2022 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Reid
Direct Aid - SMART Scale School Construction Fund

Item 137 #19h

Item 137 #19h

First Year - FY2023 Second Year - FY2024
Direct Aid to Public Education FY2023 $1,400,000,000 FY2024 $1,964,000,000 GF
FY2023 $1,100,000,000 FY2024 $1,036,000,000 NGF

Page 140, line 5, strike "$9,353,567,746" and insert "$11,853,567,746".
Page 140, line 5, strike "$9,071,830,605" and insert "$12,071,830,605".

Page 141, strike line 29, and insert:

"Transfer to SMART Scale for School Construction Fund $3,000,000,000 $3,000,000,000".

Page 178, line 12, after "43.", strike the remainder of line.

Page 178, strike lines 13 through 26, and insert:

"44. SMART Scale for School Construction.

a. There is hereby created in the state treasury a special nonreverting fund to be known as the SMART Scale for School Construction Fund, referred to in this paragraph as "the Fund." The Fund shall be established on the books of the Comptroller. All funds appropriated to the Fund and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund.  Moneys in the Fund shall be used for the sole purpose of funding SMART Scale School construction projects; however no disbursements from the fund shall occur until after the next regular General Assembly session following the submission of report and legislative recommendations in paragraph b.3.

b.  1. The Superintendent of Public Instruction shall convene a workgroup to (i) evaluate and analyze the success of the SMART Scale for Transportation as a method to objectively allocate finite local and fiscal state resources as a model to address school construction and renovation, (ii) build upon the findings of the Commission on School Construction and Modernization; (iii) develop an unbiased, fair, and transparent process for the submission, evaluation, and funding of school construction and renovation; and (iv) establish a funding process that ensures there is an equal amount of local and state commitment, that state funds are only used for school construction and renovation, and that local funds, targeted for school construction and renovation are not diverted to another local project.

2. Such workgroup shall be comprised of two representatives from each of the following legislative committees, House Appropriations, House Education, Senate Finance and Appropriations, and Senate Education and Health, with one representative from each political party, selected by the Speaker and Minority Leader; a representative from the Secretary of Finance, the Secretary of Education, the Virginia Association of Counties (VaCo), the Virginia Municipal League (VML), the Virginia Association of School Boards (VASB), and three citizen representatives selected by the Superintendent of Public Instruction who are familiar with school construction or public financing.

3. The workgroup shall meet semi-monthly beginning August 1, 2022 through November 1, 2023, and shall provide a report and legislative recommendations to the Governor and the chairs of the aforementioned House and Senate committees no later than November 1, 2023.

c. Out of this appropriation, $1,900,000,000 the first year and $1,964,000,000 the second year from the general fund and $1,100,000,000 the first year and $1,036,000 the second year in nongeneral funds shall be transferred to the SMART Scale for School Construction Fund.  Such nongeneral funds shall consist of proceeds of bonds issued by the appropriate authority."


(This amendment establishes the SMART Scale for School Construction Fund and transfers $3.0 billion each year into the Fund. In the first year, $500 million in general funds proposed for school construction grants in the introduced budget are redirected to the fund, in addition to $1.4 billion in general funds. In the second year, $564 million currently proposed for capital projects in the introduced budget are redirected to the fund, in addition to $1.4 billion in general funds. This amendment also proposes $1.9 million the first year and $1.0 billion the second year from bond proceeds to be deposited to the fund. The amendment also establishes a workgroup to study implementation of a SMART Scale for school construction funding, similar to the SMART Scale currently used for highway funding in Virginia.)