DATE: May 26, 2017
TO: Division Superintendents
FROM: Steven R. Staples, Superintendent of Public Instruction
SUBJECT:

Virginia Public School Authority (VPSA) Educational Technology Notes Series XIII, Series XIV, Series XV, Series XVI, Series XVII, and Series XVIII, and School Security Equipment Grants Series V


The Virginia Public School Authority (VPSA) has conducted the seventeenth sale of technology equipment notes, Series XVII.  The proceeds from these notes provide the next installment of funds in the educational technology grant program, which provides support for school divisions to develop and implement the Standards of Learning (SOL) Web-based Technology Initiative.  The Series XVII notes also include the Virginia e-Learning Backpack Initiative as well as funding for Series V of the school security equipment grant program reauthorized by the 2017 General Assembly.  Both of these programs will be discussed later in this memorandum. 

The goal of the educational technology grant program is to improve the instructional, remedial, and testing capabilities of the SOL in local school divisions and to increase the number of schools achieving full accreditation.  Proceeds of the Series XVII notes are provided to:

  1. Establish a computer-based instructional and testing system for the SOL;

  2. Develop an Internet ready local area network (LAN) capability and  high speed Internet connectivity at high schools, followed by middle schools and then in elementary schools; and

  3. Establish a 5-to-1 student computer ratio for high schools, followed by middle schools and then in elementary schools.

School divisions are required to use the Series XVII funds first to develop and maintain the capability to support the administration of online SOL testing for all students with the exception of students with a documented need for a paper SOL test.

In addition, for purposes of establishing or enhancing a computer-based instructional program supporting the SOL testing system, school divisions may use these grant funds to purchase handheld multifunctional computing devices that support a broad range of applications and that are controlled by operating systems providing full multimedia support and mobile Internet connectivity.  School divisions that elect to use these grant funds to purchase such qualifying handheld devices must continue to meet the online testing requirements outlined above.

Attachment A (PDF) to this memorandum lists the estimated local grant allocations for the Series XVII VPSA note issue.  These estimated allocations are based on the amended 2016-2018 biennial budget passed by the 2017 General Assembly and signed into law by Governor McAuliffe on April 28, 2017 (i.e., Chapter 836).  Grants to school divisions for the Series XVII notes are based on $26,000 per eligible school and $50,000 per school division.  Eligible schools include those reporting fall membership as of September 30, 2016, as well as regional vocational, special education, and alternative education programs, academic year Governor’s Schools, and the Virginia School for the Deaf and the Blind.  Schools that serve only pre-kindergarten students are not eligible for this grant.

Eligibility for Virginia e-Learning Backpack Initiative Grants in Series XVII

Chapter 836, 2017 Acts of Assembly, provides grants for schools that include a ninth grade that administered SOL tests in spring 2016, and that are not fully accredited for the second consecutive year based on school accreditation ratings in effect for fiscal year 2016 and fiscal year 2017.  Those qualifying schools receive: (1) a supplemental grant of $400 per student reported in ninth grade fall membership in a qualifying school for the purchase of a laptop or tablet computer device for that student and (2) a supplemental grant of $2,400 per qualifying school to purchase two content creation packages for teachers. Schools eligible to receive this supplemental grant in fiscal year 2017 shall continue to receive the grant for the number of subsequent years equaling the number of grades 9 through 12 in the qualifying school up to a maximum of four years.  Participating school divisions will assume recurring costs for electronic textbook purchases and maintenance.  Additional information on the schools that qualify for these additional funds is included in Attachment A (PDF).  The application for these grants is available, for eligible schools only, on the Virginia Department of Education’s (VDOE) website at:
http://www.doe.virginia.gov/support/technology/technology_initiatives/e-learning_backpack/index.shtml.

Local Match Requirements

Localities are required to provide a match of funds equal to 20 percent of the total grant amount provided to the school division, including the e-Learning Backpack Initiative grants.  At least 25 percent of the local match must be used for teacher training in the use of technology funded with the educational technology grants.  The Superintendent of Public Instruction is authorized to reduce the required local match for school divisions with a composite index below 0.2000.  The Virginia School for the Deaf and the Blind is not required to provide a 20 percent match to its grant amount.

School divisions that administer 100 percent of SOL tests online in all elementary, middle, and high schools may use up to 75 percent of their required local match to purchase targeted technology-based interventions.  Such interventions may include the necessary technology and software to support online learning, technology-based content systems, content management systems, technology equipment systems, information/data management systems, and other appropriate technologies that support the individual needs of students.  School divisions that receive the e-Learning Backpack Initiative grants must use the 20 percent required local match of funds in qualifying schools to purchase laptop or tablet computer devices for ninth-grade students reported in fall membership and content creation packages for teachers.

