In accordance with Item 137, Paragraph B.14 of Chapter 1, 2023 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 technical updates to the SOQ accounts that are calculated on an annual basis as well as biennial updates associated with the rebenchmarking process.

Specifically, this report contains the following updates and projected state costs for the SOQs in fiscal year 2024 and the 2024-2026 biennium:

• Updates for the 2024-2026 biennial SOQ rebenchmarking process;

• Update of the Lottery Proceeds Fund estimate based on the Virginia Lottery’s October 2023 forecast for fiscal year 2024 and for the 2024-2026 biennium; 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.