2010 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Bell, Robert
Change Composite Index Funding Formula (language only)

Item 132 #4h

Item 132 #4h

Education: Elementary and Secondary
Direct Aid To Public Education

Page 79, after line 24, 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 2010-2012 biennium.  For the purposes of the composite index updates for the 2010-2012 biennium, Albemarle's true property value shall be reduced by ten percent from $19,007,534,323 to $17,106,780,891.  The City of Charlottesville shall have it's Standards of Quality Basic Aid payment reduced by an amount equal to the increase provided to Albemarle pursuant to the local composite index adjustment."

(This amendment provides $2.6 million 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 $2.6 million the second year from the general fund and reduces the Standards of Quality payment to Charlottesville by an equivalent amount, to reflect the impact of the revenue sharing agreement on the local ability to pay for each locality. All other localities will be held harmless.)