Superintendent's Memo #338-09

State seal, Commonwealth of Virginia

COMMONWEALTH of VIRGINIA
Department of Education

December 18, 2009

TO: Division Superintendents

FROM: Patricia I. Wright, Superintendent of Public Instruction

SUBJECT: 2010-2012 Biennial Budget as Introduced by Governor Kaine

Governor Kaine presented his 2010-2012 biennial budget on Friday, December 18, 2009, before a joint session of the Senate Finance, the House Appropriations, and the House Finance committees. This budget will be considered by the 2010 Session of the General Assembly, which is scheduled to convene on January 13, 2010. The Governor’s introduced budget for the 2010-2012 biennium covers fiscal year 2011 (which begins July 1, 2010, and ends June 30, 2011) and fiscal year 2012 (which begins July 1, 2011, and ends June 30, 2012). The introduced budget bill containing Governor Kaine’s budget recommendations for the 2010-2012 biennium is House Bill/Senate Bill 30.

The recommendations made by the Governor regarding the Direct Aid to Public Education budget include technical updates to the Standards of Quality (SOQ), incentive, categorical, and Lottery-funded accounts as part of the biennial rebenchmarking process, as well as specific policy changes in response to anticipated declines in state revenue for the 2010-2012 biennium.

Attachment A to this memorandum provides a summary of the funding changes proposed by the Governor for the 2010-2012 Direct Aid budget. Key recommendations in Governor Kaine’s 2010-2012 introduced budget impacting public education funding include:

Attachment B to this memorandum lists the projected entitlements for each school division for the SOQ, incentive, categorical, and Lottery-funded accounts for fiscal years 2011 and 2012 based on the Governor’s introduced 2010-2012 budget. The projected entitlements shown in Attachment B are based on the Department of Education’s latest projections of March 31 average daily membership (ADM) for fiscal years 2011 and 2012 and cannot be modified. 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 Department’s latest projected entitlements; however, final payments on these accounts in fiscal years 2011 and 2012 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 in fiscal years 2011 and 2012 for most Direct Aid programs. This file gives divisions the opportunity to change ADM to test the effect on projected state funding and projected local match requirements using the Department’s projected ADM or a local projection of ADM. (Attachment B contains projected entitlement information for each school division in .pdf format based on the Department’s 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. Please note that changing the ADM value in the Excel 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 projections only. Actual sales tax payments made to school divisions in fiscal years 2011 and 2012 on a semi-monthly basis will be based on actual sales tax receipts. However, 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 website. The Excel file may be downloaded from the following Web address:

http://www.doe.virginia.gov/school_finance/budget/calc_tools/index.shtml

Information on data inputs updated in the 2010-2012 biennium such as funded salary amounts is available in the Board of Education rebenchmarking presentation from July 2009 (Attachment D).

It is important to remember that the information provided in Attachment B and in the Excel calculation file relates to the Governor’s 2010-2012 biennial budget as introduced. The House of Delegates and the Senate will have the opportunity to amend the Governor’s budget proposals during the 2010 General Assembly session. The General Assembly will adopt a final 2010-2012 biennial budget before the end of the 2010 session, which is scheduled for March 13, 2010; therefore, the projected 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 2010 General Assembly.

The Department will provide additional information during the General Assembly session as changes to the estimated 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 Superintendent’s Memorandum. Please note, the actual fiscal year 2011 and fiscal year 2012 entitlements will be paid on the basis of final costs computed using actual March 31 ADM and other final program participation information that applies to each fiscal year and each program.

If you have questions or need additional information concerning the Governor’s introduced budget for the 2010-2012 biennium and projected Direct Aid entitlements for fiscal years 2011 and 2012, please contact Kent Dickey, assistant superintendent for finance, or budget office staff at (804) 225-2025 or by e-mail (e-mail addresses available at http://doe.virginiainteractive.org/vdoe_directories/StaffByDivisions.aspx?o=Budget&w=true).

PIW/shd

Attachments:

  1. Governor’s Introduced Budget for the 2010-2012 Biennium (PDF)
  2. Projected State Payments for the 2010-2012 Biennium Based on the Governor’s Introduced Budget (PDF)
  3. State Payment Calculation Template Instructions (PDF)
  4. 2010-2012 Rebenchmarking Presentation to the Board of Education (PDF)