COMMONWEALTH of VIRGINIA
Department of Education
February 24, 2012
TO: Division Superintendents
FROM: Patricia I. Wright, Superintendent of Public Instruction
On February 19, 2012, the Senate Finance and House Appropriations Committees adopted separate changes to the amended fiscal year 2012 budget introduced by Governor McDonnell (reference Superintendent's Memorandum No. 331-11, dated December 19, 2011) as well as separate changes to the 2012-2014 biennial budget as introduced by Governor McDonnell (reference Superintendent's Memorandum No. 332-11, dated December 19, 2011). The budget recommendations of the House Appropriations Committee were adopted by the full membership of the House of Delegates on February 23, 2012. The adopted changes affect fiscal years 2012, 2013, and 2014. Fiscal year 2012 began on July 1, 2011, and ends on June 30, 2012. Fiscal year 2013 begins on July 1, 2012, and ends on June 30, 2013. Fiscal year 2014 begins on July 1, 2013, and ends on June 30, 2014.
The full Senate did not adopt amendments to the two committee-approved budget bills that were before it yesterday, SB 29 and SB 30. Since SB 29 and SB 30 were not passed by the full Senate, the Senate amendments described in this memorandum and attachments reflect those adopted by the Senate Finance Committee on February 19th. The Senate’s next actions on the budget are expected to be next week on the HB 29 and HB 30 budgets adopted by the full House. The Department will provide you with updated information as it becomes available.
The respective budget amendments proposed by the House of Delegates and by the Senate Finance Committee change the fiscal year 2012 budget introduced by Governor McDonnell (HB/SB 29) and the introduced budget for the 2012-2014 biennium (HB/SB 30). The attachments to this memorandum provide information on the changes separately adopted by the House and by the Senate Finance Committee. Unless changes are specifically noted in the attachments, Governor McDonnell’s proposed budgets contained in the introduced versions of HB/SB 29 and HB/SB 30 were adopted.
The attachments to this memorandum include:
The revised Direct Aid payments proposed by the House of Delegates in Attachments C and E and by the Senate Finance Committee in Attachments D and F use the Department of Education’s latest projections (from fall 2011) of March 31 average daily membership (ADM) for each school division for fiscal years 2012, 2013, and 2014. The payments 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 incentive, categorical, and Lottery-funded account payments 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 2012, 2013, and 2014 will be based on actual qualifying expenses submitted to the department. Because Attachments C through F show projected payments 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 payment information contained in Attachments C through F, three downloadable Excel files have been created to assist school divisions in calculating projected state payments and required local matches in fiscal years 2012, 2013, and 2014 for most Direct Aid programs based on the budgets proposed by the Senate Finance Committee and by the House of Delegates. These three 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.
Enhancements to the Downloadable Excel Files for 2012-2014
The calculation templates for the House of Delegates and Senate Finance Committee amendments to the Governor’s 2012-2014 biennial budget as introduced (HB/SB 30) include a new worksheet entitled “Enrollment Projections.” This worksheet replaces the pop-up window that has been used in prior versions of the calculation template for allowing school divisions to use the projections for unadjusted and adjusted ADM contained in the House and Senate Finance Committee proposed budgets or to enter their own local ADM projections to calculate the estimated state payments and required local matches. On the new “Enrollment Projections” worksheet, school divisions have the same option for using the ADM projections included in the House and Senate Finance Committee proposed budgets or entering local projections of ADM. In addition to ADM, the “Enrollment Projections” worksheet provides the option of entering local enrollment projections for the Remedial Summer School, English as a Second Language (ESL), and Virginia Preschool Initiative (VPI) programs. Please note that enrollments for VPI are capped at the number of student slots that are included in the VPI formula contained in the proposed House and Senate Finance Committee budgets. Detailed instructions on changing projected enrollments are also located in the Excel template on the worksheet entitled “Introduction.”
Attachment G to this memorandum provides detailed instructions for accessing these Excel files from the Department of Education Web site. The Excel files may be downloaded from the following Web address:
Please note that the budget recommendations proposed by the House of Delegates and by the Senate Finance Committee are not final. Pending budget action by the full Senate, 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 5th for consideration and final adoption.
Final budget action by each chamber will occur before adjournment of the 2012 Session, which is scheduled for March 10, 2012. After the conclusion of the session, the department will provide you and your governing body with additional information and projected payments based on final General Assembly budget actions in a separate superintendent’s memorandum. After adjournment, the adopted budgets for fiscal year 2012 and for 2012-2014 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 18, 2012.
Please note that the fiscal year 2012 payments are estimates only and will not be finalized until they are recomputed using actual March 31, 2012, ADM and other final program participation information. The final payments based on actual data will be communicated to you in a separate superintendent’s memorandum later this year. Actual fiscal year 2013 and fiscal year 2014 payments will not be finalized until after a similar process is followed in those years.
Questions regarding the Senate Finance Committee’s and House of Delegates’ proposed amendments to the fiscal year 2012 budget and the 2012-2014 biennial budget and revised estimates of Direct Aid payments for fiscal years 2012, 2013, and 2014 may be directed to Kent Dickey, Deputy Superintendent for Finance and Operations, or budget office staff at (804) 225-2025 or by e-mail (e-mail addresses available in the Finance Directory).