Authority: Title 51, Chapters 3.1 and 3.2, Code of Virginia.
Payments out of the above amounts shall be subject to the following conditions:
1. General Conditions
a. The Standards of Quality cost for each of the three subprograms in this Item 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. Fringe benefit payments related to salary increases above these prevailing salary levels are included in the appropriations for basic aid:
| Instructional | First Year | Second Year |
| Position | Salary | Salary |
| Elementary Teachers | $32,563 | $32,563 |
| Elementary Assistant Principals | $45,596 | $45,596 |
| Elementary Principals | $55,038 | $55,038 |
| Secondary Teachers | $34,815 | $34,815 |
| Secondary Assistant Principals | $50,113 | $50,113 |
| Secondary Principals | $59,701 | $59,701 |
| Aides | $11,392 | $11,392 |
b. 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 in the item for non-instructional staff members shall equal the state share of 55 percent of the division's entitlement for such staff members for the school year 1981-82. The recognized cost for noninstructional staff, above the 1981-82 entitlement, is included in and distributed through Basic Aid.
c. Payments to school divisions from these subprograms shall be calculated using Average Daily Membership adjusted for half-day kindergarten programs.
d. Payments for health insurance fringe benefits are included in and distributed through Basic Aid.
2. School Employee Retirement Contributions
a. This subprogram 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, Chapter 3.2, Code of Virginia.
b. This item includes payments for the full cost of the retiree health care credit required by Chapter 764, 1996 Acts of Assembly. The Department of Education is authorized to pay the Virginia Retirement System directly. These funds shall be considered payments to local school divisions for public education.
3. School Employee Social Security Contributions
This subprogram 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, Chapter 3.1, Code of Virginia.
4. School Employee Insurance Contributions
This subprogram 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, Chapter 3.2, Code of Virginia.
5. Literary Fund Payments
Appropriations for contributions in Paragraphs 2 and 3 above 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 amount set aside from the Literary Fund for these purposes is approximately $7,763,127 the first year.