Superintendent's Memo #314-10

State seal, Commonwealth of Virginia

Department of Education

December 17, 2010

TO: Division Superintendents

FROM: Patricia I. Wright, Superintendent of Public Instruction

SUBJECT: Award of Phase II State Fiscal Stabilization Funds under the American Recovery & Reinvestment Act of 2009

Virginia has been awarded its final 33 percent (Phase II) of funding from the State Fiscal Stabilization Fund (SFSF) authorized under the American Recovery and Reinvestment Act of 2009 (ARRA). These funds were allocated in the fiscal year 2011 Direct Aid to Public Education budget by the 2010 General Assembly to fund a portion of the state's share of Basic Aid. The original fiscal year 2011 amount of Phase II SFSF funds allocated for this purpose by the 2010 General Assembly was $126,372,427. However, based on the state's final Phase II application, incorporating all actions of Chapter 874, 2010 Acts of Assembly, the fiscal year 2011 portion allocated to K-12 education has been reduced by $3,431,113 to $122,941,314. Governor McDonnell's proposed amendments to the current 2010-2012 biennial budget (i.e., Chapter 874, 2010 Acts of Assembly) released on December 17, 2010, include an amendment to increase the state's general fund support for Basic Aid by the same $3,431,113 to fund the portion of Basic Aid no longer supported from Phase II SFSF funding. Superintendent's Memorandum number 315-10 dated December 17, 2010, provides additional information on all of the Governor's proposed amendments to the current Direct Aid to Public Education budget, including the adjustments that will be required to fiscal year 2011 Basic Aid payments resulting from this reduction in Phase II SFSF funding in fiscal year 2011. Attachment A to this memorandum provides the LEA distributions of the $122,941,314 Phase II SFSF funding based on the updated allocation calculation.

The fiscal year 2011 SFSF allocations will be available for use by school divisions through the SFSF obligation deadline of September 30, 2011. Please note, final approval of the revised Phase II application by the U.S. Department of Education (USED) is pending and could be amended based on final guidance from USED. However, it is not anticipated that changes will occur in the allocations shown in Attachment A.  Additional guidance on qualifying uses of the ARRA State Fiscal Stabilization Fund is available on the Virginia Department of Education (VDOE) Web site at:

SFSF Phase II LEA allocations have been loaded into the VDOE Online Management of Education Grant Awards (OMEGA) system. In OMEGA, each division's allocation will be initially distributed 75 percent to salaries (object code 1000) and 25 percent to fringe benefits (object code 2000). If a school division needs to make changes to the initial object code distribution, a budget transfer will be necessary in OMEGA. Questions related to the OMEGA system should be directed to OMEGA support at (804) 371-0993 or by e-mail at Like other federal funds, the funds must be separately tracked and accounted for locally, and the funds will be subject to the reporting requirements under Section 1512 of ARRA (i.e., jobs reporting, description of expenditures, etc.). Please note that VDOE will include these funds in the LEA monitoring process to be conducted for ARRA funds.

Questions regarding Phase II State Fiscal Stabilization Fund awards may be directed to budget office staff at (804) 225-2025.



  1. Virginia Phase II State Fiscal Stabilization Fund LEA Allocations (PDF)