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Virginia General Assembly

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The 2005 General Assembly

February 28, 2005

The General Assembly adjourned on Sunday, February 27 after quickly approving changes to the biennial budget. The approved budget, as well as legislation passed during the just-completed 47-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 6 for its annual reconvened session to consider amendments and vetoes proposed by the governor.

The Budget

The remainder of this weekly summary will be devoted to information about education-related budget provisions for the remainder of the 2004-2006 state spending plan as proposed by the budget negotiators and then approved by the legislature. The conference committee of senior budget writers worked past their deadline to reach a compromise spending plan. A budget agreement was not reached until early Saturday morning (the original deadline had been Tuesday night). The amendments were made available on Sunday morning, allowing a short amount of time for review prior to votes on the budget and then adjournment. Provisions of the compromise spending plan related to public education include the following:

Direct Aid to Public Education
 

The approved budget allocates an additional $42.4 million for the biennium for direct aid to public education and an additional $1.6 million for the Department of Education. These figures are slightly below those contained in the introduced budget. Salary increases for SOQ-supported instructional and support staff, included in the introduced budget, were maintained in the approved spending plan. Specifically, the amount for teacher salaries ($54.8 million) represents the state share of a 3% increase, to be effective December 1 of this year. Language is included that the goal is to improve the average classroom teacher salary by 3%, but that the funding is not a mandate to increase salaries.

The budget also adds $10 million in FY06 to the Literary Fund, to be used for school construction loans for projects on the First Priority Waiting List. The introduced budget diverted nearly $136 million from the Literary Fund to pay for teacher retirement, and an additional $20 million for interest rate subsidies for school capital projects.

Nearly $2.3 million is added to restore half of the eight percent reduction taken in 2002 to at-risk add-on funding payments. Truancy prevention also is added to the list of programs that may be supported with this funding, with $675,000 specifically directed for a one-year pilot truancy program in the City of Richmond.

The spending plan redirects unanticipated increases in FY 2004 lottery proceeds entirely to support Basic Aid, but allows $26.4 million in estimated FY05 and FY06 lottery proceeds to be split between basic aid and local school divisions.

It also provides just over $1 million in general and nongeneral funds over the two years to support the state's portion of the contract for the turnaround specialist credential program. This is a nearly $151,000 reduction from the introduced budget. Funding is included to provide salary incentives for 10 principals in the program for three years.

The budget adds $800,000 to provide support and additional vocational-technical education equipment for all school divisions and $400,000 for the Career and Technical Education Resource Center, which provides statewide vocational curriculum and instructional materials.

It adds $200,000 for the Jobs for Virginia Graduates program, which provides career specialists to support school-to-graduation-to-work programs. A language amendment allows basic aid funding attributable to school nurses to be used to purchase defibrillators at high schools offering interscholastic sports.

The approved budget eliminates the $1.6 million proposed in the introduced budget for a new state-supported school breakfast reimbursement that provides an additional $0.05 cents per meal.

Finally, the budget removes proposed new language and $3.6 million in the introduced budget that changed the current methodology for reimbursing school districts for medical service costs. Language allows school divisions awarded competitive leadership development grants in either year of the biennium to retain any unspent balances and spend the remainder for the intended purposes during the next two fiscal years.

 

Department of Education

The approved budget requires consolidation of the residential deaf, blind, and multi-disabled education services currently offered at the two schools at Staunton and Hampton, at a new facility to be identified in a plan adopted by the Board of Education. It also provides nearly $1.2 million in FY06 for school efficiency reviews, down from $1.4 million contained in the introduced budget. The spending plan reduces funding by $500,000 in FY06 for a new statewide on-line career planning system, by $1.2 million for expansion of “Race to the GED” instruction and testing (it also eliminates just over $643,000 for GED radio announcements), and by $200,000 for a proposed pilot through the PASS initiative to train school board members from four low-performing school divisions.

Additional funding for the DOE to conduct reviews of schools that are accredited with warning, and federal funds for No Child Left Behind (NCLB) Act initiatives, as contained in the introduced budget, also are retained in the approved plan.

Click here for access to specific information about the approved Budget Compromise.

Please contact CEPI if you have any questions or need additional information about the 2005 General Assembly.

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 Commonwealth Educational Policy Institute | Virginia Commonwealth University
 1015 W. Main St., Room 2087 | P.O. Box 842020 | Richmond, VA 23284-2020
 Telephone: (804) 827-3290 | Fax: (804) 828-2768 | TDD: 1-800-828-9000 | E-mail: cepi@vcu.edu

 Date Last Updated: 06/21/2002