Reimbursement Process

The VPSA sold the spring 2017 Educational Technology Notes, Series XVII, on May 9, 2017, and closed the notes transaction on May 23, 2017.  Proceeds of the Series XVII notes are now available for reimbursement to divisions (and to regional programs with accounts established separately from the fiscal agent school division) for qualifying expenditures from the division’s (or regional program’s) reimbursement account established under the Virginia State Non-Arbitrage Program (SNAP).

There are a limited number of business days between the closing date and the end of fiscal year 2017 on June 30, 2017.  Therefore, to ensure sufficient time to process the school division reimbursement requests that need to be received by June 30, 2017, such reimbursement requests must be received by the Virginia Department of Education electronically, as well as the original signature page mailed to the Department, by June 20, 2017. 

Consistent with previous VPSA notes, payments to school divisions and regional programs will be made on a reimbursement basis only.  School divisions and regional programs must first complete payments for the qualifying equipment purchased and then file a Series XVII reimbursement request with the Virginia Department of Education.  School divisions and regional programs that adopted a reimbursement resolution and made expenditures prior to the issuance of the Series XVII notes are required to certify that all reimbursements are qualifying reimbursements.  School divisions and regional programs may not be reimbursed for qualifying expenditures incurred more than 60 days prior to the adoption of a reimbursement resolution.  Please note that reimbursements for the Series XVII issue for regional vocational, regional special education, Governor’s Schools, and regional alternative education programs may be made directly to the regional programs through separate SNAP reimbursement accounts set up specifically for regional programs.  If separate accounts for regional programs are established, school divisions will not be required to deposit the regional programs’ share of the note proceeds in their account and then pass those proceeds on to the regional program. 

The Series XVII reimbursement request form is a downloadable Excel template.  This file is available on the Virginia Department of Education’s website at:
http://www.doe.virginia.gov/school_finance/edu_technology_notes/index.shtml.

The Series XVII reimbursement form includes certification provisions that incorporate federal and state requirements regarding capital expenditures that qualify for reimbursement.  School divisions are primarily responsible for determining whether requests for reimbursement are permissible under federal and state requirements.  School division officials should carefully read and initial the certification provisions to ensure that each reimbursement request meets all of the stated provisions. 

Divisions are not required to submit copies of supporting reimbursement documentation to the Virginia Department of Education because the reimbursement request form incorporates the certification provisions.  However, copies of all supporting documents (invoices, work orders, statements, etc.) for which reimbursement is to be made must be retained by the school division for at least five years in the event an audit is required.  All reimbursement requests for the VPSA Series XVII notes issue must be made using the above-referenced Series XVII reimbursement form.  The Virginia Department of Education will review the reimbursement request and, when approved, file the request on behalf of the school division (or regional program) with the Virginia State Non-Arbitrage Program (SNAP), which serves as the investment and account manager for the note proceeds.  Please note that no reimbursement requests for the Series XVII notes will be approved until all of the division’s grant allocations from Series XIII (spring 2013),  Series XIV (spring 2014), Series XV (spring 2015), and Series XVI (spring 2016) are fully drawn down. 

Prior to SNAP executing the actual payment of proceeds to school divisions or regional programs, school divisions and regional programs must have completed the SNAP VPSA Technology Notes Withdrawal Instructions form (PDF) to provide their bank routing number and account number directly to SNAP.  If you need to make changes to wire instructions previously submitted to SNAP, please complete and sign the form and return it to SNAP prior to requesting any further reimbursements.  The completed form should be faxed to SNAP representatives at 1-800-252-9551.  If you have not completed this form, the Virginia Department of Education will hold all requests for reimbursements until SNAP confirms receipt of your certified bank account information. SNAP will maintain all bank information and, if needed, will assist divisions who need to amend such information. If you have any questions regarding the SNAP VPSA Technology Notes Withdrawal Instructions form (PDF), please contact SNAP at 1-800-570-SNAP.

Proceeds from the Series XIII, XIV, XV, XVI, and XVII issues may not be used for elementary schools until all middle schools in your division have achieved Stage 2 Middle School Readiness Certification. All high schools have achieved full readiness certification.  See Administrative Superintendent’s Memo No. 27, dated May 17, 2002, for additional information on certification procedures.  Procedures for achieving all levels of school readiness certification are explained in the following document:
http://www.doe.virginia.gov/support/technology/sol_technology_initiative/readiness/readiness_documentation.pdf (PDF).

