Superintendent’s Memo #102-12

State seal, Commonwealth of Virginia

COMMONWEALTH of VIRGINIA
Department of Education

April 19, 2012

TO:  Division Superintendents

FROM:  Patricia I. Wright, Superintendent of Public Instruction

SUBJECT:  Amendments to the FY 2012 Caboose Budget and the 2012-2014 Biennial Budget Adopted by the 2012 Special Session I of the General Assembly

Section 22.1-93, Code of Virginia, requires the Department of Education within fifteen days following final adjournment to provide “...estimates to be used for budgetary purposes relative to the Basic School Aid Formula...” based upon the budget actions taken by the General Assembly with respect to public education.  The revenue estimates provided in this memorandum represent the state funding that is projected to be distributed to school divisions in fiscal years 2012, 2013, and 2014 based on amendments to the fiscal year 2012 caboose budget and the 2012-2014 biennial budget adopted by the 2012 Special Session I of the General Assembly on April 18, 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 budget amendments adopted by the 2012 Special Session I of the General Assembly on April 18, 2012, change the amended fiscal year 2012 caboose budget (HB/SB 29) introduced by Governor McDonnell (reference Superintendent's Memorandum No. 331-11, dated December 19, 2011, at the regular session; reintroduced as HB 1300 for the special session) as well as the 2012-2014 biennial budget (HB/SB 30) as introduced by Governor McDonnell (reference Superintendent's Memorandum No. 332-11, dated December 19, 2011, at the regular session; reintroduced as HB 1301 for the special session).  The attachments to this memorandum provide information on the changes adopted by the General Assembly to the amended fiscal year 2012 caboose budget and the 2012-2014 biennial budget.  Unless changes are specifically noted in the attachments, Governor McDonnell’s proposed budgets contained in the introduced versions of HB 1300 and HB 1301 were adopted.  Please note that the amended fiscal year 2012 caboose budget and the 2012-2014 biennial budget adopted by the General Assembly and the projected state funding for each school division contained in Attachments C and D to this memorandum are based on the department’s latest projections of March 31 average daily membership (ADM) for those accounts that use ADM to determine the amount of funding.

The attachments to this memorandum include:

Several of the incentive, categorical and Lottery-funded accounts shown in Attachments C and D 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 by school divisions to the department and approved for reimbursement.  Because Attachments C and D show projected funding for each school division (based on the department’s projected March 31 ADM only) in .pdf format, the projected payments cannot be changed to test the impact of different ADM assumptions.  If you wish to see the effects of a different ADM projection on funding for your school division in those accounts where funding is based on ADM, please use the Excel calculation files described in the next paragraph.

In addition to the funding information contained in Attachments C and D, two downloadable Excel files have been created to assist school divisions in calculating projected state funding and projected required local matches for fiscal years 2012, 2013, and 2014 for most Direct Aid programs based on the amended fiscal year 2012 caboose budget and the 2012-2014 biennial budget adopted by the 2012 Special Session I of the General Assembly.  The Excel calculation files containing the state funding estimates for the amended fiscal year 2012 caboose budget and the 2012-2014 biennial budget adopted by the 2012 Special Session I of the General Assembly are located on the following Web site:

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

Attachment E to this memorandum provides detailed instructions for accessing the Excel files from the Department of Education Web site.

These Excel files give divisions the opportunity to change projected March 31 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 for those accounts funded on the basis of ADM.  (Attachments C and D contain projected state funding and required local match 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 to project state funding and required local matches.

Changing the projected March 31 ADM 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 this file and, therefore, remains the same.  The fiscal year 2012 final payments will not be finalized until they are recomputed using actual March 31, 2012, ADM and other final program participation information.  The final fiscal year 2012 payments based on actual data will be communicated to you by a separate superintendent’s memorandum later this year.  Actual fiscal year 2013 and 2014 payments will not be finalized until after a similar process is followed each of those fiscal years.  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 General Assembly’s adopted 2012-2014 budget.

Also note that sales tax estimates in the Excel calculation files are revenue projections only.  Actual sales tax payments made to school divisions in fiscal years 2012, 2013, and 2014 on a semi-monthly basis will be based on actual sales tax receipts.  Pursuant to the appropriation act, the Basic Aid payment calculation is based on the estimated sales tax appropriation only and is not adjusted for actual sales tax revenues received during the year.

Both the fiscal year 2012 caboose budget (HB 1300) and the 2012-2014 biennial budget (HB 1301) passed by the 2012 Special Session I of the General Assembly now go to Governor McDonnell for action.  The Governor will have several options that include: signing the budgets as presented to him with no changes, returning one or both of the budgets to the General Assembly with vetoes, returning one or both of the budgets to the General Assembly with amendments, or returning one or both of the budgets to the General Assembly with some combination of vetoes and amendments.

After the Governor completes his actions on the two budgets, a reconvened “veto session” will occur where the General Assembly will consider any amendments or vetoes proposed by Governor McDonnell.  The reconvened session is expected to occur in mid-May.  Consequently, unless signed by Governor McDonnell with no changes, the amended fiscal year 2012 caboose budget and the 2012-2014 biennial budget as adopted by the 2012 Special Session I of the General Assembly will not become final until after the reconvened session has concluded and the Governor signs the budgets into law.  If budget changes are made at the reconvened session that affect school divisions, you will be notified in another memorandum.

Questions regarding either the amended fiscal year 2012 caboose budget or the 2012-2014 biennial budget adopted by the 2012 Special Session I of the General Assembly and the projections of state Direct Aid funding 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).

PIW/cr

Attachments:

  1. FY 2012 Caboose Bill Adopted Amendments (PDF)
  2. FY 2012-2014 Adopted Amendments (PDF)
  3. Projected State Payments for FY 2012 - Adopted Amendments (PDF)
  4. Projected State Payments for 2012-2014 - Adopted Amendments (PDF)
  5. State Payment Calculation Template Instructions (PDF)

Copy to:  local governing bodies