069880712
SENATE BILL NO. 5020
Offered August 28, 2006
A BILL to amend Chapter 3 of the 2006 Acts of Assembly,
Special Session 1, relating to the appropriation of funds for the two years
ending respectively on the thirtieth day of June 2007 and the thirtieth day of
June 2008.
----------
Patron-- Chichester
----------
Referred to Committee on Finance
----------
Be it enacted by the General Assembly of Virginia:
1. §1. That Item 135 and §
4-13.00 of Chapter 3 of the 2006 Acts of Assembly, Special Session I, be hereby
amended and reenacted.
A. The balances of appropriations made by previous acts of the
General Assembly which are recorded as unexpended, as of the close of business
on the last day of the previous biennium, on the final records of the State
Comptroller; and
B. The public taxes and arrears of taxes, as well as moneys
derived from all other sources, which shall come into the state treasury prior
to the close of business on the last day of the current biennium. The term
"moneys" means nontax revenues of all kinds, including but not
limited to fees, licenses, services and contract charges, gifts, grants, and
donations, and projected revenues derived from proposed legislation contingent
upon General Assembly passage.
§ 2. Such balances, public taxes, arrears of taxes, and monies
derived from all other sources as are not segregated by law to other funds,
which funds are defined by the State Comptroller, pursuant to § 2.2-803, Code
of Virginia, shall establish and constitute the general fund of the state
treasury.
§ 3. The appropriations made in this act from the general fund
are based upon the following:
First Year Second Year Total
Unreserved Balance,
June 30, 2006 $1,406,018,468 $0 $1,406,018,468
Additions to Balance $134,002,852 $47,000 $134,049,852
Official Revenue Estimates $15,453,255,934 $16,234,694,890 $31,687,950,824
Lottery Proceeds Fund $426,100,000 $426,100,000 $852,200,000
Transfers $372,445,281 $360,111,243 $732,556,524
Total General Fund Resources
Available for Appropriation $17,791,822,535 $17,020,953,133 $34,812,775,668
The appropriations made in this act from nongeneral fund
revenues are based upon the following:
First Year Second Year Total
Balance, June 30, 2006 $2,538,258,284 $0 $2,538,258,284
Official Revenue Estimates $18,153,574,015 $18,594,216,663 $36,747,790,678
Bond Proceeds $809,454,000 $0 $809,454,000
Total Nongeneral Fund Revenues
Available for Appropriation $21,501,286,299 $18,594,216,663 $40,095,502,962
TOTAL PROJECTED REVENUES $39,293,108,834 $35,615,169,796 $74,908,278,630
§ 4. Nongeneral fund revenues which are not otherwise
segregated pursuant to this act shall be segregated in accordance with the acts
respectively establishing them.
§ 5. The sums herein appropriated are appropriated from the
fund sources designated in the respective items of this act.
§ 6. When used in this act the term:
A. "Current biennium" means the period from the first
day of July two thousand six, through the thirtieth day of June two thousand
eight, inclusive.
B. "Previous biennium" means the period from the
first day of July two thousand four, through the thirtieth day of June two
thousand six, inclusive.
C. "Next biennium" means the period from the first
day of July two thousand eight, through the thirtieth day of June two thousand
ten, inclusive.
D. "State agency" means a court, department,
institution, office, board, council or other unit of state government located
in the legislative, judicial, or executive departments or group of independent
agencies, or central appropriations, as shown in this act, and which is
designated in this act by title and a three-digit agency code.
E. "Nonstate agency" means an organization or entity
as defined in § 2.2-1505 C, Code of Virginia.
F. "Authority" sets forth the general enabling
statute, either state or federal, for the operation of the program for which
appropriations are shown.
G. "Discretionary" means there is no continuing
statutory authority which infers or requires state funding for programs for
which the appropriations are shown.
H. "Appropriation" shall include both the funds
authorized for expenditure and the corresponding level of full-time equivalent
employment.
I. "Sum sufficient" identifies an appropriation for
which the Governor is authorized to exceed the amount shown in the Appropriation
Act if required to carry out the purpose for which the appropriation is made.
J. "Item Details" indicates that, except as provided
in § 6 H above, the numbers shown under the columns labeled Item Details are
for information reference only.
K. Unless otherwise defined, terms used in this act dealing
with budgeting, planning and related management actions are defined in the
instructions for preparation of the Executive Budget.
§ 7. The total appropriations from all sources in this act have
been allocated as follows:
BIENNIUM 2006-08
General Fund Nongeneral Fund Total
OPERATING
EXPENSES $33,761,544,114 $36,893,215,804 $70,654,759,918
$33,695,469,760 $70,588,685,564
LEGISLATIVE
DEPARTMENT $119,250,065 $6,617,524 $125,867,589
JUDICIAL
DEPARTMENT $696,499,354 $46,852,214 $743,371,568
$743,351,568
EXECUTIVE
DEPARTMENT $32,908,466,355 $36,175,799,547 $69,084,265,902
$32,842,392,001 $69,018,191,548
INDEPENDENT
AGENCIES $613,570 $663,946,519 $664,560,089
STATE GRANTS TO
NONSTATE AGENCIES $36,714,770 $0 $36,714,770
CAPITAL OUTLAY
EXPENSES $1,020,708,398 $1,329,086,000 $2,349,794,398
TOTAL $34,782,252,512 $38,222,301,804 $73,004,554,316
$34,716,178,158 $72,938,479,962
§ 8. This chapter shall be known and may be cited as the
"2006 Appropriation Act."
PART 1: OPERATING EXPENSES
Items 1 through 133: Not Set Out
Direct Aid to Public Education (197)
134. Not Set Out
Appropriations ($)
First Year Second Year
FY2007 FY2008
135. State Education Assistance
Programs (17800).............. $5,874,587,186 $6,040,403,642
$5,974,329,288
Item Details ($)
First Year Second Year
FY2007 FY2008
Standards of Quality for
Public Education (SOQ) (17801).. $4,874,555,768 $4,988,881,662
$4,814,718,647 $4,922,538,469
Financial Incentive Programs
for Public Education (17802).... $394,871,386 $458,507,392
$454,708,507 $458,776,231
Financial Assistance for
Categorical Programs (17803).... $135,060,037 $139,414,584
Financial Assistance for
School Facilities (17804)....... $470,099,995 $453,600,004
Fund
Sources: General................ $5,692,872,032 $5,857,392,925
$5,791,318,571
Special................ $795,000 $795,000
Commonwealth
Transportation........ $2,173,000 $2,173,000
Trust and Agency....... $178,747,154 $180,042,717
Authority: Standards of Quality for Public Education (SOQ)
(17801): Article VIII, Section 2, Constitution of Virginia; Chapter 667, Acts
of Assembly, 1980; §§ 22.1-176 through 22.1-198, 22.1-199.1, 22.1-199.2,
22.1-213 through 22.1-221, 22.1-227 through 22.1-237, 22.1-253.13:1 through
22.1-253.13:8, 22.1-254.01, Code of Virginia; Title 51.1, Chapters 1, 5, 6.2,
7, and 14, Code of Virginia; P.L. 91-230, as amended; P.L. 93-380, as amended;
P.L. 94-142, as amended; P.L. 98-524, as amended, Federal Code.
Financial Incentive Programs for Public Education (17802): §§
22.1-24, 22.1-289.1 through 22.1-318, Code of Virginia; P.L. 79-396, as
amended; P.L. 89-10, as amended; P.L. 89-642, as amended; P.L. 108-265, as
amended; Title II P.L. 99-159, as amended, Federal Code.
Financial Assistance for Categorical Programs (17803):
Discretionary Inclusion; Treaty of 1677 between Virginia and the Indians; §§
22.1-3.4, 22.1-101, 22.1-108, 22.1-199 through 22.1-212.2:3, 22.1-213 through
22.1-221, 22.1-223 through 22.1-237, 22.1-254, Code of Virginia; P.L. 89-10, as
amended; P.L. 91-230, as amended; P.L. 93-380, as amended; P.L. 94-142, as
amended; P.L. 94-588; P.L. 95-561, as amended; P.L. 98-211, as amended; P.L.
98-524, as amended; P.L. 99-570; P.L. 100-297, as amended; P.L. 102-73, as
amended; P.L. 105-220, as amended, Federal Code.
Financial Assistance for School Facilities (17804): §§
58.1-638, 58.1-638.1, and 58.1-4022, Code of Virginia.
FY 2007 FY 2008
Appropriation Detail of
Education Assistance Programs
Standards of Quality
Basic Aid $2,640,297,191 $2,647,385,004
$2,717,389,649 $2,732,531,811
Sales Tax $1,266,460,000 $1,336,490,000
$1,129,300,000 $1,185,000,000
Textbooks $67,593,217 $68,134,752
Vocational Education $60,840,443 $61,254,506
Gifted Education $27,849,475 $28,076,756
Special Education $339,870,343 $342,288,447
Prevention, Intervention, and
Remediation $42,247,088 $42,269,828
VRS Retirement $201,587,759 $226,274,179
Social Security $159,166,915 $160,460,601
Group Life $9,375,082 $9,448,789
English as a Second Language $31,781,077 $38,469,856
Remedial Summer School $24,659,975 $25,496,999
Total $4,871,728,565 $4,986,049,717
$4,811,661,023 $4,919,706,524
Incentive Programs
Alternative Education $6,221,723 $6,504,714
At-Risk $63,194,052 $63,097,129
At-Risk Four Year Olds $49,576,541 $50,533,199
Compensation Supplements $74,944,039 $129,855,748
Early Reading Intervention $11,863,527 $11,965,287
Enrollment Loss $7,757,404 $7,945,316
$7,977,424 $8,202,666
Governor’s School $12,344,132 $12,639,912
ISAEP $2,247,581 $2,247,581
Mentor Teacher $1,475,000 $1,475,000
No Child Left Behind/
Education for a Lifetime $8,155,889 $7,853,362
K-3 Class Size Reduction $83,617,596 $84,407,590
Project Graduation $2,774,478 $2,774,478
School Breakfast $892,020 $892,020
SOL Algebra Readiness $8,444,986 $8,476,044
Special Education – Inservice $600,000 $600,000
Special Education –
Regional Tuition $59,989,862 $66,397,321
Special Education – Voc Ed $200,089 $200,089
Supplemental Basic Aid $530,783 $528,746
$541,184 $540,235
Supplemental Sales Tax $59,837,121 $0
Total $394,829,702 $458,393,536
$454,897,244 $458,662,375
Categorical Programs
Adult Education $1,051,800 $1,051,800
Adult Literacy $2,655,000 $2,655,000
Electronic Classroom $2,256,908 $2,256,908
Foster Care $11,109,888 $12,047,112
American Indian
Treaty Commitment $53,805 $53,805
School Lunch $5,801,932 $5,801,932
Special Education – Homebound $6,504,072 $7,171,223
Special Education – Jails $2,868,499 $2,954,553
Special Education –
State Operated Programs $29,593,951 $30,962,505
Vocational Education -
Categorical $10,400,829 $10,400,829
Debt Service on VPSA
Equipment Notes $62,763,354 $64,058,916
Total $135,060,036 $139,414,583
School Facilities
Lottery $442,600,000 $426,100,000
School Construction $27,499,995 $27,500,004
Total $470,099,995 $453,600,004
Note: The above distributions do not include projected VPSA
Technology Grants.
