COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
RICHMOND, VIRGINIA 23218-2120
SUPTS. MEMO NO. 255
December 17, 2004
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Jo Lynne
DeMary Superintendent
of Public Instruction |
|
SUBJECT: |
Amendments
to the 2004-2006 Biennial Budget as Proposed by Governor Warner |
Governor Warners
proposed amendments to the 2004-2006 biennial budget (Chapter 4, 2004 Acts of
Assembly, Special Session I) were presented on Friday, December 17, 2004,
before a joint session of the Senate Finance, the House Appropriations, and the
House Finance committees. These
amendments to the 2004-2006 budget will be considered by the 2005 Session of
the General Assembly, which is scheduled to convene on January 12, 2005. The Governors amendments adjust funding for
both fiscal years of the biennium, fiscal year 2005 (current year) and fiscal
year 2006. The recommendations made by
the Governor regarding the Direct Aid to Public Education budget mainly include
technical adjustments to the Standards of Quality (SOQ), incentive, and
categorical accounts. The Governors
recommendations include funding for the state share of all SOQ programs, and
continuation of all existing incentive and categorical programs. The major actions taken in Governor Warners
amended 2004-2006 budget include:
Adjustments for enrollment changes, program participation,
and other technical updates;
Distribution of additional sales tax revenues;
Distribution of additional lottery revenues;
Additional funding for various technical corrections to
Direct Aid accounts;
A language change allowing funding for Governors Schools to
be adjusted based on actual September 30th enrollment;
Expansion of the interest rate subsidy program in fiscal year 2006;
Funding for a three percent compensation supplement (effective December 1, 2005) in fiscal year 2006 for all positions funded in the Standards of Quality and other state-funded positions;
Funding to provide a state supplement to the school breakfast program in fiscal year 2006.
Attachment A to this memorandum provides summary information on the funding changes proposed by the Governor that affect the Direct Aid to Public Education and Department of Education Central Office budgets. Attachment B to this memorandum lists the estimated school division entitlements for the SOQ, incentive, and categorical accounts for fiscal year 2005 (which began on July 1, 2004, and ends June 30, 2005) and for fiscal year 2006 (which begins July 1, 2005, and ends June 30, 2006) based on the Governors proposed amendments to the 2004-2006 budget.
These revised entitlements
use the Department of Educations latest projections of March 31 average daily
membership (ADM) for fiscal years 2005 and 2006. The entitlements shown in Attachment B do not include the direct
grants (Group IV accounts) authorized by the General Assembly that are unique
to certain school divisions. Several of
the categorical account entitlements shown in Attachment B (Group III accounts)
are funded on a reimbursement basis and represent the departments latest
projected entitlements; however, final payments on these accounts in fiscal
years 2005 and 2006 will be based on actual reimbursements.
In addition to the
entitlement information contained in Attachment B, a downloadable Excel file
has been created to assist school divisions in calculating projected state
entitlements and local matches in fiscal years 2005 and 2006 for most Direct
Aid programs. This file gives divisions
the opportunity to change ADM to test the effect on state funding and projected
local match requirements using the departments projected ADM or a local
projection of ADM. Although we have
confidence in the accuracy of our ADM projections on a statewide basis,
experience has shown that the accuracy of our projections for individual
divisions may vary. When divisions
believe that they have more accurate projections of their March 31 ADM, they
are encouraged to substitute their estimates for those provided in this
memorandum when using the Excel calculation file. Also, please note that changing the ADM in this file only changes
the estimated funding for accounts that are funded on the basis of ADM. The estimated funding for all other accounts
is unaffected by changing ADM in the file and, therefore, remains the
same. (Attachment B contains projected
entitlement information for each school division in PDF format. This attachment shows projected entitlements
based on the departments projected ADM and cannot be modified.)
Attachment C to this
memorandum provides detailed instructions for accessing the Excel file from the
Department of Education website. The
Excel file may be downloaded from the following Web address:
http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html
Attachment D contains a
copy of the amended appropriation act language for Direct Aid to Public
Education included in the Governors introduced budget on December 17,
2004. All changes proposed by the
Governor are shown in either underlined text (indicating new language) or text
with a strike-through notation (indicating deleted language). This attachment provides explanatory
information for many of the Direct Aid accounts.
It is important to
remember that the information provided in Attachment B and in the Excel
calculation template relate to the Governors proposed amendments to the
2004-2006 budget as introduced. The
House of Delegates and the Senate will have the opportunity to amend the
Governors budget proposals during the 2005 General Assembly session. The General Assembly will adopt a final
amended 2004-2006 biennial budget before the end of the session, which is
scheduled for February 26, 2005; therefore, the estimated entitlements
contained in Attachment B and in the Excel calculation template are projections
only and are subject to change as a result of legislative action by the General
Assembly. The department will provide
additional information during the General Assembly session as changes to the
estimated Direct Aid entitlements occur.
After the conclusion of the session, projected entitlements based on
final General Assembly actions will be sent to you in another Superintendents
Memorandum. Please note, the fiscal year
2005 entitlements will not be finalized until they are recomputed using actual
March 31, 2005, ADM and other final program participation information. Actual fiscal year 2006 entitlements will
not be finalized until after a similar process is followed next year.
Questions
regarding the Governors proposed amendments to the 2004-2006 budget and
revised estimate of Direct Aid entitlements for fiscal years 2005 and 2006 may
be directed to Dan Timberlake, assistant superintendent for finance, or budget
office staff at (804) 225-2025.
JLD/kcd
Attachments
http://www.doe.virginia.gov/administrators/superintendents_memos/2004/inf255a.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2004/inf255b.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2004/inf255c.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2004/inf255d.pdf