REGULATORY

  It is crucial that school divisions monitor the level of local
  funding appropriated to ensure compliance with Section 22.1-94,
  Code of Virginia.  Please note that Section 22.1-97, Code
  of Virginia, addresses the procedure that the Department of
  Education must follow if a county, city or town fails to
  appropriate sufficient local funding to support the Standards
  of Quality.  Attachment A is a copy of the referenced Code
  Sections.

  In order to avoid the necessity of initiating the procedures
  required by Section 22.1-97, Code of Virginia, each school
  division is requested to complete and return Attachment B,
  pages 1 and 2 by July 18, 1997.  Please note that Attachment
  C is only a worksheet for you to use in computing the Required
  Local Expenditures and does not have to be returned.  In
  completing Attachment B, it would be useful to prepare a
  prospective Annual School Report form for 1997-98, based on
  budgeted data.  The report should be sent to Ms. Doris B.
  West, Senior Budget Analyst of the Budget Office, P. O. Box
  2120, Richmond, Virginia 23218-2120. 

  Division Superintendents, whose local appropriations are only
  slightly in excess of the required amount, are requested to
  review their average daily membership (ADM) totals monthly. 
  These superintendents must request additional local funding
  from the governing body for any necessary adjustments that
  result from an unbudgeted increase in ADM that would reduce
  local funds below the required level.  The Department is to be
  furnished a copy of all supplemental appropriations resulting
  from these requests.

  Please note that the Appropriations Act states that in 1997-98
  local school divisions are required to spend 100% of the
  required local expenditure for Basic Aid including Education
  of the Gifted, Salary Supplement, Vocational Ed-SOQ, Special
  Ed-SOQ, Remedial Education, Fringe Benefits, Textbooks,
  Maintenance Supplement, At-Risk, Reduced K-3, Truancy, Reading
  Intervention, SOL Teaching Materials, and At-Risk Four Year
  Olds.

  In 1997-98, funding is being provided through the Virginia
  Public School Authority for Technology.  School divisions are
  required to provide a local match of twenty percent.  At least
  twenty-five percent of this match shall be used for teacher
  training. 

  Questions may be addressed to Ms. Doris West at (804) 225-2091.

  RTL/dw

  Attachments: A hard copy of this memo and its attachments
               will be sent to the superintendent's office.


                             Attachment A

  22.1-94. Appropriations by county, city or town governing
  body for public schools.  A governing body may make
  appropriations to a school board from the funds derived from
  local levies and from any other funds available, for
  operation, capital outlay and debt service in the public
  schools.  Such appropriations shall be not less than the cost
  apportioned to the governing body for maintaining an
  educational program meeting the standards of quality for the
  several school divisions prescribed as provided by law.  The
  amount appropriated by the governing body for public schools
  shall relate to its total only or to such major
  classifications as may be prescribed by the Board of
  Education.  The appropriations may be made on the same
  periodic basis as the governing body makes appropriations to
  other departments and agencies.

  22.1-115. System of accounting; statements of funds
  available.  The State Board, in conjunction with the Auditor
  of Public Accounts, shall establish and require of each school
  division a modern system of accounting for all school funds,
  state and local, and the treasurer or other fiscal agent of
  each school division funds in his hands available for school
  purposes.

  22.1-97. Procedure if county, city or town fails to
  appropriate sufficient education funds.  Whenever the governing
  body of a county, city or town fails or refuses to appropriate
  funds sufficient to provide that portion of the cost
  apportioned to such county, city or town by law for
  maintaining an education program meeting the standards of
  quality for the several school divisions prescribed as
  provided by law, the Board of Education shall notify the
  Attorney General of such failure or refusal in writing signed
  by the president of the Board.  Upon receipt of such
  notification it shall be the duty of the Attorney General to
  file in the circuit court for the county, city or town a
  petition for a writ of mandamus directing and requiring such
  governing body to make forthwith such appropriation as is
  required by law.

     The petition shall be in the name of the Board of
  Education, and the governing body shall be made a party
  defendant thereto. The court may, in its discretion, cause
  such other officers or persons to be made parties defendant as
  it may deem proper.  The employment and compensation of an
  attorney or attorneys for any party defendant not otherwise
  represented by counsel.  The petition  shall be given first
  priority on the docket of such court and shall be heard
  expeditiously in accordance with the procedures prescribed in
  article 2 of chapter 25 (8.01-644 et seq.) of Title 8.01 of
  the Code of Virginia and the writ of mandamus shall be awarded
  or denied according to the law and facts of the case and with
  or without costs as the court may determine.  The order of the
  court shall be final upon entry.  Any appeal therefrom shall
  be heard and disposed of promptly by the Supreme Court next
  after habeas corpus cases already on the docket.



                           Attachment B

  Division                   

                 REQUIRED LOCAL EXPENDITURES
                           1997-98

  (Figures should be estimated for 1997-98.  Page numbers refer
  to items on the 1996-97 Annual School Report.)


  1. Total Expenditures (Page 29)                          

  2. Excluded Expenditures

     a.   Capital Outlay *                      
     b.   Facilities (Page 28)                        
     c.   Debt Service                          
     d.   Sum of 2a,2b and 2c                              

  3. Expenditures for Operation                   
       (Line 1 less line 2d)                               

  4. Excluded State Funds

     a.   Sales Tax (Page 1)                    
     b.   State Funds (Page 3)                  
     c.   Sum of 4a and 4b                                 

  5. Excluded Federal Funds (Page 5)                       

  6. Excluded Other Funds (Page 7) 

     a.   Gas Tax Refunds                       
     b.   Tuition from another
           county or city                       
     c.   Payments from another
           county or city                       
     d.   Payments from other
           State agencies                       
     e.   Sum of 6a through 6d                             

  7. Net Local Expenditures for 
     (Line 3 less line 4, 5, 6)                            

  8. Unadjusted ADM                                        

  9. Adjusted ADM                                          

  *Capital Outlay should be amount reflected on Annual School
   Report under object 8200 on page 9 - 26.


                                                Attachment B
                                                      Page 2 


                        CERTIFICATION









  I hereby certify that the information in Attachment B is true
  and accurate to the best of my knowledge.




  ____________________________              _______________________
    Division Superintendent                     Contact Person


  ____________________________          ________________________
          Date                                  Telephone Number