Payments out of the above amounts shall be subject to the
following conditions:
A. Definitions
1. "March 31 Average Daily Membership," or
"March 31 ADM" - The responsible school division’s average daily
membership for grades K-12 including (1) handicapped students ages 5-21 and (2)
students for whom English is a second language who entered school for the first
time after reaching their twelfth birthday, and who have not reached twenty-two
years of age on or before August 1 of the school year, for the first seven (7)
months (or equivalent period) of the school year through March 31 in which
state funds are distributed from this appropriation. Preschool and postgraduate
students shall not be included in March 31 ADM.
a. School divisions shall take a count of September 30 fall
membership and report this information to the Department of Education no later
than October 15 of each year.
b. Except as otherwise provided herein, by statute, or by
precedent, all appropriations to the Department of Education shall be
calculated using March 31 ADM unadjusted for half-day kindergarten programs,
estimated at 1,196,914 the first year and 1,208,149 the second year.
c. March 31 ADM adjusted for half-day kindergarten at 85
percent of March 31 ADM, is estimated at 1,196,176 the first year and
1,207,361 the second year.
d. Students who are either (i) enrolled in a nonpublic school
or (ii) receiving home instruction pursuant to § 22.1-254.1 and who are
enrolled in a public school on less than a full-time basis in any mathematics,
science, English, history, social science, vocational education, health
education or physical education, fine arts or foreign language course shall be
counted in the funded fall membership and March 31 ADM of the relevant school
division. Each course shall be counted as 0.25, up to a cap of 0.5 of a
student.
e. Students enrolled in an Individualized Student Alternative
Education Program (ISAEP) pursuant to § 22.1-254D. shall be counted in the
March 31 Average Daily Membership of the relevant school division. School
divisions shall report these students separately in their March 31 reports of
Average Daily Membership.
2. "Standards of Quality" - Operations standards for
grades kindergarten through 12 as prescribed by the Board of Education subject
to revision by the General Assembly.
3.a. "Basic Operation Cost" - The cost per pupil,
including provision for the number of instructional personnel required by the
Standards of Quality for each school division with a minimum ratio of 51 professional
personnel for each 1,000 pupils or proportionate number thereof, in March 31
ADM for the same fiscal year for which the costs are computed, and including
provision for driver, gifted, occupational-vocational, and special education,
library materials and other teaching materials, teacher sick leave, general
administration, division superintendents' salaries, free textbooks (including
those for free and reduced price lunch pupils), school nurses, operation and
maintenance of school plant, transportation of pupils, instructional
television, professional and staff improvement, remedial work, fixed charges
and other costs in programs not funded by other state and/or federal aid.
b. The amount resulting from the support cost calculation for
school nurses shall be specifically identified as such and reported to school
divisions annually. School divisions will allocate these funds for school
nurse positions or for contracted services of health professionals providing
health services.
4.a. "Composite Index of Local Ability-to-Pay" - An
index figure computed for each locality. The composite index is the sum of 2/3
of the index of wealth per pupil in unadjusted March 31 ADM reported for the
first seven (7) months of the 2003-2004 school year and 1/3 of the index of
wealth per capita (population estimates for 2003 as determined by the Center
for Public Service of the University of Virginia) multiplied by the local
nominal share of the costs of the Standards of Quality of 0.45 in each year.
The indices of wealth are determined by combining the following constituent
index elements with the indicated weighting: (1) true values of real estate and
public service corporations as reported by the State Department of Taxation for
the calendar year 2003 - 50 percent; (2) adjusted gross income for the calendar
year 2003 as reported by the State Department of Taxation - 40 percent; (3) the
sales for the calendar year 2003 which are subject to the state general sales
and use tax, as reported by the State Department of Taxation - 10 percent. Each
constituent index element for a locality is its sum per March 31 ADM, or per
capita, expressed as a percentage of the state average per March 31 ADM, or per
capita, for the same element. A locality whose composite index exceeds 0.8000
shall be considered as having an index of 0.8000 for purposes of distributing
all payments based on the composite index of local ability-to-pay. Each
constituent index element for a locality used to determine the composite index
of local ability-to-pay for the current biennium shall be the latest available
data for the specified official base year provided to the Department of
Education by the responsible source agencies no later than November 15, 2005.
b. Each locality whose total Virginia Adjusted Gross Income is
comprised of at least 3 percent or more which is accounted for by nonresidents
of Virginia may elect at its option to exclude such nonresident income in
computing the composite index of ability-to-pay. Each locality which elects
this option must have certified its intention to do so to the Department of
Education on or before January 1, 2006. The Department of Education shall
compute the composite index for such localities by using adjusted gross income
data which exclude nonresident income, but shall not adjust the composite index
of any other localities. The Department of Taxation shall furnish to the
Department of Education such data as are necessary to implement this provision.
c.1) Pursuant to § 15.2-1302, Code of Virginia, and in the event
that two or more school divisions become one school division, whether by
consolidation of only the school divisions or by consolidation of the local
governments, such resulting division shall be paid Standard of Quality payments
for all pupils in the combined division on the basis of a composite index
determined by the Board of Education, which shall not be less than the lowest
nor higher than the highest composite index of any of the individual school
divisions involved in such consolidation. In the event of a consolidation of
local governments, this index shall remain in effect for a period of fifteen
years, unless a lower composite index is calculated for the combined division
through the process for computing an index figure as set forth above. The
Governor shall approve the composite index determined by the Board of Education
prior to disbursement of funds under such index. The Department shall annually
report to the Chairmen of the House Appropriations and Senate Finance
Committees the composite indices approved by the Governor and the Board under
this provision.
2) In the case of the consolidation of Clifton Forge and
Alleghany County school divisions, the fifteen year period for the application
of a new composite index pursuant to paragraph b.1) above shall apply beginning
with the fiscal year that starts on July 1, 2004.
3) Pursuant to paragraph c.1) above, if the composite index of
a consolidated school division is reduced during the course of the fifteen year
period to a level that would entitle the school division to a lower interest
rate for a Literary Fund loan than it received when the loan was originally
released, the Board of Education shall reduce the interest rate of such loan
for the remainder of the period of the loan. Such reduction shall be based on
the interest rate that would apply at the time of such adjustment. This rate
shall remain in effect for the duration of the loan and shall apply only to
those years remaining to be paid.
d. When it is determined that a substantial error exists in a
constituent index element, the Department of Education will make adjustments in
funding for the current school year only in the division where the error
occurred. The composite index of any other locality shall not be changed as a
result of the adjustment. No adjustment during the biennium will be made as a
result of updating of data used in a constituent index element.
e. In the event that any school division consolidates two or
more small schools, the division shall continue to receive Standards of Quality
funding and provide for the required local expenditure for a period of five
years as if the schools had not been consolidated. Small schools are defined as
any elementary, middle, or high school with enrollment below 200, 300 and 400 students,
respectively.
5. "Required Local Expenditure for the Standards of
Quality" - The locality's share based on the composite index of local
ability-to-pay of the cost required by all the Standards of Quality minus its
estimated revenues from the state sales and use tax dedicated to public
education and those sales tax revenues transferred to the general fund from the
Public Education Standards of Quality/Local Real Estate Property Tax Relief
Fund and appropriated in this Item, both of which are returned on the basis of
the triennial census of school age population, as specified in this item,
collected by the Department of Education and distributed to school divisions in
the fiscal year in which the school year begins.
6. "Required Local Match" - The locality's required
share of program cost based on the composite index of local ability-to-pay for
all School Facilities and Incentive programs, where required, in which the
school division has elected to participate in a fiscal year.
7. "Planning District Eight"--The nine localities
which comprise Planning District Eight are Arlington County, Fairfax County,
Loudoun County, Prince William County, Alexandria City, Fairfax City, Falls
Church City, Manassas City, and Manassas Park City.
8. "State Share for the Standards of Quality" - The
state share for a locality shall be equal to the cost for that locality less
the locality's estimated revenues from the state sales and use tax dedicated to
public education and those sales tax revenues transferred to the general fund
from the Public Education Standards of Quality/Local Real Estate Property Tax
Relief Fund and appropriated in this Item, both of which are returned on the
basis of the triennial census of school age population, as specified in this
item, collected by the Department of Education and distributed to school
divisions in the fiscal year in which the school year begins and less the
required local expenditure.
9. In the event that the appropriations in Item 134 and Item
135 are not sufficient to meet the entitlements payable to school divisions
pursuant to the provisions of each item, the Department of Education is
authorized to transfer any available funds between these items to address such
insufficiencies. If the total appropriations after such transfers remain
insufficient to meet the entitlements of any program, the Department of
Education is authorized to prorate such shortfall proportionately across all of
the school divisions participating in the program where such shortfall
occurred.
B. General Conditions
1. The Standards of Quality cost in this Item related to fringe
benefits shall be limited for instructional staff members to the employer's
cost for a number not exceeding the number of instructional positions required
by the Standards of Quality for each school division and for their salaries at
the statewide prevailing salary levels as printed below.
Instructional Position First Year Salary Second Year Salary
Elementary Teachers $39,681 $39,681
Elementary Assistant Principals $55,827 $55,827
Elementary Principals $68,822 $68,822
Secondary Teachers $41,615 $41,615
Secondary Assistant Principals $59,784 $59,784
Secondary Principals $75,268 $75,268
Aides $13,828 $13,828
a.1) Payment by the state to a local school division shall be
based on the state share of fringe benefit costs of 55 percent of the
employer's cost distributed on the basis of the composite index.
2) A locality whose composite index exceeds 0.8000 shall be
considered as having an index of 0.8000 for purposes of distributing fringe
benefit funds under this provision.
3) The state payment to each school division for retirement,
social security, and group life insurance costs for noninstructional personnel
is included in and distributed through Basic Aid.
b. Payments to school divisions from this item shall be
calculated using March 31 Average Daily Membership adjusted for half-day
kindergarten programs.
c. Payments for health insurance fringe benefits are included
in and distributed through Basic Aid.
2. Each locality shall offer a school program for all its
eligible pupils which is acceptable to the Department of Education as
conforming to the Standards of Quality program requirements.
3. In the event the statewide number of pupils in March 31 ADM
exceeds the number estimated as the basis for this appropriation, the
locality's state share of the Basic Operation Cost and the required local share
shall be reduced proportionately so that this appropriation will not be
exceeded.
4. The Department of Education shall make equitable adjustments
in the computation of indices of wealth and in other state-funded accounts for
localities affected by annexation, unless a court of competent jurisdiction
makes such adjustments. However, only the indices of wealth and other
state-funded accounts of localities party to the annexation will be adjusted.
5. In the event that the actual revenues from the state sales
and use tax dedicated to public education and those sales tax revenues
transferred to the general fund from the Public Education Standards of
Quality/Local Real Estate Property Tax Relief Fund and appropriated in this
Item (both of which are returned on the basis of the 2005 triennial census of
school age population) for sales in the fiscal year in which the school year
begins are different from the number estimated as the basis for this
appropriation, the estimated revenues shall not be adjusted.
6. This appropriation shall be apportioned to the public
schools with guidelines established by the Department of Education consistent
with legislative intent as expressed in this act.
