P. O. BOX 2120

April 5, 1996


TO: Division Superintendents
FROM: William C. Bosher, Jr.
Superintendent of Public Instruction
SUBJECT: REVISION TO SUPTS. MEMO. NO. 1 Aid to Localities Appropriations, 1996-98 Biennium

  Supts. Memo. No. 1 (Regulatory), dated March 12, 1996
  provided you with the final actions taken by the General
  Assembly relating to the 1996-98 budget, which are subject
  to final approval by the Governor.  Attachment C to that
  memorandum provided an individualized printout which
  projected payments to each locality from state funds.
  We have now been notified by the Department of Taxation that
  substantial errors existed in the original data provided to
  the Department of Education which was used to compute the
  composite index of local ability-to-pay.  Specifically,
  errors were found in two of the three constituent elements
  provided to our office by the Department of Taxation.
  The largest error is due to an under-reporting of  the true

  value of real property reported by Gloucester County.  The
  effect of this error caused their original composite index
  to be lower than it should have been.  Correction of the
  data increases Gloucester's index and reduces the index of
  87 other localities.  In addition to the changes caused by
  Gloucester County's error, the Department of Taxation has
  determined that the adjusted gross income (AGI) for two
  localities needs to be changed.  These localities are the
  City of Martinsville and Henry County.  The required change
  is due to a correction in the assignment of AGI data to
  these localities.
  Attachment A provides the revised indicators of ability for
  each locality and the revised composite index.  At
  Attachment B is a revised individualized printout which
  reflects projected payments to each locality from state
  funds based upon the revised composite index.  These
  projections should be used in lieu of those provided on
  Attachment C to Supts. Memo. No. 1.  All other information
  contained in that Supts. Memo. remains accurate and is still
  subject to final approval by the Governor.
  I know that this information is coming to you late in your
  budget development and approval process.  However, the
  provisions of the appropriation act (Item 140, paragraph
  A.4.c.) require the Department of Education to make changes
  to the composite index of the affected localities to reflect
  corrected data.  If you have questions in this regard or
  need further information, please call Mrs. Kathryn S.
  Kitchen, Division Chief, Finance at (804) 225-2025, Mrs.
  June F. Eanes, Director of the Budget at (804) 225-2060, or
  Mr. John B. Rickman, Principal Specialist, at (804) 225-2806.
  Attachments: This memo and its attachment will be sent to
               the superintendent's office.