COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
SUPTS. MEMO NO. 241
December 9, 2005
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Jo Lynne
DeMary Superintendent
of Public Instruction |
|
SUBJECT: |
Composite
Index of Local Ability-to-Pay for the 2006-2008 Biennium |
This memorandum and the attachments contain
information regarding the
Composite Index of Local Ability-to-Pay for the 2006-2008 biennium, which will
begin July 1, 2006. The 2006-2008
composite index was calculated using 2003 base-year data provided by the
Department of Taxation for adjusted gross income, taxable retail sales, and
true value of real property. The
estimates of local population for 2003 are provided by the Weldon Cooper Center
for Public Service at the University of Virginia, and the March 31, 2004,
average daily membership is based on data reported by school divisions to the
Department of Education.
The
Department of Education will use this composite index in calculating the state
share of applicable school division entitlements for the Governors introduced
budget for the 2006-2008 biennium.
Information regarding these entitlements will be made available to you
in late December following the release of the Governors 2006-2008 introduced
budget.
Attachment A
to this memorandum includes the composite index calculated using the total
Adjusted Gross Income (AGI) for each locality.
Attachment B shows an alternative composite index for those localities
in which three percent or more of their total AGI is derived from individuals
who are not residents of Virginia. The
alternative index in Attachment B excludes non-resident AGI data from the
composite index calculation. As provided
in the appropriation act, school divisions whose total Virginia AGI consists of
at least three percent or more from nonresident income may elect to exclude
such nonresident income from the computation of the composite index.
Pursuant to
the appropriation act, each school division that elects this option must have
certified its intention to do so to the Department of Education on or before
January 1, 2006. The certification form
that is to be completed and returned to the Department of Education in order to
elect the nonresident AGI exclusion option is an Excel file located at:
http://www.doe.virginia.gov/VDOE/Finance/Budget/bods.html
Only those
school divisions listed in Attachment B that meet the three percent or greater
nonresident AGI requirement are eligible to submit the certification form to
the department.
Downloadable
Excel and PDF files containing the 2006-2008 composite index for each school
division are available on the Department of Education website at:
http://www.doe.virginia.gov/VDOE/Finance/Budget/bods.html
In addition,
at the website referenced above, an Excel file is available that will allow
you to view the detailed calculation of your 2006-2008 composite index. The file displays all of the data elements
used and the steps involved in the calculation of your 2006-2008 index. In addition, this file provides comparisons
between the per pupil and per capita components of your index relative to
statewide averages.
If you have
questions or need additional information concerning this data, please contact
the budget office at (804) 225-2025 or by e-mail (e-mail addresses available at
http://www.doe.virginia.gov/VDOE/Finance/Budget/dir.html).
JLD/kcd
http://www.doe.virginia.gov/administrators/superintendents_memos/2005/inf241a.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2005/inf241b.pdf