DEPARTMENT OF EDUCATION
P.O.
SUPTS. MEMO NO.
262
December 15, 2006
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
Amendments
to the 2006-2008 Biennial Budget as Proposed by Governor Kaine (HB 1650/SB
750) |
Governor
Kaine’s proposed amendments to the current 2006-2008 biennial budget (i.e., Chapter
3 and Chapter 10, 2006 Acts of Assembly, Special Session I) were presented on
Friday, December 15, 2006, before a joint session of the Senate Finance, the
House Appropriations, and the House Finance committees. These amendments to the 2006-2008 budget will be considered by the 2007 Session of the General
Assembly, which is scheduled to convene on January 10, 2007. The Governor’s amendments adjust funding for
both years of the biennium, fiscal year 2007 (current year) and fiscal year 2008. Fiscal year 2007 began on July 1, 2006, and
ends June 30, 2007. Fiscal year 2008 begins
July 1, 2007, and ends June 30, 2008.
The introduced budget bill containing the Governor’s amendments is House
Bill 1650/Senate Bill 750.
The
recommendations made by the Governor regarding the Direct Aid to Public
Education budget include technical adjustments to the Standards of Quality
(SOQ), incentive, categorical, and school facilities accounts, as well as
increased funding for existing programs.
The Governor’s recommendations include funding for the state share of
all SOQ programs and the continuation of all existing incentive, categorical,
school facilities, and supplemental education programs in Direct Aid. The major actions proposed in Governor Kaine’s
amended 2006-2008 budget include:
·
Adjustments
for enrollment changes, program participation, and other technical updates in
fiscal years 2007 and 2008;
·
Distribution
of additional sales tax revenues in fiscal years 2007 and 2008, and an
adjustment to the sales tax hold harmless payment in fiscal year 2007;
·
A
revision to the lottery revenue forecast in fiscal years 2007 and 2008;
·
Updated
group life and retiree health care credit benefit rates for fiscal year 2008;
·
Funding
in fiscal year 2008 for pre-kindergarten pilot programs;
·
A
three percent compensation supplement (effective December 1, 2007) in fiscal
year 2008 for all instructional and support positions funded in the Standards
of Quality;
·
Transportation
services for foster care students in fiscal year 2008;
·
Addition
of sixth-grade students to the Standards of Learning (SOL) Algebra Readiness
program funding in fiscal year 2008;
·
A
revision to the Early Reading Intervention program funding formula to fund 100
percent of eligible students in grades one and two in fiscal year 2008;
·
Fully
funding the School Breakfast Program in both years;
·
Language
changes regarding the payment of Governor’s Schools funds to match current
practice.
Attachment
A to this memorandum provides summary information on the funding changes
proposed by the Governor for fiscal years 2007 and 2008 that affect the Direct
Aid to Public Education and the Department of Education Central Office budgets.
Attachment
B to this memorandum lists the estimated entitlements for each school division for
the SOQ, incentive, categorical, and school facilities accounts for fiscal year
2007 and fiscal year 2008 based on the Governor’s amendments to the 2006-2008
budget. The estimated entitlements shown
in Attachment B are based on the Department of Education’s latest projections
of March 31 average daily membership (ADM) for fiscal years 2007 and 2008 only
and cannot be modified. The entitlements
shown in Attachment B do not include the direct grants (Financial Assistance
for Supplemental Education service area) authorized by the General Assembly
that are unique to certain school divisions.
Several of the categorical account entitlements shown in Attachment B (Financial
Assistance for Categorical Programs service area) are funded on a reimbursement
basis and represent the department’s latest projected entitlements; however,
final payments on these accounts in fiscal years 2007 and 2008 will be based on
actual, eligible reimbursement requests submitted by school divisions.
In
addition to the entitlement information contained in Attachment B, a
downloadable Excel file has been created to assist school divisions in
calculating projected state entitlements and required local matches in fiscal
years 2007 and 2008 for most Direct Aid programs. This file gives divisions the opportunity to
change ADM to test the effect on projected state funding and local match
requirements using the department’s projected ADM or a local projection of ADM. Although we have confidence in the accuracy
of our ADM projections on a statewide basis, experience has shown that the
accuracy of our projections for individual divisions may vary. When divisions believe that they have more
accurate projections of their March 31 ADM, they are encouraged to substitute
their estimates for those provided in this memorandum when using the Excel
calculation file.
Please
note that changing the ADM value in the Excel file only changes the estimated
funding for accounts that are funded on the basis of ADM; the estimated funding
for all other accounts is unaffected by changing ADM in the Excel file and,
therefore, remains the same.
Also
note that sales tax estimates in the Excel calculation file are revenue
projections only. Actual sales tax payments
made to school divisions in fiscal years 2007 and 2008 on a semi-monthly basis will
be based on actual sales tax receipts.
Pursuant to the Appropriation Act, the Basic Aid entitlement calculation
is based on the estimated sales tax appropriation only and is not adjusted for
actual sales tax revenues received.
Attachment
C to this memorandum provides detailed instructions for accessing the Excel calculation
file from the Department of Education Web site.
The Excel file may be downloaded from the following Web address:
http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html
It
is important to remember that the information provided in Attachment B and in
the Excel calculation file relates to the Governor’s proposed amendments to the
2006-2008 budget as introduced. The House of Delegates and the Senate will
have the opportunity to amend the Governor’s budget proposals during the 2007
General Assembly session. The General
Assembly will adopt a final amended 2006-2008 biennial budget before the end of
the 2007 session, projected to be late February 2007; therefore, the estimated
entitlements contained in Attachment B and in the Excel calculation file are
projections only and are subject to change as a result of legislative action by
the 2007 General Assembly.
The
department will provide additional information during the General Assembly
session as changes to the estimated Direct Aid entitlements occur. After the conclusion of the session,
projected entitlements based on final General Assembly actions will be sent to
you in another Superintendent’s Memorandum.
Please note, the actual fiscal year 2007
entitlement payments will not be finalized until they are recomputed using
actual March 31, 2007, ADM and other final program participation
information. Actual fiscal year 2008
entitlement payments will not be finalized until after a similar process is
followed next year.
Questions regarding the Governor’s proposed amendments to the
2006-2008 budget and the revised estimates of Direct Aid entitlements for
fiscal years 2007 and 2008 may be directed to Kent Dickey, budget director, or
budget office staff at (804) 225-2025.
BKCJr/kw
Attachments
http://www.doe.virginia.gov/VDOE/suptsmemos/2006/inf262a.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2006/inf262b.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2006/inf262c.pdf