COMMONWEALTH OF VIRGINIA
DEPARTMENT OF EDUCATION
P.O. BOX 2120
SUPTS. MEMO NO. 128
May 16, 2008
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
State Direct Aid to Public Education Funds
Permitted to be Carried Forward from Fiscal Year 2008 to Fiscal Year 2009 |
Section 22.1-100, Code of Virginia, requires school
divisions to return unexpended state funds to the Commonwealth at the close of each
fiscal year; however, Chapter 847, 2008 Acts of Assembly, permits school
divisions that have met Required Local Effort and Required Local match for
fiscal year 2008 to carry forward to fiscal year 2009 any remaining state fund balances
that are unexpended as of June 30, 2008.
This provision is considered to be a one-time carry forward option;
however, any decision regarding future inclusion will be made by the General
Assembly. Specifically, the appropriation
act language reads as follows:
"It is the intent of
the General Assembly that any locality that has met its required local effort
for the Standards of Quality accounts and incentive-based programs, in which
the locality elected to participate, may carry over into fiscal year 2009 any
remaining state fund balances available to help minimize any revenue shortfall
related adjustments that may occur in state funding to that locality."
Please
note that this language also permits a school division to use such carry forward
funds to address any revenue shortfall related adjustments in state funding to
the locality, regardless of the original purpose of such funds. Furthermore, the state carry forward funds
shall be reappropriated by the local governing body to the school board's
budget for fiscal year 2009.
This
provision does not alter the existing requirement that school divisions must spend
the fiscal year 2008 required local effort and required local match amounts before
the end of fiscal year 2008, which ends on June 30, 2008.
State
funds received by school divisions in fiscal year 2008 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 for the same intended purpose.
School
divisions that received a Competitive Leadership Grant in fiscal year 2007 are
allowed to retain any unspent balances and are permitted to spend any remaining
balances for the intended purposes during the ensuing two fiscal years (during
fiscal years 2008 and 2009). Similarly, if a division receives a Leadership
Grant in fiscal year 2008, the funds can be carried forward and spent for the
intended purposes during fiscal years 2009 and 2010. Please note that any remaining balances in
fiscal year 2008 for Leadership Development Grants would also be subject to the
carry forward provisions outlined above.
If
you have any questions regarding this information, please contact Kent Dickey,
assistant superintendent for finance, or budget office staff at (804) 225-2025.
BKCJr/shd