COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO NO. 168
November 30, 2001
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Jo Lynne
DeMary Superintendent
of Public Instruction |
|
SUBJECT: |
Composite
Index of Local Ability-to-Pay for the 2002-2004 Biennium |
The purpose of this memorandum is to provide you
with information regarding the
Composite Index of Local Ability-to-Pay for the 2002-2004 biennium. The 2002-2004 composite index was calculated
using 1999 base-year data provided by the Department of Taxation (adjusted
gross income, taxable retail sales, and true value of real property), the
Weldon Cooper Center for Public Service at the University of Virginia (1999
population estimates), and the Department of Education (March 31, 2000, average
daily membership).
The
Department of Education will use this composite index in calculating the state
share of applicable school division entitlements for the Governors budget for
the 2002-2004 biennium. Information on
the amount of these entitlements will be made available to you in late December
following the release of the Governors 2002-2004 introduced budget.
Attachment A
to this memorandum includes the index calculated using the total Adjusted Gross
Income (AGI) for each locality.
Attachment B
portrays an alternative composite index for those localities in which 3 percent
or more of their total AGI is derived from individuals who are not residents of
Virginia. The alternative index in
Attachment B excludes non-resident AGI from the composite index
calculation. As provided in the
appropriation act, school divisions whose total Virginia AGI consists of at
least 3 percent or more from nonresident income may elect to exclude such
nonresident income from the computation of the composite index.
Each school
division that elects this option must have certified its intention to do so to
the Department of Education on or before January 1, 2002. Attachment C contains the certification form
that is to be completed and returned to the Department of Education in order to
elect the nonresident AGI exclusion option.
Only those school divisions listed in Attachment B meet the 3 percent or
greater nonresident AGI requirement and are eligible to submit Attachment C.
Attachment D
provides an example calculation of the 2002-2004 composite index.
Downloadable
Excel and PDF files containing the 2002-2004 composite index for each school
division are available on the Department of Education website at:
http://www.pen.k12.va.us/VDOE/Finance/Budget/bods.html
If you have
questions or need additional information concerning this data, please contact
the budget office at (804) 225-2025 or by e-mail (addresses available at http://www.pen.k12.va.us/VDOE/Finance/Budget/dir.html).
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