Pursuant to the requirements of Section 22.1-97, Code of Virginia, the Virginia Department of Education collected data from school divisions on the actual local funding effort in support of the Standards of Quality for fiscal year 2021, through the 2020-2021 Annual School Report Financial Section (ASRFIN). School divisions were also required to certify that local funds were at the required level in support of the Standards of Quality for fiscal year 2022.

One school division did not submit its ASRFIN to the Virginia Department of Education at the time this report was drafted.

This report provides the results of calculations made to ensure that each school division has expended sufficient local funds to support its required local effort. The purpose of required local effort is to ensure that each school division has sufficient local operational expenditures to support its local share of the cost of the Standards of Quality. Fiscal year 2021 calculations are based on actual local operational expenditures. 132 of 134 reporting school divisions met required local effort for fiscal Year 2021.

Item 145, Chapter 552, 2021 Virginia Acts of Assembly, requires divisions to certify “that sufficient local funds have been budgeted to meet all state required local effort and required local match amounts." All school divisions certified that they have budgeted local operational funds sufficient to meet budgeted required local effort for fiscal year 2022. School divisions whose local appropriations for fiscal year 2022 are only slightly in excess of the amount required to maintain local effort for the Standards of Quality have been advised to review their average daily membership on a monthly basis during the fiscal year to ensure sufficient local appropriations are available based on current enrollment levels.

Pursuant to Item 145, Chapter 552, 2021 Virginia Acts of Assembly, for fiscal year 2021, the Virginia Department of Education collected data on actual local expenditures for Incentive and Lottery programs that have a required local match. In fiscal year 2021, school divisions were required to report on local expenditures to support the actual required local match for each of the applicable accounts: At Risk; Virginia Preschool Initiative; K-3 Primary Class Size Reduction; Math/Reading Instructional Specialist Initiative; and Early Reading Specialist Initiative. 127 of 134 reporting school divisions reported certified actual local operational expenditures sufficient to meet required local match for the programs in which they elected to participate in fiscal year 2021.

For fiscal year 2022, all school divisions have submitted the required information to certify their budgeted required local match for Incentive and Lottery accounts (i.e., At-Risk, Compensation Supplement, Virginia Preschool Initiative, Infrastructure & Operations Per Pupil Fund, K-3 Primary Class Size Reduction, Math/Reading Instructional Specialist Initiative, and Early Reading Specialists Initiative). All school divisions certified that they have budgeted local operational funds sufficient to meet budgeted required local match for all Incentive and Lottery-funded accounts in which they have elected to participate in fiscal year 2022.

The Governor’s amended fiscal year 2022 budget (House Bill 29/Senate Bill 29) proposes language that waives required local effort and required local match for fiscal year 2021.