DEPARTMENT OF EDUCATION
P.O.
SUPTS. MEMO NO.
39
February 9, 2007
INFORMATIONAL
|
TO: |
Division
Superintendents |
|
FROM: |
Billy
K. Cannaday, Jr. Superintendent
of Public Instruction |
|
SUBJECT: |
Amendments
to the Governors 2006-2008 Biennial Budget as Introduced (HB 1650/SB 750)
Proposed by the House of Delegates and by the Senate |
On
Sunday, February 4, 2007, the Senate Finance and House Appropriations
Committees adopted separate changes to the 2006-2008 biennial budget as amended
and introduced by Governor Kaine (House Bill (HB) 1650/Senate Bill (SB) 750)
(reference Informational
Superintendents Memorandum No. 262, dated December 15, 2006).
The
budget recommendations of the Senate Finance Committee were adopted this week
by the full membership of the Senate, and the budget recommendations of the
House Appropriations Committee were adopted this week by the full membership of
the House of Delegates. The adopted
changes affect fiscal years 2007 and 2008.
Fiscal year 2007 began on July 1, 2006, and ends June 30, 2007. Fiscal year 2008 begins July 1, 2007, and
ends June 30, 2008.
The
respective budget amendments proposed by the House of Delegates and by the
Senate change the Governors amended budget for the 2006-2008 biennium (HB
1650/SB 750 as introduced). The
attachments to this memorandum provide information on the changes separately
adopted by the House and by the Senate.
Unless changes are specifically noted in the attachments, Governor
Kaines proposed budget contained in the introduced version of HB 1650/SB 750
were adopted.
Attachments
to this memorandum include:
Attachment A A summary of changes proposed by the House of Delegates and by the Senate to Governor Kaines amended 2006-2008 budget (HB 1650/SB 750 as introduced);
The
revised Direct Aid entitlements proposed by the House of Delegates in
Attachment B and by the Senate in Attachment C use the Department of Educations
latest projections (from fall 2006) of March 31 average daily membership (ADM)
for each school division for fiscal years 2007 and 2008. The entitlements shown in Attachments B and C
do not include the supplemental grants (Financial Assistance for Supplemental
Education service area) authorized by the General Assembly that are unique to
certain school divisions. Several of the
categorical account entitlements shown in Attachments B and C (Financial
Assistance for Categorical Programs service area) are funded on a reimbursement
basis and represent the departments latest projected entitlements; however,
final payments on these accounts in fiscal years 2007 and 2008 will be based on
actual, qualifying reimbursement requests submitted by school divisions.
Because
Attachments B and C show projected entitlements for each school division (based
on the departments projected March 31 ADM) in .pdf
format, they cannot be changed to test the impact of different ADM
assumptions. If you wish to see the effects
of a different ADM on funding for your school division, please use the Excel
calculation files described in the next paragraph.
In
addition to the entitlement information contained in Attachments B and C, two
downloadable Excel files have been created to assist school divisions in
calculating projected state entitlements and required local matches in fiscal
years 2007 and 2008 for most Direct Aid programs based on the budgets proposed
by the House of Delegates and by the Senate.
These two Excel files give divisions the opportunity to change March 31
ADM to test the effect on projected state funding and local match requirements
using the departments projected ADM or a local projection of ADM. Although we have confidence in the accuracy
of our March 31 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 files.
Please
note that changing the March 31 ADM values in the Excel files only changes the
estimated funding for accounts that are funded on the basis of ADM, excluding
the school construction grants program payments that are funded based on ADM
from the prior year; the estimated funding for all other accounts is unaffected
by changing ADM in the Excel files and, therefore, remains the same.
Also
note that sales tax estimates in the Excel calculation files are revenue
projections only. Actual sales tax
payments made to school divisions in fiscal years 2007 and 2008 on a
semi-monthly basis will be based on actual sales tax receipts. Pursuant to the Appropriation Act, the Basic
Aid entitlement calculation is based on the estimated sales tax appropriation
only and is not adjusted for actual sales tax revenues received.
Attachment D to this memorandum provides detailed instructions for accessing
the Excel calculation files from the Department of Education website. The Excel files may be downloaded from the
following Web address: http://www.doe.virginia.gov/VDOE/Finance/Budget/calctools.html
Please note that the budget recommendations proposed by the House of Delegates
and by the Senate are not final. A
Conference Committee will make final recommendations after resolving the
differences between the House and Senate budget proposals. The current legislative calendar indicates
that the Conference Committees recommendations will be presented to each
chamber during the week of February 19, 2007, for consideration and final
adoption.
Final
budget action by each chamber will occur before adjournment of the 2007
Session, which is scheduled for Saturday, February 24, 2007. After the conclusion of the session, the
department will provide you and your governing body with additional information
and projected entitlements based on final General Assembly budget actions in a
regulatory superintendents memorandum.
After adjournment, the budget will be presented to Governor Kaine. The Governor will have several options that
include signing the budget with no changes; returning the budget to the General
Assembly with vetoes; returning the budget to the General Assembly with
amendments; or returning the budget to the General Assembly with some
combination of vetoes and amendments.
The General Assembly will consider any vetoes or amendments at the
reconvened veto session scheduled for April 4, 2007.
Please
note that the fiscal year 2007 entitlements are estimates only, and will not be
finalized until they are recomputed using actual March 31, 2007, ADM and other
final program participation information.
The final entitlements based on actual data will be communicated to you
by a separate superintendents memorandum later this year. Actual fiscal year 2008 entitlements will not
be finalized until after a similar process is followed next year.
Questions
regarding the House of Delegates and the Senates proposed amendments to the
2006-2008 biennial budget and the revised estimates of Direct Aid entitlements
for fiscal years 2007 and 2008 may be directed to Kent Dickey, assistant
superintendent for finance, or budget office staff at (804) 225-2025.
BKCJr/bkl
Attachments
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf039a.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf039b.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf039c.pdf
http://www.doe.virginia.gov/administrators/superintendents_memos/2007/inf039d.pdf