COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO NO. 36
June 17, 2005
ADMINISTRATIVE
|
TO: |
Division
Superintendents |
|
FROM: |
Jo Lynne
DeMary Superintendent
of Public Instruction |
|
SUBJECT: |
Supplemental
Appropriation for Fiscal Year 2005 Basic Aid Payments |
The purpose of this memorandum is to notify school
divisions that fiscal year 2005 Basic Aid payments will be fully funded. As a result, the June 16th and
June 30th electronic fund transfers will be based upon your full
entitlement.
As in previous years, routine adjustments for normal
business activities will be made against each division’s Basic Aid payment,
where applicable, and as outlined for the current year in Administrative
Superintendent’s Memorandum Number 24 dated May 20, 2005, which provided school
divisions with final entitlement payments based upon your final average daily
membership (ADM) as of March 31, 2005.
In that memorandum, the department identified the potential for a
prorated reduction to each school division’s Basic Aid entitlement.
The
potential for a prorated reduction was identified at that time because the
appropriations for Direct Aid to Public Education included in the current
appropriation act (Chapter 951, 2005 Acts of Assembly) are not sufficient to
pay school divisions their full ADM entitlements for fiscal year 2005. The potential need for proration resulting
from the insufficient appropriations was identified and explained in several
Superintendent’s Memoranda over the last year.
As indicated in these memoranda, this appropriation shortfall is
attributable to the unfunded technical corrections contained in the current
appropriation act.
To avoid a prorated reduction in Basic Aid payments,
Governor Warner has taken action to supplement the Basic Aid appropriation for
the current fiscal year. As a result,
there will be no prorated reduction in Basic Aid.
An Excel file
is provided that shows final state payments based on full entitlements for
fiscal year 2005, required local effort for the Standards of Quality (SOQ)
accounts, and required local matches for incentive-based accounts calculated on
March 31, 2005, ADM. The accounts
affected by final March 31, 2005, ADM appear on the Excel file in bold italics
and are shown as the full entitlement with no adjustments. The file also shows this same information
for projected state entitlements in fiscal year 2006.
The Excel
file can be accessed from the department’s Web site at:
http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html
Attachment A
to this memorandum provides detailed instructions for accessing the Excel
entitlement file.
Attachment B
to this memorandum shows the routine Basic Aid adjustments for each school
division. As in past years, the
department’s normal practice for making certain types of adjustments to school
division payments is to adjust Basic Aid since it is the largest account. For example, the appropriation act directs
that adjustments for students in mental health or mental retardation facilities
be made against a school division’s Basic Aid payment. These and various similar adjustments will
be made to the fiscal year 2005 state Basic Aid entitlements for certain school
divisions beginning with the June 16, 2005, electronic funds transfer
(EFT). Where applicable, these
adjustments will reduce the fiscal year 2005 Basic Aid entitlement paid to
school divisions. As noted above, the
estimated adjustments to Basic Aid (as of the June 16, 2005, EFT) are shown in
Excel file in the sheet labeled “Adjustments to FY05 Basic Aid.” For additional information on the
adjustments to fiscal year 2005 Basic Aid payments, please see Administrative
Superintendent’s Memorandum Number 24 dated May 20, 2005.
If you have
any questions concerning the information in this memorandum, please contact
Daniel S. Timberlake, assistant superintendent for finance, or budget office
staff at (804) 225-2025.
http://www.doe.virginia.gov/VDOE/suptsmemos/2005/adm036a.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2005/adm036b.pdf