COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 1

March 15, 2002

REGULATORY

TO:

Division Superintendents

 

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

 

SUBJECT:

Amendments to the Fiscal Year 2002 Budget and the 2002-2004 Biennial Budget Passed by the 2002 General Assembly

 

Section 22.1-93, Code of Virginia, requires the Department of Education to provide ...estimates to be used for budgetary purposes relative to the Basic School Aid Formula. The revenue estimates provided in this memorandum represent the state funding that is projected to be distributed to school divisions in fiscal years 2002, 2003, and 2004 based on budget actions adopted by the 2002 General Assembly. Fiscal year 2002 began on July 1, 2001, and ends on June 30, 2002. Fiscal year 2003 begins on July 1, 2002, and ends on June 30, 2003. Fiscal year 2004 begins on July 1, 2003, and ends on June 30, 2004.

 

On March 9, 2002, the 2002 Session of the General Assembly adopted changes to the 2002-2004 biennial budget as introduced by former Governor Gilmore (reference Informational Superintendent's Memorandum No. 187, dated December 21, 2001) as well as changes to the amended fiscal year 2002 budget proposed by former Governor Gilmore (reference Informational Superintendent's Memorandum No. 186, dated December 21, 2001). In light of the significant state budget revenue shortfalls forecast for the 2002-2004 biennium, the General Assembly eliminated or reduced several Direct Aid to Public Education programs; however, the General Assembly also increased or restored funding in several programs.

 

Highlights of the General Assemblys adopted budget for 2002-2004 include: restoration of $27.5 million per year in school construction grants; $133.1 million over the biennium to address the funding recommendations of the Joint Legislative Audit and Review Commission (JLARC); $117.3 million in bond proceeds for continuation of the SOL Web-based Technology Initiative; $7.2 million over the biennium in additional Lottery proceeds for local distribution; a reserve appropriation to provide a compensation increase for SOQ instructional and support positions in December 2003; additional funding for teachers qualifying for the National Board of Professional Teaching Standards certification; and additional funding to further develop Standards of Learning history tests.

 

The budget bills for fiscal year 2002 and the 2002-2004 biennium passed by the General Assembly now go to Governor Warner for action. The Governor will have several options that include signing each budget bill as presented to him with no changes, returning each budget bill to the General Assembly with vetoes, returning each budget bill to the General Assembly with amendments, or returning each budget bill to the General Assembly with some combination of vetoes and amendments. He must take this action prior to the reconvened veto session scheduled for April 17, 2002, where the General Assembly will consider any amendments or vetoes from Governor Warner. Consequently, unless signed by Governor Warner with no changes, the budget bills as adopted by the General Assembly will not become final until after the reconvened session has concluded.

 

The introduced budget for the 2002-2004 biennium (HB/SB 30) and the amended fiscal year 2002 budget (HB/SB 29) are the budgets against which the General Assembly adopted changes. The attachments to this memorandum provide information on the changes adopted by the General Assembly. Unless changes are specifically noted in the attachments, Governor Gilmores proposals contained in the introduced versions of HB/SB 29 and HB/SB 30 were adopted.

 

The attachments to this memorandum include:

 

        Attachment A A summary of changes, adopted by the General Assembly, to Governor Gilmores amended fiscal year 2002 budget (HB/SB 29) and his 2002-2004 introduced budget (HB/SB 30). These changes are noted as "Final Action (Conference Report)" and are highlighted in bold text. For reference purposes, this attachment also repeats the information presented in Informational Superintendents Memorandum No. 26, dated February 22, 2002, which described the changes proposed by the House of Delegates and the Senate.

 

 

 

 

 

 

The entitlements shown in Attachments B and C are divided into three 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. The state funds projected for groups I and II are based either on the most recent data available to the Department of Education or the departments most recent projection of March 31 Average Daily Membership (ADM) depending upon which is appropriate for each account. The entitlements shown for the group III accounts are estimates based on the most recent data available to the department.

 

Please note that the entitlements contained in Attachments B and C are based on the departments latest projections of average daily membership (ADM) for each school division for those accounts that use ADM in determining the amount of funding. If you wish to see the effects of a different ADM for your school division, please use the calculation tool described in the following paragraph.

 

In addition to the above attachments, two downloadable Excel files were created to assist divisions in calculating projected state entitlements and required local matches for the Direct Aid to Public Education accounts. Attachment D to this memorandum provides detailed instructions for accessing these Excel files on the departments website. The Excel files calculate school division funding based on the budgets for fiscal year 2002 and for fiscal years 2003 and 2004 that were adopted by the General Assembly. The files allow you to use the departments or your own projections of ADM in calculating state entitlements and required local matches. If you believe that you have a more accurate projection of your divisions ADM, please use it for projecting your entitlements and local matches.

 

The Excel files are located on the departments website and may be downloaded from the following address:

 

http://www.pen.k12.va.us/VDOE/Finance/Budget/calctools.html

If you have any questions, or need additional information, please contact Daniel S. Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.

 

JLD/kcd

 

Attachments

 

/administrators/superintendents_memos/2002/reg001a.pdf

 

/administrators/superintendents_memos/2002/reg001b.pdf

 

/administrators/superintendents_memos/2002/reg001c.pdf

 

/administrators/superintendents_memos/2002/reg001d.pdf

 

/administrators/superintendents_memos/2002/reg001e.pdf

 

/administrators/superintendents_memos/2002/reg001f.pdf

 

c: Local Governing Bodies