2008 Session

Budget Amendments - HB30 (Conference Report)

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Inflation Cap

Item 140 #23c

Item 140 #23c

First Year - FY2009 Second Year - FY2010
Education: Elementary and Secondary
Direct Aid To Public Education FY2009 ($10,420,961) FY2010 ($10,428,249) GF

Page 115, line 57, strike "$6,399,847,793" and insert "$6,389,426,832".
Page 115, line 57, strike "$6,599,719,818" and insert "$6,589,291,569".
Page 121, after line 34 insert:
"10. The Department of  Education is directed to apply a cap on inflation rates in the same manner prescribed in § 51.1-166.B, Code of Virginia, when updating funding to school divisions during the biennial rebenchmarking process."

(This amendment reflects the savings from applying a "hard cap" to the inflation adjustment from the "base year" up to the biennium for non-personal and health insurance costs for the Standards of Quality. The current policy reflects a "soft cap" with full credit for the first five percent of inflation, and 35 percent of any inflation increase above 5 percent. Under this amendment, full credit is given for the first three percent and 50 percent of inflation increases between three and seven percent. This is consistent with the adjustment of Virginia Retirement System post-retirement supplements, as set out in § 51.1-166 B, Code of Virginia.)