State change could mean more local money needed for schools

DANVILLE - Danville and Pittsylvania County will be required to fund a larger percentage of school districts’ budget for the 2010-12 biennium because Gov. Bob McDonnell plans to update the formula that determines K-12 funding.

In his outgoing budget proposal, Gov. Timothy M. Kaine suggested freezing the 2008-10 “local composite index,” the formula that determines how much of a district’s budget is based on local and state funds. But McDonnell announced Monday that he plans to undo that freeze and continue with the formula update that occurs every two years based on the most recent tax data available.

Because the formula is based on a community’s tax base — including adjusted gross income, property values, taxable retail sales, population and school enrollment — the changes affect each school district differently.

According to the Department of Education, local composite indices, the percentage of school funds Pittsylvania County is responsible for is now 24 percent — or an increase of $896,895. Danville’s local composite index rose to 24.7 percent, meaning an increase of $299,297.

“The composite index is an expression of a locality’s ability to pay for the foundational education programs as defined by the standards of quality,” said Charles Pyle, director of communications for the DOE. “It takes into account various factors related to the tax base in the community … It is not an expression of the affluence of the families whose children attend public schools. It’s an expression of the relative wealth of the locality when you take in the tax base.”

That means Pittsylvania County will have to pay $896,895 more than expected to make up for fewer state funds, according to Superintendent James McDaniel. Because the county funds the schools at the minimum level, that increase amounts to more than $1.3 million that the county is required to fund by the state, McDaniel said.

However, that does not affect the district’s bottom line. The schools will get more funding from Pittsylvania County, but less from the state.

“Because we’re funded at the minimum,” McDaniel said, “if the state funding changes, then it’s going to affect the local funding … It’s not additional money; it’s less state money and more local money. At the end of the day, it’s the same total dollar amount.”

Danville will be required to fund the additional $299,297 to local schools, but because the city typically exceeds the minimum required funding, it is unclear if that increase will affect what the city would have originally funded. Superintendent Sue Davis could not be reached for comment.

The 2010 General Assembly must adopt McDonnell’s recommendation in the final 2010-12 budget for it to be implemented.