DEPARTMENT
OF EDUCATION
P.O.
SUPTS. MEMO
NO. 101
May 15, 2007
INFORMATIONAL
|
TO: |
Division Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
Final Fiscal Year 2007 State
Entitlements Based on Actual March 31, 2007, ADM, Adjustments to the Fiscal
Year 2007 Basic Aid Entitlement, and Estimated Fiscal Year 2008 School Nurse
Support Cost Funded in Basic Aid |
Administrative
Superintendent’s Memorandum Number 006, dated February 9, 2007, required
school divisions to report average daily membership (ADM) as of March 31, 2007. The data reported by divisions were used to
recalculate all ADM-based state entitlements for fiscal year 2007. On a statewide basis, actual March 31, 2007, ADM
was less than the projected ADM on which the current state budget for fiscal
year 2007 (Chapter 847) is based. Consequently,
school divisions will receive their full ADM-based state entitlement payments
for fiscal year 2007 with no changes other than the routine adjustments that
are made to the Basic Aid entitlements for some divisions each year as
described later in this memorandum.
The information in this memorandum
contains the final state funding due to school divisions in fiscal year 2007
for ADM-based accounts. Also, where
available, final entitlements are shown for other Direct Aid accounts that are
not calculated based on ADM.
Entitlements for some accounts that require school divisions to submit
reimbursements have not been finalized for the year and the entitlements shown
are estimates only.
The Excel calculation file shows
state entitlements, required local effort for the Standards of Quality (SOQ)
accounts, and required local matches for school facilities and incentive
accounts calculated based on actual March 31, 2007, ADM. The accounts affected by actual March 31, 2007,
ADM appear in the Excel file in bold italics and are shown as the full
entitlement with no adjustments. The
calculation template can be downloaded from the Department of Education 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 final fiscal year 2007 entitlements for each school division for the
Standards of Quality (SOQ), school facilities, and incentive accounts that are
based on actual March 31, 2007, ADM.
Please note that, unlike previous Excel calculation files for fiscal
year 2007 provided by the department, this file does not offer an option to
change ADM for fiscal year 2007 since ADM is now final.
Attachment C to this memorandum
shows the final, routine adjustments to the fiscal year 2007 state Basic Aid
entitlement amounts, which are explained in further detail below.
Please note the following when
reviewing the data contained in the Excel file:
1. Basic Aid:
The fiscal year 2007 state Basic Aid entitlement amount contained in the “State
and Local Funds Worksheet” in the Excel calculation file does not reflect any
required adjustments for circumstances such as overpayments or payments made on
behalf of school divisions to the schools for the deaf and the blind, mental
health/mental retardation facilities, or summer residential Governor’s School
programs. The adjustments made to fiscal
year 2007 Basic Aid entitlements are described below and are listed in the
sheet labeled “Adjustments to FY07 Basic Aid.”
The final amount to be paid to school divisions in fiscal year 2007 for
Basic Aid is contained in this sheet.
2. Sales Tax:
The fiscal year 2007 sales tax estimates contained in the Excel calculation
file represent the Department of Taxation’s official forecast of sales tax
included in the Chapter 847 budget. The sales
tax estimates contained in Chapter 847 must be used to compute the Basic Aid
entitlement for fiscal year 2007. Chapter
847 specifically states:
“…In the event that
the actual revenues from the state sales and use tax returned (on the basis of
the latest triennial count of school age population) for sales in the fiscal
year in which the school year begins are different from the number estimated as
the basis for this appropriation, the estimated revenues shall not be
adjusted.”
Please
be advised that, based upon the actual year-to-date sales tax receipts for
fiscal year 2007 through May, the estimate of fiscal year 2007 sales tax
revenue appropriated in Chapter 847, 2007 Acts of Assembly (amended 2006-2008
appropriation act), appears to be overestimated. The total amount of actual sales tax receipts
for fiscal year 2007 will not be finalized until mid-June. The semi-monthly payments of sales tax in May
and June will be based on the actual sales tax receipts for these two months,
not the estimated sales tax distribution as provided in the Excel calculation
template.
As
required by language in Item 135, Chapter 847, the Basic Aid entitlement
calculation for fiscal year 2007 is based on the distribution of the estimated
amount of sales tax revenue for fiscal year 2007 and will not be adjusted for
the actual sales tax revenue received for the year. Thus, the fiscal year 2007 state and local
shares of Basic Aid based on actual March 31, 2007, ADM, as communicated in this
memorandum, are final and will not change.