7.a. Appropriations of state funds in this Item include the
number of positions required by the Standards of Quality. This Item includes a
minimum of 51 professional instructional positions and aide positions (C 2);
Education of the Gifted, 1.0 professional instructional position (C 3);
Occupational-Vocational Education Payments and Special Education Payments; a
minimum of 6.0 professional instructional positions and aide positions (C 4 and
C 5) for each 1,000 pupils in March 31 ADM each year in support of the current
Standards of Quality. Funding in support of one hour of additional instruction
per day based on the percent of students eligible for the federal free lunch
program with a pupil-teacher ratio range of 18:1 to 10:1, depending upon a
school division's combined failure rate on the English and Math Standards of
Learning, is included in Remedial Education Payments (C8).
b. No actions provided in this section signify any intent of
the General Assembly to mandate an increase in the number of instructional
personnel per 1,000 students above the numbers explicitly stated in the
preceding paragraph.
c. Appropriations in this item include programs supported in
part by transfers to the general fund from the Public Education Standards of
Quality/Local Real Estate Property Tax Relief Fund pursuant to Part 3 of this
Act. These transfers combined together with other appropriations from the
general fund in this item funds the state's share of the following revisions to
the Standards of Quality pursuant to Chapters 939 & 955 of the Acts of
Assembly of 2004: five elementary resource teachers per 1,000 students; one
support technology position per 1,000 students; one instructional technology
position per 1,000 students; and a full daily planning period for teachers at
the middle and high school levels in order to relieve the financial pressure
these education programs place on local real estate taxes.
8.a. The Department of Education shall make calculations at the
start of the school year to ensure that school divisions have appropriated
adequate funds to support their estimated required local expenditure. The
Department of Education shall also make calculations after the close of the
school year to verify that the required local effort level, based on actual
March 31 Average Daily Membership, was met. The Department of Education shall
specify the calculations to determine if a school division has appropriated and
expended its required local expenditure for the Standards of Quality. This calculation
may include but is not limited to the following calculations:
b. The total expenditures for operation, defined as total
expenditures less all capital outlays, expenditures for debt service,
facilities, non-regular day school programs (such as adult education,
preschool, and non-local education programs), and any transfers to regional
programs or escrow accounts will be calculated.
c. The following state funds will be deducted from the amount
calculated in paragraph a. above: revenues from the state sales and use tax
(returned on the basis of the 2005 triennial census of school age population as
specified in this item) for sales in the fiscal year in which the school year
begins; total receipts from state funds (except state funds for non-regular day
school programs and state funds used for capital or debt service purposes); and
the state share of any balances carried forward from the previous fiscal year.
Any qualifying state funds that remain unspent at the end of the fiscal year
will be added to the amount calculated in paragraph a. above.
d. The following federal funds will also be deducted from the
amount calculated in paragraph a. above: total receipts from federal funds
(except federal funds for non-regular school programs, Impact Aid funds CFDA
84.040 and 84.041 and Forest Reserve,) and any federal funds carried forward
from the previous fiscal year. Any federal funds that remain unspent at the end
of the fiscal year and any capital expenditures paid from federal funds will be
added to the amount calculated in paragraph a. above.
e. Tuition receipts and receipts from payments from other
cities or counties will also be deducted from the amount calculated in
paragraph a., then
f. The final amount calculated as described above must be equal
to or greater than the required local expenditure defined in paragraph A. 5.
g. The Department of Education shall collect the data necessary
to perform the calculations of required local expenditure as required by this
section.
h. A locality whose expenditure in fact exceeds the required
amount from local funds may not reduce its expenditures unless it first
complies with all of the Standards of Quality.
9.a. Any sum which a locality, as of the end of a school year,
has not expended, pursuant to this Item, for the Standards of Quality shall be
paid by the locality into the general fund of the state treasury. Such payments
shall be made not later than the end of the school year following that in which
the under expenditure occurs.
b. Whenever the Department of Education has recovered funds as
defined in the preceding paragraph a, the Secretary of Education is authorized
to repay to the locality affected by that action, seventy-five percent (75%) of
those funds upon his determination that:
1) The local school board agrees to include the funds in its
June 30 ending balance for the year following that in which the under
expenditure occurs;
2) The local governing body agrees to reappropriate the funds
as a supplemental appropriation to the approved budget for the second year
following that in which the under expenditure occurs, in an appropriate
category as requested by the local school board, for the direct benefit of the
students;
3) The local school board agrees to expend these funds, over
and above the funds required to meet the required local expenditure for the
second year following that in which the under expenditure occurs, for a special
project, the details of which must be furnished to the Department of Education
for review and approval;
4) The local school board agrees to submit periodic reports to
the Department of Education on the use of funds provided through this project
award; and
5) The local governing body and the local school board agree
that the project award will be cancelled and the funds withdrawn if the above
conditions have not been met as of June 30 of the second year following that in
which the under expenditure occurs.
c. There is hereby appropriated, for the purposes of the
foregoing repayment, a sum sufficient, not to exceed 75 percent of the funds
deposited in the general fund pursuant to the preceding paragraph a.
10. The Department of Education shall specify the manner for
collecting the required information and the method for determining if a school
division has appropriated and expended the local funds required to support the
actual local match based on all School Facilities and Incentive programs in
which the school division has elected to participate. Unless specifically
stated otherwise in this Item, school divisions electing to participate in any
School Facilities or Incentive program that requires a local funding match in
order to receive state funding, shall certify to the Department of Education
its intent to participate in each program by September October
1 of each fiscal year in a manner prescribed by the Department of Education.
Upon receipt of the certifications, the Department of Education shall make
calculations to ensure that school divisions have appropriated adequate local
funds, above the required local effort for the Standards of Quality, to support
the projected required local match based on the School Facilities and Incentive
programs in which the school division has elected to participate. If the
Department of Education’s calculations indicate that insufficient local funds
are appropriated to meet the required local funding match for one or more
programs, state funding for such program(s) shall not be made until such time
that the school division can certify that sufficient local funding has been
appropriated to meet required local match. The Department of Education shall
also make calculations after the close of the fiscal year to verify that the
required local match was met based on the state funds that were received.
11. Beginning in fiscal year 2008, any sum which a locality has
not expended as of the end of a fiscal year in support of the required local
match pursuant to this Item shall be paid by the locality into the general fund
of the state treasury unless the carryover of those unspent funds is
specifically permitted by other provisions of this act. Such payments shall be
made no later than the end of the school year following that in which the under
expenditure occurred.
12. The Superintendent of Public Instruction shall provide a
report on the status of teacher salaries, by local school division, to the
Governor and the Chairmen of the Senate Finance and House Appropriations
Committees by December 1 of each year of the biennium.
13. All local matching funds required by the programs in this
Item shall be appropriated to the budget of the local school board.
14. By November 15 of each year, the Department of Planning and
Budget, in cooperation with the Department of Education, shall prepare and
submit a preliminary forecast of Standards of Quality expenditures, based upon
the most current data available, to the Chairmen of the House Appropriations
and Senate Finance Committees. In odd-numbered years, the forecast for the
current and subsequent two fiscal years shall be provided. In even-numbered
years, the forecast for the current and subsequent fiscal year shall be
provided. The forecast shall detail the projected March 31 Average Daily
Membership and the resulting impact on the education budget.
15. School divisions may choose to use state payments provided
for Standards of Quality prevention, intervention, and remediation in both
years as a block grant for remediation purposes, without restrictions or
reporting requirements, other than reporting necessary as a basis for determining
funding for the program.
16. Except as otherwise provided in this act, the
Superintendent of Public Instruction shall provide guidelines for the
distribution and expenditure of general fund appropriations and such additional
federal, private and other funds as may be made available to aid in the
establishment and maintenance of the public schools.
17. At the Department of Education's option, fees for
audio-visual services may be deducted from state aid payments for individual
local school divisions.
18. For distributions not otherwise specified, the Department
of Education, at its option, may use prior year data to calculate actual
disbursements to individual localities.
19. Payments for accounts related to the Standards of Quality
made to localities for public education from the general fund, as provided
herein, shall be payable in twenty-four approximately equal bimonthly
installments at the middle and end of each month.
20. The Department of Education shall, for purposes of
calculating the state and local shares of the Standards of Quality, apportion
state sales and use tax dedicated to public education and those sales tax
revenues transferred to the general fund from the Public Education Standards of
Quality/Local Real Estate Property Tax Relief Fund based on the 2005 triennial
census of school age population in each year of the biennium.
The State Comptroller shall distribute the state sales and use
tax revenues dedicated to public education and those sales tax revenues
transferred to the general fund from the Public Education Standards of
Quality/Local Real Estate Property Tax Relief Fund based on the 2005 triennial
census of school age population in each year of the biennium.
21. The Department of Education shall convene a technical work
group to include appropriate staff of the Department of Planning and Budget,
the Senate Finance and House Appropriations Committees, and the Joint
Legislative and Audit Review Commission. The group shall: 1) study
re-benchmarking cost trends and drivers; 2) review existing Standards of
Quality (SOQ), incentive, categorical, and school facilities funding streams
within Direct Aid to Public Education, as well as the Literary Fund, and
identify options for efficiencies and cost savings and for greater funding
flexibility, especially to better prepare the state and localities for future
economic downturns; 3) consider alternatives to across-the-board compensation
supplements to better target state funds; 4) review funding streams for
programs for students at-risk of academic failure, and assess whether such
programs should be incorporated into the SOQ; and 5) examine special education
funding issues.
The technical work group shall provide to the Governor and the
Chairmen of the House Appropriations and Senate Finance Committees: a) a
detailed project workplan no later than August 1, 2006, and b) a summary of
their work by September 15, 2007.
C. Apportionment
1. Subject to the conditions stated in this paragraph and in
paragraph B of this Item, each locality shall receive sums as listed above
within this program for the basic operation cost and payments in addition to
that cost. The apportionment herein directed shall be inclusive of, and without
further payment by reason of, state funds for library and other teaching
materials.
2. School Employee Retirement Contributions
a. This Item provides funds to each local school board for the
state share of the employer's retirement cost incurred by it, on behalf of
instructional personnel, for subsequent transfer to the retirement allowance
account as provided by Title 51.1, Chapter 1, Code of Virginia.
b. Notwithstanding § 51.1-1401 of the Code of Virginia, the
Commonwealth shall provide payments for only the state share of the Standards
of Quality fringe benefit cost of the retiree health care credit. This item
includes payments in both years based on the state share of fringe benefit
costs of 55 percent of the employer’s cost on funded Standards of Quality
instructional positions, distributed based on the composite index of the local
ability-to-pay.
c. As a part of the review of the Virginia Retirement System
pursuant to House Joint Resolution No. 34 the joint subcommittee shall review:
1) the Commonwealth's responsibilities for funding the teacher retirement
system beyond the actuarial normal rate and 2) the Commonwealth's appropriate
share for retirement payments by school divisions. In making this review, the
joint subcommittee shall review the impact of the blended retirement rates on
the retirement system, school divisions, and the Commonwealth.
d. Appropriations for contributions in Paragraphs 2 and 3
include payments from funds derived from the principal of the Literary Fund in
accordance with Article VIII, Section 8, of the Constitution of Virginia. The
amounts set aside from the Literary Fund for these purposes are approximately
$115,854,700 the first year and $115,854,700 the second year.
3. School Employee Social Security Contributions
This Item provides funds to each local school board for the
state share of the employer's Social Security cost incurred by it, on behalf of
the instructional personnel for subsequent transfer to the Contribution Fund
pursuant to Title 51.1, Chapter 7, Code of Virginia.
4. School Employee Insurance Contributions
This Item provides funds to each local school board for the
state share of the employer's Group Life Insurance cost incurred by it on
behalf of instructional personnel who participate in group insurance under the
provisions of Title 51.1, Chapter 5, Code of Virginia.