The School Readiness Certification workbook is a downloadable Excel template.  This file is available on the Virginia Department of Education’s website at:
http://www.doe.virginia.gov/support/technology/sol_technology_initiative/index.shtml .

 
If expenditures for elementary schools are submitted prior to achieving the appropriate certifications for middle schools, expenditures for elementary schools cannot be reimbursed until after all readiness certifications for middle schools have been achieved. 

Please submit all Series XVII requests for reimbursement using the Series XVII reimbursement request form referenced above.  Email your completed request to VPSA@doe.virginia.gov.  In addition, please mail a signed copy of the reimbursement form to the following address:

Budget Office
Virginia Department of Education
James Monroe Building, 25th Floor
101 North 14th Street
Richmond, VA 23219

No requests for reimbursement will be processed until the Virginia Department of Education has received both the electronic Series XVII reimbursement request form and your signed hardcopy Series XVII form with each certification initialed.

School Security Equipment Grant Program

In addition to the grants provided to support the SOL Web-based Technology Initiative and Virginia e-Learning Backpack Initiative grants, the Chapter 836 budget also authorizes $6.0 million for Series V of the school security equipment grants as part of Series XVII.  Proceeds of these additional equipment notes will be used to help offset the related local costs associated with the purchase of appropriate security equipment that will improve and help ensure the safety of students attending public schools in Virginia.

School divisions are required to use these funds to purchase security equipment that will be installed in eligible schools.  Grant funds will be provided on a reimbursement basis through an online application contained in the Single Sign-on for Web-based Systems (SSWS) portal.  The grants cannot be used to pay for security equipment that is not included or described in the grant application or for other type of school construction work (e.g., building renovations or alterations) or to cover any professional costs (e.g., architectural and engineering fees).  The addition of any other architectural brick and mortar projects will result in the disqualification of a school division’s grant application.  Eligible schools must be scheduled to remain open for at least five more years and there be no planned renovations/additions scheduled for the next five years that would cause the security equipment being requested to become obsolete.

These Series V grants will be awarded on a competitive basis through division applications submitted to the Virginia Department of Education via SSWS by August 1, 2017.  Divisions may be awarded up to $100,000 in grant funding for use in eligible schools and regional programs. 

Localities are required to provide a match for these funds equal to 25 percent of the grant amount. The Superintendent of Public Instruction is authorized to reduce the required local match for school divisions with a composite index of local ability-to-pay below 0.2000. The Virginia School for the Deaf and the Blind is exempt from the local match requirement.

Guidelines for the program and the Series V application form to apply for funding are available on the VDOE website at:

http://www.doe.virginia.gov/support/facility_construction/security_equipment_grants/index.shtml.

Educational Technology Notes, Series XVI (Spring 2016):

As initially announced in Superintendent’s Memo #135-16, dated May 27, 2016, the Series XVI notes were sold by the VPSA in May 2016.  Proceeds of the Series XVI notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of May 20, 2016.  For grant allocations of Series XVI VPSA notes, see Attachment A to Superintendent’s Memo #135-16, dated May 27, 2016.  No reimbursement requests for the Series XVI notes will be approved until the division’s Educational Technology Notes Series XV proceeds are fully spent. Attachment E (PDF) to this memorandum provides the status of the Series XVI grant balances.

For divisions and regional programs that have not completed reimbursement of expenditures from the Series XVI VPSA notes, the procedures outlined in Superintendent’s Memo #135-16, dated May 20, 2016, should be followed and the Series XVI reimbursement request form should be used.  The Series XVI reimbursement request form is a downloadable Excel template available on the Department of Education’s website located at:

http://www.doe.virginia.gov/school_finance/edu_technology_notes/index.shtml.

 

Educational Technology Notes, Series XV (Spring 2015):

As initially announced in Superintendent’s Memo #136-15, dated May 22, 2015, the Series XV notes were sold by the VPSA in May 2015.  Proceeds of the Series XV notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of May 19, 2015.  For grant allocations of Series XV VPSA notes, see Attachment A to Superintendent’s Memo #136-15, dated May 22, 2015.  No reimbursement requests for the Series XV notes will be approved until the division’s Educational Technology Notes Series XIV proceeds are fully spent. Attachment D (PDF) to this memorandum provides the status of the Series XV grant balances.