School divisions are encouraged to take the appropriate steps now to
plan for the anticipated decrease in the actual sales tax distribution for
fiscal year 2007. Final information on
actual sales tax receipts on a cash and an accrual basis will be posted on the
department’s Web site in July as part of the fiscal year 2007 Annual School
Report information.
3. School
Facilities, Incentive, and Categorical Accounts: School Facilities and Incentive accounts represent the full
entitlement for actual participation in fiscal year 2007. For Categorical accounts other than fiscal
year 2007 Foster Care, the entitlements do not reflect final participation or
reimbursement levels for the year and are shown as estimated entitlements only.
4. VPSA
Technology: VPSA Technology (i.e., SOL
Web-based Technology Initiative) entitlements reflect the total entitlement that
is allocated to the school division for the note issue offered in the
designated year. They do not reflect
actual reimbursement payments requested and paid to the school division. Please be aware that entitlements for
regional programs are included in school division fiscal agent totals; however,
actual reimbursements for the spring 2007 issue may be made directly to
regional programs from State Non-Arbitrage Program (SNAP) allocations if they
are established separately in SNAP for the regional program.
5. Local Lottery Distribution: The distribution of local lottery revenue to
school divisions is based on the per pupil amount of $222.31 listed in Chapter
847 for fiscal year 2007. The
semi-monthly Lottery payments for fiscal year 2007 will be adjusted for actual
ADM beginning with the May 31, 2007, electronic funds transfer (EFT).
Adjustments
to the Fiscal Year 2007 Basic Aid Entitlement for Certain School Divisions
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 Direct Aid
account. 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. Consequently, various adjustments will be
made to the fiscal year 2007 state Basic Aid entitlements for certain school
divisions beginning with the May 31, 2007, EFT.
Where applicable, these adjustments will reduce the fiscal year 2007
Basic Aid entitlement paid to school divisions.
As noted above, the estimated adjustments to Basic Aid (as of the May
31, 2007, EFT) are shown in the sheet labeled “Adjustments to FY07 Basic
Aid.” The Basic Aid adjustments for
fiscal year 2007 shown in the Excel file are as follows:
1.
Driver
Education Funds Portion of Basic Aid – As required by Chapter 847, this
adjustment reduces the Basic Aid entitlement for school divisions that are not
eligible to receive Driver Education funds in fiscal year 2007.
2.
Local Tuition
for Summer Residential Governor’s Schools – Lists the local share of
tuition for Summer Residential Governor’s Schools paid by the department on
behalf of school divisions and that is owed to the department in fiscal year
2007. This deduction reduces the Basic
Aid entitlement paid to affected divisions.
3.
Local
Tuition for Foreign Language Academies – Lists the local share of tuition
for Foreign Language Academies paid by the department on behalf of school
divisions and that is owed to the department in fiscal year 2007. This deduction reduces the Basic Aid
entitlement paid to affected divisions.
4.
Mental
Health Local Share of Cost – This adjustment is for the school division’s
share of the cost of educating children in state mental health hospitals. The data used to calculate this adjustment
are based on the 2005-2006 school year.
This adjustment to the division Basic Aid entitlement is in accordance
with Chapter 847, 2007 Appropriation Act.
5.
Mental
Retardation Local Share of Cost – This adjustment is for the school
division’s share of the cost of educating children in state mental retardation
facilities. The data used to calculate
this adjustment are based on the 2005-2006 school year. This adjustment to the division Basic Aid
entitlement is in accordance with Chapter 847, 2007 Appropriation Act.
6.
Local
Tuition for Schools for the Deaf and the Blind – This
adjustment is for the local tuition payment for students enrolled at the
In order to maintain proper
accounting for adjustments made to Basic Aid entitlements for payments made on
behalf of school divisions (adjustments two through six above), it is necessary
for each school division to report the full entitlement or gross revenue of
Basic Aid funds under revenue source code 240202 (Basic School Aid) on the 2006-2007
Annual School Report. To balance this
gross Basic Aid revenue on the 2006-2007 Annual School Report, school divisions
with adjustments to Basic Aid for Summer Residential Governor’s Schools, Foreign
Language Academies, mental health/mental retardation facilities, or schools for
the deaf and the blind should report these adjustment amounts as expenditures
in the Instruction Function (61000) and Object Code 3000 (Purchased Services),
using the appropriate program(s).
