SUPTS. MEMO. NO. 226
December 21, 1999
Acting Superintendent of Public Instruction
|SUBJECT:||2000-2002 Biennial Budget as Introduced|
Governor Gilmore presented his 2000-2002 biennial budget to a joint meeting of the Senate Finance Committee, the House Appropriations Committee, and the House Finance Committee on December 17, 1999. This budget will be considered by the 2000 Session of the General Assembly, which is scheduled to convene on January 12, 2000. The Governor's recommendations include full funding for the state's share of the Standards of Quality (SOQ), continuation of all existing programs, and additional funding for several new initiatives. Attachment A provides detailed descriptions of the funding proposed by the Governor. In summary, the proposed budget includes funds to achieve the following objectives: · expand the Early Reading Intervention program to include grades kindergarten through 3; · provide a new program for math remediation in grades 7 and 8; · distribute Literary Fund revenues for technology grants; · develop and field test additional SOL test questions; · provide electronic copies of SOL test results; · provide item analysis of SOL test results; · pilot the new alternative route to teacher licensure; · provide mentor teachers for individuals who enter the teaching profession through the alternative route to licensure; · provide special education services in local jails; and, · provide academic review teams for schools that are accredited with a warning. Also attached is a printout that reflects the estimated entitlements from the major SOQ and related accounts that your locality will receive in fiscal year 2001, which begins July 1, 2000, and ends June 30, 2001 and fiscal year 2002, which begins July 1, 2001, and ends June 30, 2002. This printout does not include the categorical programs that are funded on a reimbursement basis. Likewise, it does not include the direct grants unique to certain school divisions, which are authorized by the General Assembly. The Governor's budget includes continued funding for these programs, but estimates of the distributions by school division have not been computed at this time. The categorical accounts will be included in the entitlement tables at the conclusion of the General Assembly session. For planning purposes, you should continue to use the amounts provided to you for fiscal year 2000 in Regulatory Superintendent's Memo. No. 1, dated March 3, 1999. These accounts are categorized as Group III accounts. It is important to remember that this information relates to the Governor's budget as introduced. It is subject to change as the House of Delegates and the Senate prepare amendments to the Governor's budget. A final budget will be adopted by the General Assembly in mid-March 2000. Therefore, the estimated entitlements contained in this memorandum are only projections and are subject to change throughout the session. We will provide additional information during the process as changes occur. If you have questions, please contact Dan Timberlake, assistant superintendent for finance, or the Budget Office staff at (804) 225-2025. JLD/kmr:pft Attachments: A hard copy of this memo and its attachment will be sent to the superintendent's office. s:\budget\2000-2002 budget\governor's introduced budget supts memo no 226.doc Details of Governor Gilmore's Introduced Budget for 2000-2002 Existing Programs · Update SOQ and Related Accounts -- The Governor's budget includes $245.3 million in fiscal year 2001 and $301.9 million in fiscal year 2002 to fully fund the state's share of the Standards of Quality programs. The data elements used to develop the SOQ budget were updated using the most recently verified data and are provided on Attachments B and C. The budget also includes an additional $12.8 million in fiscal year 2001 and $17.0 million in fiscal year 2002 to fully fund existing incentive-based programs and required categorical programs. Projected entitlements for the incentive-based accounts are included on the attached entitlement distribution sheet. · Update ADM, Sales Tax, School Age Census, and Composite Index --The proposed budget reflects funding necessary to cover increases/decreases in projections of March 31, 2001, and March 31, 2002, Average Daily Membership (ADM). The projected ADM was forecast by the Department of Education based on September 30, 1999, Fall Membership. On a statewide basis, these projections are lower than those used to develop the Board of Education's proposed budget that was adopted in July 1999. In addition, all other accounts that use Fall Membership data in their calculations have been updated based on the September 30, 1999, totals. The estimated entitlements also reflect the most recent one-cent sales tax estimates, as computed by the Department of Taxation. The Department of Taxation projects revenues of $783.8 million in fiscal year 2001 and $834.6 million in fiscal year 2002. The data that was reported in the 1999 School Age Census was used to distribute the sales tax. The projected entitlements were calculated using the 2000-02 composite indices provided via Informational Superintendent's. Memo. No. 213, dated November 23, 1999. · Change Use of Lottery Proceeds -- Funding for the distribution of lottery proceeds will continue in the 2000-2002 biennium at relatively the same levels provided in fiscal year 2000. Governor Gilmore has recommended eliminating the requirement that 50 percent of these revenues must be used for school construction, additions, infrastructure, site acquisition, renovations, technology, expenditures related to modernizing classroom equipment, or debt service payments. This change means that 100 percent of the lottery