P.O. BOX 2120




May 31, 2006





Division Superintendents



Patricia I. Wright

Acting Superintendent of Public Instruction



Amendments to the Fiscal Year 2006 Caboose Budget Passed by the 2006 General Assembly



On May 12, 2006, the 2006 General Assembly adopted changes to the fiscal year 2006 caboose budget as introduced by Governor Warner (HB/SB 29; reference Informational Superintendents Memorandum No. 250 dated December 22, 2005). Attachment A to this memorandum provides information on the changes to the Governors caboose budget that were adopted by both chambers of the General Assembly. The adopted changes are contained in the enrolled version of HB 5012, and affect fiscal year 2006 only. Fiscal year 2006 began on July 1, 2005, and ends on June 30, 2006.


Since the timing of the General Assemblys action to adopt a budget coincides with the collection of March 31 Average Daily Membership (ADM), final fiscal year 2006 entitlements based on HB 5012, and actual March 31, 2006, average daily membership (ADM), adjustments to the fiscal year 2006 Basic Aid entitlements, and updated incentive and categorical program entitlements are combined into one calculation tool. As a result, school divisions should use this calculation tool to calculate final Direct Aid entitlements for fiscal year 2006. Please note that the Excel calculation file released with this memorandum is based on actual March 31, 2006, ADM; consequently, the ADM values in this file populate automatically and cannot be changed. This calculation template can be downloaded from the Department of Education website at:


Attachment A to this memorandum provides a narrative summary of the changes adopted by the 2006 General Assembly that are contained in HB 5012. These changes are noted as "Final General Assembly Action" and are highlighted in bold italic text. For reference purposes, this attachment also repeats the information presented in Informational Superintendent's Memorandum No. 250, dated December 22, 2005, that described the changes proposed by Governor Warner, and Informational Superintendents Memorandum No. 49, dated February 28, 2006, that described the respective changes proposed by the House of Delegates and by the Senate.


The budget bill (HB 5012) containing the amended fiscal year 2006 budget passed by the 2006 General Assembly now goes to Governor Kaine for action. The Governor will have several options that include: signing the budget bill as presented to him with no changes; returning the budget bill to the General Assembly with vetoes; returning the budget bill to the General Assembly with amendments; or returning the budget bill to the General Assembly with some combination of vetoes and amendments.


After the Governor completes his actions on the budget, a reconvened veto session will occur where the General Assembly will consider any amendments or vetoes proposed by Governor Kaine. Consequently, unless signed by Governor Kaine with no changes, the budget bill as adopted by the 2006 General Assembly will not become final until after the reconvened session has concluded and the Governor signs the budget bill into law. If budget changes are made at the reconvened session that affect school divisions, you will be notified in another memorandum.


Questions regarding HB 5012, the amended fiscal year 2006 caboose budget adopted by the 2006 General Assembly, may be directed to Dan Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.