
COMMONWEALTH of VIRGINIA
Department of Education
May 18, 2010
TO: Division Superintendents
FROM: Patricia I. Wright, Superintendent of Public Instruction
Pursuant to Chapter 872, 2010 Acts of Assembly, school divisions were required to report average daily membership (ADM) as of March 31, 2010, to the Department of Education. The data reported by divisions were used to recalculate all ADM-based state entitlements for fiscal year 2010. On a statewide basis, actual March 31, 2010, ADM was less than the projected ADM on which the current state budget for fiscal year 2010 (Chapter 781, 2009 Acts of Assembly) is based. Consequently, school divisions will receive their full ADM-based state entitlement payments for fiscal year 2010 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 semi-monthly Standards of Quality (SOQ) and Lottery account payments for fiscal year 2010 will be adjusted for actual ADM beginning with the May 31, 2010, electronic funds transfer (EFT).
The information in this memorandum contains the final state funding due to school divisions (as of the date of this memorandum) in fiscal year 2010 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 SOQ accounts, and required local matches for Lottery funded accounts calculated based on actual March 31, 2010, ADM. The accounts affected by actual March 31, 2010, ADM appear in the Excel file in bold italics. Please note that, unlike previous Excel calculation files for fiscal year 2010 provided by the department, this file does not offer an option to change ADM for fiscal year 2010 since ADM is now final. The calculation template can be downloaded from the Virginia Department of Education website at:
http://www.doe.virginia.gov/school_finance/budget/calc_tools/index.shtml
Attachment A to this memorandum provides detailed instructions for accessing the Excel entitlement file.
Attachment B to this memorandum shows the final fiscal year 2010 entitlements for each school division for the SOQ and Lottery funded accounts that are based on actual March 31, 2010, ADM. Also included in the calculation template are the routine adjustments to the fiscal year 2010 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:
“…In the event that the actual revenues from the state sales and use tax dedicated to public education and those sales tax revenues transferred to the general fund from the Public Education Standards of Quality/Local Real Estate Property Tax Relief Fund and appropriated in this Item (both of which are returned on the basis of the 2005 triennial census of school age population in the first year and the 2008 triennial census in the second year) 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 state sales and use tax revenues shall not be adjusted.”
The distribution of Lottery revenue to school divisions under the Support for School Construction, Operating Costs and Textbooks account is based on the revised per pupil amount of $108.82, which reflects available balances in other Lottery funded accounts and actual March 31, 2010, ADM as of the date of this memorandum. The semi-monthly Support for School Construction, Operating Costs and Textbooks account payments for fiscal year 2010 will be adjusted for actual ADM beginning with the May 31, 2010, EFT. Please note that the per pupil amount for the Support for School Construction, Operating Costs and Textbooks account is subject to change based on final balances in other Lottery funded accounts. Any such balances would be added to the Support for School Construction, Operating Costs and Textbooks account. In addition, if actual Lottery proceeds for fiscal year 2010 do not meet the estimate contained in Chapter 872, the per pupil amount will be adjusted down to prevent payments from exceeding available appropriation. As a result, School Construction, Operating Costs and Textbooks account payments will continue to be adjusted through the end of the year as balances become available and final remaining deposits from the Lottery Department are made so divisions will need to monitor receipts carefully through June 30th.
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 2010 state Basic Aid entitlements for certain school divisions beginning with the May 31, 2010, EFT. Where applicable, these adjustments will reduce the fiscal year 2010 Basic Aid entitlement paid to school divisions. As noted above, the estimated adjustments to Basic Aid (as of the May 31, 2010, EFT) are shown in the sheet labeled “Adjustments to FY2010 Basic Aid.” The Basic Aid adjustments for fiscal year 2010 shown in the Excel file are as follows:
In order to maintain proper accounting for adjustments made to Basic Aid entitlements for payments made on behalf of school divisions (adjustments two through four 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 2009-2010 Annual School Report. To balance this gross Basic Aid revenue on the 2009-2010 Annual School Report, school divisions with adjustments to 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.
PIW/rea
Attachments: