Newport News Public Schools: Funding Sources and Strategic Financial Management for Educational Excellence
Newport News Public Schools receives its operating budget revenues from three primary sources: State aid for public education, funds transferred from the City of Newport News, and federal impact aid. Additionally, the school system receives smaller amounts of revenue from non-resident tuition, fees, and receipts from athletic activities[1].
The School Board of Newport News Public Schools is funded by taxes collected and allocated by the City and state, along with federal aid. The City Council annually appropriates funds to the School Board for educational expenditures, levies taxes, and issues debt on behalf of the School Board. The School Board itself does not have the power to levy and collect taxes or increase the budget, making it a component unit of the city government as defined by Generally Accepted Accounting Principles (GAAP) for governmental entities[3].
The financial statements and supplementary data in the Annual Comprehensive Financial Report (ACFR) include all funds administered by the School Board in conjunction with its mission of providing elementary and secondary public education. The School Board operates within the resources available while achieving many of its program goals. The FY2023 General Fund budget projections included a continued decrease in student enrollment, which impacts the operating budget state revenue based on student enrollment. Changes in enrollment fluctuate during the school year and may translate into a loss in state revenue[3].
For FY2024, the state revenue increased by $20.4 million, and the City contribution increased by $3.4 million over FY2023. The federal government provided an allocation of $44.9 million in CARES Act funding in FY2022, which was completed in FY2024. Additionally, $82 million was allocated through the Elementary and Secondary School Emergency Relief III Fund under the American Rescue Plan Act in FY2022, with spending to be completed by September 2024. The forecast for FY2024 continues to be unclear, but modest revenue growth outside of ARPA funding is possible as the economic recovery continues[3].
The School Board adopted Journey 2025, a strategic plan to ensure all students graduate college, career, and citizen-ready. This plan includes five strategic supports necessary to achieve student success: Student Success, Student & Staff Wellness, and other components aimed at enhancing educational outcomes[3].
Federal programs also play a crucial role in funding Newport News Public Schools. The Office of Federal Programs manages funding received by the school division through federal and state sources. This funding enables students, teachers, and other staff members to have equitable opportunities for achievement and professional growth. The Federal Grants office distributes funds from several federal grants, including Title I Part A, Title 1 Part D, Title 2 Part A, Title 4 Part A, School Improvement (SIG), and the Virginia Preschool Initiative (VPI)[5].
Title I, Part A provides financial assistance to school divisions and public schools with high numbers or percentages of children from low-income families to help ensure that all children meet challenging state academic content and achievement standards. In Newport News Public Schools, Title I, Part A funds are used to provide teachers to support students in reading and/or math, and to support the preschool program. The preschool program, which includes 68 classrooms for 4 and 5-year-old children, is designed to help young learners gain an understanding of their world through developmentally-appropriate experiences. Family Engagement Specialists funded through Title I, Part A support identified Title I schools and the preschool program, helping parents build and develop partnerships with schools to help children achieve the state’s academic standards[5].
Overall, Newport News Public Schools relies on a combination of state, local, and federal funding to support its educational programs and ensure that all students have the resources they need to succeed. The School Board’s strategic plan and the management of federal programs are critical in achieving this goal.