5. Basic Aid Payments
a.1) A state share of the Basic Operation Cost, which cost per
pupil in March 31 ADM is established individually for each local school
division based on the number of instructional personnel required by the
Standards of Quality and the statewide prevailing salary levels (adjusted in
Planning District Eight for the cost of competing) as well as recognized
support costs calculated on a prevailing basis for an estimated March 31 ADM
(adjusted for half-day kindergarten programs).
2) This appropriation includes funding to recognize the common
labor market in the Washington DC Metropolitan Statistical Area. Standards of
Quality salary payments for instructional and support positions in school
divisions of the localities set out below have been adjusted for the equivalent
portion of the Cost of Competing Adjustment (COCA) rates that are paid to local
school divisions in Planning District 8. For the counties of Stafford,
Fauquier, Spotsylvania, Clarke, and Warren and the City of Fredericksburg the
SOQ payments have been increased by 10 percent the first year and 25 percent
the second year of the COCA rates paid to school divisions in Planning District
8.
b.1) The state share for a locality shall be equal to the Basic
Operation Cost for that locality less the locality's estimated revenues from
the state sales and use tax (returned on the basis of the 2005 triennial census
of school age population as specified in this item), in the fiscal year in
which the school year begins and less the required local expenditure.
2) In addition to this appropriation, $249,641,656 the first
year and $249,641,656 the second year are transferred from Lottery Funds
appropriated in this Item pursuant to paragraph 28.b.1) to Basic Aid Payments to
provide for the state share of the Basic Operations Cost as defined in
paragraphs a. and b.1) above.
3) In addition, $10,131,000 the first year is transferred from
Lottery Funds to Basic Aid Payments from the fiscal year 2006 Lottery profits
that are appropriated in this Item pursuant to paragraph 28.b.2).
c. For the purpose of this paragraph, the Department of
Taxation's fiscal year sales and use tax estimates are as cited in this Item.
d.1) In accordance with the provisions of §§ 22.1-281 and
37.1-96, Code of Virginia, the Department of Education shall deduct the
locality's share for the education of handicapped pupils residing in
institutions within the Department of Mental Health, Mental Retardation and
Substance Abuse Services from the locality's Basic Aid appropriation.
2) The amounts deducted from Basic Aid for the education of
mentally retarded persons shall be transferred to the Department of Mental
Health, Mental Retardation and Substance Abuse Services in support of the cost
of educating such persons; the amount deducted from Basic Aid for the education
of emotionally disturbed persons shall be used to cover extraordinary expenses
incurred in the education of such persons. The Department of Education shall
establish guidelines to implement these provisions and shall provide for the
periodic transfer of sums due from each local school division to the Department
of Mental Health, Mental Retardation and Substance Abuse Services and for
Special Education categorical payments. The amount of the actual transfers
will be based on data accumulated during the prior school year.
e.1) The apportionment to localities of all driver education
revenues received during the school year shall be made as an undesignated
component of the state share of the basic operation cost in accordance with the
provisions of this Item. Only school divisions complying with the standardized
program established by the Board of Education shall be entitled to participate
in the distribution of state funds appropriated for driver education. The
Department of Education will deduct a designated amount per pupil from a school
division's Basic Aid payment when the school division is not in compliance with
§ 22.1-205 C, Code of Virginia. Such amount will be computed by dividing the current
appropriation for the Driver Education Fund by actual March 31 ADM.
2) Local school boards may charge a per pupil fee for
behind-the-wheel driver education provided, however, that the fee charged plus
the per pupil basic aid reimbursement for driver education shall not exceed the
actual average per pupil cost. Such fees shall not be cause for a pro rata
reduction in Basic Aid payments to school divisions.
f. Textbooks
1) The appropriations for basic aid include $ 67,593,217 the
first year and $ 68,134,752 the second year from the general fund as the
state's share of the cost of textbooks based on a per pupil amount of $100.28
the first year and $100.28 the second year. The state's distributions for
textbooks shall be based on adjusted March 31 ADM.
2) School divisions shall provide free textbooks to all
students.
3) School divisions may use a portion of this funding to
purchase Standards of Learning instructional materials.
4) Any funds provided to school divisions for textbook costs
that are unexpended as of June 30, 2007, or June 30, 2008, shall be carried on
the books of the locality to be appropriated to the school division the
following year to be used for same purpose.
g. The one-cent state sales and use tax earmarked for education
and the sales tax revenues transferred to the general fund from the Public
Education Standards of Quality/Local Real Estate Property Tax Relief Fund and
appropriated in this item which are distributed to localities on the basis of
the 2005 triennial census of school age population as specified in this item
shall be reflected in each locality's annual budget for educational purposes as
a separate revenue source for the then current fiscal year.
h. The appropriation for the Standards of Quality for Public
Education (SOQ) includes amounts estimated at $254,800,000 $226,500,000
the first year and $269,100,000 $237,650,000 the second year from
the amounts transferred to the general fund from the Public Education Standards
of Quality/Local Real Estate Property Tax Relief Fund pursuant to Part 3 of
this Act which are derived from the 1/4 cent increase in the state sales and
use tax levied pursuant to Chapter 3, 2004 Special Session I. These additional
funds are provided to local school divisions and local governments in order to
relieve the financial pressure education programs place on local real estate
taxes.
i. From the total amounts in paragraph h. above, an amount
estimated at $127,400,000 $114,300,000 the first year and $134,500,000
$119,950,000 the second year (approximately 1/8 cent of sales and use
tax) is appropriated to support a portion of the cost of the state’s share of
the following revisions to the Standards of Quality pursuant to Chapters 939
& 955 of the Acts of Assembly of 2004: five elementary resource teachers
per 1,000 students; one support and one instructional technology position per
1,000 students; a full daily planning period for teachers at the middle and
high school levels in order to relieve the pressure on local real estate taxes
and shall be taken into account by the governing body of the county, city, or
town in setting real estate tax rates.
j. From the total amounts in paragraph h. above, an amount
estimated at $127,400,000 $112,200,000 the first year and $134,500,000
$117,700,000 the second year (approximately 1/8 cent of sales and use
tax) is appropriated in this Item to distribute the remainder of the revenues
collected and deposited into the Public Education Standards of Quality/Local
Real Estate Property Tax Relief Fund on the basis of the 2005 triennial census
of school age population as specified in this item.
6. Compensation Supplements
a. The appropriation in this item includes $74,944,039 the
first year and $129,855,748 the second year from the general fund for an
equivalent payment for the following salary increase and related fringe benefit
costs for funded SOQ instructional and support positions and other funded
incentive program positions:
1) For the first year, the state share of a payment equivalent
to a 3.0 percent salary increase effective December 1, 2006, for all funded
positions.
2) For the first year, the state share of a payment equivalent
to an additional 1.0 percent salary increase effective December 1, 2006, for
funded SOQ instructional positions only. Funded SOQ instructional positions
shall include the teacher, guidance counselor, librarian, instructional aide,
principal, and assistant principal positions funded through the SOQ staffing
standards for each school division in both years of the biennium.
3) It is the intent of the General Assembly that the average
instructional position salaries be improved throughout the state by at least
4.0 percent the first year. Sufficient funds are appropriated in this act to
finance, on a statewide basis, the state share of a 3.0 percent salary increase
for all funded positions and an additional 1.0 percent for funded SOQ
instructional positions effective December 1, 2006, to school divisions which
certify to the state Department of Education, no later than March 1, 2007, that
equivalent increases have been granted in the first year.
b. These funds shall be matched by the local government, based
on the composite index of local ability-to-pay.
c. This funding is not intended as a mandate to increase
salaries.
7. Education of the Gifted Payments
a. An additional payment shall be disbursed by the Department
of Education to local school divisions to support the state share of one
full-time equivalent instructional position per 1,000 students in adjusted
March 31 ADM.
b. Local school divisions are required to spend, as part of the
required local expenditure for the Standards of Quality the established per
pupil cost for gifted education (state and local share) on approved programs
for the gifted.
8. Occupational-Vocational Education Payments
a. An additional payment shall be disbursed by the Department
of Education to the local school divisions to support the state share of the
number of Vocational Education instructors required by the Standards of
Quality. These funds shall be disbursed on the same basis as the payment is
calculated.
b. An amount estimated at $97,297,766 the first year and
$98,162,242 the second year from the general fund included in Basic Aid
Payments relates to vocational education programs in support of the Standards
of Quality.
9. Special Education Payments
a. An additional payment shall be disbursed by the Department
of Education to the local school divisions to support the state share of the
number of Special Education instructors required by the Standards of Quality.
These funds shall be disbursed on the same basis as the payment is calculated.
b. Out of the amounts for special education payments, general
fund support is provided to fund the caseload standards for speech pathologists
at 68 students for each year of the biennium.
c. In recalculating the cost of the Standards of Quality
effective with the 2006-2008 biennium, the Department of Education shall
calculate the cost of instructional positions for special education based on the
aggregate sum of students by disability category by school for the disability
categories listed in the special education caseloads adopted by the Board of
Education.
10. Enrollment Loss
An additional state payment in each year equal to the state
share per pupil of Basic Aid for each locality, for a percentage of the
enrollment loss (as determined below) in March 31 ADM from the prior year.
Composite Index Percentage
0.0000-0.1999 85%
0.2000-0.3499 70%
0.3500-0.4999 45%
0.5000 or more 30%
11. Remedial Education Payments
a. An additional payment estimated at $ 61,744,796 the first
year and $ 61,744,937 the second year from the general fund shall be disbursed
by the Department of Education to support the Board of Education’s Standards of
Quality prevention, intervention, and remediation program adopted in June 2003.
b. The payment shall be calculated based on one hour of additional
instruction per day for identified students, using the three year average
percent of students eligible for the federal Free Lunch program as a proxy for
students needing such services. Fall membership shall be multiplied by the
three year average division-level Free Lunch eligibility percentage to
determine the estimated number of students eligible for services. Pupil-teacher
ratios shall be applied to the estimated number of eligible students to
determine the number of instructional positions needed for each school
division. The pupil-teacher ratio applied for each school division shall range
from 10:1 for those divisions with the most severe combined three year average
failure rates for English and math Standards of Learning test scores to 18:1 for
those divisions with the lowest combined three year average failure rates for
English and math Standards of Learning test scores.
c. Funding shall be matched by the local government based on
the composite index of local ability-to-pay.
d. An amount estimated at $19,517,499 the first year and
$19,517,499 the second year for Lottery Proceeds Revenue Sharing appropriated
in this act shall be added to general funds appropriated in this Item, to
provide for the state share of the Standards of Quality prevention,
intervention, and remediation program.
e. An additional state payment estimated at $63,194,052 the
first year and $63,097,129 the second year from the general fund shall be
disbursed based on the estimated number of federal Free Lunch participants, in
support of programs for students who are educationally at risk. The additional
payment shall be based on the state share of:
1) A minimum two percent add-on, as a percent of the per pupil
basic aid cost, for each child who qualifies for the federal Free Lunch
Program; and
2) An addition to the add-on, based on the concentration of
children qualifying for the federal Free Lunch Program. Based on its percentage
of Free Lunch participants, each school division will receive between 2 and 12
percent in additional basic aid per Free Lunch participant. These funds shall
be matched by the local government, based on the composite index of local
ability-to-pay.
