In accordance with Item 125, Paragraph B.14, Chapter 1, 2026 Acts of Assembly, Special Session I (the 2026 Appropriation Act), the Department of Planning and Budget (DPB), in coordination with the Department of Education (DOE), has prepared the annual report on updates to the cost of the Standards of Quality (SOQ) based upon the most current data available for the 2026-2028 biennium. Because this session will amend the current budget and does not involve the rebenchmarking process, changes in the SOQ costs are limited and primarily include only technical updates based on revisions to data used to determine the costs.

This report includes two data updates to SOQ funding for fiscal years (FY) 2027 and 2028:

1. 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; and

2. Update of the Lottery Proceeds Fund estimate based on the Virginia Lottery's most recent forecast.

As of this time there are no other updates available. Updates to the sales tax estimate and enrollment changes should be available by mid-November.