Adjustments to the Fiscal Year 2001 Basic Aid Entitlement for Certain School Divisions

COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
RICHMOND, VIRGINIA 23218-2120

SUPTS. MEMO NO. 26
May 25, 2001

ADMINISTRATIVE

TO:	Division Superintendents
FROM:	Jo Lynne DeMary Superintendent of Public Instruction
SUBJECT:	Adjustments to the Fiscal Year 2001 Basic Aid Entitlement for Certain School Divisions

The following attachment to this memorandum reflects adjustments that will be made to the fiscal year 2001 Basic Aid entitlement for certain school divisions beginning on the May 31, 2001, electronic funds transfer (EFT). Listed below are descriptions of each Basic Aid adjustment shown on Attachment A. These adjustments will reduce the divisions’ fiscal year 2001 Basic Aid entitlement.

Overpayment of Instructional VRS - Local adjustments for overpayments of instructional VRS payments due to the combination of reduced VRS rates (i.e., administrative reduction in fiscal year 2001 from 7.92% to 7.54%) and final ADM.

Tuition for Summer Residential Governor School – Lists the Summer Residential Governor’s School local tuition due for fiscal year 2001 that will reduce the divisions’ Basic Aid entitlement.

Tuition for Foreign Language Academy – Lists the Foreign Language Academy local tuition amount due for fiscal year 2001 that will reduce the divisions’ Basic Aid entitlement.

Mental Health Local Share of Cost – Provides information on the transfer to state mental health facilities. This adjustment is for the school divisions’ share of the cost of educating children in state mental health hospitals. The data used to calculate this adjustment are based on enrollment for the 1999-2000 school year. This adjustment to the division Basic Aid entitlement is in accordance with language contained in Item 143.C.2.d.1) and 2) of Chapter 1073, 2000 Acts of Assembly (2000-2002 appropriation act).

Mental Retardation Local Share of Cost – Provides information on the transfer to state mental retardation facilities. This adjustment is for the school divisions’ share of the cost of educating children in state mental retardation facilities. The data used to calculate this adjustment are based on enrollment data for the 1999-2000 school year. This adjustment to the division Basic Aid entitlement is in accordance with language contained in Item 143.C.2.d.1) and 2) of Chapter 1073, 2000 Acts of Assembly (2000-2002 appropriation act).

Tuition for Schools for the Deaf and the Blind – This adjustment is for the local tuition payment for students enrolled at the Virginia Schools for the Deaf and the Blind (VSDB). If you have students from your school division enrolled at VSDB-Hampton or VSDB-Staunton during fiscal year 2001, Board of Education regulation 8VAC20-80-130.H. requires the Department of Education to adjust your state Basic Aid payment to capture the local share of the cost of educating these students. These funds are then transferred to the schools to offset the cost of educating those students. This adjustment is based on the December 1, 2000, enrollment for each school.

In order to maintain proper accounting for adjustments made to Basic Aid funds shown in Attachment A (with the exception of adjustments made for overpayment of Instructional VRS) it is necessary for each school division to report the gross receipt of Basic Aid funds under revenue source code 240202 (Basic School Aid) on the 2000-2001 Annual School Report. To balance this gross Basic Aid revenue on the 2000-2001 Annual School Report, school divisions with adjustments to Basic Aid for Summer Residential Governor’s School, Foreign Language Academies, Mental Health/Mental Retardation facilities, or Schools for the Deaf and the Blind should report these adjustment amounts as expenditures in the Instruction Function (61000), using the appropriate program(s). For those divisions where Basic Aid was adjusted for overpayment of Instructional VRS, the amount of the overpayment must be deducted from your unadjusted Basic Aid entitlement. Report this reduced Basic Aid entitlement in Revenue Source Code 240202 on your 2000-2001 Annual School Report.

If you have any questions regarding these adjustments to the fiscal year 2001 state Basic Aid payment, please contact budget office staff at (804) 225-2025.

/administrators/superintendents_memos/2001/adm026a.pdf

JLD:lw

Attachment