P.O. BOX 2120



February 4, 2005



Division Superintendents



Jo Lynne DeMary

Superintendent of Public Instruction



Revised Fiscal Year 2005 Entitlement Amounts for Semi-monthly Payments Based on Updated Average Daily Membership Projections


The Department of Education produced revised projections of average daily membership (ADM) for each school division for fiscal years 2005 and 2006 in November 2004. These revised projections were used in Governor Warners proposed changes to Direct Aid to Public Education funding contained in his amended 2004-2006 biennial budget that was introduced on December 17, 2004 (see Informational Superintendents Memorandum Number 255 dated December 17, 2004). For fiscal year 2005, the departments revised forecast reduced the statewide estimate of ADM by 7,859 students. Consequently, the projections on which the current fiscal year 2005 entitlement payments are based (for those accounts that are paid on the basis of a divisions ADM) are too high in most cases and must be adjusted to avoid overpayment too early in this fiscal year.


Fiscal year 2005 entitlements for all accounts that are calculated on the basis of ADM and that are paid on a semi-monthly basis have been recalculated based on the revised projections of ADM contained in the Governors amended 2004-2006 budget. The per pupil amounts and sales tax estimates used in the calculation of the revised entitlements are the same as those used in the entitlement amounts currently used for the semi-monthly payments you have received to date; these per pupil and sales tax amounts will remain unchanged in the revised entitlements addressed in this memorandum. If additional adjustments are needed as a result of General Assembly action, they will be communicated at a later date.


The revised fiscal year 2005 entitlement amounts updated for the latest projection of ADM are shown in Attachment A. Beginning with the deposit of state funds on February 28, 2005, semi-monthly payments for all ADM-based accounts will be based on the recalculated entitlement amounts. This change is being made for all school divisions.


Calculation of the final fiscal year 2005 entitlement amounts for each division will be made based on final actions of the 2005 General Assembly and final March 31, 2005, ADM for each school division. Final fiscal year 2005 entitlement amounts will be communicated to school divisions in a subsequent superintendents memorandum in May or June 2005. Questions regarding the revised fiscal year 2005 entitlement amounts may be directed to Dan Timberlake, assistant superintendent for finance, or budget office staff at (804) 225-2025.