COMMONWEALTH OF
VIRGINIA
DEPARTMENT
OF EDUCATION
P.O.
BOX 2120
SUPTS.
MEMO NO. 260
December 21, 2007
INFORMATIONAL
|
TO: |
Division Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent of Public Instruction |
|
SUBJECT: |
Amendments to the Fiscal Year 2008 Direct Aid to
Public Education Budget as Proposed by Governor Kaine (the Caboose Bill) |
Governor Kaines proposed amendments to the fiscal year 2008
state budget (the Caboose Bill) were presented on Monday, December 17, 2007,
before a joint session of the Senate Finance, the House Appropriations, and the
House Finance committees. These amendments
to the fiscal year 2008 (i.e., July 1, 2007, through June 30, 2008) budget will
be considered by the 2008 Session of the General Assembly, which is scheduled
to convene on January 9, 2008. The
introduced budget bill containing the Governors amendments is House Bill
29/Senate Bill 29. The Governors
proposed changes amend the fiscal year 2008 budget adopted at the 2007 Session
(i.e., Chapter 847).
The recommendations made by the Governor regarding the Direct
Aid to Public Education budget primarily include technical adjustments to the
Standards of Quality (SOQ), incentive, categorical, and school facilities
accounts. The Governors introduced
budget provides funding for the state share of all SOQ programs and the continuation
of all existing incentive, categorical, school facilities, and supplemental
education programs in Direct Aid.
Attachment A to this memorandum
provides a summary of the funding changes proposed by the Governor for fiscal
year 2008 that affect the Direct Aid to Public Education and the Department of
Education Central Office budgets. Key
changes summarized in Attachment A include updates to fall membership and March
31 average daily membership (ADM), revised Sales Tax and Lottery revenue estimates,
and updates to enrollments and participation in various incentive and
categorical programs. In the department
Central Office budget, additional funding is proposed to fully fund the cost of
the National Board Certification bonus awards for the actual number of eligible
teachers in fiscal year 2008.
Attachment B to this memorandum provides the estimated entitlements
for each school division for the SOQ, incentive, categorical, and school
facilities accounts for fiscal year 2008 based on the Governors proposed
amendments. The estimated entitlements shown
in Attachment B are based on the Department of Educations latest projections
of March 31, 2008, average daily membership (ADM). The entitlements shown in Attachment B do not
include the supplemental education grants authorized by the General Assembly
that are unique to certain school divisions.
Several of the categorical account entitlements shown in Attachment
B are funded on a reimbursement basis and represent the departments latest
projected entitlements; however, final payments on these accounts for fiscal
year 2008 will be based on actual, eligible reimbursement requests submitted by
school divisions and approved by the department.
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 year 2008 for most Direct Aid programs. This file gives divisions the opportunity to
change ADM to test the effect on projected state funding and local match
requirements using the departments projected ADM or a local projection of
ADM. (Please note that the
estimated entitlements shown for each school division in Attachment B are based
on the departments projected ADM only and cannot be modified since Attachment
B is in .PDF format.)
Although we have confidence in the accuracy of our ADM
projections on a statewide basis, experience has shown that the accuracy of our
ADM 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. Also, please note that
changing the ADM value in the Excel calculation file only changes the estimated
funding for accounts that are funded on the basis of ADM. The estimated funding for all other accounts
is unaffected by changing ADM in the Excel file and, therefore, remains the
same.
Also note that sales tax estimates in the
Excel calculation file are revenue estimates only. Actual sales tax payments made to school
divisions on a semi-monthly basis in fiscal year 2008 will be based on actual
sales tax receipts. Pursuant to the appropriation
act, the Basic Aid entitlement calculation is based on the estimated sales tax
appropriation only and is not adjusted for actual sales tax revenues received.
Attachment C to this memorandum provides detailed instructions
for accessing the Excel calculation 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
Special Note
It is important to remember that the information provided in Attachment
B and in the Excel calculation file relates to the Governors proposed budget
amendments for fiscal year 2008 as introduced.
The House of Delegates and the Senate will have the opportunity to amend
the Governors budget proposals during the 2008 General Assembly session. The General Assembly will adopt a final
fiscal year 2008 budget before the end of the session, which is scheduled for
March 8, 2008; therefore, the estimated entitlements contained in Attachment B
and in the Excel calculation file are projections only and are subject to
change as a result of legislative action by the 2008 General Assembly.
The department will provide additional information during the
General Assembly session as changes to the estimated fiscal year 2008 Direct
Aid entitlements occur. After the
conclusion of the session, projected entitlements based on final General
Assembly actions will be sent to you in another Superintendents Memorandum. Please
note, the actual fiscal year 2008 entitlement payments will not be finalized
until they are recomputed using actual March 31, 2008, ADM and other final
program participation information.
Questions regarding the Governors proposed amendments to the fiscal
year 2008 budget and the revised Direct Aid entitlements for fiscal year 2008
may be directed to Kent Dickey, assistant superintendent for finance, or budget
office staff at (804) 225-2025.
BKCJr/shd
Attachments
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf260a.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf260b.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf260c.pdf