Superintendent’s Memo #306-11

State seal, Commonwealth of Virginia

Department of Education

November 9, 2011

TO:  Division Superintendents

FROM:  Patricia I. Wright, Superintendent of Public Instruction

SUBJECT:  Composite Index of Local Ability-to-Pay for the 2012-2014 Biennium

This memorandum and the attachments contain information regarding the Composite Index of Local Ability-to-Pay for the 2012-2014 biennium, which will begin July 1, 2012.  The 2012-2014 composite index was calculated using 2009 base-year data provided by the Department of Taxation for Virginia adjusted gross income (AGI), taxable retail sales, and true value of real property.  The estimates of local population for 2009 are provided by the Weldon Cooper Center for Public Service at the University of Virginia, and the actual March 31, 2010, average daily membership is based on data reported by school divisions to the Department of Education.

The Department of Education calculated the 2012-2014 composite index excluding nonresident AGI as required by the appropriation act for all eligible school divisions.  Eligible school divisions are no longer required to submit a certification form requesting the exclusion of nonresident AGI.  Item 132, Paragraph A.4.b., Chapter 890, 2011 Acts of Assembly, states that “for any locality whose total calendar year [2009] Virginia Adjusted Gross Income is comprised of at least 3 percent or more by nonresidents of Virginia, such nonresident income shall be excluded in computing the composite index of ability-to-pay.  The Department of Education shall compute the composite index for such localities by using adjusted gross income data which exclude nonresident income, but shall not adjust the composite index of any other localities.”

Attachment A to this memorandum includes the 2012-2014 composite index for each locality.  The Department of Education will use this composite index in calculating the state share of applicable school division entitlements for the Governor’s introduced budget for the 2012-2014 biennium.  Information regarding these entitlements will be made available to you in late December following the release of the Governor’s 2012-2014 introduced budget, scheduled for December 19, 2011.

Downloadable files in Excel and .pdf formats containing the 2012-2014 composite index for each school division are available on the Department of Education Web site at:

In addition, at the Web site referenced above, an Excel file is available that will allow you to view the detailed calculation of your 2012-2014 composite index.  The file displays all of the data elements used and the steps involved in the calculation of your 2012-2014 index.  In addition, this file provides comparisons between the per pupil and per capita components of division indices relative to statewide averages for both the 2010-2012 and the 2012-2014 biennia.  This data can assist you in assessing the elements in the composite index formula that contributed to increases or decreases in your index for 2012-2014 compared to 2010-2012.

If you have questions or need additional information concerning this data, please contact the budget office at (804) 225-2025 or by e-mail (e-mail addresses available at



  1. 2012-2014 Composite Index and Data Inputs (PDF)