revenues may be used for any educational purpose. All other provisions related to the lottery revenues continue in the 2000-2002 biennium. The base year for the maintenance of effort requirement has been updated to fiscal year 1998. · Reduce Student to Teacher Ratio -- Legislation passed by the 1999 General Assembly reduced the division-wide student to teacher ratio to 24 to 1 in kindergarten through grade 3. As a result, basic aid per pupil amounts increased and the 24 to 1 tier of the Primary Class Size Reduction Program was eliminated. New Education Funding Initiatives Governor Gilmore included funding for several new initiatives in his budget. Except as otherwise noted, the funding amounts represent biennial totals. · Web-based Computerized System -- $101.3 million ($95.0 million for school divisions) to establish a computer-based instructional and testing system to support the Standards of Learning. This program will provide funding for high schools to improve their instructional, remedial, and testing capabilities. The program will provide funding to reach a goal of one computer for every five students in high school and internet access for all high schools. Funding is also provided for instructional, remedial, and testing software and license fees and also for training. The majority of the funding ($84.7 million) will be provided from the Literary Fund. Approximately 70 percent of the Literary Fund grants will be distributed on a per school basis for eligible high schools. Eligibility will be based on whether or not the school has met the stated goals of the program. The remaining 30 percent will be distributed on a per pupil basis for all students reported in grades 9 through 12 without regard to the eligibility of the affected school. In order to receive this funding, divisions will have to certify that they intend to administer computerized SOL tests by May 1, 2003. School divisions must also commit to reviewing any purchased software applications and report the results to the Department of Education so that this information can be shared with the Best Practice Centers and high schools across the state. The initiative also includes funding from the General Fund, which will be distributed among localities on a per pupil basis. The General Fund distributions will help pay for recurring costs such as T1 line charges, on-site support, and training. In order to receive the General Fund portion of the funding, localities must provide a match based on the composite index of local ability-to-pay. The Literary Fund portion of the distribution does not require any local matching funds. · Expand the Early Reading Intervention Program -- $17.1 million ($15.5 million for school divisions) to expand the existing Early Reading Intervention Program to include all grades kindergarten through three. The goal of this program is to improve student performance on all of the third grade SOL assessments and to help all students read on grade level by the third grade. The funding methodology remains similar to that of the existing program, which is based on 2.5 hours of additional instruction per week at a ratio of one teacher for five students for an estimated number of eligible students. Currently, the percent of students eligible for the federal free lunch program is used to estimate the number of students eligible for this program. In the first year, this proposal funds services for: 1) 100% of the estimated students eligible in kindergarten; 2) 50% of the estimated students eligible in grade one; 3) 50% of the estimated students eligible in grade two; and 4) 25% of the estimated students eligible in grade three. In the second year of the biennium, funding will be based on the actual number of students needing services as identified by a diagnostic test. School divisions that elect to participate in this program will be required to fund a local match based on the composite index of local ability-to-pay. · Math Intervention Program -- $9.8 million ($9.1 million for school divisions) in fiscal year 2002 to fund a program for seventh and eighth grade students who require remediation in order to pass the eighth grade math SOL assessment. The program will provide additional instruction to students who are identified with deficient math skills via local or state-provided tests. The program provides funding for 2.5 hours of additional instruction per week for an estimated number of students based on a student-to-teacher ratio of ten to one. The number of students eligible will be estimated based on the percent of students failing the eighth grade math SOL test. Localities receiving these incentive funds will be required to provide a match based on the composite index of local ability-to-pay. · Mentor Teacher Program/Alternative Licensure Program -- $809,797 ($400,000 for school divisions) to expand the current mentor teacher program and to train professionals who are not currently certified to teach in public schools. These programs will help address the teacher shortage in math, science, and technology fields by allowing divisions to hire nontraditional classroom instructors and to support such individuals through mentor relationships with veteran teachers. The program assumes that 100 new teachers will be hired and provides $1,000 for training and materials for each new teacher and a $1,000 stipend for each veteran teacher who serves as a mentor. · Funding for Incarcerated Special Education Students -- $3.4 million to provide special education services to students housed in regional and local jails, as required by the federal Individuals with Disability in Education Act (IDEA) regulations. The state will pay 100 percent of the cost for these programs.