COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 001

March 2, 2007

 

REGULATORY

TO:

Division Superintendents

 

FROM:

Billy K. Cannaday, Jr.

Superintendent of Public Instruction

 

SUBJECT:

Amendments to the 2006-2008 Biennial Budget Passed by the 2007 General Assembly

 

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 amendments to the 2006-2008 biennial budget adopted by the 2007 General Assembly on February 24, 2007. The adopted changes affect fiscal years 2007 and 2008. Fiscal year 2007 began 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 2007 General Assembly adopted changes to the amended 2006-2008 biennial budget as introduced by Governor Kaine in HB 1650/SB 750 (reference Informational Superintendents Memorandum No. 262, dated December 15, 2006). The attachments to this memorandum provide information on the changes to the Governors introduced budget for the 2006-2008 biennium that were adopted by the General Assembly. Unless changes are specifically noted in the attachments, Governor Kaines proposals contained in the introduced version of HB 1650/SB 750 were adopted as outlined in Informational Superintendents Memorandum No. 262. Please note that the amended 2006-2008 budget adopted by the General Assembly and the projected state funding 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 summary of changes, adopted by the 2007 General Assembly, to the amended 2006-2008 budget as introduced by Governor Kaine in HB 1650/SB 750. 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 Superintendents Memorandum No. 262, dated December 15, 2006, that described the changes initially proposed by Governor Kaine in HB 1650/SB 750 and in Informational Superintendents Memorandum No. 39, dated February 9, 2007, 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 and projected 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 the amended 2006-2008 budget adopted by the General Assembly. The projected state funding and projected 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 projected state funding shown in Attachment B does not include the 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 program accounts 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 by school divisions to the department for reimbursement. Because Attachment B shows projected funding 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 projection 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 funding information contained in Attachment B, a downloadable Excel file has been created to assist school divisions in calculating projected state funding and projected required local matches for fiscal years 2007 and 2008 for most Direct Aid programs based on the amended 2006-2008 budget adopted by the 2007 General Assembly. This file gives divisions the opportunity to change projected March 31 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 for those accounts funded on the basis of ADM. (Attachment B contains projected state funding and required local match 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 the Excel 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. The final fiscal year 2007 entitlements based on actual data will be communicated to you by a separate superintendents memorandum later this year. Actual fiscal year 2008 entitlements will not be finalized until after a similar process is followed next year.

Also note that sales tax estimates in the Excel calculation files are revenue projections only. Actual sales tax payments made to school divisions in fiscal years 2007 and 2008 on a semi-monthly basis 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 during the year.

 

Attachment C to this memorandum provides detailed instructions for accessing the Excel file from the Department of Education website. The Excel file may be downloaded from the following Web address: http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html.

 

The budget bill containing the amended 2006-2008 biennial budget passed by the 2007 General Assembly (HB 1650/SB 750 as enrolled) 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. The reconvened session is scheduled for April 4, 2007. Consequently, unless signed by Governor Kaine with no changes, the budget bill as adopted by the 2007 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 the amended 2006-2008 budget adopted by the 2007 General Assembly and the revised projections of state Direct Aid funding for fiscal years 2007 and 2008 may be directed to Kent Dickey, assistant superintendent for finance, or budget office staff at (804) 225-2025.

 

BKCJr/bkl

 

Attachments

 

http://www.doe.virginia.gov/administrators/superintendents_memos/2007/reg001a.pdf http://www.doe.virginia.gov/administrators/superintendents_memos/2007/reg001b.pdf http://www.doe.virginia.gov/administrators/superintendents_memos/2007/reg001c.pdf

 

 

C: local governing bodies