DEPARTMENT OF EDUCATION
P.O.
SUPTS. MEMO NO. 130
May 16, 2008
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
Final
Fiscal Year 2008 State Entitlements Based on Actual March 31, 2008, ADM, and Adjustments
to the Fiscal Year 2008 Basic Aid Entitlement |
Pursuant
to Chapter 847, 2008 Acts of Assembly, school divisions were required to report
average daily membership (ADM) as of March 31, 2008, to the Department of
Education. The data reported by
divisions were used to recalculate all ADM-based state entitlements for fiscal
year 2008. On a statewide basis, actual March
31, 2008, ADM was less than the projected ADM on which the current state budget
for fiscal year 2008 (Chapter 847, 2008 Acts of Assembly) is based. Consequently, school divisions will receive
their full ADM-based state entitlement payments for fiscal year 2008 with no
changes other than the routine adjustments that are made to the Basic Aid entitlements
for some divisions each year as described later in this memorandum.
The
information in this memorandum contains the final state funding due to school
divisions in fiscal year 2008 for ADM-based accounts. Also, where available, final entitlements are
shown for other Direct Aid accounts that are not calculated based on ADM. Entitlements for some accounts that require
school divisions to submit reimbursements have not been finalized for the year
and the entitlements shown are estimates only.
The
Excel calculation file referenced in this memorandum shows state entitlements,
required local effort for the Standards of Quality (SOQ) accounts, and required
local matches for school facilities and incentive accounts calculated based on
actual March 31, 2008, ADM. The accounts
affected by actual March 31, 2008, ADM appear in the Excel file in bold italics
and are shown as the full entitlement with no adjustments. Please note that, unlike previous Excel
calculation files for fiscal year 2008 provided by the department, this file
does not offer an option to change ADM for fiscal year 2008 since ADM is now
final. The calculation template can be
downloaded from the Department of Education website at:
http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html.
Attachment
A to this memorandum provides detailed instructions for accessing the Excel
entitlement file.
Attachment
B to this memorandum shows the final fiscal year 2008 entitlements for each
school division for the Standards of Quality (SOQ), school facilities, and incentive
accounts that are based on actual March 31, 2008, ADM.
Attachment
C to this memorandum shows the final, routine adjustments to the fiscal year
2008 state Basic Aid entitlement amounts, which are explained in further detail
below.
Please
note the following when reviewing the data contained in the Excel file:
Basic
Aid: The fiscal year 2008 state Basic Aid entitlement amount contained in the
State and Local Funds Worksheet in the Excel calculation file does not
reflect any required adjustments for circumstances such as overpayments or
payments made on behalf of school divisions to the schools for the deaf and the
blind, mental health/mental retardation facilities, or summer residential Governor's
School programs. The adjustments made to
fiscal year 2008 Basic Aid entitlements are described below and are listed in
the sheet labeled Adjustments to FY2008 Basic Aid. The final amount to be paid to school
divisions in fiscal year 2008 for Basic Aid is contained in this sheet.
Sales
Tax: The fiscal year 2008 sales tax estimates contained in the Excel
calculation file represent the Department of Taxation's official forecast of
sales tax included in the Chapter 847 budget (2008 Acts of Assembly). The sales tax estimates contained in Chapter
847 must be used to compute the Basic Aid entitlement for fiscal year 2008. Chapter 847 specifically states:
In
the event that the actual revenues from the state sales and use tax returned
(on the basis of the latest triennial count of school age population) for sales
in the fiscal year in which the school year begins are different from the
number estimated as the basis for this appropriation, the estimated revenues
shall not be adjusted.
School
Facilities, Incentive, and Categorical Accounts: School Facilities and Incentive
accounts represent the full entitlement for actual participation in fiscal year
2008. For Categorical accounts other
than fiscal year 2008 Foster Care, the entitlements do not reflect final
participation or reimbursement levels for the year and are shown as estimated
entitlements only.
VPSA
Technology: VPSA Technology (i.e., SOL Web-based Technology Initiative)
entitlements reflect the total entitlement that is allocated to the school
division for the note issue offered in the designated year. They do not reflect actual reimbursement
payments requested and paid to the school division. Please be aware that entitlements for
regional programs are included in school division fiscal agent totals; however,
actual reimbursements for the spring 2008 issue may be made directly to
regional programs from State Non-Arbitrage Program (SNAP) allocations if they
are established separately in SNAP for the regional program.
