Updated March 11, 2002

The Schedule

The General Assembly adjourned March 9, having approved changes to the FY02 budget and a new biennial budget that includes reduced revenues as well as spending and program reductions. The approved budget, as well as legislation passed during the just-completed 60 day session, now goes to Governor Warner for his action. The Governor has 30 days from the session’s end to act on bills presented to him; the legislature then gathers on April 17 for its annual reconvened session to consider amendments and vetoes proposed by the Governor. Please click for a schedule of weekly meetings.

The Issues

The approved biennial budget appropriates approximately $4.5 billion in state funds for education in both FY03 and FY04. It restores half of the funding for the School Construction Grants Program ($27.5 million each year) that was proposed for elimination in the introduced budget. While no teacher salary increases are included in the first year of the 2002-2004 budget, the spending plan provides $101.4 million in a reserve account to be used for second-year pay increases for state employees, faculty, state-supported local employees and school teachers. Legislators are expected to address the second-year salary issue during the 2003 session. An additional $1.75 million is provided for bonuses for teachers qualifying for National Board of Professional Teaching Standards certification. Also, an additional $9.9 million in lottery proceeds in FY03 and $10.0 million in FY04 is anticipated, 60% of which pays for a portion of the state share of basic aid costs, with the remaining 40% distributed to school divisions. The budget begins to fund two of the recommendations contained in the JLARC report on elementary and secondary education funding. Specifically, an additional $24.8 million in FY03 and $50 million in FY04 is added to basic aid for eliminating the practice of deducting locally generated costs from the Standards of Quality (SOQ) cost calculations, with 50% of the revenues deducted in FY03 and none deducted in FY04. The spending plan also begins to phase in recognition of the costs of administrative positions (school board services, executive administration, information, personnel, planning, fiscal, purchasing, copying/printing, and data processing services) in calculating SOQ costs; funding of $4.1 million is provided in FY03 (5.8% of the state share) and $54.2 million in FY04 (72%). Language in the budget also implements another JLARC recommendation by requiring the Department of Education (DOE) to determine if localities are meeting required local effort provisions.

To find dollars for these actions, a number of program reductions and captured savings were utilized. Eliminated were the additional teachers program ($57 million over the biennium), the school building maintenance supplement ($19.3 million over the two years), and a handful of programs funded at the local or regional level (totaling $2.4 million). Also, the Standards of Learning (SOL) Teacher Training Program ($35 million), the SOL Materials Program ($13.8 million) and the Truancy program ($4.3 million) were discontinued. In addition, categorical funding for Project Discovery, the At-Risk and Dropout Prevention programs were reduced by 7% the first year and 8% the second year. Several technical changes are made that capture savings or unspent balances, including savings garnered by reducing funding to the Virginia Retirement System (VRS) to reflect a group life premium holiday in both years of the budget, and by updating inflation factors ($67 million). Recall that in the introduced budget, the lottery hold harmless program ($29.7 million) was eliminated, and approximately $36 million in costs were shifted from the state to localities for the retired teacher health insurance credit program. Also, more than $160 million was diverted from the Literary Fund, and the approved budget seizes another $9.6 million over the two years.

The budget also is buffered by the addition of new federal dollars, namely as a result of the recently-approved reauthorization of the Elementary and Secondary Education Act (dubbed the “No Child Left Behind” Act). This includes an additional $16.9 million in “Reading First” grants, $52.1 million in FY03 for teaching quality grants, and $7.9 million to begin complying with new federal testing requirements, all in FY03. Also, an additional $27.4 million in federal special education dollars is expected in FY03.

Finally, the DOE will lose its eight regional “best practices” centers that were established several years ago to assist local school divisions with SOL implementation. This saves the state $4.2 million over the two years. The web-based SOL testing program is delayed for one year, at a state savings of nearly $3.5 million. Just over $750,000 is reduced for the Standards of Accreditation (SOA) Academic Review Teams. However, $1 million is provided for final development of separate history SOL tests in grades 5-8, while $700,000 is appropriated for a revised history SOL test.

In the waning hours of the final day of the session, the General Assembly failed to approved legislation to authorize a regional sales tax referenda in Northern Virginia that would have provided additional dollars for education to 62 school divisions statewide. The Senate approved the measure, but the House abruptly adjourned without considering the legislation. It is anticipated that this concept will reappear at the reconvened session, possibly as a proposed gubernatorial amendment to other legislation.

A handful of education-related studies have been approved by the legislature. HB 335 establishes a 17-member Advisory Council on Career and Technical Education to recommend a multi-agency approach for delivering career and technical education programs and services in the public schools. HJR 34 directs the Joint Legislative Audit and Review Commission (JLARC) to examine best administrative, fiscal, and service practices in school divisions. As part of its charge, JLARC is to identify programs and services that might be consolidated or that might be out-sourced, and to develop recommendations regarding revenue-saving practices. HJR 91 establishes a joint subcommittee to study the use of independent educational performance assessment services. It has been reported that such services can offer analysis based on various performance variables ranging from test scores to school division budgets.

SJR 58 continues the Commission on Educational Accountability for an additional year. SJR 87 directs JLARC to recommend a state funding formula for educational technology and technology support personnel, and to examine ways to enhance the use of federal assistance for educational technology, such as continuation of the E-rate program and implementation of state tax credits for businesses contributing technology resources to schools. Finally, SJ 120 directs the Board of Education (BOE) to examine the Standards of Quality (SOQ) to ensure that they are realistic relative to current educational needs and practices.

Please click for access to all bills assigned to the House Education and Senate Education and Health Committees.

The CEPI-requested legislation to establish a legislative study committee to review, study and reform educational leadership (HJR 20 and SJR 58) was approved. The commission will be composed of 21 members, including eight legislators (five delegates and three senators) and the following: one college president, one dean of a school of education, the Secretary of Education, the President of the Board of Education, the Superintendent of Public Instruction, the director of the State Council of Higher Education, the three Virginia principals of the year (elementary, middle and high), the superintendent of the year, the Virginia teacher of the year, an assistant principal and the CEPI executive director.

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