11. Educational Technology Payments

a. Any unobligated amounts transferred to the educational technology fund shall be disbursed on a pro rata basis to localities. The additional funds shall be used for technology needs identified in the division's technology plan approved by the Department of Education.

b. The Board of Education shall provide $12,703,840 the first year and $12,697,650 the second year from the Literary Fund to provide debt service payments for the education technology grant program conducted through the Virginia Public School Authority in 1997 for the purpose of providing technology improvements to school infrastructure, networking, and for purchasing technology equipment.

c.1) The Board of Education shall provide amounts estimated at $10,553,408 the first year and $10,554,530 the second year from the Literary Fund to provide debt service payments for the education technology grant program conducted through the Virginia Public School Authority in 1998. Proceeds from the 1998 issuance continue the implementation of the Board of Education's Six-Year Educational Technology Plan for Virginia, including: a) retrofitting and upgrading of existing school buildings to efficiently use educational technology, b) providing network-ready multimedia microcomputers for every classroom, and c) providing a 5 to 1 ratio of pupils to network-ready microcomputers.

2) It is the intent of the General Assembly to appropriate Literary Fund revenues sufficient to pay debt service on the Virginia Public School Authority bonds authorized for this program. In developing the proposed 2002-04 biennial budget for public education, the Board of Education shall include a recommendation to the Governor to appropriate Literary Fund revenues sufficient to make the debt service payments for this program in fiscal year 2003.

d.1) The Board of Education shall provide amounts estimated at $15,788,833 the first year and $15,615,387 the second year from the Literary Fund to provide debt service payments for the education technology grant program through the Virginia Public School Authority in 2000. The 2000 program is focused on four major components: a) retrofitting and upgrading of existing school buildings to efficiently use educational technology; b) providing network-ready multimedia microcomputers for every classroom; c) providing a 5 to 1 ratio of pupils to network-ready microcomputers; and d) replacement of administrative and student management and information systems supporting data requirements associated with the Standards of Accreditation in school divisions lacking adequate systems.

2) It is the intent of the General Assembly to appropriate Literary Fund revenues sufficient to pay debt service on the Virginia Public School Authority bonds authorized for this program. In developing the proposed 2002-04 and 2004-06 biennial budgets for public education, the Board of Education shall include a recommendation to the Governor to appropriate Literary
Fund revenues sufficient to make the debt service payments for this program in FYs 2003, 2004, and 2005.

e. 1) The Board of Education shall provide an amount estimated at $13,768,557 the second year from the Literary Fund to provide debt service payments for the education technology grant program conducted through the Virginia Public School Authority in 2001.

2) It is the intent of the General Assembly to appropriate Literary Fund revenues sufficient to pay debt service on the Virginia Public School Authority bonds or notes authorized for this program. In developing the proposed 2002-04, 2004-06 and 2006-08 biennial budgets for public education, the Board of Education shall include a recommendation to the Governor to
appropriate Literary Fund revenues sufficient to make debt service payments for this program in fiscal years 2003, 2004, 2005, 2006, and 2007.

3) An education technology grant program shall be conducted through the Virginia Public School Authority, through the issuance of equipment notes in an amount estimated at $56,910,000 in the spring of 2001 and $56,910,000 in the spring of 2002. Proceeds of the notes will be used to establish a computer-based instructional and testing system for the Standards of Learning (SOL) and connecting high schools (and middle and elementary schools as appropriate), Best Practice Centers and the central office of the Department of Education.

4) Grant funds from the issuance of $56,910,000 in equipment notes in each year are based on a grant of $26,000 per school and $50,000 per school division. For purposes of this grant program, eligible schools shall include those reporting membership as of September 30, 2000 and 2001, respectively, as well as division and regional vocational centers, regional special
education centers, regular school year regional Governor's Schools, and the Schools for the Deaf and the Blind.

5) Localities are required to provide a match for these funds equal to 20 percent of the grant amount. At least 25 percent of the local match shall be used for teacher training in the use of technology. The Superintendent of Public Instruction is authorized to reduce the required local match for school divisions with a composite index of local ability-to-pay below 0.2000. The Schools for the Deaf and the Blind are exempt from the match requirement.

6) The goal of the program is to improve the instructional, remedial and testing capabilities of the Standards of Learning for local school divisions.

7) Funds shall be used in the following manner:

a) Each division shall use funds to reach a goal, in each high school, of: (1) a 5-to-1 student to computer ratio; (2) an Internet-ready local area network (LAN) capability; and (3) Network Virginia or web-equivalent access to the Internet. School connectivity (computers, LAN's and network access) shall include sufficient download/upload capability to ensure that each student will have adequate access to Internet-based instructional, remedial and assessment programs.

b) When each high school in a division meets the goals established in paragraph a) above, the remaining funds shall be used to develop similar capability in first the middle schools and then the elementary schools.

c) For purposes of this program, a high school shall be defined as any school providing instruction in grades 9 through 12, which includes regional vocational centers, regional special education centers, regular school year regional Governor's Schools, and the Schools for the Deaf and the Blind.