3a) Local school divisions are required to spend the
established at-risk payment (state and local share) on approved programs for
students who are educationally at risk.
b) To receive these funds, each school division shall certify
to the Department of Education that the state and local shares of the at-risk
payment will be used to support approved programs for students who are
educationally at risk. These programs may include: Dropout Prevention,
community and school-based truancy officer programs, Advancement Via Individual
Determination (AVID), Project Discovery, Reading Recovery, programs for students
who speak English as a second language, and programs related to increasing the
success of disadvantaged students in completing a high school degree and
providing opportunities to encourage further education and training.
f. Regional Alternative Education Programs
1) An additional state payment of $6,156,107 the first year and
$6,301,359 the second year from the general fund shall be disbursed for
regional alternative education programs. Such programs shall be for the purpose
of educating certain expelled students and, as appropriate, students who have
received suspensions from public schools and students returned to the community
from the Department of Juvenile Justice.
2) Each regional program shall have a small student/staff
ratio. Such staff shall include, but not be limited to education, mental
health, health, and law enforcement professionals, who will collaborate to
provide for the academic, psychological and social needs of the students. Each
program shall be designed to ensure that students make the transition back into
the "mainstream" within their local school division.
3)a) Regional alternative education programs are funded through
this Item based on the state's share of the incremental per pupil cost for
providing such programs. This incremental per pupil payment shall be adjusted
for the composite index of local ability-to-pay of the school division that
counts such students attending such program in its March 31 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 regional programs for students attending these programs, adjusted for
costs incurred by the school division for transportation, administration, and
any portion of the school day or school year that the student does not attend
such program.
b) In the event a school division does not use all of the
student slots it is allocated under this program, the unused slots may be
reallocated or transferred to another school division.
1. A school division must request from the Department of
Education the availability and possible use of any unused student slots. If
any unused slots are available and if the requesting school division chooses to
utilize any of the unused slots, the requesting school division shall only
receive the state's share of tuition for the unused slot that was allocated in
this Item for the originally designated school division.
2. However, no requesting school division shall receive more
tuition funding from the state for any requested unused slot than what would
have been the calculated amount for the requesting school division had the
unused slot been allocated to the requesting school division in the original
budget. Furthermore, the requesting school division shall pay for any
remaining tuition payment necessary for using a previously unused slot.
3. The Department of Education shall report by June 30 each
year, to the Chairmen of the House Appropriations and Senate Finance
Committees, the number of available student slots, students placed, the request
of unused slots, and the number of unused slots subsequently used by each
school division for each Regional Alternative Education program.
4) The Board of Education shall provide assistance for the
state share of the incremental cost of regional alternative education program
operations based on the composite index of local ability-to-pay.
g. Remedial Summer School
1) This appropriation includes $24,659,975 the first year and
$25,496,999 the second year from the general fund for the state's share of
Remedial Summer School Programs. These funds are available to school divisions
for the operation of programs designed to remediate students who are required
to attend such programs during a summer school session or during an
intersession in the case of year-round schools. These funds may be used in
conjunction with other sources of state funding for remediation or
intervention. School divisions shall have maximum flexibility with respect to
the use of these funds and the types of remediation programs offered; however,
in exercising this flexibility, students attending these programs shall not be
charged tuition and no high school credit may be awarded to students who
participate in this program. After actual enrollment in Remedial Summer School
in fiscal year 2006 has been calculated, the Department of Education shall
recalculate the amounts needed to fully fund the state share of Remedial Summer
School obligations in fiscal year 2007 and fiscal year 2008.
2) For school divisions charging students tuition for summer
high school credit courses, consideration shall be given to students from
households with extenuating financial circumstances who are repeating a class
in order to graduate.
12. Primary Class Size Payments
a. An additional payment estimated at $83,617,596 the first
year and $84,407,590 the second year from the general fund shall be disbursed
by the Department of Education as an incentive payment for reducing class sizes
in the primary grades.
b. The Department of Education shall calculate the payment
based on the incremental cost of providing the lower class sizes based on the
lower of the division average per pupil cost of all divisions or the actual
division per pupil cost.
c. Localities are required to provide a match for these funds
based on the composite index of local ability-to-pay.
d. By October 15 of each year school divisions must provide
data to the Department of Education that each participating school has a
September 30 pupil/teacher ratio in grades K through 3 that meet the following
criteria:
Qualifying School Percentage of
Students Approved
Grades K-3 Maximum Individual
Eligible for Free Lunch School Ratio Class Size
16% but less than 30% 20 to 1 25
30% but less than 45% 19 to 1 24
45% but less than 55% 18 to 1 23
55% but less than 65% 17 to 1 22
65% but less than 70% 16 to 1 21
70% but less than 75% 15 to 1 20
75% or more 14 to 1 19
e. School divisions may elect to have eligible schools
participate at a higher ratio, or only in a portion of grades kindergarten
through three, with a commensurate reduction of state and required local funds,
if local conditions do not permit participation at the established ratio and/or
maximum individual class size. Special education teachers shall not be counted
towards meeting these required pupil/teacher ratios in grades kindergarten
through three.
f. The Superintendent of Public Instruction may grant waivers
to school divisions for the class size requirement in eligible schools that
have only one class in an affected grade level in the school.
13. Literary Fund Subsidy Program
a. The Board of Education and the Virginia Public School
Authority (VPSA) shall provide a program of funding for school construction and
renovation through the Literary Fund and through VPSA bond sales. The program
shall be used to provide funds, through Literary Fund loans and subsidies, and
through VPSA bond sales, to fund a portion of the projects on the Literary Fund
waiting list, or other critical projects which may receive priority placement
on the waiting list by the Board of Education. Interest rate subsidies will
provide school divisions with the present value difference in debt service
between a Literary Fund loan and a borrowing through the VPSA. To qualify for
an interest rate subsidy, the school division's project must be eligible for a
Literary Fund loan and shall be subject to the same restrictions. The VPSA
shall work with the Board of Education in selecting those projects to be funded
through the interest rate subsidy/bond financing program, so as to ensure the
maximum leverage of Literary Fund moneys and a minimum impact on the VPSA Bond
Pool.
b. The Virginia Public School Authority shall provide an
interest rate subsidy program in the fall of 2006 and the fall of 2007 for
projects that are on the Board of Education's First Priority Waiting List.
However, the cost of the subsidy shall not exceed $15,000,000 in the first year
and $20,000,000 in the second year including the subsidy payments and related
issuance costs.
c. The Board of Education may offer Literary Fund loans from
the uncommitted balances of the Literary Fund after meeting the obligations of
the interest rate subsidy sales and the amounts set aside from the Literary
Fund for Debt Service Payments for Education Technology in this item.
d.1) In the event that on any scheduled payment date of bonds
of the Virginia Public School Authority (VPSA) authorized under the provisions
of a bond resolution adopted subsequent to June 30, 1997, issued subsequent to June
30, 1997, and not benefiting from the provisions of either § 22.1-168 (iii),
(iv), and (v), Code of Virginia, or § 22.1-168.1, Code of Virginia, the sum of
(i) the payments on general obligation school bonds of cities, counties, and
towns (localities) paid to the VPSA and (ii) the proceeds derived from the
application of the provisions of § 15.2-2659, Code of Virginia, to such bonds
of localities, is less than the debt service due on such bonds of the VPSA on
such date, there is hereby appropriated to the VPSA, first, from available
moneys of the Literary Fund and, second, from the general fund a sum equal to
such deficiency.
2) The Commonwealth shall be subrogated to the VPSA to the
extent of any such appropriation paid to the VPSA and shall be entitled to
enforce the VPSA's remedies with respect to the defaulting locality and to full
recovery of the amount of such deficiency, together with interest at the rate
of the defaulting locality's bonds.
e. The chairman of the Board of Commissioners of the VPSA
shall, on or before December 1 of each year, make and deliver to the Governor
and the Secretary of Finance a certificate setting forth his estimate of total
debt service during each fiscal year of the biennium on bonds of the VPSA
issued and projected to be issued during such biennium pursuant to the bond
resolution referred to in paragraph 1a above. The Governor's budget submission
each year shall include provisions for the payment of debt service pursuant to
paragraph 1 above.
14. Educational Technology Payments
a. Any unobligated amounts transferred to the educational
technology fund shall be disbursed on a pro rata basis to localities. The
additional funds shall be used for technology needs identified in the
division's technology plan approved by the Department of Education.
b. The Board of Education shall provide amounts estimated at
$12,090,750 the first year from the Literary Fund to provide debt service
payments for the education technology grant program conducted through the
Virginia Public School Authority in 2002.
c. The Board of Education shall provide amounts estimated at
$11,949,600 the first year and $11,949,600 the second year from the Literary
Fund to provide debt service payments for the education technology grant
program conducted through the Virginia Public School Authority in 2003.
d.1) The Board of Education shall provide amounts estimated at
$12,657,050 the first year and $12,654,800 the second year from the Literary
Fund to provide debt service payments for the education technology grant
program conducted through the Virginia Public School Authority in 2004.
2) It is the intent of the General Assembly to appropriate
Literary Fund revenues sufficient to pay debt service on the Virginia Public
School Authority bonds or notes authorized for this program. In developing the
proposed 2008-10 biennial budgets for public education, the Board of Education
shall include a recommendation to the Governor to appropriate Literary Fund
revenues sufficient to make debt service payments for this program in fiscal
year 2009.
e.1) The Board of Education shall provide amounts estimated at
$12,635,250 the first year and $12,635,500 the second year from the Literary
Fund to provide debt service payments for the education technology grant program
conducted through the Virginia Public School Authority in 2005.
2) It is the intent of the General Assembly to appropriate
Literary Fund revenues sufficient to pay debt service on the Virginia Public
School Authority bonds or notes authorized for this program. In developing the
proposed 2008-10 biennial budget for public education, the Board of Education
shall include a recommendation to the Governor to appropriate Literary Fund
revenues sufficient to make debt service payments for this program in fiscal
year 2009 and fiscal year 2010.
f.1) The Board of Education shall provide amounts estimated at
$13,430,704 the first year and $13,228,104 the second year from the Literary
Fund to provide debt service payments for the education technology grant
program conducted through the Virginia Public School Authority in 2006.
2) It is the intent of the General Assembly to appropriate
Literary Fund revenues sufficient to pay debt service on the Virginia Public
School Authority bonds or notes authorized for this program. In developing the
proposed 2008-10 and 2010-12 biennial budgets for public education, the Board
of Education shall include a recommendation to the Governor to appropriate
Literary Fund revenues sufficient to make debt service payments for this program
in fiscal years 2009, 2010, and 2011.
g.1) An education technology grant program shall be conducted
through the Virginia Public School Authority, through the issuance of equipment
notes in an amount estimated at $58,936,000 the spring of 2007 and $59,248,000
in the Spring of 2008. Proceeds of the notes will be used to establish a
computer-based instructional and testing system for the Standards of Learning
(SOL) and to develop the capability for high speed Internet connectivity at
high schools followed by middle schools followed by elementary schools.
2) The Board of Education shall provide amounts estimated at
$13,590,913 the second year from the Literary Fund to provide debt service
payments for the education technology grant program conducted through the
Virginia Public School Authority in the Spring of 2007.
3) It is the intent of the General Assembly to appropriate
Literary Fund revenues sufficient to pay debt service on the Virginia Public
School Authority bonds or notes authorized for education technology grant
programs in the spring of 2007 and in the spring of 2008. In developing the
proposed 2008-10, 2010-2012, and 2012-2014 biennial budgets for public
education, the Board of Education shall include a recommendation to the
Governor to appropriate Literary Fund revenues sufficient to make debt service
payments for these programs in fiscal years 2009, 2010, 2011, 2012, and 2013.
