COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
SUPTS. MEMO NO. 241
November 14, 2007
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
Composite
Index of Local Ability-to-Pay for the 2008-2010 Biennium |
This memorandum and the attachments contain
information regarding the
Composite Index of Local Ability-to-Pay for the 2008-2010 biennium,
which will begin July 1, 2008. The
2008-2010 composite index was calculated using 2005
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 2005
are provided by the
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 2008-2010 biennium.
Information regarding these entitlements will be made available to you
in late December following the release of the Governors 2008-2010 introduced budget, scheduled for December 17, 2007.
Attachment A
to this memorandum includes the 2008-2010 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 shown 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, 2008. 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/composite.html
Only those
school divisions listed in Attachment B that meet the three percent or greater
nonresident AGI requirement are eligible to submit this certification form to
the department. Please note that school
divisions whose composite index is still 0.8000 after the nonresident exclusion
are not required to submit this certification.
Downloadable files
in Excel and .pdf formats containing the 2008-2010
composite index for each school division are available
on the Department of Education website at:
http://www.doe.virginia.gov/VDOE/Finance/Budget/composite.html
In addition,
at the website referenced above, an Excel file is available that will allow
you to view the detailed calculation of your 2008-2010 composite index. The file displays all of the data elements
used and the steps involved in the calculation of your 2008-2010 index. In addition, this file provides comparisons
between the per pupil and per capita components of
your index relative to statewide averages for both the 2006-2008 and the
2008-2010 biennia. This data can assist
you in assessing the elements in the composite index formula that contributed
to increases or decreases in your index for 2008-2010 compared to 2006-2008.
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).
BKCJr/ser
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf241a.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf241b.pdf