State Direct Aid to Public Education Funds Permitted to be Carried Forward from Fiscal Year 2005 to Fiscal Year 2006

COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 109

May 20, 2005

INFORMATIONAL

TO:

Division Superintendents

FROM:

Jo Lynne DeMary

Superintendent of Public Instruction

SUBJECT:

State Direct Aid to Public Education Funds Permitted to be Carried Forward from Fiscal Year 2005 to Fiscal Year 2006

Section 22.1-100, Code of Virginia, requires state funds that are unexpended at the close of any fiscal year to be reverted by school divisions to the commonwealth; however, the current appropriation act for the 2004-2006 biennium (Chapter 951) permits school divisions to carry forward to fiscal year 2006 certain state funds received in fiscal year 2005 that are unexpended as of June 30, 2005. School divisions may carry forward to fiscal year 2006 the unexpended June 30, 2005, balances of state funds in the following Direct Aid to Public Education accounts:

1. SOL Algebra Readiness (revenue source code 240405)

2. School Construction Grants Program (revenue source code 240306)

3. Lottery (revenue source code 240233)

4. Competitive Leadership Grant (revenue source code 240294)

5. Textbooks (revenue source code 240214)

To carry forward state funds to fiscal year 2006 in the five accounts listed above, the school division must have actually received the state funds in fiscal year 2005.

State funds received by school divisions in fiscal year 2005 for the School Construction Grants Program and Lottery may also be paid into escrow accounts pursuant to Sections 22.1-175.5 and 22.1-100.1, Code of Virginia, respectively, and carried forward indefinitely.

School divisions that received a Competitive Leadership Grant in fiscal year 2005 are allowed to retain any unspent balances and are permitted to spend any remaining balances for the intended purposes during the ensuing two fiscal years (during fiscal years 2006 and 2007).

Except for the five accounts listed above, all other state Direct Aid to Public Education funds received by school divisions in fiscal year 2005 should be expended by June 30, 2005; otherwise, any state funds received in fiscal year 2005 that have unexpended balances as of June 30, 2005, are subject to the reversion requirement of Section 22.1-100, Code of Virginia.

If you have any questions regarding this information, please contact Dan Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.

JLD/kcd