Superintendent's Memo #141-09

State seal, Commonwealth of Virginia

COMMONWEALTH of VIRGINIA
Department of Education

May 22, 2009

TO: Division Superintendents

FROM: Patricia I. Wright, Superintendent of Public Instruction

SUBJECT: State Direct Aid to Public Education Funds Permitted to be Carried Forward from Fiscal Year 2009 to Fiscal Year 2010

Section 22.1-100, Code of Virginia, requires school divisions to return unexpended state funds to the Commonwealth at the close of each fiscal year; however, Chapter 781, 2009 Acts of Assembly (appropriation act), permits school divisions that have met required local effort and required local match for fiscal year 2009 to carry forward to fiscal year 2010 any remaining state fund balances that are unexpended as of June 30, 2009. This provision is considered to be a one-time carry forward option; any decision regarding continuation in future years will be made by the General Assembly. Specifically, the appropriation act language reads as follows:

“Any locality that has met its required local effort for the Standards of Quality accounts for fiscal year 2009 or that has met its required local match for incentive, school construction, or Lottery-funded programs in which the locality elected to participate in fiscal year 2009 may carry over into fiscal year 2010 any remaining state fund balances available to help minimize any fiscal year 2010 revenue adjustments that may occur in state funding to that locality.”

Please note that this language also permits a school division to use such carry forward funds to address any revenue shortfall related adjustments in state funding to the locality, regardless of the original purpose of such funds. Furthermore, the state carry forward funds shall be reappropriated by the local governing body to the school board’s budget for fiscal year 2010.

This provision does not alter the existing requirement that school divisions must spend the fiscal year 2009 required local effort and required local match amounts before the end of fiscal year 2009, which ends on June 30, 2009.

State funds received by school divisions in fiscal year 2009 for the School Construction Grants Program and Lottery may also be paid into escrow accounts pursuant to Sections 22.1-175.5 and 22.1-100.1, Code of Virginia, respectively, and carried forward indefinitely for the same intended purpose.

School divisions that received a Leadership Development Grant in fiscal year 2008 are allowed to retain any unspent balances and are permitted to spend any remaining balances for the intended purposes during the ensuing two fiscal years (during fiscal years 2009 and 2010). Please note that any remaining balances in fiscal year 2009 for Leadership Development Grants would also be subject to the carry forward provisions outlined above.

If you have any questions regarding this information, please contact Kent Dickey, assistant superintendent for finance, or budget office staff at (804) 225-2025.

PIW / shd