SUPTS. MEMO. NO. 46
July 17, 1998
|FROM:||Paul D. Stapleton
Superintendent of Public Instruction
|SUBJECT:||School Construction Grants for 1998-99|
The 1998 General Assembly passed legislation (Senate Bill 4005) which included a formula for distributing school construction funds under the Virginia Public School Construction Grants Program. The formula recommended by Governor Gilmore and adopted by the General Assembly distributes $55 million in each year of the 1998-2000 biennium. The methodology first distributes $200,000 to each school division in each fiscal year as a floor. The balance of each year's appropriation is then distributed on the basis of the composite index and Average Daily Membership (ADM) of each school division. For the purposes of this distribution, prior year ADM will be used. There is a local match required to receive these funds. The amount of the match is based on the composite index and is calculated by multiplying each locality's index by its grant amount. School divisions may use these funds for school construction, additions, infrastructure, site acquisition for public school buildings and facilities, and renovations, including the costs of retrofitting or enlarging public school buildings. A school division, which has completed any such project during the previous ten years, may use the grant for debt service payments or a portion thereof. The required match also must be used for these purposes. The amount of each grant awarded to a qualifying school division in any fiscal year shall not exceed 100 percent of the school division's aggregate annual expenditures. This means that if a school division does not have annual expenditures equal to the grant amount plus the required match, the grant amount must be reduced to meet the intent of the language. The Department of Education will collect information to determine if this requirement was met at the close of each fiscal year. The Board of Education at its June 25, 1998, meeting approved guidelines for the administration of the program. These guidelines include the procedures for the distribution of the grants in accordance with the legislation. Attachment A provides a copy of these procedures. Attachment B is a printout showing the amount of the grant award for each school division, based on prior year ADM, and the required local match. Attachment C provides the form and information that school divisions must provide in order to receive the funding. This attachment should be returned by September 30, 1998, to Mrs. June Eanes, Budget Director. If there are any questions concerning this program, please call Daniel S. Timberlake, Assistant Superintendent for Finance, at (804) 225-2025, or June F. Eanes, Budget Director, at (804) 225-2060. PDS:je Attachments: A hard copy of this memo and its attachments will be sent to the superintendent's office.