INFORMATIONAL

  Questions have been received from school divisions on a
  variety of issues. This supplemental memo is intended to
  provide you with additional information regarding the most
  frequently asked questions.  It also provides information
  that was not available at the time we sent Supts. Memo. No.
  197, dated December 19, 1997, which provided information on
  Governor Allen's 1998-2000 biennium budget. 

  As stated in Supts. Memo. No. 197, the budget includes
  approximately $359.1 million to maintain the education
  programs required by the current Standards of Quality (SOQ). 
  It also includes $97.1 million to fund the state's share of
  a 2.25% teacher salary increase effective January 1 in each
  year of the biennium.  More than $263.6 million was included
  to fund the state's commitment to various statutory and
  incentive-based programs.

  Governor Allen's initiatives include funding for teacher
  training, student remediation, 1000 additional elementary
  teachers, and retiree health care credit.  They also include
  funds to purchase additional textbooks and instructional
  materials for teaching the SOL, expansion of the SOL testing
  program, and development of the School Report Card required
  by the new Standards of Accreditation.  Governor Allen did
  not include funding in the 1998-00 budget for technology.  

  Governor Gilmore has submitted executive amendments for the
  Standards of Learning Remediation Program, the Early Reading 

  Intervention Program, and for 2000 additional teachers. (An
  increase of 1000 teachers over Governor Allen's proposal.) 
  He has also proposed a group life "holiday" in both years of
  the biennium.  As a result, school divisions will not have
  to pay for group life insurance during the 1998-2000
  biennium.  This holiday will result in reduced Basic Aid and
  Remedial per pupil payments.

  Attachment A through H will address some of these accounts
  and provide additional information on the implementation of
  these funds.  Please remember that the budget as presented
  by Governor Allen and the executive amendments submitted by
  Governor Gilmore will be considered by the 1998 Session of
  the General Assembly and may be subject to change.  When the
  General Assembly adjourns, individualized sheets will be
  prepared showing all state funding to school divisions.

  If you have questions, please call Daniel S. Timberlake,
  Assistant Superintendent for Finance, at (804) 225-2025,
  June F. Eanes, Budget Director, at (804) 225-2060, or Kent
  Dickey, Data Base Analyst, at (804) 225-2806.

  DST:je

  Attachments: A hard copy of this memo and its attachments
               will be sent to the superintendent's office