COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 97

May 6, 2005

INFORMATIONAL

TO:

Division Superintendents

 

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

 

SUBJECT:

Summary of Changes to the 2004-2006 Biennial Budget at the 2005 Reconvened (Veto) Session

 

On April 6, 2005, the 2005 Session of the General Assembly reconvened to consider changes proposed by Governor Warner to the amended 2004-2006 biennial budget adopted earlier this year at the regular session of the legislature. Details of the General Assemblys actions at the regular session were provided to you in Regulatory Superintendents Memorandum Number 1, dated March 4, 2005. This memorandum provides a summary of three amendments proposed by Governor Warner to the budget adopted at the regular session that affect school divisions. All three amendments were adopted by the General Assembly at the reconvened session and become part of the final amended 2004-2006 budget.

 

Virginia Schools for the Deaf and Blind Consolidation Process Budget language is added regarding the consolidation process of the two schools for the deaf and the blind that gives the Board of Education flexibility to consider renovation, addition, or new construction at existing facilities if it will permit consolidation of the two schools at an existing facility.

 

Industry Certification - $1.5 million is provided in fiscal year 2006 to reimburse school divisions and community colleges for career and technical training, testing, and industry certification costs. The objective of the funding is to increase the number of high school students working toward graduation and pursuing technical training to achieve industry certifications that will expand their employment opportunities and meet local industry needs.

School Breakfast Program - $1.2 million is provided in fiscal year 2006 to establish a state-funded incentive program to maximize federal school nutrition revenues and increase student participation in the school breakfast program. The funding will provide up to a $0.20 per meal reimbursement to school divisions that increase the number of breakfasts served to students. The reimbursement will be based on breakfast meals served in excess of a baseline established by the department.

A local match of funds is not required to receive this state funding; however, school divisions may not use the additional state funding to supplant funds already spent on school nutrition programs. The funds must be provided to the school nutrition program to improve student participation in the school breakfast program. Projected school division allocations are not available at this time since reimbursements in fiscal year 2006 will be based on the actual number of breakfast meals served. A separate superintendents memorandum will be issued that provides additional detail on this funding and the reimbursement methodology to be used in fiscal year 2006.

 

Because funding for the School Breakfast Program and the Industry Certification Program will be based on reimbursements using data that has not yet been compiled, no budget changes that affect statewide distributions to school divisions for fiscal years 2005 and 2006 can be estimated at this time. As a result, the state revenue projections and the Excel calculation tool provided as part of Regulatory Superintendents Memorandum Number 1 remain the latest information on projected state payments for fiscal years 2005 and 2006.

 

Please be aware that no additional state funding was adopted at the reconvened session to address the unfunded technical corrections in fiscal year 2005 (see Regulatory Superintendents Memorandum Number 1 for more details on the technical corrections in fiscal years 2005 and 2006). Consequently, it may be necessary to prorate final entitlement payments for Basic Aid this fiscal year.

 

It is anticipated that final entitlements for Direct Aid to Public Education accounts for fiscal year 2005 based on actual March 31, 2005, Average Daily Membership (ADM) will be communicated to school divisions by superintendents memorandum later this month. The information in that memorandum will represent the final state entitlements to school divisions in fiscal year 2005 for ADM-based accounts and other accounts where data has been finalized for the year. If it becomes necessary to prorate final Basic Aid entitlements, you will be notified as soon as possible. Final prorations will not be made until after every effort has been made to identify available balances in other programs and all other options have been explored.

 

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

 

C: local governing bodies