Pursuant to the requirements of Va. Code § 22.1-97, 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 2025, through the 2024-2025 Annual School Report Financial Section (ASRFIN). School divisions were also required to certify that budgeted local funds were at the required level in support of the Standards of Quality for fiscal year 2026.

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 2025 calculations are based on actual local operational expenditures.

There are 131 school divisions in the Commonwealth; however, for reporting of Required Local Effort and Required Local Match, two of the joint systems (Fairfax County/Fairfax City and Williamsburg City/James City County) are reflected independently in this report. With this independent reporting, there are typically 134 reporting school divisions included in this report. As of this report submission, Essex County and Northumberland County have not submitted their Annual School report. Throughout this report, information is being reported on the 132 school divisions that have completed their required reporting submissions. Outreach has occurred to Essex County and Northumberland County via email and a formal letter to the division Superintendent, Board of Supervisors Chair, and School Board Chair. Without their submission, it will be noted that their data was not received throughout the report.

132 of 132 reporting school divisions met or exceeded required local effort for fiscal year 2025.

Item 125, Chapter 725, 2025 Virginia Acts of Assembly, requires school 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 2026. School divisions whose local appropriations for fiscal year 2026 are only slightly more than the amount required to maintain local effort for the Standards of Quality have been advised to review their average daily membership monthly during the fiscal year to ensure sufficient local appropriations are available based on current enrollment levels.

Pursuant to Item 125, Chapter 725, 2025 Virginia Acts of Assembly, for fiscal year 2025, 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 2025, 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; Compensation Supplement; Infrastructure & Operations Per Pupil Fund; Math/Reading Instructional Specialist Initiative; and Early Reading Specialist Initiative. 131 of 132 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 2025.

For fiscal year 2026, 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 2026.