For those divisions where the final
Basic Aid payment was adjusted for non-eligibility for Driver’s Education funds
in item one above, the amount of the overpayment will be deducted from your
unadjusted or full Basic Aid entitlement as shown in the Annual School
Report. The reduced Basic Aid
entitlement will be shown on the “Revenues” worksheet under revenue source code
240202 on your Annual School Report. No
further reporting action is required, since the adjusted Basic Aid entitlement
will show the reduction, but school divisions should make note of this
adjustment, and can reference Attachment C to this memorandum for further
detail on adjustments for overpayment and non-eligibility for Driver’s
Education funds.
Special
Reminder on Carry-Forward Provision Language in
Chapter
847 (Fiscal Year 2007 to Fiscal Year 2008)
As described in Informational
Superintendent’s Memorandum No. 89, Chapter 847 permits
unexpended state funds as of June 30, 2007, to be carried forward by school
divisions to fiscal year 2008 for the following Direct Aid accounts only:
1.
School Construction Grants Program (revenue
source code 240306)
2.
Lottery (revenue source code 240233)
3.
Additional Lottery (revenue source code
240237)
4.
Competitive Leadership Grant (revenue source
code 240294)
5.
Textbooks (revenue source code 240214).
State
funds received by school divisions in fiscal year 2007 for the School
Construction Grants Program and Lottery/Additional Lottery may also be paid
into escrow accounts pursuant to Sections 22.1-175.5 and 22.1-100.1, Code of
Virginia, respectively, and carried forward indefinitely.
School
divisions that received a Competitive Leadership Grant in fiscal year 2006 are
allowed to retain any unspent balances and are permitted to spend any remaining
balances for the intended purposes during the ensuing two fiscal years (during
fiscal years 2007 and 2008). School
divisions that received a Competitive Leadership Grant in fiscal year 2007 are
allowed to retain any unspent balances and are permitted to spend any remaining
balances for the intended purposes during the ensuing two fiscal years (during
fiscal years 2008 and 2009).
Please
note that the carry forward provision for SOL Algebra Readiness program funds
has been eliminated for fiscal years 2007 and 2008 based on language changes
adopted in the Chapter 847 budget. Consequently,
any state funds received by school divisions for the SOL Algebra Readiness
program in fiscal year 2007 or fiscal year 2008 must be spent by June 30, 2007,
or June 30, 2008, respectively, or these unspent state funds must be returned
to the department.
Except
for the five accounts listed above, all other state Direct Aid to Public
Education funds received by school divisions in fiscal year 2007 must be
expended by June 30, 2007; otherwise, any state funds received in fiscal year
2007 that have unexpended balances as of June 30, 2007, are subject to the
reversion requirement of Section 22.1-100, Code of Virginia, and must be returned to the department.
Estimated
Fiscal Year 2008 School Nurse Support Cost
Funded
in Basic Aid
Item 135, Paragraph
A.3.b of Chapter 847, 2007 Appropriation Act, requires the Department of
Education to report annually to school divisions the school nurse support cost
funded as part of Basic Aid:
“The amount resulting from the
support cost calculation for school nurses shall be specifically identified as
such and reported to school divisions annually.
School divisions will allocate these funds for school nurse positions or
for contracted services of health professionals providing health services.”
This memorandum
and Attachment D provide the required information on the fiscal year 2008
support cost calculation for school nurses funded as part of Basic Aid.
Attachment D to
this memorandum contains division-level detail on the estimated fiscal year 2008
school nurse support cost funded in Basic Aid.
This Excel file is provided to school divisions on a projected basis
only. The data in the file is based on
projected March 31, 2008, adjusted average daily membership (ADM). Actual school nurse costs funded in Basic Aid
will be based on actual March 31, 2008, ADM and the final school nurse cost
contained in Basic Aid.
If you have any questions concerning
the information in this memorandum, please contact Kent Dickey, assistant
superintendent for finance, or budget office staff at (804) 225-2025.
BKCJr/bkl
Attachments
http://www.doe.virginia.gov/VDOE/suptsmemos/2007/inf101a.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2007/inf101b.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2007/inf101c.pdf
http://www.doe.virginia.gov/VDOE/suptsmemos/2007/inf101d.pdf