INFORMATIONAL

  The total 1996-97 adjustment to Basic Aid Payments for each
  school division's share of the cost of educating their
  children in state mental retardation facilities (MR) and in
  state mental health hospitals (MH) is attached.  The
  Department of Education will make this adjustment on the May
  16, 1997 EDI, along with the Governor's School and Foreign
  Language Academies, Electronic Classroom, and tuition for
  the Deaf/Blind Schools. (As stated in Informational Supts.
  Memo No. 160 dated September 27, 1996).

  Please note that the data used to calculate the adjustment
  to Basic Aid and the actual transfer to the Department of
  Mental Health and Mental Retardation and to the Division of
  Special Education are based on enrollment data for the 1995-96
  school year.  This action is in accordance with language
  contained in Item 140 C (2) (d) of Chapter 912 (1996
  Virginia Acts of Assembly), dated April 17, 1996.

  In order to maintain proper accounting for the funds
  involved, it is necessary for each school division to note
  in its Annual School Report submission the gross receipt of
  Basic School Aid funds under line 2402020 "Basic School Aid"
  and to report the sum extended under subject provisions in
  the Function of Instruction, appropriately accounted for
  under the respective program(s).

  If you have questions, please call Mrs. June F. Eanes,
  Budget Director, at (804) 225-2060, or Mrs. Leigh H.
  Williams, Budget Analyst, at (804) 225-2031.         

  RTL:lw

  Attachments: This memo and its attachments will be sent to
               the superintendent's office.