INFORMATIONAL

  Listed below is the payment schedule for those SOQ accounts
  which will be paid by electronic fund transfer (EFT) on a
  regular payment schedule for 1998-99.

  Bi-monthly EFT's on                   Basic Aid
  the 15th & 30th                  Retirement(Instructional &        
                                   Non-Instructional)
                                   Social Security
                                   (Instructional & Non-
                                   Instructional)
                                   Vocational Ed (SOQ)
                                   Remedial Ed (SOQ)
                                   At Risk
                                   Special Ed (SOQ)
                                   Gifted Ed (SOQ)

  Quarterly EFT's on the 30th of   Maintenance Supplement
  the last month in the Quarter    Textbooks
                                   Harper Settlement
                                   K-3 (beginning in December)

  With the exception of  the K-3 class size reduction payments,
  all of these accounts will be adjusted after March 31, 1999,
  Average Daily Membership (ADM)  is received.  Enrollment Loss
  and Salary Supplement Payments will be transferred after  ADM
  is finalized.  Fifty percent of Remedial Summer School
  payments will be sent in August and the balance in October
  when actual summer school enrollment is collected.  

  Current estimates of March 31, 1999, ADM will be revalidated
  this fall based on actual September 30, 1998, membership.  If
  the new estimates differ significantly from the current
  estimates, the accounts  will be recalculated using the new
  values.  If the estimates do not differ significantly,
  payments will continue to be made on the current estimates
  until actual March 31, 1999, ADM is known.

  Until that time, payments will be made on the estimated
  entitlements as projected in Regulatory Supts. Memo. No. 1
  dated March 19, 1998, as adjusted by Regulatory Supts. Memo. 
  No. 3, dated May 8, 1998, for the following accounts:

     1.   Basic Aid,  Gifted Education, Retirement, Social Security,
          Textbooks, Maintenance Supplement, Harper Settlement - 
          These accounts are calculated on adjusted ADM. 

     2    VocationalEd(SOQ),Special Education (SOQ), Remedial
          Education At-Risk - These entitlements are
          calculated on unadjusted ADM.

     3.   Reduced K-3 Class Size - September 30, 1998, Fall
          Membership will be used for the final entitlement
          calculation.  This account will be paid quarterly,
          beginning in December, 1998.

     4.   Dropout Prevention (Project Yes), Truancy, Reading
          Intervention, and At-Risk Four-Year Old Program -  
          50% of this payment will be transferred once the  
          application has been approved and the remaining 50% 
          will be transferred in March, 1999.

     5.   Standards of Learning Teaching Materials -50% of
          this entitlement will be paid after the division  
          superintendent provides a plan or description of the   
          purposes for which the funds will be used.  The   
          remaining 50% will be paid after the March 31 ADM is
          finalized.


     6.   Remediation Assistance - This entitlement will be 
          paid once the school division certifies that a        
          remediation program will be offered to students who     
          need remediation services based on their performance    
          on the Standards of Learning Tests.

     7.   School Health Incentive Funds - 50% of this Supts.
          entitlement will be paid after the grant application
          has been reviewed by the local School Health 
          Advisory Board and  utilization of health service  
          funds are certified.  The remaining 50% will be paid
          after the March 31 ADM is finalized.  

     8.   Additional Teachers - This entitlement will be 
          disbursed after the division superintendent certifies
          to the Department of Education that additional teachers are
          employed above those required by the Standards of Quality 
          and K-3 class size reduction program.


     9.   Teacher Training - 50% of this entitlement will be
          paid after the school division submits a request to
          the Department of Education for the funding (due no
          later than August 1, 1998)  and a local plan for
          delivering a training program that meets stated objectives
          and requirements.  The Department of Education will approve
          the request and plan by September 15.  The remaining 50% 
          will be paid after the March 31 ADM is finalized. Pursuant
          to the Appropriation Act, "School divisions preferring to
          conduct all of the Teacher Training Standards of Learning
          program in the second year shall inform the Department of
          Education of their decision, no later than August 1, 1998, 
          and may request that the first year allocation attributable
          to such school division be carried forward and added to the 
          amount such school division is eligible for in the second
          year from the Teacher Training Standards of Learning               
          program." 

     10.  Composite Index Transition - One payment in September, 1998.

          School construction funds will be distributed in one
          payment after the certification has been received      
          from the division superintendent.  Additional   
          information will be provided later this month.

  Comments or questions should be addressed to Mrs. June Eanes,
  Budget Director, at (804) 225-2060 or Mrs. Leigh H. Williams,
  Budget Analyst, at (804) 225-2031.

  PDS:lhw