2009 Session

Budget Amendments - HB1600 (Member Request)

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Chief Patron: Bell
Change Composite Index Funding Formula

Item 140 #8h

Item 140 #8h

First Year - FY2009 Second Year - FY2010
Education: Elementary and Secondary
Direct Aid To Public Education FY2009 $0 FY2010 ($123,711) GF

Page 135, line 25, strike "$5,896,909,251" and insert "$5,896,785,540".
Page 142, after line 16, insert:
"11. In recognition of Albemarle County and the City of Charlottesville being in an active annexation and revenue sharing agreement that requires a revenue transfer from Albemarle to Charlottesville, with a maximum transfer amount capped at ten percent of the applicable real estate tax base year for Albemarle, Albemarle shall have an equal percentage amount excluded from the local true property value total amount used in calculating Albemarle's composite index for the 2008-2010 biennium.  For the purposes of the composite index updates for the 2008-2010 biennium, Albemarle's true property value shall be reduced by ten percent from $15,464,818,659 to $13,918,336,793."

(This amendment saves a net of $123,711 the second year from the general fund by adjusting the composite index funding formula methodology for Albemarle County. The proposed methodology change incorporates the annexation and revenue sharing agreement that currently require revenues to be transferred from Albemarle to Charlottesville. The agreement, approved by voter referendum in 1982, resulted in Albemarle transferring a calculated amount to Charlottesville each year that is based on a composite of both localities' population, tax rates, and real estate values. In exchange of the payment, the City of Charlottesville agreed not to annex any additional land from the Albemarle County. This amendment provides a state revenue increase to Albemarle equal to $2.9 million the second year from the general fund by adjusting the composite index funding formula methodology of Albemarle County. The remaining 135 school divisions collectively will have their state revenues reduced by $3.0 million the second year. During fiscal year 2008, both Albemarle and Charlottesville received $2.5 million each from "599 Funding".)