News

State aid to Loudoun schools could increase

March 3, 2010

The state House and Senate versions of the fiscal year 2011 budget give more direct aid to Loudoun County Public Schools than local elected leaders anticipated.

Under the Senate’s budget, Loudoun would receive $31 million in additional direct aid over the $186 million proposed by Gov. Bob McDonnell. The House’s version provides for an additional $20 million.

Both budgets include $34 million in Local Composite Index funding.

“As a result of the hard work put in by many different groups, Loudoun schools will experience a net increase of 17.3 percent in available funds compared to the budget proposed by then-Governor Timothy M. Kaine,” said Del. Tag Greason (R-northeastern Loudoun).

Loudoun County Public School leaders relied on Kaine’s budget to map out their fiscal plan, which included $179 million in direct state aid.

Kaine’s version did not include $34 million from the Local Composite Index, the state’s formula for dividing up education money. This formula is readjusted every two years according to new financial data from each county, but Kaine froze the index in his biennial budget deliberations before he left office.

Loudoun County is a donor county under the index, meaning it sends more money to Richmond than it receives. However, this year, a drop in real estate values put Loudoun in place to receive money.

The proposed increase in direct state aid from both chambers to Loudoun County schools comes as local leaders are trying to balance a $1.5 billion budget, which includes a $191.6 million spending deficit.

Loudoun County Public Schools is asking for $764.7 million of that $1.5 billion for the school system’s operating budget, in addition to money that goes toward construction of schools.

The School Board’s proposed budget to supervisors includes a request that the county close a $25 million gap in state funding that would have been lost under Kaine’s budget, according to School Board Chairman John Stevens.

An increase in direct state aid, Stevens said, would mean less assistance from the county for public schools.

“Any more money we get from the state would mean money that’s going back to Loudoun,” he said.

House and Senate negotiators this week will try to work out their budget differences before a final version will be voted on and presented to McDonnell.

Sen. Mark Herring (D-eastern Loudoun) said he expects Loudoun to receive between $19 million and $31 million from the Local Composite Index once the chambers combine their budgets.

Loudoun, Herring said, will probably not get the full $34 million because lawmakers had to make cuts to keep from losing the Car Tax Relief program, which helps to keeps residents’ car tax bills low. Kaine had proposed phasing out the program before he left office.

“Obviously I advocated hard to get the $34 million,” Herring said.

Originally Posted in the Loudoun Times