For divisions and regional programs that have not completed reimbursement of expenditures from the Series XV VPSA notes, the procedures outlined in Superintendent’s Memo #136-15, dated May 22, 2015, should be followed and the Series XV reimbursement request form should be used.  The Series XV reimbursement request form is a downloadable Excel template available on the Department of Education’s website located at:

http://www.doe.virginia.gov/school_finance/edu_technology_notes/index.shtml.

 
Educational Technology Notes, Series XIV (Spring 2014):

As initially announced in Superintendent’s Memo #136-14, dated May 23, 2014, the Series XIV notes were sold by the VPSA in May 2014.  Proceeds of the Series XIV notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of May 22, 2014.  For grant allocations of Series XIV VPSA notes, see Attachment A to Superintendent’s Memo #136-14, dated May 23, 2014.  No reimbursement requests for the Series XIV notes will be approved until the division’s Educational Technology Notes Series XIII proceeds are fully spent. Attachment C (PDF) to this memorandum provides the status of the Series XIV grant balances.

For divisions and regional programs that have not completed reimbursement of expenditures from the Series XIV VPSA notes, the procedures outlined in Superintendent’s Memo #136-14, dated May 23, 2014, should be followed and the Series XIV reimbursement request form should be used.  The Series XIV reimbursement request form is a downloadable Excel template available on the Department of Education’s website located at:

http://www.doe.virginia.gov/school_finance/edu_technology_notes/index.shtml.

Educational Technology Notes, Series XIII (Spring 2013):

As initially announced in Superintendent’s Memo #146-13, dated May 24, 2013, the Series XIII notes were sold by the VPSA in May 2013.  Proceeds of the Series XIII notes were available to school divisions for reimbursement of qualifying expenditures on and after the closing date of May 23, 2013.  For grant allocations of Series XIII VPSA notes, see Attachment A to Superintendent’s Memo #146-13, dated May 24, 2013.  No reimbursement requests for the Series XIII notes will be approved until the division’s Educational Technology Notes Series XII proceeds are fully spent. Attachment B (PDF) to this memorandum provides the status of the Series XIII grant balances.

For divisions and regional programs that have not completed reimbursement of expenditures from the Series XIII VPSA notes, the procedures outlined in Superintendent’s Memo #146-13, dated May 24, 2013, should be followed and the Series XIII reimbursement request form should be used.  The Series XIII reimbursement request form is a downloadable Excel template available on the Department of Education’s website located at:

http://www.doe.virginia.gov/school_finance/edu_technology_notes/index.shtml.

Please note that the Virginia Department of Education has set a deadline of May 23, 2018, to complete all reimbursements from the Series XIII notes.  Series XIII note proceeds allocated to school divisions and regional programs that have not been reimbursed from SNAP by May 23, 2018, will be used by the Department of Treasury to pay debt service on the notes and will no longer be available to reimburse school divisions and regional programs.  In order to accomplish all Series XIII reimbursements by the May 23, 2018, deadline, requests for reimbursement from the Series XIII proceeds must be received by the Department electronically and the original signature page sent to the Department, as indicated below, by May 7, 2018, to ensure sufficient time to process the requests.

Educational Technology Notes, Series XVIII (Spring 2018):

The 2016-2018 biennial budget (i.e., Chapter 836, 2017 Acts of Assembly) includes funding to continue the educational technology notes program in fiscal year 2018 with debt service paid through the Literary Fund.  The Chapter 836 budget includes Virginia Public Schools Authority (VPSA) equipment notes totaling approximately $69.2 million in fiscal year 2018 to be issued in the spring of 2018 as Series XVIII.

The fiscal year 2018 budget maintains grant amounts at $26,000 per eligible school (i.e., for K-12 schools reporting fall membership as of September 30, 2017, as well as for regional vocational, special education, and alternative education programs, academic year Governor’s Schools, and the Virginia School for the Deaf and the Blind) and $50,000 per school division. The fiscal year 2018 budget also authorizes funding for supplemental grants supporting the Virginia e-Learning Backpack Initiative, which is described below.

As was authorized in the Series XVII issue notes, Chapter 836 authorizes $6.0 million from the Series XVIII notes for division grants to fund school security equipment grants.  These grants will be awarded on a competitive basis through applications submitted to the Department of Education by August 1, 2018.  Divisions may be awarded up to $100,000 in grant funding for eligible schools and regional programs.

