Authority: Discretionary Inclusion.

A. Out of the amounts for Governor's School Payments, the Board of Education shall provide assistance for the state share of the incremental cost of regular school year Governor's Schools, summer residential Governor's Schools, and Foreign Language Academies to be based on the greater of the composite index or fifty percent. Participating school divisions must certify that no tuition is assessed students for participation in this program.

B. It shall be the policy of the Commonwealth that state general fund appropriations not be used for capital outlay, structural improvements, renovations, or fixed equipment costs associated with initiation of existing or proposed magnet schools. State general fund appropriations may be used for the purchase of instructional equipment for such schools, subject to certification by the Superintendent of Public Instruction that at least an equal amount of funds has been committed by participating school divisions to such purchases.

C. The Board of Education shall not take any action that would increase the state's share of costs associated with the Governor's Schools. This provision shall not prohibit the Board of Education from submitting requests for the increased costs of existing programs. This provision shall not apply to the established planning and approval process by the Board for an academic Governor's School in the Shenandoah Valley for a summer regional Governor's School for Student Leadership and for an academic Governor's School serving the school divisions of Fluvanna, Albemarle, Louisa, Greene, Charlottesville, and Nelson.

D.1. Out of the amounts for Governor's School Payments, $150,000 the first year from the general fund is provided for the Appomattox Governor's School as a planning grant. School divisions receiving planning grants in the first year for the purpose of planning a Governor's School may carry forward any unencumbered balance to the second year for the same purpose.

2. Out of the amounts for Governor's School Payments, $50,000 the second year from the general fund is provided for the Board of Education to conduct a study of the feasibility and appropriateness of establishing a Governor's School for Student Leadership, such as that offered at the Jepson School of Leadership Studies at the University of Richmond.

E. Regular school year Governor's Schools are funded through this Item based on the state's share of the incremental per pupil cost for providing such programs for each student attending a Governor's School, up to a cap of 800 students per Governor's School. This incremental per pupil payment shall be adjusted for the composite index of the school division that counts such students attending an academic year Governor's School in their Average Daily Membership. It is the intent of the General Assembly that this incremental per pupil amount be in addition to the basic aid per pupil funding provided to the affected school division for such students. Therefore, local school divisions are encouraged to provide the appropriate portion of the basic aid per pupil funding to the Governor's Schools for students attending these programs, adjusted for costs incurred by the school division for transportation, administration, and any portion of the day that the student does not attend a Governor's School. Each Governor's School shall report to the Department of Education the amount of state funding it received from the incremental and basic aid per pupil amounts, by school division, for the 1998-99 school year. This information shall be reported by the Department of Education to the Chairmen of the House Appropriations and Senate Finance Committees as soon as it is available.

F. Out of the appropriation for Charter Schools, $2,500,000 the first year and $2,500,000 the second year is provided from federal funds contingent upon passage of charter school legislation in the 1998 Session of the General Assembly.