COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO NO. 59
April 4, 2003
Jo Lynne DeMary
Superintendent of Public Instruction
Table 15 from the Superintendents Annual Report for Virginia - Fiscal Year 2002
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 data related to actual expenditures and per pupil costs for fiscal year 2002 as well as a methodology that school divisions may use to estimate per pupil expenditures for fiscal years 2003 and 2004.
Attachment A of this memorandum contains Table 15 (Sources of Financial Support for Expenditures, Total Local Expenditures for Operations and Total Per Pupil Expenditures for Operations) from the Superintendents Annual Report for Virginia for fiscal year 2002. Table 15 shows total and per pupil expenditures for public school operations by fund source. The source for this table is the fiscal year 2002 Annual School Report (ASR) data submitted by school divisions.
In addition to Attachment A, an Excel file is provided that contains Table 15 for fiscal year 2002 as well as a worksheet displaying additional detail on the calculation of the per pupil amounts in Table 15. The Excel file contains four worksheets:
Table 15 for fiscal year 2002 This worksheet contains Table 15 data for all school divisions.
Fiscal Year 2002 Worksheet This worksheet contains detailed calculations of individual school division expenditure and per pupil amounts by fund source. The worksheet calculates automatically once a school division is selected from the drop-down box. Please note that this worksheet uses sales tax on an accrual basis to match data reported on the ASR.
Fiscal Year 2003 Worksheet This worksheet also contains detailed calculations of expenditure and per pupil amounts by fund source; however, school divisions must enter estimated revenue, expenditures, beginning year and ending year balances, capital expenditures, and end-of-year average daily membership (ADM) amounts for fiscal year 2003. Estimated sales tax (cash basis) is automatically calculated, but school divisions may instead enter their own estimates.
Fiscal Year 2004 Worksheet Like the fiscal year 2003 worksheet, this worksheet contains detailed calculations of expenditure and per pupil amounts by fund source. School divisions must enter estimated revenue, expenditures, beginning year and ending year balances, capital expenditures, and end-of-year ADM amounts for fiscal year 2004. Projected sales tax (cash basis) is automatically calculated.
For the fiscal year 2002, fiscal year 2003, and fiscal year 2004 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 end-of-year 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 2002 (or estimates for fiscal years 2003 and 2004) 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 end-of-year ADM to yield the state sales tax per pupil amount. Please note that sales tax on an accrual basis is used for fiscal year 2002, while sales tax on a cash basis is used for fiscal years 2003 and 2004.
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 2002 (or estimates for fiscal years 2003 and 2004) 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 for operations.
Attachment B of this memorandum provides instructions for using the fiscal year 2002, fiscal year 2003, and fiscal year 2004 worksheets. The Excel file is located on the departments website and may be downloaded from the following address:
Please note that, beginning in fiscal year 2001, the department 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 grants program) 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 G of the Annual School Report) from total expenditures. Therefore, expenditures related to object codes 8200, 8210, and 8220 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). Objects 8200, 8210, and 8220 were already excluded under the change related to capital expenditures.
We hope that you find this information helpful in complying with the reporting requirements of Section 22.1-92, Code of Virginia. If you have any questions, please contact budget office staff at (804) 225-2025.