Schools face cuts as Virginia recalculates index

The hits keep coming for Virginia's financially strapped school divisions.

The Virginia Department of Education recently recalculated the composite index for the 2010 and 2011 school years, which determines how much money each school system receives annually from the state.

For most of the 134 school divisions, the news isn't good.

Their indexes increased, which means they will have to rely more heavily on their equally cash-strapped local governments for money for the next two school years.

Numbers show that Richmond and Chesterfield County could be hit the hardest.

Richmond schools spokeswoman Felicia Cosby said the city is looking at $9 million less in potential state funding, based on its new index. She said school officials are beginning discussions with city administration and City Council staff about how to deal with the shortfall. This year's $260 million budget for Richmond schools includes roughly $70.2 million in state money.

Additionally, Chesterfield school officials are looking at a $4 million loss, said schools spokesman Shawn Smith. Of the current year's $571 million operating budget, more than 50 percent comes from the state.

Indexes went up not only for Richmond and Chesterfield, but also for Petersburg and Henrico and Hanover counties. Henrico could lose about $450,000. Hanover could lose about $900,000, and Petersburg, $800,000.

The composite index is based on an ability-to-pay system and is calculated based on each locality's daily average attendance and overall student enrollment, real estate values and retail sales taxes.

This newest index is based on data from 2007. The higher the index, the more wealthy the locality and therefore, the less state money the school division receives

To add to the tension of school budget planning, school officials are waiting to see how the state will re-benchmark Virginia's Standards of Quality.

The standards outline the basic requirements for an education in Virginia. They determine everything from the number of teachers and principals a school needs to graduation requirements.

The state then gives money to school divisions to help fund their needs. Currently, the state funds about 55 percent of the standards.

The composite index is one factor that contributes to re-benchmarking the standards.

In a budget meeting last week with county leaders, Hanover Schools Superintendent Stewart D. Roberson called the combination of a weak economy, smaller student enrollment, no stimulus money and now a higher composite index "the perfect storm."

Because public school divisions and governments lag behind the private sector when it comes to economic changes, 18 months from now, "we'll be making some very difficult choices," he said.

The state notified school divisions about their new index numbers this month. School officials in the region say they will be reviewing the impact of the index over the next few months as they work out their budgets for next year.

Holly Prestidge is a staff writer at the Richmond Times-Dispatch.