COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO NO. 21
May 28, 2004
ADMINISTRATIVE
TO: |
Division Superintendents |
FROM: |
Jo Lynne DeMary Superintendent of Public Instruction |
SUBJECT: |
State Entitlements for Fiscal Year 2004 Based on Actual
March 31, 2004, Average Daily Membership (ADM) and Adjustments to the Fiscal
Year 2004 Basic Aid Entitlement |
Administrative
Superintendents Memorandum Number 6, dated March 5, 2004, required school
divisions to report average daily membership (ADM) as of March 31, 2004. The data reported by divisions were used to
recalculate all ADM-based entitlements for fiscal year 2004. On a statewide basis, actual ADM was less
than the projected ADM on which the state budget was based. School divisions, therefore, will receive
their full ADM entitlement payments for fiscal year 2004 with no changes other
than the routine adjustments that are made to Basic Aid each year as described
in this memorandum.
The
information in this memorandum contains the final state funding due to school
divisions in fiscal year 2004 for ADM-based accounts. In addition, where available, final entitlements are shown for
other Direct Aid accounts that are not calculated based on ADM. Entitlements for some accounts that require
school divisions to submit reimbursements have not been finalized for the year
and the entitlements shown are estimates only.
An
Excel file is provided that shows state entitlements, required local effort for
the Standards of Quality (SOQ) accounts, and required local matches for
incentive-based accounts calculated on March 31, 2004, ADM. The accounts affected by final March 31,
2004, ADM appear on the Excel file in bold italics and are shown as the full
entitlement with no adjustments. The
Excel file can be accessed from the departments website at:
http://www.pen.k12.va.us/VDOE/Finance/Budget/calctools.html
Attachment
A to this memorandum provides detailed instructions for accessing the Excel
entitlement file. Attachment B to this
memorandum shows the final fiscal year 2003 and fiscal year 2004 entitlements
for each school division for the Standards of Quality (SOQ), incentive, and
categorical accounts that are based on March 31, 2004, ADM. Please note that, unlike previous Excel
calculation files for fiscal year 2004 provided by the department, this file
does not offer an option to change ADM for fiscal year 2004 since ADM is now
final.
Please
note the following when reviewing the data contained in the Excel file:
1. Basic Aid: The fiscal year 2004 state payment for Basic Aid contained in the Excel calculation file sheet labeled State and Local Funds Worksheet does not reflect any required adjustments such as overpayments or payments made on behalf of school divisions to the schools for the deaf and the blind, mental health/mental retardation facilities, or summer Governors School programs. The adjustments made to fiscal year 2004 Basic Aid entitlements are described below and are listed in the sheet labeled Adjustments to FY04 Basic Aid. The final amount to be paid to school divisions in fiscal year 2004 for Basic Aid is contained in this sheet.
2. Sales Tax: The sales tax estimates contained in the Excel calculation file represent the amounts used to compute the Basic Aid entitlement for fiscal year 2004. As required by law, these estimates are based on those contained in the final appropriation act for fiscal year 2004 (Chapter 943, 2004 Acts of Assembly). As required by Chapter 943, in the event that the actual revenues from the state sales and use tax returned (on the basis of the latest triennial count of school age population) for sales in the fiscal year in which the school year begins are different from the number estimated as the basis for this appropriation, the estimated revenues shall not be adjusted. Please be aware, however, that payments to school divisions are based on actual revenues of the state sales and use tax dedicated to public education. These actual payments may differ from the estimates provided in this worksheet. Final information on actual sales tax receipts on a cash and accrual bases will be posted on the departments website in July as part of the fiscal year 2004 Annual School Report information.
3. Fringe Benefits: The fringe benefit amounts contained in the Excel calculation file are the actual amounts you will receive for fiscal year 2004 on a cash basis. Fringe benefit amounts shown on an accrual basis will be posted on the departments website in July as part of the fiscal year 2004 Annual School Report information.
4. Incentive and Categorical Accounts: Group II incentive accounts represent the full entitlement for actual participation in fiscal year 2004. For certain Group III categorical accounts, the entitlements do not reflect final participation or reimbursement levels for the year and are shown as estimated entitlements.
5.
VPSA
Technology: VPSA
Technology (i.e., SOL Web-based Technology Initiative) entitlements reflect the
total entitlement that is allocated to the school division for the note issue
offered in the designated year. They do
not reflect actual reimbursement payments requested and paid to the school
division. Please be aware that
entitlements for regional programs are included in school division fiscal agent
totals; however, actual reimbursements for the Spring 2004 issue may be made
directly to regional programs from State Non-Arbitrage Program (SNAP)
allocations if they are set-up separately for regional programs.
6.
Local
Lottery Distribution: The distribution of local lottery revenue to
school divisions is based on the per pupil amount of $224.25 listed in the
final appropriation act for fiscal year 2004 (Chapter 943). The semi-monthly Lottery payments for fiscal
year 2004 will be adjusted for actual ADM beginning with the June 16, 2004,
electronic funds transfer (EFT).
