P.O. BOX 2120



February 7, 2003



Division Superintendents



Jo Lynne DeMary

Superintendent of Public Instruction



Changes to the Amended 2002-2004 Biennial Budget Proposed by the Senate and the House of Delegates


On Sunday, February 2, 2003, the Senate Finance and House Appropriations Committees adopted changes to the amended 2002-2004 biennial budget as introduced by Governor Warner (reference Informational Superintendent's Memorandum No. 171, dated December 23, 2002). The committees proposed changes were adopted this week by the full membership of the House of Delegates and the Senate. The adopted changes affect fiscal years 2003 and 2004. Fiscal year 2003 began on July 1, 2002, and ends on June 30, 2003. Fiscal year 2004 begins on July 1, 2003, and ends on June 30, 2004.


Governor Warners introduced budget for the 2002-2004 biennium (HB1400/SB700) is the budget against which the House of Delegates and the Senate made changes. The attachments to this memorandum provide information on the changes adopted by the House and by the Senate. Unless changes are specifically noted in the attachments, Governor Warners proposals contained in the introduced version of HB1400/SB700 were adopted. Alternatively, Governor Warners proposed executive amendments introduced after December 20, 2002, (and consequently not included in the introduced budget - HB1400/SB700) must be adopted specifically by the House of Delegates and by the Senate to be included in the budget.


The attachments to this memorandum include:


        Attachment A A summary of changes proposed by the Senate and the House of Delegates to Governor Warners amended 2002-2004 biennial budget (HB1400/SB700).





In addition to the above attachments, two downloadable Excel files have been 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. The two Excel files calculate school division funding based on the Senate and House budget proposals for fiscal years 2003 and 2004.


Please note that the budgets adopted by the Senate and by the House of Delegates and reflected in the entitlements contained in Attachments B and C are based on the departments latest projections of average daily membership (ADM) for each school division. If you wish to see the effects of a different ADM for your school division, please use the calculation tool described in the above paragraph.


Although we have confidence in the accuracy of our ADM projections on a statewide basis, experience has shown that the accuracy of our projections for individual divisions may vary. When divisions believe that they have more accurate projections of their March 31 ADM, they are encouraged to substitute their estimates for those provided in this memorandum when using the Excel calculation file. Also, please note that changing the ADM in this file only changes the estimated funding for accounts that are funded on the basis of ADM. The estimated funding for all other accounts remains the same. The Excel files are located on the departments website and may be downloaded from the following address:


Please note that the recommendations proposed by the House of Delegates and the Senate are not final. A Conference Committee will make final recommendations after differences between the House and Senate budget proposals have been resolved. The Conference Committee's recommendations will be presented to each chamber later in February for consideration and final adoption.


Final action by each chamber will occur before adjournment of the 2003 Session, which is scheduled for February 22, 2003. After final actions have been taken, the department will provide additional information concerning the budget in a regulatory superintendents memorandum. After adjournment, the budget will be presented to the Governor. The Governor will have several options that include signing the budget with no changes, returning the budget to the General Assembly with vetoes, returning the budget to the General Assembly with amendments, or returning the budget to the General Assembly with some combination of vetoes and amendments. The General Assembly will consider any vetoes or amendments at their reconvened veto session scheduled for April 2, 2003.


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.