DEPARTMENT OF EDUCATION
SUPTS. MEMO NO. 49
February 28, 2006
Patricia I. Wright
Acting Superintendent of Public Instruction
Changes to the Introduced Fiscal Year 2006 and the 2006-2008 Biennial Budgets Proposed by the House of Delegates and by the Senate
On Sunday, February 19, 2006, the Senate Finance and House Appropriations Committees adopted separate changes to the 2006-2008 biennial budget as introduced by Governor Warner (reference Informational Superintendent's Memorandum No. 251, dated December 27, 2005) as well as separate changes to the amended fiscal year 2006 budget introduced by Governor Warner (reference Informational Superintendent's Memorandum No. 250, dated December 22, 2005). The budget recommendations of the Senate Finance Committee were adopted this week by the full membership of the Senate, and the budget recommendations of the House Appropriations Committee were adopted this week by the full membership of the House of Delegates. The adopted changes affect fiscal years 2006, 2007, and 2008. Fiscal year 2006 began on July 1, 2005, and ends on June 30, 2006. Fiscal year 2007 begins on July 1, 2006, and ends on June 30, 2007. Fiscal year 2008 begins on July 1, 2007, and ends on June 30, 2008.
The respective budget amendments proposed by the House of Delegates and by the Senate change the introduced budget for the 2006-2008 biennium (HB/SB 30) and the introduced budget (HB/SB 29) to amend the fiscal year 2006 appropriations. The attachments to this memorandum provide information on the changes separately adopted by the House and by the Senate. Unless changes are specifically noted in the attachments, Governor Warners proposed budgets contained in the introduced versions of HB/SB 29 and HB/SB 30 were adopted.
In addition, Governor Kaine proposed several executive amendments to the 2006-2008 introduced budget (HB/SB 30) that affect funding to school divisions. Please note that Governor Kaines proposed changes are executive amendments to the introduced budget and are not included in the funding contained in the 2006-2008 introduced budget (HB/SB 30). As a result, they must be adopted by the House of Delegates or the Senate to be included in their respective budgets. The House and Senate actions differ with respect to Governor Kaines executive amendments. These differences will be resolved in conference just as all other differences are resolved.
The attachments to this memorandum include:
Attachment A A narrative summary of changes proposed by the House of Delegates and by the Senate to the amended fiscal year 2006 caboose budget introduced by Governor Warner (HB/SB 29).
Attachment B A narrative summary of changes proposed by the House of Delegates and by the Senate to Governor Warners 2006-2008 introduced budget (HB/SB 30).
The revised Direct Aid entitlements proposed by the House of Delegates in Attachments C and E and by the Senate in Attachments D and F use the Department of Educations latest projections (from fall 2005) of March 31 average daily membership (ADM) for each school division for fiscal years 2006, 2007, and 2008. The entitlements shown in Attachments C through F do not include the direct or supplemental grants authorized by the General Assembly that are unique to certain school divisions. Several of the school facilities, incentive, and categorical account entitlements shown in Attachments C through F (Group II, III, and IV accounts) are funded on a reimbursement basis and represent the departments latest projections of those reimbursements; however, final payments on these accounts in fiscal years 2006, 2007, and 2008 will be based on actual qualifying expenses submitted to the department. Because attachments C through F show projected entitlements for each school division (based on the departments projected March 31 ADM) in .pdf format, they cannot be changed to test the impact of different ADM assumptions. If you wish to see the effects of a different ADM on funding for your school division, please use the Excel calculation files described in the next paragraph.
In addition to the entitlement information contained in Attachments C through F, four downloadable Excel files have been created to assist school divisions in calculating projected state entitlements and required local matches in fiscal years 2006, 2007, and 2008 for most Direct Aid programs based on the budgets proposed by the Senate and by the House of Delegates. These four Excel files give divisions the opportunity to change March 31 ADM to test the effect on state funding and projected local match requirements using the departments projected ADM or a local projection of ADM. Although we have confidence in the accuracy of our March 31 ADM projections on a statewide basis, experience has shown that the accuracy of our projections for individual divisions may vary. When divisions believe that they have more accurate projections of their March 31 ADM, they are encouraged to substitute their estimates for those provided in this memorandum when using the Excel calculation files.
Also, please note that changing the March 31 ADM in these files only changes the estimated funding for accounts that are funded on the basis of ADM, excluding the school construction grants program payments that are funded based on ADM from the prior year. The estimated funding for all other accounts is unaffected by changing ADM in the files and, therefore, remains the same.
Attachment G to this memorandum provides detailed instructions for accessing these Excel files from the Department of Education website. The Excel files may be downloaded from the following Web address:
Please note that the budget recommendations proposed by the House of Delegates and by the Senate are not final. A Conference Committee will make final recommendations after resolving the differences between the House and Senate budget proposals. The current legislative calendar indicates that the Conference Committee's recommendations will be presented to each chamber during the week of March 6th for consideration and final adoption.
Final budget action by each chamber will occur before adjournment of the 2006 Session, which is scheduled for March 11, 2006. After the conclusion of the session, the department will provide you and your governing body with additional information and projected entitlements based on final General Assembly budget actions in a regulatory superintendents memorandum. After adjournment, the budgets will be presented to the Governor. The Governor will have several options that include signing each budget with no changes, returning each budget to the General Assembly with vetoes, returning each budget to the General Assembly with amendments, or returning each budget to the General Assembly with some combination of vetoes and amendments. The General Assembly will consider any vetoes or amendments at the reconvened veto session scheduled for April 19, 2006.
Please note that the fiscal year 2006 entitlements are estimates only and will not be finalized until they are recomputed using actual March 31, 2006, ADM and other final program participation information. The final entitlements based on actual data will be communicated to you by a separate superintendents memorandum later this year. Actual fiscal year 2007 and fiscal year 2008 entitlements will not be finalized until after a similar process is followed in those years.
Questions regarding the Senates and House of Delegates proposed amendments to the fiscal year 2006 budget and the 2006-2008 biennial budget and revised estimates of Direct Aid entitlements for fiscal years 2006, 2007, and 2008 may be directed to Dan Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.