COMMONWEALTH of VIRGINIA
Department of Education
May 18, 2012
TO: Division Superintendents
FROM: Patricia I. Wright, Superintendent of Public Instruction
On May 14, 2012, the 2012 Special Session I of the General Assembly reconvened to consider changes proposed by Governor McDonnell to the 2012-2014 biennial budget as adopted by the General Assembly (reference Superintendent’s Memorandum No. 102-12, dated April 19, 2012). A summary of actions taken by the General Assembly in response to Governor McDonnell’s proposed amendments to the 2012-2014 biennial budget is provided below.
Please note that the Governor did not propose any amendments to the public education funding adopted by the General Assembly for fiscal year 2012. As a result, the state revenue projections and the Excel calculation template provided as part of Superintendent’s Memorandum No. 102-12, dated April 19, 2012, remain the latest information on projected state payments for fiscal year 2012. The fiscal year 2012 budget is pending the Governor’s final review and action, and is not final until it has been signed by the Governor. Any changes made by the Governor prior to signing the budget will be communicated in a future superintendent’s memorandum.
Information is provided in this memorandum and in Attachment A regarding the Governor’s proposed budget amendments to the 2012-2014 budget previously adopted by the 2012 Special Session I of the General Assembly in April. The budget is pending the Governor’s final review and action, and is not final until it has been signed by the Governor. Any changes made by the Governor prior to signing the budget will be communicated in a future superintendent’s memorandum.
Several amendments proposed by the Governor with funding changes to public education in the 2012-2014 biennial budget were adopted by the Special Session I of the 2012 General Assembly at the Reconvened Session. Consequently, an updated downloadable Excel calculation template has been created to assist school divisions in calculating projected state funding and projected required local matches for fiscal years 2013 and 2014 for most Direct Aid programs based on the Governor’s amendments that were adopted by the General Assembly on May 14, 2012.
To download the Excel calculation template, please click on the following link:
This Web address brings you to the Budget Office’s “Direct Aid Entitlement Information & Calculation Templates” Web page. To download the new Excel file, right-click on the “Excel Template” link for the “Amendments to the 2012-2014 Biennial Budget Adopted By the 2012 Special Session I of the General Assembly at the Reconvened (Veto) Session (as of May 14, 2012)” option.
For assistance downloading the Excel calculation template, please refer to the instructions available at the following link:
Attachment A to this memorandum provides a report in .pdf format showing projected increases in state funding for the Early Reading Intervention program for fiscal years 2013 and 2014 based on the 2012-2014 biennial budget adopted by the Special Session I of the 2012 General Assembly at the Reconvened Session.
Amendments to the Direct Aid to Public Education Budget:
Increase Early Reading Intervention Funding for Eligible Third Graders
The General Assembly approved an amendment proposed by the Governor for additional funding for the Early Reading Intervention program in fiscal year 2013. This amendment funds 100 percent of eligible third graders in fiscal year 2013, from the 62.5 percent funded by the General Assembly in April. This action increases the state share of Early Reading Intervention program funding by $2.1 million in fiscal year 2013.
In addition to the funding change described above, the Governor also proposed three language amendments (below) to the Appropriation Act language pertaining to the Early Reading Intervention program. The first two amendments were approved by the General Assembly. The third amendment was not approved.
Increase Lottery Proceeds Estimate
The General Assembly approved the Governor’s amendment that recognizes an increase in the estimate of Lottery proceeds by $7.0 million in each fiscal year, to $457,300,000 in fiscal year 2013 and $462,000,000 in fiscal year 2014. As a result of the increased estimate and the increase in funding for the Early Reading Intervention program described above, the portion of Textbooks payments that will be funded by Lottery proceeds increases by $5.0 million in fiscal year 2013 and $7.0 million in 2014. This action does not impact projected division payments for Textbooks in fiscal years 2013 and 2014, only the fund sources used to provide the payments.
Revise Funding for Supplemental Education Initiatives
The General Assembly approved the following amendments that the Governor proposed to funding for Supplemental Education initiatives:
College Readiness Center Pilot
The General Assembly did not approve the Governor’s amendment removing $175,000 in fiscal year 2013 for a pilot program in one school division for a College Readiness Center.
Contingency Language to Fund Fiscal Year 2014 Support COCA
The Governor proposed budget language making the release of the fiscal year 2014 state funding for the cost-of-competing adjustment (COCA) for funded support positions contingent on the review and evaluation of a proposed Joint Legislative Audit and Review Commission (JLARC) study on the current COCA methodology. The General Assembly did not approve this amendment.
Language to Evaluate the Need for a COCA for Support Positions
The Governor proposed budget language directing the Secretary of Education, in conjunction with the Department of Education and the Department of Human Resource Management, to evaluate the need for a cost-of-competing adjustment (COCA) for support positions. The General Assembly did not approve this amendment.
Exclude Additional Assistance with Retirement, Inflation, and Preschool Costs Allocations from 2016-2018 Rebenchmarking
The Governor proposed an amendment requiring the Department of Education to exclude the fiscal year 2014 state funding for the Additional Assistance with Retirement, Inflation, and Preschool Costs account from the calculation of Direct Aid to Public Education rebenchmarking costs for the 2016-2018 biennium. The General Assembly did not approve this amendment.
Amendments to the Department of Education Central Office Budget:
Modify Language for Information Technology Academy Funding
The General Assembly approved the following Governor’s amendment modifying the language for the Information Technology Academy program, expanding the language to specify various priority objectives for the program:
"2. The funds provided in this initiative shall be used to support the following priority objectives: a) increase the percentage of students enrolled in career and technical education courses who receive instruction in the information technology academy program leading to an increased number of students achieving industry recognized certifications in information technology; b) increase the number of high schools and regional career and technical education programs that receive the training and technical support to be ready to implement the information technology academy model leading to increased statewide implementation and use; c) increase the number of teachers teaching targeted career and technical education courses and other high school teachers who receive training in the information technology academy program and in industry recognized certifications leading to an increased number of teachers achieving industry recognized certifications in information technology; and, d) support implementation of the information technology academy program in school divisions in Southside and Southwest Virginia so that implementation in those regions is at least comparable to implementation in other regions of Virginia."
Amendments to the Secretary of Education Budget:
College Partnership Laboratory Schools Initiative
The General Assembly approved the Governor’s amendment to restore funding for the College Partnership Laboratory Schools initiative in fiscal year 2013. This amendment will provide $600,000 in additional funding for the Secretary of Education in fiscal year 2013 to assist in the development of innovative education programs as well as the promotion of greater cooperation and coordination among higher education institutions, including private higher education institutions, in the development of programs for pre-kindergarten-to-grade 12 students.
If you have any questions or need additional information, please contact Kent Dickey, deputy superintendent for finance and operations, or the budget office at (804) 225-2025 or by e-mail.