Local Schools Learn Range of State Cuts

By Amber Lester Friday, March 05, 2010

State Superintendent Patricia Wright gave school divisions a better picture of how their funding will change in the next biennium in detailed memos released Tuesday.

The memo details how funding will be affected by cuts to each division under the proposed plans from the House of Delegates and the state Senate. The memo also includes the previous biennium’s funding for comparison.

The House and the Senate introduced their proposed budgets on Feb. 21 and approved the respective budgets on Feb. 25. Now, a committee is working to merge the proposals into one cohesive state budget by March 13. Gov. Bob McDonnell introduced his own budget proposal, which included $731 million in cuts to education funding, on Feb. 18. His predecessor, Gov. Tim Kaine, made his suggestions in December before leaving office.

In the House budget, WJCC would lose $3 million in state funding over two years from its 2010 projected allocation of almost $40 million, bringing its state funding in 2012 down to $37 million. York would lose $5 million over two years from its 2010 projected allocation of $59 million.

In the Senate budget, WJCC’s state funding (not including the local match) would increase by about $500,000 over two years, from about $40 million in 2010 to $40.5 million in 2012. York’s state funding would decrease by about $4 million, from $59 million in 2010 to $55 million in 2012.

The House Budget
The House budget retains many cuts suggested by McDonnell (Read more about his proposal here http://wydaily.com/local-news/3924-gov-proposes-deep-cuts-for-k-12-education-everything-from-coaches-salaries-to-breakfast-on-the-table.html. The 2011-2012 budgets eliminate funding for a technology incentive program and establish a block-grant system that would save the state about $50 million.

The Lottery Proceeds Block Grant must be used for the Virginia Preschool Initiative, At-Risk Add-On or Early Reading Intervention program. In order to receive the funding, divisions will be required to meet program requirements and provide a local match based on the composite index applied to the proposed per-pupil funding formula. The block grant is projected to be distributed based on the state share as $201.20 per pupil in 2011 and $186.55 per pupil in 2012.

The plan also retains several funding shifts adopted in 2010, moving programs from the incentive program fund and the categorical program fund to the lottery fund. Lottery proceeds now pay for alternative education, which includes regional tuition for special education students, and career and technical education.

The House bill does keep funding for textbooks and the school breakfast incentive program – programs the previous and current governors cut from their budgets. Both programs, however, would be funded by the lottery proceeds, rather than SOQ and incentive funding.

The bill also proposes decreasing the employer contribution rate for the Virginia Retirement System by funding only the “normal cost” and not the “unfunded liability.” According to the House plan, the state would make payments to school divisions for the employer’s share of retirement, group life and retiree health care for teachers based on a much higher rate in 2011 than in 2012.

Because the contributions would decrease in 2012, the difference would be applied toward funding the Standards of Quality as a “Required Local Effort Credit.” In York County, for example, that credit would amount to $1.9 million. The localities would be required to make quarterly payments equal to the credit amount to the Department of Accounts.

The Senate also would decrease the employer VRS contributions, but would pay 20 percent of the unfunded liability. The Senate does not include any plan similar to the local effort credit idea.

The Senate Budget
The Senate budget cuts less state funding from schools than the House budget, about $133 million compared to the House’s cuts of $620 million.
The budget eliminates funding for textbooks in 2012 and would allow existing textbook funds to be spent on electronic books or other electronic media resources. The Senate bill also maintains changes instituted in 2010 that moved funding for alternative education, special education regional tuition and supplemental basic aid from the incentive program funding to the lottery account.

Unlike the House, however, the Senate bill would not establish a block-grant system to fund some of those programs in the new biennium. The aid is still reduced – York County would get $1.7 million in lottery funding compared to $2.2 million in 2010 – because the lottery fund would be financing more programs. The Senate also would increase funding for the school breakfast initiative.

Class sizes affected
Both budgets would relax some staffing requirements as outlined in the SOQ. First, the proposals would modify what staff members are counted in pupil/teacher ratios. For grades kindergarten through third grade, the state would not consider instructional aides in the pupil/teacher ratios. The Senate proposes allowing school divisions to staff one higher, in the case of class size ratios, or one lower, in the case of full-time employees per 1,000 students.

The House, however, would provide flexibility to increase teacher to pupil ratios in kindergarten through seventh grade and add one additional student to English classes in grades six through 12. The House budget would also waive requirements for the amount of teachers specializing in Elementary Resource; Prevention, Intervention and Remediation; English as a Second Language; Gifted and Talented; and Career and Technical education. Staffing ratios for new hires in instructional and support positions, librarians and guidance counselors would also be waived. The temporary flexibility would not apply to the K-3 Primary Class Size program.

To learn more details about the state funding, click here.   http://www.doe.virginia.gov/administrators/superintendents_memos/2010/047-10.shtml