COMMONWEALTH OF VIRGINIA

DEPARTMENT OF EDUCATION

P.O. BOX 2120

RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 42

February 28, 2008

INFORMATIONAL

TO:	Division Superintendents
FROM:	Billy K. Cannaday, Jr. Superintendent of Public Instruction
SUBJECT:	Changes to the Introduced Fiscal Year 2008 and the 2008-2010 Biennial Budgets Proposed by the House of Delegates and by the Senate

 

On Sunday, February 17, 2008, the Senate Finance and House Appropriations Committees adopted separate changes to the 2008-2010 biennial budget as introduced by Governor Kaine (reference Informational Superintendent's Memorandum No. 261, dated December 21, 2007) as well as separate changes to the amended fiscal year 2008 budget introduced by Governor Kaine (reference Informational Superintendent's Memorandum No. 260, dated December 21, 2007). The budget recommendations of the Senate Finance Committee were adopted this week by the full membership of the Senate, and the budget recommendations of the House Appropriations Committee were adopted this week by the full membership of the House of Delegates. The adopted changes affect fiscal years 2008, 2009, and 2010. Fiscal year 2008 began on July 1, 2007, and ends on June 30, 2008. Fiscal year 2009 begins on July 1, 2008, and ends on June 30, 2009. Fiscal year 2010 begins on July 1, 2009, and ends on June 30, 2010.

 

The respective budget amendments proposed by the House of Delegates and by the Senate change the introduced budget for the 2008-2010 biennium (HB/SB 30) and the introduced budget to amend the fiscal year 2008 appropriations (HB/SB 29). The attachments to this memorandum provide information on the changes separately adopted by the House and by the Senate. Unless changes are specifically noted in the attachments, Governor Kaine's proposed budgets contained in the introduced versions of HB/SB 29 and HB/SB 30 were adopted.

 

In addition, Governor Kaine proposed several executive amendments to the 2008-2010 introduced budget (HB/SB 30) that affect funding to school divisions. Please note that Governor Kaine's proposed changes are executive amendments to the introduced budget and are not included in the funding contained in the 2008-2010 introduced budget (HB/SB 30). As a result, they must be adopted by the House of Delegates or the Senate to be included in their respective budgets. The House and Senate actions differ with respect to Governor Kaine's executive amendments. These differences will be resolved through the Conference Committee process just as all other differences are resolved.

 

Please note that the 2008-2010 funding changes affecting school divisions recently recommended (on February 12^th) by Governor Kaine in response to the revised state revenue forecast are also not included in the funding contained in the 2008-2010 introduced budget (HB/SB 30). Like the Governor's executive amendments, these funding recommendations must be separately considered by the General Assembly for inclusion in the final budget that is adopted.

 

The attachments to this memorandum include:

 

        Attachment A A narrative summary of changes proposed by the House of Delegates and by the Senate to the amended fiscal year 2008 caboose budget introduced by Governor Kaine (HB/SB 29).

 

        Attachment B A narrative summary of changes proposed by the House of Delegates and by the Senate to Governor Kaine's 2008-2010 introduced budget (HB/SB 30).

 

• Attachment C A report in .pdf format showing state Direct Aid funding and required local matches proposed by the House of Delegates for each school division for fiscal year 2008.

 

• Attachment D A report in .pdf format showing state Direct Aid funding and required local matches proposed by the Senate for each school division for fiscal year 2008.

 

• Attachment E A report in .pdf format showing state Direct Aid funding and required local matches proposed by the House of Delegates for each school division for fiscal years 2009 and 2010.

 

• Attachment F A report in .pdf format showing state Direct Aid funding and required local matches proposed by the Senate for each school division for fiscal years 2009 and 2010.

 

• Attachment G Instructions for downloading the Excel calculation files from the department's website.

