P. O. BOX 2120
July 16, 1999


TO: Division Superintendents
FROM: Paul D. Stapleton
Superintendent of Public Instruction
SUBJECT: Certification of Adequate Budgeted Funds in 1999-00 to Meet the Required Local Expenditure for Basic Operations Costs

  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

  In order to avoid the necessity of initiating the procedures
  required by Section 22.1-97, Code of Virginia, each school
  division must complete and return Attachment B, pages 1 and 2
  by August 27, 1999.  Please note that Attachment C is only a
  worksheet for you to use in computing the Required Local
  Expenditure and does not have to be returned.  In completing
  Attachment B, it may be useful to prepare a prospective Annual
  School Report form for 1999-00, based on budgeted data. 
  Attachment B should be sent to Ms. Doris B. West, Senior
  Budget Analyst, P. O. Box 2120, Richmond, Virginia 23216-2120. 

  Superintendents of school divisions, 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.  Copies of all supplemental appropriations
  resulting from these requests should be furnished to the

  Please note that the Appropriations Act states that in 1999-00
  local school divisions are required to spend 100 percent of
  the required local expenditure for Basic Aid including
  Education of the Gifted,  Vocational Ed-SOQ, Special Ed-SOQ,
  Remedial Education, Fringe Benefits, and Textbooks.

  The required amount of local effort must also be provided in
  order to receive state funds for Salary Supplement,
  Maintenance Supplement, At-Risk, Technology, Primary Class
  Size Reduction, Truancy, At-Risk Four Year Olds, Early Reading
  Intervention, School Health Incentive, SOL Instructional
  Materials, SOL Remediation, AVID, Lottery, Lottery Hold
  Harmless, and School Construction Grants.

  School divisions are also required to provide a local match of
  forty percent for Dropout Prevention. 

  The 1999 General Assembly passed language allowing divisions
  to carry over at the local level,  any unexpended balances in
  School Construction, Lottery, SOL Remediation, SOL Teacher
  Training,  and Governor's School planning grants.  These state
  funds and any unspent local matching funds must be deducted
  from total planned expenditures for 1999-00.

  Questions may be addressed to June Eanes or Ms. Doris West at
  (804) 225-2025.

  Attachments: A hard copy of this memo and its attachment
               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
  t 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 prescribed by the Board
  of Education pursuant to 22.1-115.  The appropriation may be
  made of the same periodic basis as the governing body makes
  appropriations to other departments and agencies.

  22.1-97. Procedure if county, city or town fails to
  appropriate sufficient educational 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 educational 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 court may make such order as may be
  appropriate respecting 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 (8.01-644 et seq.) of Chapter 25 of Title 8.01 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 _________________


  (Figures should be estimated for 1999-00.  Page numbers refer
  to items on the 1998-99 Annual School Report.)

  1. Total Planned Expenditures (Page 29)               

  2. Less Carryover FY 1998-99 State and Local Matching Funds

       a.  Lottery          
       b.  School Construction
       c.  SOL Remediation                     
       d.  SOL Training                        
       e.  Sum of 2a,2b,2c, and 2d                       

  3.   Less Excluded Expenditures

       a.  Capital Outlay *                    
       b.  Facilities (Page 28)                      
       c.  Debt Service                        
       d.  Sum of 3a,3b and 3c                               

  4.   Planned Expenditures for Operation from 1999-00 Funds
       (Line 1 less lines 2e and 3d)                      

  5.   Less Excluded State Funds

       a.  Sales Tax (Page 1)                  
       b.  State Funds (Page 3)                
       c.  Sum of 5a and 5b                               

  6.   Less Excluded Federal Funds (Page 5)                

  Division ________________                   Attachment C


  (Figures should be estimated for 1999-00.  Page numbers refer
  to items on the 1998-99 Annual School Report.)

  7.   Less 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 7a through 7d                               

  8.  Net Local Expenditures for Operation 
     (Line 4 less totals from lines 5c, 6, and 7e)           

  9.  Adjusted ADM                             

  10. Unadjusted ADM                           

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


  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