Adjustments
to the Fiscal Year 2004 Basic Aid Entitlement for Certain School Divisions
As
in past years, the departments normal practice for making certain types of
adjustments to school division payments is to adjust Basic Aid since it is the
largest account. The appropriation act
directs that adjustments for students in mental health or mental retardation
facilities be made against a school divisions Basic Aid payment. Consequently, various adjustments will be
made to the fiscal year 2004 state Basic Aid entitlements for certain school
divisions beginning with the June 16, 2004, electronic funds transfer
(EFT). Where applicable, these
adjustments will reduce the fiscal year 2004 Basic Aid entitlement paid to
school divisions. As noted above, the
estimated adjustments to Basic Aid (as of the June 16, 2004, EFT) are shown in
the sheet labeled Adjustments to FY04 Basic Aid. The Basic Aid adjustments for fiscal year 2004 shown in the Excel
file are as follows:
1. Overpayment of Instructional VRS and
Instructional Social Security Since these payments are fully paid for the
fiscal year by the last May payment, an adjustment for overpayments of
instructional VRS and Social Security entitlements is necessary where actual
ADM is lower than the projected ADM on which payments were based during the
year. For those divisions whose actual
ADM was higher than projected, the department will make one additional payment
in June for the balance of the fringe benefit entitlements.
2.
Overpayment
of English as a Second Language - Adjusts for overpayments of English as a
Second Language entitlements.
3.
Driver Education
Funds Portion of Basic Aid As required by the appropriation act in Item 147
C.2.e.1) of Chapter 943, 2004 Acts of Assembly, this adjustment reduces Basic
Aid entitlements for school divisions that are not eligible to receive Driver
Education funds in fiscal year 2004.
4.
Local Tuition
for Summer Residential Governors Schools Lists the local share of tuition
for Summer Residential Governors Schools paid by the department on behalf of
school divisions and that is owed to the department in fiscal year 2004. This deduction reduces the Basic Aid
entitlement paid to affected divisions.
5.
Local Tuition
for Foreign Language Academies Lists the local share of tuition for Foreign
Language Academies paid by the department on behalf of school divisions and
that is owed to the department in fiscal year 2004. This deduction reduces the Basic Aid entitlement paid to affected
divisions.
6.
Mental Health
Local Share of Cost 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 the 2002-2003 school year.
This adjustment to the division Basic Aid entitlement is in accordance
with Item 147.C.2.d.1) and 2) of Chapter 943, 2004 Acts of Assembly.
7.
Mental
Retardation Local Share of Cost 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 the 2002-2003 school year. This adjustment to the division Basic Aid
entitlement is in accordance with Item 147.C.2.d.1) and 2) of Chapter 943, 2004
Acts of Assembly.
8.
Local 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 and MD-Hampton or VSDB-Staunton
during fiscal year 2004, Virginia 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 two schools to offset the cost of educating those
students. This adjustment is based on
the December 1, 2003, enrollment for each school.
In
order to maintain proper accounting for adjustments made to Basic Aid
entitlements for payments made on behalf of school divisions (adjustments 4
through 8 above), it is necessary for each school division to report the full
entitlement or gross revenue of Basic Aid funds under revenue source code
240202 (Basic School Aid) on the 2003-2004 Annual School Report. To balance this gross Basic Aid revenue on
the 2003-2004 Annual School Report, school divisions with adjustments to Basic
Aid for Summer Residential Governors Schools, 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) and Object Code 3000 (Purchased Services), using the
appropriate program(s).
For
those divisions where Basic Aid was adjusted for overpayments in item 1 or item
2 above, the amount of the overpayment must be deducted from your unadjusted or
full Basic Aid entitlement. Report this
reduced Basic Aid entitlement in revenue source code 240202 on your 2003-2004
Annual School Report. A deduction to
Basic Aid for non-eligibility of Driver Education funds (item 3 above) should
be treated in the same manner.
Special
Reminder on Carry-Over Provision Language in Chapter 943, 2004 Acts of Assembly
(Fiscal Year 2004 to Fiscal Year 2005)
As communicated in Informational
Superintendent's Memorandum No. 96, dated May 7, 2004, Chapter
943 permits unexpended state funds as of June 30, 2004, to be carried forward
by school divisions to fiscal year 2005 for the following Direct Aid accounts
only:
1. SOL
Remediation (revenue source code 240274)
2. SOL
Algebra Readiness (revenue source code 240405)
3. School
Construction Grants Program (revenue source code 240306)
4. Lottery
(revenue source code 240233)
To
carry forward fiscal year 2004 state funds to fiscal year 2005 for the four
accounts listed above, the school division must have actually received the
state funds in fiscal year 2004. State
funds received by school divisions in fiscal year 2004 for the School
Construction Grants Program and Lottery may also be paid into escrow accounts
pursuant to Sections 22.1-175.5 and 22.1-100.1, Code of Virginia,
respectively, and carried forward indefinitely.
Except
for the four accounts listed above, all other state Direct Aid funds received
by school divisions in fiscal year 2004 should be expended by June 30, 2004;
otherwise, any unexpended fiscal year 2004 state funds are subject to the
reversion requirement of Section 22.1-100, Code of Virginia.
If
you have any questions concerning the information in this memorandum, please
contact Daniel S. Timberlake, assistant superintendent for finance, or budget
office staff at (804) 225-2025.
JLD/mmv
Attachments