4) Grant funds from the issuance of $58,936,000 in fiscal year
2007 and $59,248,000 in fiscal year 2008 in equipment notes are based on a
grant of $26,000 per school and $50,000 per school division. For purposes of
this grant program, eligible schools shall include those reporting membership
in grades K through 12 as of September 30, 2006, for the Spring 2007 issuance, and
September 30, 2007, for the Spring 2008 issuance as well as district and
regional centers including vocational centers, special education centers,
alternative education centers, regular school year Governor's Schools, and the
Schools for the Deaf and the Blind. Schools and district centers that serve
only pre-kindergarten students shall not be eligible for this grant.
5) Localities are required to provide a match for these funds
equal to 20 percent of the grant amount. At least 25 percent of the local match
shall be used for teacher training in the use of technology. The Superintendent
of Public Instruction is authorized to reduce the required local match for
school divisions with a composite index of local ability-to-pay below 0.2000.
The Schools for the Deaf and the Blind are exempt from the match requirement.
6) The goal of the program is to improve the instructional,
remedial and testing capabilities of the Standards of Learning for local school
divisions.
7) Funds shall be used in the following manner:
a) Each division shall use funds to reach a goal, in each high
school, of: (1) a 5-to-1 student to computer ratio; (2) an Internet-ready local
area network (LAN) capability; and (3) high speed access to the Internet.
School connectivity (computers, LANs and network access) shall include
sufficient download/upload capability to ensure that each student will have
adequate access to Internet-based instructional, remedial and assessment
programs.
b) When each high school in a division meets the goals
established in paragraph a) above, the remaining funds shall be used to develop
similar capability in first the middle schools and then the elementary schools.
c) Pursuant to § 15.2-1302, Code of Virginia, and in the event
that two or more school divisions became one school division, whether by
consolidation of only the school divisions or by consolidation of the local
governments, such resulting division shall be provided funding through this
program on the basis of having the same number of school divisions as existed
prior to September 30, 2000.
8) Local school divisions shall maximize the use of available
federal funds, including E-Rate Funds, and to the extent possible, use such
funds to supplement the program and meet the goals of this program.
h. The Department of Education shall maintain criteria to
determine if high schools, middle schools, or elementary schools have the
capacity to meet the goals of this initiative. The Department of Education
shall be responsible for the project management of this program. The Department
of Education shall report on the implementation of this program to the Chairmen
of the Senate Finance and House Appropriations Committees by September 1 of
each year.
i.1) In the event that, on any scheduled payment date of bonds
or notes of the Virginia Public School Authority (VPSA) issued for the purpose
described in § 22.1-166.2, Code of Virginia, and not benefiting from the
provisions of either § 22.1-168 (iii), (iv) and (v), Code of Virginia, or §
22.1-168.1, Code of Virginia, the available moneys in the Literary Fund are
less than the appropriations for debt service due on such bonds or notes of the
VPSA on such date, there is hereby appropriated to the VPSA from the general
fund a sum equal to such deficiency.
2) The Chairman of the Board of Commissioners of the VPSA
shall, on or before December 1 of each year, make and deliver to the Governor
and the Secretary of Finance a certificate setting forth his estimate of total
debt service during each fiscal year of the biennium on bonds and notes of the
VPSA issued and projected to be issued during such biennium pursuant to the
resolution referred to in paragraph 1) above. The Governor's budget submission
each year shall include provisions for the payment of debt service pursuant to
paragraph 1) above.
j. Unspent proceeds of the notes, including investment income
derived from the proceeds of the notes may be used to pay interest on, or to
decrease principal of the notes.
k.1) For the purposes of § 56-232, Code of Virginia,
"Contracts of Telephone Companies with State Government" and for the
purposes of § 56-234 "Contracts for Service Rendered by a Telephone
Company for the State Government" shall be deemed to include
communications lines into public schools which are used for educational
technology. The rate structure for such lines shall be negotiated by the
Superintendent of Public Instruction and the Chief Information Officer of the
Virginia Information Technologies Agency. Further, the Superintendent and
Director are authorized to encourage the development of "by-pass"
infrastructure in localities where it fails to obtain competitive prices or
prices consistent with the best rates obtained in other parts of the state.
2) The State Corporation Commission, in its consideration of
the discount for services provided to elementary schools, secondary schools,
and libraries and the universal service funding mechanisms as provided under §
254 of the Telecommunications Act of 1996, is hereby encouraged to make the
discounts for intrastate services provided to elementary schools, secondary
schools, and libraries for educational purposes as large as is prudently
possible and to fund such discounts through the universal fund as provided in §
254. The Commission shall proceed as expeditiously as possible in implementing
these discounts and the funding mechanism for intrastate services, consistent
with the rules of the Federal Communications Commission aimed at the
preservation and advancement of universal service.
15. At-Risk Four-Year-Olds Preschool Payments
a.1) It is the intent of the General Assembly that an
additional state payment shall be disbursed by the Department of Education to
schools and community-based organizations to provide quality preschool programs
for at-risk four-year-olds unserved by Head Start program funding.
2) These grants shall be used to provide programs for at-risk
four-year-old children which include quality preschool education, health
services, social services, parental involvement and transportation. Programs
must provide full-day or half-day and, at least, school-year services.
3) The Department of Education, in cooperation with the Council
on Child Day Care and Early Childhood Programs, shall establish academic
standards that are in accordance with appropriate preparation for students to
be ready to successfully enter into kindergarten. These standards shall be
established in such a manner as to be measurable for student achievement and
success. Students shall be required to be evaluated at specified times as
determined appropriate by the Department of Education. Superintendents, or
their designee, of each participating school division must certify that the
At-Risk Four-Year-Old program follows the established standards in order to
receive the funding for quality preschool education and criteria for the
service components. Such guidelines shall be consistent with the findings of
the November 1993 study by the Board of Education, the Department of Education,
and the Council on Child Day Care and Early Childhood Programs.
4)a) Grants shall be distributed based on an allocation formula
providing the state share of a $5,700 grant for 100 percent of the unserved
at-risk four-year-olds in each locality for a full-day program. Programs
operating half-day shall receive state funds based on a fractional basis
determined by the pro-rata portion of a full-day, school year program provided.
b) For new programs in the first year of implementation only,
programs operating less than a full school year shall receive state funds on a
fractional basis determined by the pro-rata portion of a school year program
provided. In determining the prorated state funds to be received, a school
year shall be 180 days.
b.1) Any locality which desires to participate in this grants
program must submit a proposal through its chief administrator (county
administrator or city manager) by May 15 of each year. The chief administrator,
in conjunction with the school superintendent, shall identify a lead agency for
this program within the locality. The lead agency shall be responsible for
developing a local plan for the delivery of quality preschool services to
at-risk children which demonstrates the coordination of resources and the
combination of funding streams in an effort to serve the greatest number of
at-risk four-year-old children.
2) The proposal must demonstrate coordination with all parties
necessary for the successful delivery of comprehensive services, including the
schools, child care providers, local social services agency, Head Start, local
health department and other groups identified by the lead agency.
3) A local match, based on the composite index of local
ability-to-pay shall be required. For purposes of meeting the local match,
localities may use local expenditures for existing qualifying programs.
Localities shall also continue to pursue and coordinate other funding sources,
including child care subsidies. Funds received through this program must be
used to supplement, not supplant, any funds currently provided for programs
within the locality. However, in the event a locality is prohibited from
continuing the previous level of support to programs for at-risk four-year-olds
from Title 1 of the Elementary and Secondary Education Act (ESEA), the state
and local funds provided in this grants program may be used to continue
services to these Title I students. Such prohibition may occur due to
amendments to the allocation formula in the reauthorization of ESEA as the No
Child Left Behind Act of 2001 or due to a percentage reduction in a locality's
Title I allocation in 2006-2007 or 2007-2008. Any locality so affected shall
provide written evidence to the Superintendent of Public Instruction and
request his approval to continue the services to Title I students.
c. Local plans must provide clear methods of service
coordination for the purpose of reducing the per child cost for the service,
increasing the number of at-risk children served and/or extending services for
the entire year. Examples of these include:
1) "Wraparound Services" -- methods for combining
funds such as child care subsidy dollars administered by local social service
agencies with dollars for quality preschool education programs.
2) "Wrapout Services" -- methods for using grant
funds to purchase quality preschool services to at-risk four-year-old children
through an existing child care setting by purchasing comprehensive services
within a setting which currently provides quality preschool education.
3) "Expansion of Service" -- methods for using grant
funds to purchase slots within existing programs, such as Head Start, which
provide comprehensive services to at-risk four-year-old children.
Local plans must indicate the number of at-risk four-year-old
children to be served, and the criteria by which they will be determined to be
at risk.
d.1) The Department of Education and the Council on Child Day
Care and Early Childhood Programs shall provide technical assistance for the
administration of this grant program to provide assistance to localities in
developing a comprehensive, coordinated, quality preschool program for serving
at-risk four-year-old children.
2) A pre-application session shall be provided by the
Department and the Council on Child Day Care and Early Childhood Programs prior
to the proposal deadline. The Department shall provide interested localities
with information on models for service delivery, methods of coordinating
funding streams, such as funds to match federal IV-A child care dollars, to
maximize funding without supplanting existing sources of funding for the
provision of services to at-risk four-year-old children. A priority for
technical assistance in the design of programs shall be given to localities
where the majority of the at-risk four-year-old population is currently
unserved.
e. The Department of Education is authorized to expend
unobligated balances in this item if participation in the At-Risk
Four-Year-Olds Preschool program is greater than projected. The Department is
also authorized to expend unobligated balances in this program for grants to
qualifying schools and community-based groups for one-time expenses, other than
capital, related to start-up or expansion of programs.
16. Early Reading Intervention
a. An additional incentive payment of $11,863,527 the first
year and $11,965,287 the second year from the general fund shall be disbursed
by the Department of Education to local school divisions for the purposes of
providing early reading intervention services to students in grades
kindergarten through 3 who demonstrate deficiencies based on their individual
performance on diagnostic tests which have been approved by the Department of
Education. The Department of Education shall review the tests of any local
school board which requests authority to use a test other than the
state-provided test to ensure that such local test uses criteria for the early
diagnosis of reading deficiencies which are similar to those criteria used in
the state-provided test. The Department of Education shall make the
state-provided diagnostic test used in this program available to local school
divisions. School divisions shall report the results of the diagnostic tests to
the Department of Education on an annual basis at a time to be determined by
the Superintendent of Public Instruction.
b. These incentive payments shall be based on the state's share
of the cost of providing two and one-half hours of additional instruction each
week for an estimated number of students in each school division at a student
to teacher ratio of five to one. The estimated number of students in each
school division in each year shall be determined by multiplying the projected
number of students reported in each school division's fall membership in grades
kindergarten, 1, 2, and 3 by the percent of students who are determined to need
services based on diagnostic tests administered in the previous year in that
school division and adjusted in the following manner:
Kindergarten 100%
Grade 1 50%
Grade 2 50%
Grade 3 25%
c. These incentive payments are available to any school
division that certifies to the Department of Education that an intervention
program will be offered to such students and that each student who receives an
intervention will be assessed again at the end of that school year. Such
intervention programs, at the discretion of the local school division, may
include, but not be limited to, the use of: special reading teachers; trained
aides; volunteer tutors under the supervision of a certified teacher;
computer-based reading tutorial programs; aides to instruct in-class groups
while the teacher provides direct instruction to the students who need extra
assistance; or extended instructional time in the school day or year for these
students. Localities receiving these incentive payments are required to match
these funds based on the composite index of local ability-to-pay.