 

• Attachment H Virginia Preschool Initiative Comparison of Funded Slots

 

The revised Direct Aid entitlements proposed by the House of Delegates in Attachments C and E and by the Senate in Attachments D and F use the Department of Education's latest projections (from fall 2007) of March 31 average daily membership (ADM) for each school division for fiscal years 2008, 2009, and 2010. The entitlements shown in Attachments C through F do not include the supplemental education grants authorized by the General Assembly that are unique to certain school divisions. Several of the school facilities, incentive, and categorical account entitlements shown in Attachments C through F (Group II, III, and IV accounts) are funded on a reimbursement basis and represent the department's latest projections of those reimbursements; however, final payments on these accounts in fiscal years 2008, 2009, and 2010 will be based on actual qualifying expenses submitted to the department. Because Attachments C through F show projected entitlements for each school division (based on the department's projected March 31 ADM only) in .pdf format, they 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, please use the Excel calculation files described in the next paragraph.

 

In addition to the entitlement information contained in Attachments C through F, four downloadable Excel files have been created to assist school divisions in calculating projected state entitlements and required local matches in fiscal years 2008, 2009, and 2010 for most Direct Aid programs based on the budgets adopted by the Senate and by the House of Delegates. These four Excel files give divisions the opportunity to change March 31 ADM to test the effect on state funding and projected local match requirements using the department's projected ADM or a local projection of ADM. Although we have confidence in the accuracy of our March 31 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 files. Also, please note that changing the March 31 ADM in these files 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 the files and, therefore, remains the same.

 

Attachment G to this memorandum provides detailed instructions for accessing these Excel files from the Department of Education website. The Excel files may be downloaded from the following Web address:

 

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

 

Please note that the budget recommendations proposed by the House of Delegates and by the Senate are not final. A Conference Committee will make final recommendations after resolving the differences between the House and Senate budget proposals. The current legislative calendar indicates that the Conference Committee's recommendations will be presented to each chamber during the week of March 3^rd for consideration and final adoption.

 

Final budget action by each chamber will occur before adjournment of the 2008 Session, which is scheduled for March 8, 2008. After the conclusion of the session, the department will provide you and your governing body with additional information and projected entitlements based on final General Assembly budget actions in a regulatory superintendent's memorandum. After adjournment, the adopted budgets for fiscal year 2008 and for 2008-2010 will be presented to the Governor. The Governor will have several options that include signing each budget with no changes, returning each budget to the General Assembly with vetoes, returning each budget to the General Assembly with amendments, or returning each budget to the General Assembly with some combination of vetoes and amendments. The General Assembly will consider any vetoes or amendments at the reconvened veto session scheduled for April 16, 2008.

 

Please note that the fiscal year 2008 entitlements are estimates only and will not be finalized until they are recomputed using actual March 31, 2008, ADM and other final program participation information. The final entitlements based on actual data will be communicated to you by a separate superintendent's memorandum later this year. Actual fiscal year 2009 and fiscal year 2010 entitlements will not be finalized until after a similar process is followed in those years.

 

Questions regarding the Senate's and House of Delegate's proposed amendments to the fiscal year 2008 budget and the 2008-2010 biennial budget and revised estimates of Direct Aid entitlements for fiscal years 2008, 2009, and 2010 may be directed to Kent Dickey, assistant superintendent for finance, or budget office staff at (804) 225-2025.

 

BKC/ser

 

Attachments

 

a. FY 2008 Caboose Bill Senate & House Amendments (PDF)
b. 2008-2010 Senate & House Amendments (PDF)
c. Entitlement Sheets FY 2008 - House Amendments (PDF)
d. Entitlement Sheets FY 2008 - Senate Amendments (PDF)
e. Entitlement Sheets 2008-10 - House Amendments (PDF)
f. Entitlement Sheets 2008-10 - Senate Amendments (PDF)
g. Entitlement Calculation Template Instructions (PDF)

h. Virginia Preschool Initiative Funded Slot Comparison (PDF)