COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 3

July 7, 2006

REGULATORY

TO:

Division Superintendents

 

FROM:

Billy K. Cannaday, Jr.

Superintendent of Public Instruction

 

SUBJECT:

Final Enacted 2006-2008 Biennial Budget Signed by Governor Kaine (Chapter 3, 2006 Acts of Assembly, Special Session I)

 

Section 22.1-93, Code of Virginia, requires the Department of Education to provide ...estimates to be used for budgetary purposes relative to the Basic School Aid Formula... following the conclusion of the General Assembly session based upon the budget actions taken by the General Assembly with respect to public education. The revenue estimates provided in this memorandum represent the state funding that is projected to be distributed to school divisions in fiscal years 2007 and 2008 based on the final enacted 2006-2008 biennial budget (Chapter 3, 2006 Acts of Assembly, Special Session I) signed by Governor Kaine 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 attachments to this memorandum provide information on the changes to the Governors introduced budget (introduced as HB/SB 30 at the regular session; reintroduced as HB/SB 5002 at the special session) that were signed into law as Chapter 3, 2006 Acts of Assembly, Special Session I (also known as the 2006 Appropriation Act). Unless changes are specifically noted in the attachments, the proposals contained in the introduced version of HB/SB 5002 were adopted as outlined in Informational Superintendents Memorandum No. 251, dated December 27, 2005. Please note that Chapter 3 and the entitlements for each school division contained in Attachment B to this memorandum are based on the departments latest projections of March 31 average daily membership (ADM) for those accounts that use ADM to determine the amount of funding.

 

The attachments to this memorandum include:

 

  • Attachment A A narrative summary of changes based on Chapter 3, 2006 Acts of Assembly, Special Session I, to the 2006-2008 biennial budget as introduced (HB/SB 5002). These changes are noted as "Final Enacted Budget" and are highlighted in bold italic text. For reference purposes, this attachment also repeats the information presented in Informational Superintendent's Memorandum No. 251, dated December 27, 2005, that described the changes initially proposed by Governor Warner in HB/SB 30 (and subsequently by Governor Kaine in HB/SB 5002 to Special Session I), 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.

 

  • Attachment B A report in .pdf format showing projected state funding entitlements and required local matches for each school division for fiscal years 2007 and 2008 for the Standards of Quality (SOQ), incentive, categorical, and school facilities accounts based on Chapter 3. These entitlements and required local matches are based on the Department of Educations latest projections of March 31 average daily membership (ADM) for each year for accounts funded on the basis of ADM. The entitlements shown in Attachment B do not include the direct or supplemental grants authorized by the General Assembly that are unique to certain school divisions.

 

  • Attachment C Instructions for downloading the Excel calculation file from the departments website.

 

Several of the incentive and categorical account entitlements shown in Attachment B (Group 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 2007 and 2008 will be based on actual qualifying expenses submitted to the department for reimbursement. Because Attachment B shows projected entitlements for each school division (based on the departments projected March 31 ADM only) in .pdf format, the entitlements 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 in those accounts where funding is based on ADM, please use the Excel calculation file described in the next paragraph.

 

In addition to the entitlement information contained in Attachment B, a downloadable Excel file has been created to assist school divisions in calculating projected state entitlements and required local matches for fiscal years 2007 and 2008 for most Direct Aid programs based on Chapter 3. This file gives divisions the opportunity to change ADM to test the effect on projected state funding and projected local match requirements using the departments projected ADM or a local projection of ADM. (Attachment B contains projected entitlement information for each school division in .pdf format based on the departments projected ADM only and cannot be modified.) Although we have confidence in the accuracy of our 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 file to project state funding and required local matches.

 

Changing the projected March 31 ADM in this file 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 this file and, therefore, remains the same. The fiscal year 2007 entitlements will not be finalized until they are recomputed using actual March 31, 2007, ADM and other final program participation information. Actual fiscal year 2008 entitlements will not be finalized until after a similar process is followed next year. The payment of semi-monthly SOQ account entitlements and other accounts paid on the basis of ADM will begin using DOEs projections of division March 31 ADM. These payments may be adjusted at mid-year based on the departments revised ADM forecast. All ADM-based payments will be made in this manner pending the recalculation of final entitlements based on actual March 31 ADM at the end of each fiscal year.

 

Attachment C to this memorandum provides detailed instructions for accessing the Excel file from the Department of Education Web site. The Excel file may be downloaded from the following Web address:

 

http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html .

 

Questions regarding the final enacted 2006-2008 biennial budget (Chapter 3, 2006 Acts of Assembly, Special Session I) and the projections of Direct Aid entitlements for fiscal years 2007 and 2008 may be directed to Dan Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.

 

bkc/bkl

 

Attachments

 

http://www.doe.virginia.gov/administrators/superintendents_memos/2006/reg003a.pdf http://www.doe.virginia.gov/administrators/superintendents_memos/2006/reg003b.pdf http://www.doe.virginia.gov/administrators/superintendents_memos/2006/reg003c.pdf

 

 

C: local governing bodies