COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

 

SUPTS. MEMO NO. 69

April 18, 2003

INFORMATIONAL

TO:

Division Superintendents

 

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

 

SUBJECT:

Summary of Changes to the 2002-2004 Biennial Budget at the 2003 Reconvened (Veto) Session

 

On April 2, 2003, the 2003 Session of the General Assembly reconvened to consider changes proposed by Governor Warner to the amended 2002-2004 biennial budget adopted earlier this year during the regular session of the legislature. Details of the General Assemblys actions were provided to you in Regulatory Superintendents Memorandum No. 3, dated February 28, 2003.

 

Attachment A to this memorandum provides a summary of the changes proposed by Governor Warner and the actions taken by the General Assembly in response to the Governor's proposed amendments to the 2002-2004 biennial budget. These actions are noted in Attachment A as either "General Assembly Action - Adopted" or "General Assembly Action - Rejected."

 

The most important action pertains to funding for the compensation supplement account in fiscal year 2004, which provided contingent funding for a 2.25 percent salary increase effective on January 1, 2004. Governor Warner proposed an amendment to eliminate language that made the compensation supplement contingent on general fund revenues generated in fiscal year 2004. This amendment was adopted by the General Assembly at the reconvened session. As a result, the compensation supplement payment for fiscal year 2004 is no longer based on a contingent appropriation.

 

It is recommended that school divisions anticipate state revenue in fiscal year 2004 for the compensation supplement account based on a 2.25 percent salary increase for all Standards of Quality funded positions effective January 1, 2004. The amendment that was adopted also makes the required local match for this account a part of required local effort that must be appropriated to meet the Standards of Quality in fiscal year 2004. This language does not mandate a salary increase of 2.25 percent on January 1, 2004. Instead, this language requires that the funds for the salary increase be included in the determination of the funding needed to meet required local effort. School divisions can meet this requirement as long as they have sufficient local funds appropriated to meet the required local effort in total. However, school divisions must provide a salary increase equivalent to 2.25 percent on January 1, 2004, if they wish to receive the state funds for the salary increase. A table showing equivalent salary increases was included in Regulatory Superintendents Memorandum No. 3.

 

As indicated in Attachment A, except for the compensation supplement account, no policy changes were adopted by the General Assembly at the reconvened session that affected state payments to school divisions for fiscal years 2003 and 2004. There were some technical changes based on program participation, which are described in Attachment A. As a result, the state revenue projections and the Excel calculation tool provided as part of Regulatory Superintendent's Memorandum No. 3 remain the latest information on projected state payments for fiscal years 2003 and 2004.

 

The Excel calculation tool provided as part of Regulatory Superintendent's Memorandum No. 3 provides the latest state revenue projection for the compensation supplement account based on the 2.25 percent salary increase effective January 1, 2004. Selecting the option called Entitlements Calculated Assuming the 2.25% Compensation Supplement is Implemented from the drop-down box in the Excel file provides the correct revenue projection. For your reference, Regulatory Superintendents Memorandum No. 3 is available at the following location:

 

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

 

It is anticipated that final entitlements for fiscal year 2003 based on actual March 31, 2003, Average Daily Membership (ADM) will be communicated to school divisions by superintendents memorandum in May 2003. The information in that memorandum will represent the final state entitlements to school divisions in fiscal year 2003 for ADM-based accounts and other accounts where data has been finalized for the year.

 

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

 

Attachment

 

/administrators/superintendents_memos/2003/inf069a.pdf

 

C: local governing bodies