2006 Code of Virginia § 22.1-98.2 - Certain agreements; adjustment of state share for basic aid

22.1-98.2. Certain agreements; adjustment of state share for basic aid.

A. Any school board of a school division in which fewer than 350 studentswere included in average daily membership for the preceding school year, uponentering into certain cost-savings agreements with a contiguous schooldivision for the consolidation or sharing of educational, administrative, orsupport services, shall receive the state share for basic aid computed on thebasis of the composite index of local ability-to-pay of the contiguous schooldivision, calculated annually, for a period of 15 years.

The Board of Education shall develop eligibility criteria for suchcost-savings and service-sharing agreements and for the adjustment of thestate share for basic aid, consistent with the appropriation act.

The Governor shall approve the adjustment to the state share prior to thedisbursement of funds. The Department of Education shall annually report tothe Chairmen of the House Appropriations and Senate Finance Committees thecost-savings agreements made and the adjusted state shares so approved.

B. The local school board receiving the adjusted state share shall not usethe additional funds received to supplant local funds appropriated foreducation. The adjusted state share shall be used solely for educationalpurposes and shall not be used to reduce local operating expenditures forpublic education from the prior fiscal year. However, no school divisionshall be required to maintain a per pupil expenditure for operations thatexceeds the per pupil expenditure in the prior fiscal year. Thesuperintendent of the school division shall inform the Superintendent ofPublic Instruction of the public education purpose for which these localfunds shall be used.

C. This section shall not prohibit the Commonwealth from terminating ormodifying any program or function under which distribution to a local schoolboard has been made, and if so terminated or modified all obligationshereunder shall cease or be reduced in proportion with such modifications, asthe case may be.

D. If any such contractual agreements between the relevant school divisionsterminate prior to the end of the applicable period set forth above, theCommonwealth's obligation under this section shall cease.

E. This agreement and adjusted state payment shall be in lieu of any existingfunds a locality receives from a Small School Division Assistance grant.

F. Any standard of quality set forth in this act that is not required as ofJune 30, 2004, and for which additional state funding is required, shall nottake effect unless the state's share of funding that standard is included inthe general appropriation act for the period July 1, 2004, through June 30,2006, passed during the 2004 Session of the General Assembly and signed intolaw by the Governor.

(2004, c. 820.)