REGULATORY

  Pursuant to Section 22.1-93, Code of Virginia, the
  Department of Education is providing "...estimates to be
  used for budgetary purposes relative to the Basic School Aid
  Formula..." for the 1998-2000 biennium.  These estimates
  represent the state funding that is projected to be
  distributed to school divisions over the next two school
  years beginning July 1, 1998.

  On Tuesday, March 17, 1998, the 1998 Session of the General
  Assembly adopted the final budget for the 1998-2000
  biennium.  HB 30, as passed by the General Assembly, will
  now go to Governor Gilmore for action.

  Governor Gilmore will have the option of signing the bill as
  presented to him, amending parts of the bill, or vetoing
  parts of the bill.  He must take this action prior to the
  reconvened session where the General Assembly will consider
  any amendments or vetoes from Governor Gilmore.
  Consequently, unless signed by Governor Gilmore with no
  changes, the budget as adopted by the General Assembly will
  not become final until after the reconvened session has
  concluded.  The reconvened session is currently scheduled
  for April 22, 1998.

  The budget proposed by Governor Allen in HB 30 is the base
  against which the General Assembly changes have been made. 
  All actions described in this memorandum are changes to
  Governor Allen's introduced budget (HB 30).  As you review
  this information, please refer to Informational Supts. Memo.
  197, dated December 19, 1997, and Informational Supts. Memo.
  No. 15, dated January 29, 1998, which describe HB 30 as
  introduced.

  For the purposes of this memo, fiscal year 1998 means the
  current year which began on July 1, 1997, and ends on June
  30, 1998.  Fiscal year 1999 means the year which begins on
  July 1, 1998, and ends on June 30, 1999.  Fiscal year 2000
  means the year which begins on July 1, 1999, and ends on
  June 30, 2000.

  Attachments are enclosed to provide detailed information on
  changes enacted by the General Assembly.  These attachments
  include:

        Attachment A     Changes to HB 29 passed by the General
                         Assembly for fiscal year 1998.

        Attachment B     Changes to HB 30 passed by the General
                         Assembly for the 1998-2000 biennium.

        Attachment C     Language passed by the General
                         Assembly and included in HB 30.

        Attachment D     School division specific printout for
                         the budget passed by the General
                         Assembly in HB 30 for the 1998-2000
                         biennium.

        Attachment E     School division specific printout
                         listing the schools eligible for the
                         revised Primary Class Size Reduction
                         program.

      Attachment D is divided into 3 groups designated by the
      roman numerals to the left of the accounts.  The first
      group (I) lists all of the Standards of Quality
      accounts.  The second group (II) lists all of the
      incentive-based accounts that require school divisions
      to apply for the funds and to meet certain criteria. 
      The third group (III) lists all of the categorical
      accounts for each school division.


      The funds projected for groups I and II are based either
      on the most recent data available to the Department of
      Education or the Department of Education's projected
      March 31 Average Daily Membership (ADM) where funding is
      enrollment driven.  While the Department has confidence
      in the projections of total ADM statewide, projections
      by individual locality are subject to change for factors
      that are better known at the local level.  You are
      encouraged to substitute your own projections of ADM if
      you believe that your local projections are more
      accurate than the Department's.  The numbers represented
      for the accounts in group III are estimates based on the
      most recent data available to the Department of
      Education.

      If you have any questions, or need additional
      information, please contact 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

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