INFORMATIONAL

  Today Governor Gilmore announced his intent to dedicate
  all Lottery profits to public education, using the
  Commonwealth's Basic Aid formula, as part of his "Promise
  for Virginia's Future" program. Localities will have
  flexibility to use the additional funds where most
  needed, for example, for the addition of new teachers and
  specialists, for school construction or renovation, for
  additional remediation programs, or preparation for the
  Standards of Learning.

  By dedicating the entire Lottery profits of $314 million
  in FY 1999 and $310 million in FY 2000, localities will
  receive an extra $123 million the first year and an extra
  $122 million the second year to use for education and
  other purposes.  The increase for the 1998-2000 biennium
  is $245 million above the $5.0 billion currently
  transferred to localities for the Standards of Quality
  basic aid program and sales tax distribution.  Lottery
  profits will be allocated to localities on the basis of
  each locality's number of students in average daily
  membership weighted by the local composite index.

  In addition to providing increased funding for the public
  education, Governor Gilmore's proposed program provides
  additional funding for law enforcement and provides for a
  phased in elimination of two percent of the State sales
  tax on food. 

  Since this funding proposal is part of Governor Gilmore's
  proposed budget for the 1999 General Assembly session,
  final implementation will depend upon General Assembly
  approval. Attached is the entire briefing packet on the
  program, with tables representing funding allocations to
  localities.  Questions should be directed to Dan
  Timberlake, Assistant Superintendent for Finance,
  804/225-2025.  


  PDS/cc

  Attachment:     A hard copy of this memo and its          
                  attachment will be sent to the
                  superintendent's office.