DEPARTMENT OF EDUCATION
P.O.
SUPTS. MEMO NO. 1
March 21, 2008
REGULATORY
|
TO: |
Division
Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
Amendments to the FY 2008 Caboose |
Section 22.1-93, Code of Virginia, requires the Department of Education to provide
“...estimates to be used for budgetary purposes relative to the Basic School
Aid Formula...” following the conclusion of the General Assembly session 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 2008, 2009, and 2010 based on amendments to the fiscal year 2008 caboose budget and the
2008-2010 biennial budget adopted by the 2008 General Assembly
on March 13, 2008. The adopted changes
affect fiscal years
2008, 2009, and 2010. Fiscal year 2008 began on July 1, 2007,
and ends on June 30, 2008. Fiscal year
2009 begins on July 1, 2008, and ends on June 30, 2009. Fiscal year 2010 begins on July 1, 2009, and
ends on June 30, 2010.
The
budget amendments adopted by the General Assembly on March 13, 2008, change the
amended fiscal year 2008 caboose
budget (HB/SB 29) introduced by Governor Kaine (reference Informational
Superintendent’s Memorandum No. 260,
dated December 21, 2007) as well as the 2008-2010 biennial budget (HB/SB 30) as
introduced by Governor Kaine (reference Informational
Superintendent’s Memorandum No. 261,
dated December 21, 2007). The attachments to this memorandum provide
information on the changes adopted by the General Assembly to the amended
fiscal year 2008 caboose budget and the 2008-2010 biennial budget. Unless changes are specifically noted in the
attachments, Governor Kaine’s proposed budgets contained in the introduced
versions of HB/SB 29 and HB/SB 30 were adopted.
Please note that the amended
fiscal year 2008 caboose budget and the 2008-2010 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 and categorical program 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 2008,
2009, and 2010 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 entitlements 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 2008, 2009, and 2010
for most Direct Aid programs based on the amended fiscal year
2008 caboose budget and the 2008-2010 biennial budget adopted by the 2008
General Assembly. The Excel calculation files
containing the state funding estimates for the amended fiscal year
2008 caboose budget and the 2008-2010 biennial budget adopted by the 2008
General Assembly
are located on the following Web site:
http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html.
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, excluding the school construction grants program payments that are
funded based on ADM from the prior year.
The estimated funding for all other accounts is
unaffected by changing ADM in this file and, therefore, remains the same. The fiscal year 2008 final entitlements will
not be finalized until they are recomputed using actual March 31, 2008, ADM and
other final program participation information.
The
final fiscal year 2008 entitlements based on actual data will be communicated
to you by a separate superintendent’s memorandum later this year. Actual fiscal year 2009
and 2010 entitlements will not be finalized until after a similar process is
followed each of those fiscal years.
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 2008,
2009, and 2010 on a semi-monthly basis will be based on actual sales tax
receipts. Pursuant to the appropriation
act, the Basic Aid entitlement 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 2008 caboose budget (HB/SB 29) and the 2008-2010 biennial budget (HB/SB 30) passed by the 2008 General Assembly
now go to Governor Kaine 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 Kaine. The
reconvened session is scheduled for April 23, 2008. Consequently, unless signed by Governor Kaine
with no changes, the amended fiscal year 2008 caboose budget and the 2008-2010
biennial budgets as adopted by the 2008 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
2008 caboose budget or the 2008-2010 biennial budget adopted by the 2008
General Assembly and the projections of state Direct Aid funding for fiscal
years 2008, 2009, and 2010 may be directed to Kent Dickey, assistant
superintendent for finance, or budget office staff at (804) 225-2025.
BKCJr/bkl
Attachments
a. FY 2008
Caboose Bill Adopted Amendments (PDF)
b. 2008-2010
Adopted Amendments (PDF)
c. Entitlement
Sheets FY 2008 - Adopted Amendments (PDF)
d. Entitlement
Sheets 2008-10 - Adopted Amendments (PDF)
e. Entitlement
Calculation Template Instructions (PDF)
f. Revised
2008-2010 Composite Index (PDF)
g. Virginia Preschool
Initiative Formula-generated Student Slots (PDF)
Copy to: local governing bodies