COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P. O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO. NO. 92
May 30, 1997

INFORMATIONAL

TO: Division Superintendents
FROM: Richard T. La Pointe
Superintendent of Public Instruction
SUBJECT: Potential Changes to the Literary Fund Loan Regulations

 
  The 1997 General Assembly passed legislation giving the
  Board of Education the authority to increase the cap on a
  Literary Fund loan to $7.5 million.  HB 1635 was also passed
  to allow the Board to issue Literary Fund loans to purchase
  technology equipment.  It is important to note that the
  General Assembly gave the Board of Education the final
  authority to decide whether to increase the maximum amount
  of a loan and whether the funds can be used for technology
  equipment. 

  Because the Literary Fund loan process is established by
  regulations issued by the Board, the Board will need to
  revise their regulations if they decide to adopt any of
  these changes.  The process for revising these regulations
  will probably take eight to 12 months to complete.  Until
  that time, school divisions can only apply for a maximum of
  $5 million per project.  School divisions will be notified
  of the action taken by the Board of Education and the
  processes to be followed when everything is completed.  

  If you have any questions concerning this, please contact
  Mr. Dan Timberlake, Assistant Superintendent for Finance, at
  (804) 225-2060.

  RTL:je