17. Standards of Learning Algebra Readiness
a. An additional incentive payment of $8,444,986 the first year
and $8,476,044 the second year from the general fund shall be disbursed by the
Department of Education to local school divisions for the purposes of providing
math intervention services to students in grades 6, 7, 8 and 9 who are at-risk
of failing the Algebra 1 end-of-course test, as demonstrated by their
individual performance on diagnostic tests which have been approved by the
Department of Education. The Department of Education shall review the tests to
ensure that such local test uses state-provided criteria for diagnosis of math
deficiencies which are similar to those criteria used in the state-provided
test. The Department of Education shall make the state-provided diagnostic test
used in this program available to local school divisions. School divisions
shall report the results of the diagnostic tests to the Department of Education
on an annual basis at a time to be determined by the Superintendent of Public
Instruction.
b. These incentive payments shall be based on the state’s share
of the cost of providing two and one-half hours of additional instruction each
week for an estimated number of students in each school division at a student
to teacher ratio of ten to one. The estimate number of students in each school
division shall be determined by multiplying the projected number of students
reported in each school division’s fall membership by the percent of students
that qualify for the federal Free Lunch Program.
c. These incentive payments are available to any school
division that certifies to the Department of Education that an intervention
program will be offered to such students and that each student who receives an
intervention will be assessed again at the end of that school year. Localities
receiving these incentive payments are required to match these funds based on
the composite index of local ability-to-pay.
d. Any funds provided to school divisions for the Standards of
Learning Algebra Readiness Program that are unexpended as of June 30, 2007, and
June 30, 2008, shall be carried on the books of the locality to be appropriated
to the school division in the following year for use in the same program.
18. School Construction Grants Program
a. This appropriation includes an amount estimated at
$27,499,995 the first year and $27,500,004 the second year from the general
fund to provide grants to school divisions for nonrecurring expenditures by the
relevant school division. Nonrecurring costs shall include school construction,
additions, infrastructure, site acquisition, renovations, technology, and other
expenditures related to modernizing classroom equipment, payments to escrow
accounts pursuant to Chapter 391, Acts of Assembly of 1999, school safety
equipment or school safety renovations, and debt service payments on school
projects completed during the last ten years.
b. School divisions are encouraged to utilize value engineering
in school construction projects funded with these grant proceeds.
c. Any funds provided to school divisions for school
construction that are unexpended as of June 30, 2007, and June 30, 2008, shall
be carried on the books of the locality to be appropriated to the school
division the following year for use for the same purpose.
d. Pursuant to § 15.2-1302, Code of Virginia, and in the event
that two or more school divisions became one school division, whether by
consolidation of only the school divisions or by consolidation of the local
governments, such resulting division shall be paid School Construction Grant
payments on the basis of having the same number of school divisions as existed
prior to September 30, 2000.
19. English as a Second Language Payments
A payment of $31,781,077 the first year and $38,469,856 the
second year from the general fund shall be disbursed by the Department of
Education to local school divisions to support the state share of 17
professional instructional positions per 1,000 students for whom English is a
second language. Local school divisions shall provide a local match based on
the composite index of local ability-to-pay.
20. Special Education Instruction Payments
a. The Department of Education shall establish rates for all
elements of Special Education Instruction Payments.
b. Out of the amounts for special education payments, the
Department of Education shall make available, subject to implementation by the
Superintendent of Public Instruction, an amount estimated at $59,989,862 the
first year and $66,397,321 the second year from the general fund for the
purpose of the state's share of the tuition rates for approved public school
regional programs. Notwithstanding any contrary provision of law, the state's
share of the tuition rates shall be based on the composite index of local
ability-to-pay.
c. Out of the amounts for Financial Assistance for Categorical
Programs, $29,593,951 the first year and $30,962,505 the second year from the
general fund is appropriated to permit the Department of Education to contract
with selected local school boards for the provision of educational services to
children residing in certain hospitals, clinics, and detention homes by
employees of the local school boards. The selection and employment of
instructional and administrative personnel under such contracts will be the
responsibility of the local school board in accordance with procedures as
prescribed by the local school board.
21. Vocational Education Instruction Payments
a. It is the intention of the General Assembly that the
Department of Education explore initiatives that will encourage greater
cooperation between jurisdictions and the Virginia Community College System in
meeting the needs of public school systems.
b. This appropriation includes $1,800,000 the first year and
$1,800,000 the second year from the general fund for secondary
vocational-technical equipment. A base allocation of $2,000 the first year and
$2,000 the second year shall be available for all divisions, with the remainder
of the funding distributed on the basis of student enrollment in secondary
vocational-technical courses. State funds received for secondary
vocational-technical equipment must be used to supplement, not supplant, any
funds currently provided for secondary vocational-technical equipment within
the locality.
22. Adult Education Payments
State funds shall be used to reimburse general adult education
programs on a fixed cost per pupil or cost per class basis. No state funds
shall be used to support vocational noncredit courses.
23. General Education Payments
a.1) This appropriation includes $8,155,889 the first year and
$7,853,362 the second year from the general fund for targeted education
initiatives to improve student achievement and teacher quality, including a
mentoring program for teachers with no experience working in schools that are
at-risk of not meeting adequate yearly progress, a middle school math teacher
initiative in at-risk schools, turnaround specialists to enhance the leadership
in schools that have consistently failed to show improvement in student
progress, virtual Advanced Placement courses, and GED tests as required by the
No Child Left Behind Act.
2) In the event that existing funds are not available,
additional nongeneral funds do not become available, and/or the contracts are
not renegotiated to lower amounts, the Department of Education is authorized to
transfer up to $150,890 the first year and up to $150,890 the second year from
the general fund appropriation for this Item in C. 23. a. to Item 127 for the
contract with the University of Virginia Partnership for Leaders in Education -
The Darden School Foundation for the turnaround specialists program. In the
event that existing funds are not available, additional nongeneral funds do not
become available, and/or the contracts are not re-negotiated to lower amounts,
the Department is also authorized to transfer up to $487,200 the first year and
up to $487,200 the second year from the general fund appropriation for this
Item in C. 23. a. to Item 127 for the contract for the on-line student career
planning program.
b.1) In addition, the appropriation includes $500,000 the first
year and $500,000 the second year from the general fund for competitive grants
of $100,000 each to be awarded to school divisions which demonstrate a
partnership agreement with a Virginia institution of higher learning and/or
other entity for a defined leadership development training program that
addresses the leadership standards established for such training as defined by
the Board of Education. Such competitive grants may be awarded to the existing
leadership development training programs. The Department of Education shall
establish the guidelines for school divisions to apply for these grants. These
grants shall be allocated over the biennium.
2) School divisions that are awarded a competitive leadership
grant in either fiscal year shall be allowed to retain any unspent balances at
the end of that fiscal year in which the grant was awarded and shall be
permitted to spend any remaining balances for the intended purposes during the
ensuing two fiscal years.
c. This appropriation includes $2,774,478 the first year and
$2,774,478 the second year from the general fund to support Project Graduation.
d. The Department of Education shall develop a report specific
to the first cohort of the three school divisions participating in the
Hard-to-Staff School pilot program. The report shall address, but not be
limited to, any measurable improvements in student achievement that can be
linked to the recruitment and retention of highly qualified teachers; fewer
teachers with provisional or conditional licenses; demonstrated improvements in
the general teaching environment within the participating schools; any other
comparible retention statistics relative to pre- and post- participation in the
Hard-to-Staff Schools pilot program. The Department of Education shall submit,
upon completion of the participation cycle of the first cohort of school
divisions, but not later than September 1, 2007, the comprehensive report to
the Chairmen of the House Appropriations and Senate Finance Committees. The
report will be used as an evaluation tool to determine the pilot program's
merits and whether it should be implemented in other school divisions.
24. Educational Telecommunications Payments
a. Out of the amounts for Financial Assistance for Categorical
Programs, the Board of Education shall provide assistance for electronic
classrooms.
b. The local share of costs associated with operation of
electronic classrooms shall be computed using the local composite index of
ability-to-pay.
25. Individual Student Alternative Education Program
Out of this appropriation, $2,247,581 the first year and
$2,247,581 in the second year from the general fund shall be provided for the
secondary schools' Individual Student Alternative Education Program (ISAEP),
pursuant to Chapter 488 and Chapter 552 of the 1999 Session of the General
Assembly. The Department of Education shall report the status of this program
along with any recommendations for determining the cost of this program to the
Governor and the Chairmen of the Senate Finance, Senate Education and Health,
House Appropriations, and House Education Committees and the Department of
Planning and Budget no later than October 15 of each year.
26. Foster Children Education Payments
a. An additional state payment is provided from the general
fund for the prior year's local operations costs, as determined by the
Department of Education, for each pupil not a resident of the school division
providing his education (a) who has been placed in foster care or other
custodial care within the geographical boundaries of such school division by a
Virginia agency, whether state or local, which is authorized under the laws of
this Commonwealth to place children; (b) who has been placed in an orphanage or
children's home which exercises legal guardianship rights; or (c) who is a
resident of Virginia and has been placed, not solely for school purposes, in a
child-caring institution or group home.
b. This appropriation provides $11,109,888 the first year and
$12,047,112 the second year from the general fund to support children attending
public school who have been placed in foster care or other such custodial care
across jurisdictional lines, as provided by subsections A and B of § 22.1-101.1,
Code of Virginia. To the extent these funds are not adequate to cover the full
costs specified therein, the Department is authorized to expend unobligated
balances in this Item and Item 134 for this support.
27. Sales Tax
a. This is a sum-sufficient appropriation for distribution to
counties, cities and towns a portion of net revenue from the state sales and
use tax, in support of the Standards of Quality (Title 22.1, Chapter 13.2, Code
of Virginia) (See the Attorney General's opinion of August 3, 1982).
b. Certification of payments and distribution of this
appropriation shall be made by the State Comptroller.
c. The distribution of state sales tax funds shall be made in
equal bimonthly payments at the middle and end of each month.
d. 1) This Item includes an appropriation estimated at $59,837,121
from the general fund in the first year to be paid to local school divisions as
a supplemental sales tax payment dedicated to public education. As such, local
governing bodies shall appropriate these funds to the local school division.
2) The supplemental sales tax payment is in addition to the
one and 1/8 cents sales tax estimated by the Department of Taxation and
included in this Item.
3) For the purposes of calculating Required Local
Expenditure as defined in this Item, this supplemental sales tax payment will
be counted as a credit toward the local share of the costs of the Standards of
Quality in the first year. Further, additional payments from Enrollment Loss
and Supplemental Basic Aid, as identified by the Department of Education, resulting
from the Department of Taxation’s correction of the sales tax estimates and
resulting in this supplemental sales tax payment may also be counted as a
credit toward the local share of the costs of the Standards of Quality in the
first year.
