RD660 - Annual Report to the General Assembly on the Updates to the Standards of Quality – November 15, 2021
In accordance with Chapter 552, 2021 Acts of Assembly, Special Session I, the Department of Planning and Budget (DPB), in coordination with the Department of Education (DOE), has prepared the annual report on the update to the Standards of Quality (SOQ) based upon the most current data available. This report includes updates to the SOQ accounts that are calculated on an annual basis as well as biennial updates associated with the rebenchmarking process as prepared by DOE and submitted to the Board of Education.
Specifically, this report contains the following updates and projected state costs for the Standards of Quality in fiscal year 2022 and the 2022-2024 biennium:
• Updates for the 2022-2024 biennial SOQ rebenchmarking process, as submitted to the Board of Education at its October 20, 2021, meeting (NOTE: The Department of Education presented SOQ rebenchmarking changes to the Board of Education that retained the “No Loss" funding that was approved by the General Assembly in Chapter 552 due to the COVID-19 pandemic. Historically, “No Loss" funding is one-time and not included in the rebenchmarking calculations. The numbers in this report include this “No Loss" funding [step 27 in Appendix A below] in order to present cost estimates that are consistent with the Department’s actions.);
• Update of the Composite Index of Local Ability-to-Pay for the 2022-2024 biennium;
• Update of fringe benefit contribution rates for funded positions in the SOQ model based on Virginia Retirement System board-certified rates for the 2022-2024 biennium;
• Update of fall membership and average daily membership projections based on preliminary September 30, 2021, fall membership data for fiscal year 2022 and for the 2022-2024 biennium;
• Update of the Lottery Proceeds Fund estimate based on the Virginia Lottery’s October 2021 forecast for fiscal year 2022 and for the 2022-2024 biennium;
• Update of sales tax revenues for public education for fiscal year 2022 and for the 2022-2024 biennium based on the Virginia Department of Taxation’s 2021 GACRE forecast; and
• Update of the latest yearly estimate of school age population provided by the Weldon Cooper Center for Public Service for the distribution of sales tax revenues to school divisions.
The table on page 3 of the report details the general fund expenditure impact of these updates to the Standards of Quality for fiscal year 2022 and the 2022-2024 biennium.