School funding amounts vary in state budget plans

Lawmakers in Richmond are grappling with how to reconcile budget bills in the Virginia Senate and House of Delegates, and the differences between the bills could mean millions of dollars to some area school divisions.

Information released by the Department of Education on Tuesday shows Lynchburg-area school divisions together would receive roughly $7 million more for next school year under the Senate plan than under the House version.

For Lynchburg alone, the difference between the two plans is close to $2.6 million. For Bedford County, the difference is more than $1.5 million and for Campbell County, more than $1.3 million. The Senate’s version of the budget proposes more money for every local district.

Robert Johnson, Campbell County Superintendent, said the Senate version relies more on temporary cuts to K-12 education, the House more on permanent ones.

Projected funding for area schools

Department of Education projections showing the amount of money each school division would receive for the 2010-2011 school year under House of Delegates and Senate versions of the biennial budget:
Amherst County
House version: $25,284,257
Senate version: $26,091,378
Difference: $807,121
Appomattox County
House version: $13,130,687
Senate version: $13,568,797
Difference: $438,110
Bedford County
House version: $43,719,400
Senate version: $45,289,559
Difference: $1,561,159
Campbell County
House version: $44,992,299
Senate version: $46,362,237
Difference: $1,369,938
Lynchburg
House version: $42,069,110
Senate version: $44,621,920
Difference: $2,552,810
Nelson County
House version: $7,026,534
Senate version: $7,339,837
Difference: $313,303

The House version may come with a catch for school divisions. According to an analysis by the Virginia Education Association, the plan would reduce the amount each school division is required to pay to the Virginia Retirement System, but it would then require city councils and county boards of supervisors to pay the state back for the reduction. The move would allow the state to meet requirements to keep certain federal stimulus money, according to the VEA.

Johnson said it’s unlikely that local governments across the state would want to foot the bill.

“I can’t imagine them paying for this and not somehow taking it out of our transfer,” Johnson said.

VEA estimates suggest that Campbell County could have to pay more than $1.5 million back to the state if the measure in the house bill became law. The city of Lynchburg would owe close to $1.4 million.

Campbell County schools faced a $7.8 million deficit under the budget plan proposed by former Gov. Timothy M. Kaine. On top of that, Johnson said, he is looking at the possibility of $2 million less under the House’s budget plan and between $700,000 and $1 million under the Senate version.

On Friday, Lynchburg City Schools spokeswoman Leigh Farmer said Chief Financial Officer Beverly Padgett is working on a new, more detailed comparison of cuts in the House and Senate versions and that the information will be released at the School Board budget work session scheduled for Tuesday.

Padgett has previously estimated that Lynchburg could face a deficit of $15.4 million under the House bill and $12.8 million under the Senate bill.

Both of those figures are lower than the $17.8 million deficit Padgett projected from Gov. Bob McDonnell’s proposal. Both versions also unfreeze the composite index, but include relief for divisions such as those in Central Virginia that would be hurt by the update.