DEPARTMENT OF EDUCATION
P.O.
SUPTS. MEMO NO. 3
July 7, 2006
REGULATORY
|
TO: |
Division
Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
Final Enacted 2006-2008 Biennial Budget Signed by
Governor Kaine (Chapter 3, 2006 Acts of Assembly, Special Session I) |
Section 22.1-93, Code
of Virginia, requires the Department of Education to provide “...estimates
to be used for budgetary purposes relative to the Basic School Aid Formula...”
following the conclusion of the General Assembly session based upon the budget
actions taken by the General Assembly with respect to public education. The revenue estimates provided in this
memorandum represent the state funding that is projected to be distributed to
school divisions in fiscal years 2007 and 2008 based on the final enacted
2006-2008 biennial budget (Chapter 3, 2006 Acts of Assembly, Special Session I)
signed by Governor Kaine on June 30, 2006.
Fiscal year
2007 begins on July 1, 2006, and ends on June 30, 2007. Fiscal year 2008 begins on July 1, 2007, and
ends on June 30, 2008.
The
attachments to this memorandum provide information on the changes to the
Governor’s introduced budget (introduced as HB/SB 30 at the regular session;
reintroduced as HB/SB 5002 at the special session) that were signed into law as
Chapter 3, 2006 Acts of Assembly, Special Session I (also known as the 2006
Appropriation Act). Unless changes are
specifically noted in the attachments, the proposals contained in the
introduced version of HB/SB 5002 were adopted as outlined in Informational
Superintendent’s Memorandum No. 251, dated December 27, 2005. Please note that Chapter 3 and the
entitlements for each school division contained in Attachment B to this
memorandum are based on the department’s latest projections of March 31 average
daily membership (ADM) for those accounts that use ADM to determine the amount
of funding.
The attachments to this memorandum include:
Several of the
incentive and categorical account entitlements shown in Attachment B (Group III
and IV accounts) are funded on a reimbursement basis and represent the
department’s latest projections of those reimbursements; however, final payments on
these accounts in fiscal years 2007 and 2008 will be based on actual qualifying
expenses submitted to the department for reimbursement. Because Attachment B shows projected
entitlements for each school division (based on the department’s projected
March 31 ADM only) in .pdf format, the entitlements cannot be changed to test
the impact of different ADM assumptions.
If you wish to see the effects of a different ADM on funding for your
school division in those accounts where funding is based on ADM, please use the
Excel calculation file described in the next paragraph.
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 for fiscal years 2007 and 2008 for most Direct Aid programs based
on Chapter 3. This file gives divisions the opportunity to
change ADM to test the effect on projected state funding and projected local
match requirements using the department’s projected ADM or a local projection
of ADM. (Attachment B contains projected
entitlement information for each school division in .pdf format based on the
department’s projected ADM only and cannot be modified.) 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 to project state funding and required local matches.
Changing the projected March 31 ADM in this file
only changes the estimated funding for accounts that are funded on the basis of
ADM, excluding the school construction grants program payments that are funded
based on ADM from the prior year. The
estimated funding for all other accounts is unaffected
by changing ADM in this file and, therefore, remains the same. The fiscal year 2007 entitlements will not be
finalized until they are recomputed using actual March 31, 2007, ADM and other
final program participation information.
Actual fiscal year 2008 entitlements will not be finalized until after a
similar process is followed next year. The
payment of semi-monthly SOQ account entitlements and other accounts paid on the
basis of ADM will begin using DOE’s projections of
division March 31 ADM. These payments
may be adjusted at mid-year based on the department’s revised ADM
forecast. All ADM-based payments will be
made in this manner pending the recalculation of final entitlements based on
actual March 31 ADM at the end of each fiscal year.
Attachment C to this memorandum provides detailed
instructions for accessing the Excel 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
.
Questions regarding the final enacted 2006-2008
biennial budget (Chapter 3, 2006 Acts of Assembly, Special Session I) and the
projections of Direct Aid entitlements for fiscal years 2007 and 2008 may be
directed to Dan Timberlake, assistant superintendent for finance, or budget
office staff at (804) 225-2025.
bkc/bkl
Attachments
http://www.doe.virginia.gov/VDOE/suptsmemos/2006/reg003a.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2006/reg003b.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2006/reg003c.pdf
C: local governing bodies