4) The Department of Education is authorized to distribute
the supplemental sales tax payment to school divisions in quarterly
installments. The Department is further authorized to make adjustments in these
quarterly supplemental payments to reflect the difference between the actual
sales tax payments distributed to school divisions to date and an estimate of
the payment that would have been paid to date based
on the percentage of the total distribution paid in the prior fiscal year to
date multiplied by the total amount of sales tax distribution included in this
Item. The
amount paid as supplemental sales tax payments shall not exceed the amounts
listed in paragraph d.1) above.
5) It is the intent of the General Assembly to update this
supplemental sales tax payment based on any subsequent increases to the Sales
Tax estimates approved by the General Assembly and included in this Item.
28. Lottery
a.1) This appropriation includes $426,100,000 the first year
and $426,100,000 the second year from the general fund as the state payment for
the lottery profits, to be deposited into the general fund pursuant to § 3-1.01
G of this act.
2) This appropriation includes $16,500,000 in the first year as
an additional appropriation of Lottery profits that were earned in fiscal year
2006 as excess revenue that was not appropriated for public education.
b.1) Out of this appropriation, $249,641,656 the first year and
$249,641,656 the second year shall be transferred and used to fund the state's
share of Basic Aid Payments as defined in paragraph 5.b.2) above.
2) Out of this appropriation, $10,131,000 the first year shall
be transferred from the additional appropriation in paragraph 28.a.2) above and
used to fund the state's share of Basic Aid Payments as defined in paragraph
5.b.3) above.
c. $19,517,499 the first year and $19,517,499 the second year
in Lottery proceeds appropriated in this Item shall be added to general funds
appropriated in this Item, to provide for the state share of cost of the
Standards of Quality prevention, intervention, and remediation program.
d.1) Out of this appropriation, an amount estimated at
$156,940,845 the first year and $156,940,845 the second year shall be disbursed
by the Department of Education to local school divisions to support the state
share of an estimated $232.83 per pupil the first year and $230.98 per pupil
the second year in adjusted March 31 average daily membership. These per pupil
amounts are subject to change for the purpose of payment to school divisions
based on the actual March 31 ADM collected each year. These funds shall be
matched by the local government, based on the composite index of local
ability-to-pay. Further, in order to receive this funding, the locality in
which the school division is located shall appropriate these funds solely for
educational purposes and shall not use such funds to reduce total local
operating expenditures for public education below the amount expended by the
locality for such purposes in the year upon which the 2006-08 biennial
Standards of Quality expenditure data were based; provided however, that no
locality shall be required to maintain a per pupil expenditure which is greater
than the per pupil amount expended by the locality for such purposes in the
year upon which the 2006-08 biennial Standards of Quality expenditure data were
based.
2) Out of this appropriation, an amount estimated at $6,369,000
the first year in additional Lottery proceeds shall be disbursed by the
Department of Education to local school divisions to support the state share of
an estimated $9.45 per pupil the first year in adjusted daily membership. These
per pupil amounts are subject to change for the purpose of payment to school
divisions based on the actual March 31 ADM collected. These funds shall be
matched by the local government, based on the composite index of local
ability-to-pay, and shall be subject to the same terms and conditions as other
Lottery proceeds appropriated in this Item.
e. Of the amounts listed above, no more than 50 percent shall
be used for recurring costs and at least 50 percent shall be spent on
nonrecurring expenditures by the relevant school divisions. Nonrecurring costs
shall include school construction, additions, infrastructure, site acquisition,
renovations, technology, and other expenditures related to modernizing
classroom equipment, and debt service payments on school projects completed
during the last 10 years.
f. Any lottery funds provided to school divisions from this
Item that are unexpended as of June 30, 2007, and June 30, 2008, shall be
carried on the books of the locality to be appropriated to the school division
in the following year.
29. Adult Literacy
a. The appropriation for Financial Assistance for Categorical
Programs includes $125,000 the first year and $125,000 the second year from the
general fund for the ongoing literacy programs conducted by Mountain Empire
Community College, and $125,000 the first year and $125,000 the second year
from the general fund will be transferred to the Department of Housing and
Community Development to support workforce literacy and training.
b. Out of this appropriation, the Board of Education shall
provide $100,000 the first year and $100,000 the second year from the general
fund for the Virginia Literacy Foundation grants to support programs for adult
literacy including those delivered by community-based organizations and school
divisions providing services for adults with 0-9th grade reading skills.
c. Out of this appropriation, the Board of Education shall
provide $50,000 the first year and $50,000 the second year from the general
fund to the Virginia Educational Technology Alliance to provide teacher
training opportunities in the effective use of educational technologies to
full-time, part-time and volunteer teachers involved in adult education and
literacy programs in the Commonwealth.
30. Governor’s School Payments
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 based on each participating
locality's composite index of local ability-to-pay. Participating school
divisions must certify that no tuition is assessed students for participation
in this program.
b. 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 summer residential Governor's Schools and Foreign Language Academies to
be based on the greater of the state's share of the composite index of local
ability-to-pay or 50 percent. Participating school divisions must certify that
no tuition is assessed students for participation in this program if they are
enrolled in a public school.
c. 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 Governor's 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.
d. The Board of Education shall not take any action that would
increase the state's share of costs associated with the Governor's Schools as
set forth in paragraph C. 26. of this Item. This provision shall not prohibit
the Board of Education from submitting requests for the increased costs of
existing programs resulting from updates to September 30 fall membership for
school divisions currently participating in existing programs or for school
divisions that begin participation in existing programs.
e.1) 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 1,500 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 March 31
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.
2) Funding for the Academic Year Governor's Schools will be
adjusted based upon actual September 30, 2006, and September 30, 2007, fall
membership data or equivalent enrollment for students that attend these
programs during the year based on alternative course schedules such as semester
block schedules.
3) Fairfax County Public Schools shall not reduce local per
pupil funding for the Thomas Jefferson Governor's School below the amounts
appropriated for the 2003-2004 school year.
31. School Nutrition
It is provided that, subject to implementation by the
Superintendent of Public Instruction, no disbursement shall be made out of the
appropriation for school nutrition to any locality in which the schools permit
the sale of competitive foods in food service facilities or areas during the
time of service of food funded pursuant to this Item.
32. Clinical Faculty and Mentor Teacher Programs
This appropriation includes $1,375,000 the first year and
$1,375,000 the second year from the general fund for statewide Clinical Faculty
and Mentor Teacher Programs to assist preservice teachers and beginning
teachers to make a successful transition into full-time teaching. Such programs
shall include elements which are consistent with the following:
a. An application process for localities and school/higher
education partnerships that wish to participate in the programs;
b. Provisions for a local funding or institutional commitment
of 50 percent, to match state grants of 50 percent;
c. Program plans which include a description of the criteria
for selection of clinical faculty and mentor teachers, training, support, and
compensation for clinical faculty and mentor teachers, collaboration between
the school division and institutions of higher education, the clinical faculty
and mentor teacher assignment process, and a process for evaluation of the
programs;
d. The Department of Education shall allow flexibility to local
school divisions and higher education institutions regarding compensation for
clinical faculty and mentor teachers consistent with these elements of the
programs; and
e. It is the intent of the General Assembly that no preference
between preservice or beginning teacher programs be construed by the language
in this Item. School divisions operating beginning teacher mentor programs
shall receive equal consideration for funding.
33. This appropriation includes $100,000 the first year and
$100,000 the second year from the general fund to provide grants to school
divisions that employ mentor teachers for new teachers entering the profession
through the alternative route to licensure as prescribed by the Board of
Education.
136. Not Set Out
Total for Direct Aid to
Public Education $6,611,427,036 $6,776,943,492
$6,710,869,138
Fund Sources:
General $5,695,619,782 $5,859,840,675
$5,793,766,321
Special $795,000 $795,000
Commonwealth
Transportation $2,173,000 $2,173,000
Trust and Agency $178,747,154 $180,042,717
Federal Trust $734,092,100 $734,092,100
Items 137 through 142: Not Set Out
Grand Total for
Department of Education,
Central Office Operations $6,749,479,949 $6,913,943,931
$6,847,869,577
General Fund Positions 439.50 441.50
Nongeneral Fund Positions 168.50 168.50
Position Level 608.00 610.00
Fund Sources:
General $5,770,433,215 $5,933,601,634
$5,867,527,280
Special $7,227,051 $7,227,051
Commonwealth
Transportation $2,399,983 $2,399,983
Trust and Agency $179,026,817 $180,322,380
Federal Trust $790,392,883 $790,392,883
Items 143 through 251: Not Set
Out
TOTAL FOR
OFFICE OF EDUCATION $13,683,664,968 $14,104,353,715
$14,038,279,361
General Fund
Positions 18,871.30 18,888.90
Nongeneral Fund
Positions 32,721.50 33,053.52
Position Level 51,592.80 51,942.32
Fund Sources:
General $7,635,423,686 $7,830,163,853
$7,764,089,499
Special $73,114,351 $76,903,093
Higher Education
Operating $4,826,813,350 $5,045,323,246
Commonwealth
Transportation $2,399,983 $2,399,983
Trust and Agency $179,326,817 $180,622,380
Debt Service $152,094,141 $154,440,844
Dedicated Special
Revenue $12,630,885 $12,630,885
Federal Trust $801,861,755 $801,869,431
Items 252 through 463: Not Set
Out
TOTAL FOR
EXECUTIVE DEPARTMENT $34,110,180,671 $34,974,085,231
$34,908,010,877
General Fund Positions 52,207.39 52,219.69
Nongeneral Fund
Positions 59,306.84 59,690.06
Position Level 111,514.23 111,909.75
Fund Sources:
General $16,334,550,917 $16,573,915,438
$16,507,841,084
Special $1,483,763,434 $1,621,624,211
Higher Education
Operating $4,833,655,952 $5,052,165,848
Commonwealth
Transportation $4,065,286,028 $4,120,333,115
Enterprise $654,307,800 $653,674,588
Trust and Agency $1,047,785,366 $1,062,109,450
Debt Service $204,399,236 $206,745,939
Dedicated Special
Revenue $625,504,579 $631,750,197
Federal Trust $4,860,927,359 $5,051,766,445
Items 464 through 481: Not Set Out
TOTAL FOR PART 1:
OPERATING EXPENSES $34,904,269,286 $35,750,490,632
$35,684,416,278
General Fund
Positions 55,904.48 55,916.78
Nongeneral Fund
Positions 60,967.46 64,350.68
Position Level 116,871.94 117,267.46
Fund Sources:
General $16,779,048,401 $16,982,495,713
$16,916,421,359
Special $1,582,139,532 $1,722,709,724
Higher Education
Operating $4,833,655,952 $5,052,165,848
Commonwealth
Transportation $4,065,286,028 $4,120,333,115
Enterprise $822,233,996 $837,099,712
Trust and Agency $1,091,584,780 $1,105,769,295
Debt Service $204,399,236 $206,745,939
Dedicated Special
Revenue $660,473,168 $666,884,007
Federal Trust $4,865,448,193 $5,056,287,279
PART 2: CAPITAL PROJECT EXPENSES
§ 2-0 General Conditions: Not Set Out
Items C-1 through C-328: Not Set Out
PART 3: MISCELLANEOUS
§ 3-1.01 through § 3-6.02: Not Set Out
PART 4: GENERAL PROVISIONS
§ 4-0.01 through § 4-12.00: Not Set Out
§ 4-13.00 EFFECTIVE DATE
This act is effective on July 1, 2006. This act is
effective on its passage as provided in §1-12c, Code of Virginia.
PART 5: ENACTMENT NUMBERS 2 THROUGH 5
Enactment 2: Not Set Out