REGULATORY

  It is crucial that school divisions monitor the level of local
  funding appropriated to ensure compliance with Section 22.1-94,
  Code of Virginia.  Please note that Section 22.1-97, Code
  or Virginia, addresses the procedure that the Department of
  Education must follow if a county, city, or town fails to
  appropriate sufficient local funding to support the Standards
  of Quality.  Attachment A is a copy of the referenced Code
  Sections.

  In order to avoid the necessity of initiating the procedures
  required by Section 22.1-97, Code of Virginia, each school
  division must complete and return Attachment B, pages 1 and 2
  by August 28, 1998.  Please note that Attachment C is only a
  worksheet for you to use in computing the Required Local
  Expenditure and does not have to be returned.  In completing
  Attachment B, it would be useful to prepare a prospective
  Annual School Report form for 1998-99, based on budgeted data. 
  The report should be sent to Ms. Doris B. West, Senior Budget
  Analyst of the Budget Office, P. O. Box 2120, Richmond,
  Virginia 23216-2120. 

  Superintendents of school divisions, whose local
  appropriations are only slightly in excess of the required
  amount, are requested to review their average daily membership 
  (ADM) totals monthly.  These superintendents must request
  additional local funding from the governing body for any
  necessary adjustments that result from an unbudgeted increase
  in ADM that would reduce local funds below the 
  required level.  Copies of all supplemental appropriations
  resulting from these requests should be furnished to the
  Department.

  Please note that the Appropriations Act states that in 1998-99
  local school divisions are required to spend 100 percent of
  the required local expenditure for Basic Aid including
  Education of the Gifted,  Vocational Ed-SOQ, Special Ed-SOQ,
  Remedial Education, Fringe Benefits, and Textbooks.

  In order to receive state funds for Salary Supplement,
  Maintenance Supplement, At-Risk, Additional Teachers, Primary
  class Size, Truancy, At-Risk Four Year Olds, Early Reading
  Intervention, School Health Incentive, SOL Instructional
  Materials, SOL Remediation, and AVID the local effort must be
  met.

  School divisions are also required to provide a local match of
  forty percent for Dropout Prevention. 

  Questions may be addressed to Ms. Doris West at (804) 225-2091.

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


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                       Attachment A

  22.1-94. Appropriations by county, city or town governing
  body for public schools.-A governing body may make
  appropriations to a school board from the funds derived from
  local levies and from any other funds available, for
  operation, capital outlay and debt service in the public
  schools.  Such appropriations shall be not less than the cost
  apportioned to the governing body for maintaining an
  educational program meeting the standards of quality for the
  several school divisions prescribed as provided by law.  The
  amount appropriated by the governing body for public schools
  shall relate to its total only or to such major
  classifications as may be prescribed by the Board of
  Education.  The appropriations may be made on the same
  periodic basis as the governing body makes appropriations to
  other departments and agencies.


  22.1-97. Procedure if county, city or town fails to
  appropriate sufficient education funds.-Whenever the governing
  body of a county, city or town fails or refuses to appropriate
  funds sufficient to provide that portion of the cost
  apportioned to such county, city or town by law for
  maintaining an education program meeting the standards of
  quality for the several school divisions prescribed as
  provided by law, the Board of Education shall notify the
  Attorney General of such failure or refusal in writing signed
  by the president of the Board.  Upon receipt of such
  notification it shall be the duty of the Attorney General to
  file in the circuit court for the county, city or town a
  petition for a writ of mandamus directing and requiring such
  governing body to make forthwith such appropriation as is
  required by law.

  The petition shall be in the name of the Board of
  Education, and the governing body shall be made a party
  defendant thereto. The court may, in its discretion, cause
  such other officers or persons to be made parties defendant as
  it may deem proper.  The employment and compensation of an
  attorney or attorneys for any party defendant not otherwise
  represented by counsel.  The petition  shall be given first
  priority on the docket of such court and shall be heard
  expeditiously in accordance with the procedures prescribed in
  article 2 of chapter 25 (8.01-644 et seq.) of Title 8.01 of
  the Code of Virginia and the writ of mandamus shall be awarded
  or denied according to the law and facts of the case and with
  or without costs as the court may determine.  The order of the
  court shall be final upon entry.  Any appeal therefrom shall
  be heard and disposed of promptly by the Supreme Court next
  after habeas corpus cases already on the docket.


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                         Attachment B

  Division  _______________________________________________________                 

                  REQUIRED LOCAL EXPENDITURES
                            1998-99

  (Figures should be estimated for 1998-99.  Page numbers refer
  to items on the 1997-98 Annual School Report.)


  1. Total Expenditures (Page 29)                              


  2. Excluded Expenditures

     a.   Capital Outlay *                      
       b. Facilities (Page 28)                        
     c.   Debt Service                          
     d.   Sum of 2a,2b and 2c                                  


  3. Expenditures for Operation                   
       (Line 1 less line 2d)                                   


  4. Excluded State Funds

     a.   Sales Tax (Page 1)                    
     b.   State Funds (Page 3)                  
     c.   Sum of 4a and 4b                                     


  5. Excluded Federal Funds (Page 5)                           


  6. Excluded Other Funds (Page 7) 

     a.   Gas Tax Refunds                       
     b.   Tuition from another
           county or city                       
     c.   Payments from another
           county or city                       
     d.   Payments from other
           State agencies                       
     e.   Sum of 6a through 6d                                 


  7. Net Local Expenditures for 
     (Line 3 less line 4, 5, 6)                                


  8. Adjusted ADM                                              


  9. Unadjusted ADM                                            


  *Capital Outlay should be amount reflected on Annual School
  Report under object 8200 on page 9 - 26.



                        CERTIFICATION









  I hereby certify that the information in Attachment B is true
  and accurate to the best of my knowledge.




  ____________________________    ___________________________
     Division Superintendent            Contact Person 


  ____________________________    ___________________________
             Date                       Telephone Number