Gov. Bob McDonnell’s proposal Monday to unfreeze the state’s local composite index could garner $872,429 for Culpeper County Public Schools during fiscal year 2011.
That’s if the General Assembly approves the recommendation.
Local school officials are hoping for the best.
“This is good news,” said School Board Chairman George Dasher. “This will help to offset other reductions we are expecting.”
So far, CCPS is facing a $3.5 million budget shortfall. The school division currently operates on a $72.6 million budget.
The LCI formula, which is updated every two years, determines state and local education funding.
Former Gov. Tim Kaine’s decision to freeze the index was considered “unprecedented” and would have cost certain Northern Virginia school divisions $128.3 million in state education funding, according to McDonnell’s news release.
Started 40 years ago, the LCI formula uses three indicators of a locality’s ability to pay. They are: property value, adjusted gross income and taxable retail sales.
“For many school districts, particularly in Northern Virginia, the biennial update of the index has meant far less funding from the state than that received by school districts in localities experiencing lesser rates of economic growth,” McDonnell said.
The governor said he reached his decision after extensive meetings with his finance staff, legislators, and local government officials.
“Ensuring that we have a fair formula that is implemented without regard to temporary or political considerations is the best means by which to appropriate education funding in the commonwealth,” McDonnell added. “Every time the index is readjusted some school systems gain funding, while others receive less.”
The proposal will cost the state $29 million in fiscal year 2011. To balance the increase, McDonnell recommends the transfer of $13 million from the Literary Fund balances; $8 million from the Health Insurance Fund to reduce state health insurance premiums; $5.2 million from Real ID savings and $3 million from non-general fund balances.
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