COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P. O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO. NO. 103
July 17, 1998

INFORMATIONAL

TO: Division Superintendents
FROM: Paul D. Stapleton
Superintendent of Public Instruction
SUBJECT: Literary Fund Maximum Loan Amounts

 
  The 1998 General Assembly passed legislation that required the
  Board of Education to increase the maximum amount of a
  Literary Fund loan from $5 million to $7.5 million for a
  project.  This statutory provision will supersede current
  Board regulations that set the maximum amount at $5.0 million. 
  The maximum indebtedness to the literary fund will still
  remain at $20 million in order for projects to be eligible for
  the First Priority Waiting List.

  At their June 25, 1998, meeting, the Board of Education
  adopted a policy for accepting supplemental increases in the
  principal loan amount above the previous $5.0 million limit. 
  School divisions wishing to increase the loan amount of a
  project currently on a priority waiting list, must withdraw
  from their current position on the waiting list and submit a
  revised application if the amount of the increase, when added
  to the original loan amount, exceeds $5.0 million.  In these
  cases, the revised project will move to the bottom of the
  priority waiting list.  In no event will the loan amount be
  increased for projects that have already been bid for
  construction and where contracts have been awarded.

  These procedures do not apply to supplemental increases for
  projects if the amount of the supplement, when added to the
  original loan amount, is less than $5.0 million.  These
  requests will continue to be accepted as they always have
  been.

  If you have any questions concerning the above information,
  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