Virginia e-Learning Backpack Initiative Supplemental Grant

Schools that administer SOL tests in spring 2017 and that are not fully accredited for the second consecutive year based on school accreditation ratings in effect for fiscal year 2017 and fiscal year 2018 will qualify to participate in the e-Learning Backpack Initiative in fiscal year 2018.  Schools eligible for these supplemental grants in previous fiscal years shall continue to be eligible for the remaining years of their grant award.  Schools eligible to receive this supplemental grant in fiscal year 2018 shall continue to receive the grant for the number of subsequent years equaling the number of grades 9 through 12 in the qualifying school up to a maximum of four years (to support school wide implementation). Schools eligible to receive these grants for a period of up to four years will not be eligible to receive a subsequent award in the future once the original award period has concluded. Schools that are fully accredited or that are new schools with conditional accreditation in their first year are not eligible to receive this supplemental grant. Eligible schools receiving this grant will also continue to receive the existing $26,000 grant supporting the SOL Web-based Technology Initiative. School divisions with schools eligible for this initiative may begin implementation during the 2017-2018 school year prior to the availability of the Series XVIII proceeds by executing a reimbursement resolution. This action will require a local source of funds to pay qualifying expenditures up front pending the availability of the notes proceeds in late May 2018.

The list of eligible schools and estimated grant amounts for the e-Learning Backpack Initiative to be funded through the Series XVIII notes will be available in fall 2017. 

Other Series XVIII Information

All program requirements for the Series XVIII notes, including the eligibility criteria qualifying use of proceeds, local matching requirements, and the reimbursement process, are all the same as the Series XVII notes described above. 

The fiscal year 2018 budget updates the number of schools eligible for funding under the VPSA technology grants.  Funding to school divisions for the VPSA technology grant program was increased by $2,030,800 in fiscal year 2018 based on an anticipated increase in the number of eligible schools in fiscal year 2018.  Attachment F (PDF) to this memorandum lists the estimated local grant allocations for the Series XVIII notes.

School divisions that have spent all of the Series XIII, Series XIV, Series XV, Series XVI, and Series XVII notes proceeds and that have adopted a reimbursement resolution for the Series XVIII (Spring 2018) notes issue may make qualifying purchases in support of the SOL Web-based Technology Initiative or, for eligible schools, the Virginia e-Learning Backpack Initiative, to be reimbursed from Series XVIII proceeds; however, please be aware that the note proceeds will not be available for reimbursement until after the closing of the notes sale, which will likely be in May or June 2018.  Please be aware that, prior to incurring any costs, the local school board must state its intention to use the proceeds of the equipment notes to reimburse qualifying expenditures, including for the Virginia e-Learning Backpack Initiative supplemental grants.  This must be done through a reimbursement resolution adopted by the local school board.  A sample resolution is provided as Attachment G to this memorandum.  Please note that divisions may not reimburse themselves for project-related expenditures incurred more than 60 days prior to the adoption of the reimbursement resolution.

Required Signatures for VPSA Educational Technology Equipment Reimbursements

All requests for reimbursement of the Educational Technology Equipment Notes (any active series) must contain the signature of the division superintendent or the superintendent’s designee.  Please verify the designee information contained in the Educational Registry Application, located in the Single Sign-On for Web Systems (SSWS) portal, for accuracy.  The VDOE will only accept the signature of staff currently registered as a superintendent’s designee in this application.

The VDOE is still in the process of developing a VPSA Technology Notes reimbursement application in SSWS that is scheduled for release in fiscal year 2018 or 2019.  This online application will also require approval of reimbursement requests by designee staff listed in SSWS.

If you have questions relating to the financing or determination of qualifying VPSA notes reimbursements, please call the budget office staff at (804) 225-2025.  If you have questions relating to qualifying equipment (i.e., hardware, software) that may be purchased from the VPSA note proceeds, please call Mark Saunders, Director of the Office of Technology and Virtual Learning, at (804) 786-0307. 

SRS/eml

Attachments:

  1. Series XVII VPSA Notes Issue Estimated Local Grant Allocation (PDF)
  2. Series XIII VPSA Notes Issue Local Grant Balances (PDF)
  3. Series XIV VPSA Notes Issue Local Grant Balances (PDF)
  4. Series XV VPSA Notes Issue Local Grant Balances (PDF)
  5. Series XVI VPSA Notes Issue Local Grant Balances (PDF)
  6. Series XVIII VPSA Notes Issue Estimated Local Grant Allocation (PDF)
  7. Sample Reimbursement Resolution (Word)