Superintendent's Memo #047-10

State seal, Commonwealth of Virginia

COMMONWEALTH of VIRGINIA
Department of Education

March 2, 2010

TO: Division Superintendents

FROM: Patricia I. Wright, Superintendent of Public Instruction

SUBJECT: Amendments to the Introduced Fiscal Year 2010 and the 2010-2012 Biennial Budgets Proposed by the House of Delegates and by the Senate

On February 21, 2010, the Senate Finance and House Appropriations Committees adopted separate changes to the 2010-2012 biennial budget as introduced by Governor Kaine (reference Superintendent's Memorandum No. 338-09, dated December 18, 2009) as well as separate changes to the amended fiscal year 2010 budget introduced by Governor Kaine (reference Superintendent's Memorandum No. 337-09, dated December 18, 2009). The budget recommendations of the Senate Finance Committee were adopted by the full membership of the Senate, and the budget recommendations of the House Appropriations Committee were adopted by the full membership of the House of Delegates on February 25, 2010. The adopted changes affect fiscal years 2010, 2011, and 2012. Fiscal year 2010 began on July 1, 2009, and ends on June 30, 2010. Fiscal year 2011 begins on July 1, 2010, and ends on June 30, 2011. Fiscal year 2012 begins on July 1, 2011, and ends on June 30, 2012.

The respective budget amendments proposed by the House of Delegates and by the Senate change the introduced budget for the 2010-2012 biennium (HB/SB 30) and the introduced budget to amend the fiscal year 2010 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.

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 2010 “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 2010-2012 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 2010.

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 2010.

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 2011 and 2012.

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 2011 and 2012.

Attachment G – Instructions for downloading the Excel calculation files from the department’s website.

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 2009) of March 31 average daily membership (ADM) for each school division for fiscal years 2010, 2011, and 2012. 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, categorical, and Lottery-funded account entitlements shown in Attachments C through F 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 2010, 2011, and 2012 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 2010, 2011, and 2012 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 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. 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.

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/school_finance/budget/calc_tools/index.shtml

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 8th for consideration and final adoption.

Final budget action by each chamber will occur before adjournment of the 2010 Session, which is scheduled for March 13, 2010. 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 separate superintendent’s memorandum. After adjournment, the adopted budgets for fiscal year 2010 and for 2010-2012 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 21, 2010.

Please note that the fiscal year 2010 entitlements are estimates only and will not be finalized until they are recomputed using actual March 31, 2010, 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 2011 and fiscal year 2012 entitlements will not be finalized until after a similar process is followed in those years.

Questions regarding the Senate’s and House of Delegates’ proposed amendments to the fiscal year 2010 budget and the 2010-2012 biennial budget and revised estimates of Direct Aid entitlements for fiscal years 2010, 2011, and 2012 may be directed to Kent Dickey, assistant superintendent for finance, or budget office staff at (804) 225-2025 or by e-mail (e-mail addresses available in the Finance Directory).

PIW/cr

Attachments:

  1. FY 2010 Caboose Bill Senate & House Amendments (PDF)
  2. FY 2010-2012 Senate & House Amendments (PDF)
  3. Projected State Payments for FY 2010 - House Amendments (PDF)
  4. Projected State Payments for FY 2010 - Senate Amendments (PDF)
  5. Projected State Payments for FY 2010-2012 - House Amendments (PDF)
  6. Projected State Payments for FY 2010-2012 - Senate Amendments (PDF)
  7. State Payment Calculation Template Instructions (PDF)