SUPTS. MEMO. NO. 3
April 5, 1996
|FROM:||William C. Bosher, Jr.
Superintendent of Public Instruction
|SUBJECT:||REVISION TO SUPTS. MEMO. NO. 1 Aid to Localities Appropriations, 1996-98 Biennium|
Supts. Memo. No. 1 (Regulatory), dated March 12, 1996 provided you with the final actions taken by the General Assembly relating to the 1996-98 budget, which are subject to final approval by the Governor. Attachment C to that memorandum provided an individualized printout which projected payments to each locality from state funds. We have now been notified by the Department of Taxation that substantial errors existed in the original data provided to the Department of Education which was used to compute the composite index of local ability-to-pay. Specifically, errors were found in two of the three constituent elements provided to our office by the Department of Taxation. The largest error is due to an under-reporting of the true value of real property reported by Gloucester County. The effect of this error caused their original composite index to be lower than it should have been. Correction of the data increases Gloucester's index and reduces the index of 87 other localities. In addition to the changes caused by Gloucester County's error, the Department of Taxation has determined that the adjusted gross income (AGI) for two localities needs to be changed. These localities are the City of Martinsville and Henry County. The required change is due to a correction in the assignment of AGI data to these localities. Attachment A provides the revised indicators of ability for each locality and the revised composite index. At Attachment B is a revised individualized printout which reflects projected payments to each locality from state funds based upon the revised composite index. These projections should be used in lieu of those provided on Attachment C to Supts. Memo. No. 1. All other information contained in that Supts. Memo. remains accurate and is still subject to final approval by the Governor. I know that this information is coming to you late in your budget development and approval process. However, the provisions of the appropriation act (Item 140, paragraph A.4.c.) require the Department of Education to make changes to the composite index of the affected localities to reflect corrected data. If you have questions in this regard or need further information, please call Mrs. Kathryn S. Kitchen, Division Chief, Finance at (804) 225-2025, Mrs. June F. Eanes, Director of the Budget at (804) 225-2060, or Mr. John B. Rickman, Principal Specialist, at (804) 225-2806. WCB,Jr./kk Attachments: This memo and its attachment will be sent to the superintendent's office.