfers below $500,000 would go to the city manager and larger ones to the City Council under the plan staff presented in September.

On Nov. 5, Acting Superintendent Grace Taylor proposed a $370.6 million ten-year capital plan, $186.2 million above the city's guidance. Five days later, the city and schools began a six-month joint effort to build a case for changing Virginia's school funding formula, which assumes Alexandria can pay about 80% of school costs locally.

Why it matters

City hall can now block mid-year school spending shifts, so classroom, staffing and transportation money depends on council votes.

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Key Indicators

$500K
Mid-year transfer threshold
Transfers between budget categories below this amount during the year would be approved by the city manager; larger ones go to council.
$17M
Projected FY 2028 shortfall
ACPS's fiscal forecast gap, which does not include a new collective bargaining agreement.
$370.6M
Proposed capital plan
Taylor's ten-year plan. She said it was $186.2 million over city guidance; the district later said reserve funds bring it within the cap.

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People Involved

Kelly Carmichael Booz
Kelly Carmichael Booz
School Board Member, Alexandria City Public Schools
Leading public opposition to classification-based funding
MR
Michelle Rief
Chair, Alexandria City School Board
Cautious on funding change, did not oppose outright
 Alyia Gaskins
Alyia Gaskins
Mayor of Alexandria
Main proponent of classification-based funding
 Abdel Elnoubi
Abdel Elnoubi
Council Member and former School Board Member
Backed the funding change
 Dominic Turner
Dominic Turner
Chief Financial Officer, Alexandria City Public Schools
Presenting the district's fiscal 2028 budget outlook
 Grace Taylor
Grace Taylor
Acting Superintendent, Alexandria City Public Schools
Presented a $370.6 million capital plan on Nov. 5 that she said exceeds city guidance by $186.2 million

Organizations Involved

Alexandria City School Board
Alexandria City School Board
School board
Reviewing a $370.6 million capital plan, with a vote scheduled for Dec. 17

The elected board governing Alexandria City Public Schools.
Alexandria City Council
Alexandria City Council
Municipal legislative body
Approved category-based school funding; set to discuss ACPS's $370.6 million capital request at a Nov. 16 joint work session

The city's legislative body, which controls school appropriations.
Alexandria City Public Schools
Alexandria City Public Schools
Public school district
Projects a roughly $17 million FY 2028 operating gap and has proposed a $370.6 million ten-year capital plan

The public school district of the city of Alexandria.

Timeline

March 2026 November 2026

12 events Latest: Yesterday Showing 8 of 12
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  1. City and ACPS launch joint state funding effort

    Latest Initiative

    The city and school system announced a six-month work plan to develop recommendations for changing Virginia's K-12 funding formula. ACPS received $3,731 per student in state Standards of Quality funding in fiscal 2025, the lowest in Virginia, according to a state report.

  2. Taylor proposes $370.6 million capital plan

    Proposal

    Acting Superintendent Grace Taylor presented a $370.6 million ten-year capital improvement plan and said it was $186.2 million above the city's $184.4 million guidance. The district said a day later that reserve funds bring the plan within the city's cap.

  3. ACPS projects $17 million shortfall as FY 2028 talks open

    Meeting

    Chief Financial Officer Dominic Turner told the board at Alexandria City High School's Minnie Howard Campus that rising costs leave a roughly $17 million gap, and that the forecast does not include a collective bargaining agreement.

  4. School Board takes up FY 2028 budget priorities

    Meeting

    The board's Oct. 8 agenda included fiscal 2028 combined-funds and capital program budget priorities drafted from its Oct. 1 work session, built around the six goal areas of the ACPS 2030 strategic plan.

  5. City staff detail mechanics of category-based school funding

    Meeting

    Staff told City Council ACPS would send working budget figures in December, and that mid-year transfers between categories above $500,000 would require council approval. Mayor Gaskins asked for an add-delete process draft before the Nov. 10 budget guidance session.

  6. Board asked to approve FY 2028 budget calendar

    Decision

    Board asked to approve FY 2028 calendar, process resolution, and rules; no vote recorded.

  7. FY 2028 budget work session

    Meeting

    Work session reviews FY 2028 budget calendar, process resolution, and rules of engagement.

