COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO NO. 55
April 5, 2002
Jo Lynne DeMary
Superintendent of Public Instruction
Superintendents Annual Report Table 15
Section 22.1-92, Code of Virginia, requires school divisions to prepare and distribute notification of the estimated average per pupil cost for public education in the school division for the coming year as well as actual per pupil state and local education expenditures for the previous school year. This memorandum provides preliminary data related to actual expenditures and per pupil costs for fiscal year 2001 as well as a methodology that school divisions may use to estimate per pupil expenditures for fiscal year 2002 and fiscal year 2003.
Attachment A of this memorandum contains a preliminary Table 15 from the Superintendents Annual Report for Virginia. This table shows total per pupil expenditures for public school operations by fund source. Please note that, as of the date of this memorandum, not all Annual School Reports have been submitted or verified, therefore, the attached Table 15 is preliminary.
In addition to this attachment, an Excel file is also provided for you that contains Table 15 data for fiscal year 2001 as well as detailed calculations of per pupil amounts for each fund source. The Excel file contains four worksheets:
Preliminary Fiscal Year 2001 Table 15 This worksheet contains preliminary Table 15 data for all school divisions.
Fiscal Year 2001 Worksheet This worksheet contains detailed calculations of individual school division expenditure and per pupil amounts. This worksheet calculates automatically once a school division is selected from the drop-down box.
Fiscal Year 2002 Worksheet This worksheet also contains detailed calculations of expenditure and per pupil amounts; however, school divisions must enter revenue, beginning year and ending year balances, estimated capital expenditures, and average daily membership (ADM) amounts for fiscal year 2002. Estimated sales tax is automatically calculated, but school divisions may instead enter their own estimates.
Fiscal Year 2003 Worksheet Like the fiscal year 2002 worksheet, this worksheet also contains detailed calculations of expenditure and per pupil amounts. School divisions must enter revenue, beginning year and ending year balances, estimated capital expenditures, and ADM amounts for fiscal year 2003. Projected sales tax is automatically calculated.
For the fiscal year 2001, fiscal year 2002, and fiscal year 2003 worksheets, per pupil expenditures for each fund source are derived in the following manner:
End-of-Year Average Daily Membership (ADM) The spreadsheet contains school division ADM, which is used as the denominator for each per pupil expenditure amount.
State Expenditures State expenditures used to derive a state per pupil amount are calculated by adding state beginning year revenue balances to total state revenue collections for fiscal year 2001 and deducting ending year balances and state funds used for capital expenditures. This figure is then divided by end of year ADM to yield the state per pupil amount.
State Sales Tax This figure represents sales tax distributed to school divisions and is divided by ADM to yield the state sales tax per pupil amount.
Federal Expenditures Federal expenditures used to derive a federal per pupil amount are calculated by adding federal beginning year revenue balances to total federal revenue collections for fiscal year 2001 and deducting ending year balances and federal funds used for capital expenditures. This figure is then divided by end of year ADM to calculate the federal per pupil amount.
Local Revenues In order to calculate local revenues, total state expenditures for operations, state sales tax, and total federal expenditures for operations are deducted from total expenditures for operations. The remainder is local revenue for operational expenditures. This figure is then divided by end of year ADM to calculate the local per pupil amount.
Total Expenditures Total expenditures for operations are divided by end of year ADM to yield the total per pupil amount.
Attachment B of this memorandum provides instructions for using the fiscal year 2001, fiscal year 2002, and fiscal year 2003 worksheets. The Excel file is located on the departments Website and may be downloaded from the following address:
Please note that the department has changed the methodology for calculating total expenditures for operations in Table 15 to account for the following factors:
Beginning and end-of-year balances - Total support from state and federal sources now takes into account beginning and end-of-year balances as well as revenue collected during a particular fiscal year. The methodology now calculates these sources of support by adding beginning-year balances to current-year revenues and then subtracting end-of-year balances as reported on the Annual School Report. This change in methodology is required to accurately reflect the ability to carry over certain state funds (e.g. SOL remediation, SOL teacher training, lottery, and school construction) and to recognize that portions of federal funds may be carried over as well. This methodology provides a more accurate calculation of the amount of funds actually expended from these revenue sources and, therefore, yields a more accurate calculation of local funds expended for public school operations.
Capital Expenditures - The methodology for calculating total expenditures for operations in Table 15 has been revised to more accurately reflect total operational costs by deducting state, federal, and local capital expenditures (as reported in Supplemental Schedule H of the Annual School Report) from total expenditures. Therefore, expenditures related to object code 8200 are excluded from Table 15 calculations.
Additional Functions - Total expenditures for operations in Table 15 now reflect the technology function (68000), which was added beginning with the 2000-2001 Annual School Report. In addition, Table 15 now reflects operational expenditures related to the inter-agency fund transfers function (67300) and to the facilities function (66000, all objects of expenditure except 8100. Object 8200 is already excluded under the change related to capital expenditures).
Table 15, as presented in Attachment A and in the Excel file, is not yet final. After total expenditures for operations for fiscal year 2001 have been fully collected and verified, a final version of Table 15 will be distributed to school divisions.
We hope that you find this information helpful. If you have any questions, please contact budget office staff at (804) 225-2025.