Chief Patron: Jackson
Co-Patron(s): Abbitt, Armstrong, Barlow, Baskerville, Behm, Bennett, Clement, Cranwell, Day, Deeds, Johnson, Jones, D.C., Phillips, Shuler, Spruill, Tate, Thomas, Williams, Woodrum
All Lottery Profits to Localities(1 yr.)

Item 139 #3h

Language
Page 135, line 46, strike "$978,300,000" and insert "$663,900,000".
Page 135, line 46, strike "$978,300,000" and insert "$663,900,000".
Page 135, line 51, strike "$314,400,000" and insert "$0".
Page 135, line 53, strike "$978,300,000" and insert "$663,900,000".
Page 136, strike lines 12 through 23.
Page 136, after line 23, insert:
"B.1.  This appropriation includes $310,300,000 the second year from the general fund as the total amount of the lottery profits, to be deposited in to the general fund pursuant to §3-1.01 G. of this act.
2.  Of the lottery profits included in this Item, $110,000,000 shall be distributed to local school divisions for use in school construction, including rennovations and $200,300,000 shall be distributed to school divisions for use in their operating budgets.  The $110,000,000 shall be used for the purposes specified in §22.1-175.1, Code of Virginia, with the funds dispersed as follows:  (1) 50 percent to be apportioned equally among local public school divisions, and (2) 50 percent to be apportioned and distributed on a pro rata basis according to the school division's average daily membership adjusted by the locality's composite index of ability to pay.  The remaining $200,300,000 shall be used for any need identified by the local school board, with the funds dispersed as follows:  (1) 80 percent to be apportioned and distributed on a pro rata basis according to the school division's average daily membership adjusted by the locality's composite index of ability to pay, and (2) 20 percent based allocated and distributed to those school divisions with an increase in adjusted daily average membership from fiscal year 1992 to fiscal year 1997, based on each school division's percentage of such growth of the state total.
3.  As a condition of receiving these funds, a local governing body shall appropriate sufficient funds to their school division in order to maintain the same local effort on a per-pupil basis for operating programs as was provided in the previous fiscal year.  Each school division shall report to the Superintendent of Public Instruction, by May 1 the first year and by September 30 of each year thereafter, the amounts appropriated by their local governing board, on a form prescribed by the Superintendent of Public Instruction."

Explanation
(This amendment would distribute the total lottery proceeds of $310.3 million to local school divisions in the second year. A portion of the funding, $110.0 million is to be used for school construction and is distributed one-half flat grant and one-half weighted average daily membership. The remaining funding, $200.3 million is to be used for any need identified by local school boards, of which 80 percent is distributed based on weighted ADM and the other 20 percent distributed on a growth factor. A companion amendment in Item 138 moves the lottery proceeds in the first year back to fund the state share of basic aid to public education and another amendment in Item 554 removes the second year school construction grants of $55.0 million. The net increase to the general fund of these amendment is $9.5 million in the second year.)