P.O. BOX 2120

June 8, 2001

TO: Division Superintendents
FROM: Jo Lynne DeMary
Superintendent of Public Instruction
SUBJECT: Summary of 2001 Special Session I of the General Assembly

On May 9, 2001, the General Assembly recessed the 2001 Special Session I without adopting amendments to the biennial budget enacted at the 2000 Session (Chapter 1073, 2000 Acts of Assembly). As a result, Chapter 1073 continues as the state budget that is in effect for the 2000-2002 biennium. In the absence of legislative action to enact an amended budget or administrative action by the Governor to make changes to Chapter 1073, payments to school divisions for fiscal years 2001 and 2002 will be based on the appropriations contained in Chapter 1073.

Final entitlements for fiscal year 2001, which are based on actual March 31, 2001, Average Daily Membership and other final program participation data, were recently communicated to you in Administrative Superintendentís Memorandum Number 25, dated May 25, 2001. It is anticipated that the final entitlements for fiscal year 2001 will be paid in full and without proration.

Administrative Superintendentís Memorandum Number 25 also contains the latest state revenue estimates for fiscal year 2002 based on the departmentís projections of enrollment.

Please continue to use the sales tax projection for fiscal year 2002 that is contained in this memorandum for calculating the fiscal year 2002 state Basic Aid payment; however, continue to use the fiscal year 2002 sales tax figure contained in Informational Superintendentís Memorandum number 223, dated December 22, 2001, as the latest projection of sales tax revenue to be distributed to your division in fiscal year 2002.

At this time, it is not anticipated that the General Assembly will take further action on the 2000-2002 state budget before convening next January for the 2002 Session. The Governor may propose budget amendments to the 2002 General Assembly that could affect fiscal year 2002 payments to school divisions.

Additional information regarding the 2000-2002 biennial budget will be provided to you as it becomes available. If you have any questions, or need additional information, please contact Daniel S. Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.


c: Local Governing Bodies