8) Local school divisions shall maximize the use of available federal funds, including E-Rate Funds, and to the extent possible, use such funds to supplement the program and meet the goals of this program.

9) To receive funds under this program, school divisions must submit to the Department of Education an "Intent to Participate" statement by August 1, 2000, and a "Plan for the Use of the Funds" no later than November 1, 2000. The Department of Education, with the assistance of the Department of Technology Planning, shall determine the format for the "Intent to Participate" and the "Plan" and furnish those formats to each school division by July 1, 2000. At a minimum, each locality's Plan shall include:

a) A commitment to be capable of administering the Standards of Learning tests in each high school by May 1, 2003;
b) A commitment to appropriate the local match;
c) A commitment to provide to the Department of Education a detailed review of any purchased SOL software application to be shared with the Best Practice Centers and other school divisions;
d) A commitment to use E-Rate Funds and a projection of the extent to which E-Rate Funds can be used to meet the goals of this initiative;
e) The submission to the Department of Education of a status report of each high school's current technological capacity to meet the goals of this program based upon criteria developed by the Department of Education;
f) Plans to create technological capacity if the capacity at each high school is not adequate; and
g) A commitment to use funds to build capacity, using established criteria, at first the middle schools and then the elementary schools in the division if the capacity is considered adequate at each high school.

f. The Department of Education, with the assistance of the Department of Technology Planning, shall develop criteria to determine if high schools have the capacity to meet the goals of this initiative. The Department of Education shall be responsible for the project management of this program. The Department of Education, with the assistance of the Department of Technology Planning, shall report on the implementation of this program to the Chairmen of the Senate Finance and House Appropriations Committees by September 1 of each year.

g.1) In the event that, on any scheduled payment date of bonds or notes of the Virginia Public School Authority (VPSA) authorized under the provisions of a resolution adopted subsequent to June 30, 2000, for the purpose described in §22.1-166.2, Code of Virginia, issued subsequent to June 30, 2000, and not benefiting from the provisions of either §22.1-168 (iii), (iv) and (v), Code of Virginia, or §22.1-168.1, Code of Virginia, the available moneys in the Literary Fund are less than the appropriations for debt service due on such bonds or notes of the VPSA on such date, there is hereby appropriated to the VPSA from the general fund a sum equal to such deficiency. For purposes of this paragraph g., "available moneys in the Literary Fund" shall mean moneys remaining after the payment, or provision for payment, of debt service on bonds or notes issued prior to July 1, 2000, and payable from the Literary Fund.

2) The Chairman of the Board of Commissioners of the VPSA shall, on or before December 1 of each year, make and deliver to the Governor and the Secretary of Finance a certificate setting forth his estimate of total debt service during each fiscal year of the biennium on bonds and notes of the VPSA issued and projected to be issued during such biennium pursuant to the
resolution referred to in paragraph 1) above. The Governor's budget submission each year shall include provisions for the payment of debt service pursuant to paragraph 1) above.

h. 1) Out of this appropriation an amount estimated at $1,135,345 the first year from the general fund shall be disbursed by the Department of Education to school divisions that participated in the administrative and student management and information systems purchase program during the 1998-2000 biennium.

2) These payments are available to any school division that participated in the program during the 1998-2000 biennium and certifies to the Department of Education that necessary upgrades and maintenance will be completed with the funds provided.

3) Localities receiving these payments are required to match these funds based on the composite index of local ability-to-pay.

i. Unspent proceeds of the notes, including investment income derived from the proceeds of the notes may be used to pay interest on, or to defease principal of the notes.

j. 1) For the purposes of § 56-232, Code of Virginia, "Contracts of Telephone Companies with State Government" and for the purposes of §56-234 "Contracts for Service Rendered by a Telephone Company for the State Government" shall be deemed to include communications lines into public schools which are used for educational technology. The rate structure for such lines shall be negotiated by the Superintendent of Public Instruction and the Director of the Department of Technology Planning. Further, the Superintendent and Director are authorized to encourage the development of "by-pass" infrastructure in localities where it fails to obtain competitive prices or prices consistent with the best rates obtained in other parts of the state.

2) The State Corporation Commission, in its consideration of the discount for services provided to elementary schools, secondary schools, and libraries and the universal service funding mechanisms as provided under § 254 of the Telecommunications Act of 1996, is hereby encouraged to make the discounts for intrastate services provided to elementary schools, secondary schools, and libraries for educational purposes as large as is prudently possible and to fund such discounts through the universal fund as provided in § 254. The Commission shall proceed as expeditiously as possible in implementing these discounts and the funding mechanism for intrastate services, consistent with the rules of the Federal Communications Commission aimed at the preservation and advancement of universal service.

k. An amount estimated at $8,684,679 the first year and $8,684,679 the second year from federal funds is appropriated pursuant to the Goals 2000: Educate America Act.

l. An amount estimated at $2,851,387 the first year and $2,851,387 the second year from federal funds is appropriated from the federal Technology Literacy Challenge Fund.

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