SUPTS. MEMO. NO. 5
May 29, 1996
|FROM:||William C. Bosher, Jr.
Superintendent of Public Instruction
|SUBJECT:||Changes to 1995-96 Final Entitlements|
Supts. Memo. No. 170 (Informational), dated December 18, 1995 provided you with revised estimates of ADM-driven accounts, based upon revisions to estimates of the one-cent state sales and use tax and average daily membership, as proposed by Governor Allen to the 1996 session of the General Assembly. While the General Assembly made no further changes to these accounts, other changes were made in the current year budget (House Bill 29). As you may have read, Governor Allen has not signed House Bill 29 due to some concerns surrounding the manner in which the bill was enrolled and presented to him by the General Assembly. The Attorney General has initiated an action in the Supreme Court of Virginia requesting the Court to provide answers to several major questions surrounding this bill. Attached is a copy of a letter which was presented to the members of the General Assembly last week in this regard. Supts. Memo. No. 82 (Informational), dated April 19, 1996 provided you with entitlements in the Standards of Quality accounts based upon your March 31, 1996 average daily membership and the estimated sales tax contained in House Bill 29. Due to the above mentioned action, entitlements for Basic Aid and Enrollment Loss must be recomputed using the estimate of sales tax that was contained in the 1994-96 budget as adopted by the 1995 session of the General Assembly as Chapter 853. A chart reflecting these revised entitlements is attached for your use. All other SOQ accounts will remain as reflected in Supts. Memo. No. 82. To avoid any adverse impact on local school divisions, the Governor has authorized a special payment in July of 1996 equal to the amount of Basic Aid and Enrollment Loss increase that would have been received under House Bill 29 as a result of the reduced sales tax. These payments will be made from funds appropriated in the 1996-97 budget. The Governor has stated his intention to ask the 1997 General Assembly to appropriate this additional payment in 1996-97 so that school divisions will receive their regular Standards of Quality payments for 1996-97 and also receive this additional special payment. The additional funds should be provided to you as early in July as possible. If you have questions, please call Mrs. Kathryn S. Kitchen, Division Chief, Finance at (804) 225-2025. WCB,Jr./kk Attachments: This memo and its attachment wil be sent to the superintendent's office.