  8. Final FY 2027 budgets adopted

    Decision

    School Board adopts final FY 2027 combined-funds and capital improvement program budgets.

  9. Council approves classification-based funding

    Vote

    City Council unanimously approves resolution of intent for classification-based appropriation starting FY 2028.

  10. School board asks for delay

    Correspondence

    Board sends letter requesting council postpone the classification-funding vote.

  11. Booz pushes back on funding change

    Statement

    School board member publishes statement questioning legality of classification-based funding.

  12. Joint work session exposes funding gap

    Meeting

    City manager proposes FY 2027 budget; $5.6M gap over teacher pay deal emerges.

Scenarios

1

Alexandria adopts first classification-based school budget

Likely Resolves by Q2 2027

Discussed by: City staff and council majority

The FY 2028 budget moves through the standard cycle: calendar in September, priorities in October, superintendent's proposals in November and January, adoption in spring. Council approves the budget by nine classifications in June 2027, treating the change as a presentation and transparency improvement. Both bodies work out transfer mechanics without litigation.

2

Court blocks Alexandria's shift to classification-based school funding

Unlikely Resolves by Jul 1, 2027

Discussed by: Board member Kelly Carmichael Booz and both bodies' legal counsel

The legal questions Booz raised about whether the change conflicts with the city charter and Virginia code lead to a lawsuit. A court grants an injunction or voids the change, forcing the council back to a lump-sum approach for FY 2028 or later budgets.

3

Mid-year funding transfer fight erupts between council and school board

Uncertain Resolves by Feb 1, 2028

Discussed by: ALXnow and Alexandria Brief

During FY 2028, ACPS needs to move money between categories, say, for an enrollment surge or a building emergency. Under the new rule, council must approve. The vote becomes contentious, with council members demanding justification or conditioning the transfer, straining the relationship between the two bodies.

4

Alexandria closes ACPS's $17 million gap without program cuts

Uncertain Resolves by Q2 2027

Discussed by: ACPS Chief Financial Officer Dominic Turner

Turner said that without more revenue the district faces significant program reductions to balance fiscal 2028, and that the city supplies most of its money. The answer will come in the budget the council adopts next spring.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June 2002

New York City mayoral control of schools (2002)

New York state lawmakers gave the mayor direct control over the city's public school system, replacing the long-standing elected Board of Education with a board appointed by the mayor and a schools chancellor chosen by him.

Then

Mayor Michael Bloomberg gained near-total authority over school budgets and personnel decisions.

Now

The change was repeatedly renewed with conditions and became a recurring fight between later mayors, governors, and state lawmakers. Control over schools shifted permanently from an elected board to City Hall.

Why this matters now

Like Alexandria's measure, it pulled school budget authority away from an elected board and toward the city executive, showing how durable such shifts become once enacted.

June 2006 – July 2007

Los Angeles mayoral takeover attempt (2006-2007)

Mayor Antonio Villaraigosa pushed state legislation to seize partial control of the Los Angeles Unified School District, arguing the elected board was failing students. State lawmakers passed the law in 2006.

Then

The California Supreme Court struck down the law in 2007, ruling it violated the state constitution.

Now

The elected board kept control, but the attempt fueled years of tension between City Hall and the district over accountability.

Why this matters now

It shows an elected city leader trying to pull school control away from an elected board, and the legal limits such attempts can hit. In Alexandria, the question is whether the council's funding move survives its own charter and code reviews.

March 1999 – February 2016

Michigan emergency manager takeover of Detroit schools (1999-2016)

Michigan's emergency manager law allowed state-appointed managers to take over Detroit Public Schools' finances and operations, overriding local elected control.

Then

Managers imposed fiscal discipline while the district accumulated debt; power swung repeatedly between elected boards and state-appointed managers.

Now

The state took over again in 2009 and 2016, cementing a pattern where an appointed authority superseded the elected school board.

Why this matters now

It is the starkest example of an appointed fiscal authority overriding an elected school board, the dynamic at stake when Alexandria's council gains budget-veto power over ACPS.

Sources

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Alexandria City School Board Alexandria City Public Schools Alexandria Brief ALXnow Alexandria City School Board Alexandria City School Board Alexandria City Public Schools Alexandria Brief ALXnow Alexandria City Public Schools ALXnow Alexandria Brief ALXnow