Local
Lottery Distribution: The distribution
of local lottery revenue to school divisions is based on the revised per pupil
amount of $222.80 (up from the estimated amount of $222.71 included in Chapter
847), which reflects actual March 31, 2008, ADM. The semi-monthly Lottery payments for fiscal
year 2008 will be adjusted for actual ADM beginning with the May 31, 2008,
electronic funds transfer (EFT).
Adjustments
to the Fiscal Year 2008 Basic Aid Entitlement for Certain School Divisions
As
in past years, the department's normal practice for making certain types of
adjustments to school division payments is to adjust Basic Aid since it is the
largest Direct Aid account. The
appropriation act directs that adjustments for the local share of cost of
educating students in mental health or mental retardation facilities be made
against a school division's Basic Aid payment.
Consequently, various adjustments will be made to the fiscal year 2008
state Basic Aid entitlements for certain school divisions beginning with the
May 31, 2008, EFT. Where applicable,
these adjustments will reduce the fiscal year 2008 Basic Aid entitlement paid
to school divisions. As noted above, the
estimated adjustments to Basic Aid (as of the May 31, 2008, EFT) are shown in
the sheet labeled Adjustments to FY08 Basic Aid. The Basic Aid adjustments for fiscal year 2008
shown in the Excel file are as follows:
Driver
Education Funds Portion of Basic Aid As required by Chapter 847, this
adjustment reduces the Basic Aid entitlement for school divisions that are not
eligible to receive Driver Education funds in fiscal year 2008.
Local
Tuition for Summer Residential Governor's Schools Lists the local share of
tuition for Summer Residential Governor's Schools paid by the department on
behalf of school divisions and that is owed to the department in fiscal year
2008. This deduction reduces the Basic
Aid entitlement paid to affected divisions.
Local
Tuition for Foreign Language Academies Lists the local share of tuition for
Foreign Language Academies paid by the department on behalf of school divisions
and that is owed to the department in fiscal year 2008. This deduction reduces the Basic Aid
entitlement paid to affected divisions.
Mental
Health Local Share of Cost This adjustment is for the school division's share
of the cost of educating children in state mental health hospitals. The data used to calculate this adjustment
are based on the 2006-2007 school year.
This adjustment to the division Basic Aid entitlement is in accordance
with Chapter 847, 2008 Acts of Assembly.
Mental
Retardation Local Share of Cost This adjustment is for the school division's
share of the cost of educating children in state mental retardation
facilities. The data used to calculate
this adjustment are based on the 2006-2007 school year. This adjustment to the division Basic Aid
entitlement is in accordance with Chapter 847, 2008 Acts of Assembly.
Local
Tuition for Schools for the Deaf and the Blind This adjustment is for the
local tuition payment for students enrolled at the
Reporting
Basic Aid Adjustments on the 2007-2008
Annual
School Report
In
order to maintain proper accounting for adjustments made to Basic Aid
entitlements for payments made on behalf of school divisions (adjustments two
through six above), it is necessary for each school division to report the full
entitlement or gross revenue of Basic Aid funds under revenue source code
240202 (Basic School Aid) on the 2007-2008 Annual School Report. To balance this gross Basic Aid revenue on
the 2007-2008 Annual School Report, school divisions with adjustments to Basic
Aid for Summer Residential Governor's Schools, Foreign Language Academies, mental
health/mental retardation facilities, or schools for the deaf and the blind
should report these adjustment amounts as expenditures in the Instruction
Function (61000) and Object Code 3000 (Purchased Services), using the
appropriate program(s).
For
those divisions where the final Basic Aid payment was adjusted for
non-eligibility for Driver's Education funds in item one above, the amount of
the overpayment will be deducted from your unadjusted or full Basic Aid entitlement
as shown in the Annual School Report.
The reduced Basic Aid entitlement will be shown on the Revenues
worksheet under revenue source code 240202 on your Annual School Report. No further reporting action is required,
since the adjusted Basic Aid entitlement will show the reduction, but school
divisions should make note of this adjustment, and can reference Attachment C
to this memorandum for further detail on adjustments for overpayment and
non-eligibility for Driver's Education funds.
If
you have any questions concerning the information in this memorandum, please
contact Kent Dickey, assistant superintendent for finance, or budget office
staff at (804) 225-2025.
BKCJr/shd
Attachments
a. Entitlement
Calculation Template Instructions (PDF)
b. Entitlement
Sheets FY 2008 - Chapter 847 (PDF)
c. Final
Adjustments to FY 2008 Basic Aid Entitlements (PDF)