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2004 SESSION

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HB 394 Standards of Quality in public schools; computation of composite index.

Introduced by: Kristen J. Amundson | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Computation of composite index. Requires the General Assembly to modify the current Standards of Quality (SOQ) funding formula and calculation of composite index of local ability-to-pay to (i) adjust the weights assigned to the real property, sales tax, and other revenue components; (ii) provide for a population density adjustment; and (iii) incorporate median adjusted gross income in certain localities, as provided in the appropriation act.

The modified formula shall be implemented to address the costs of providing an educational program meeting the SOQ beginning with the 2005-2006 school year.

This measure reflects a recommendation included in the Joint Legislative Audit and Review Commission (JLARC) Review on Elementary and Secondary School Funding (February 2002). The JLARC report recommended, among other things, an adjustment to the current weights assigned to the real property, adjusted gross income (AGI), and taxable sales components of the composite index (50 percent, 40 percent, and 10 percent, respectively), as these weights reflected "the proportions of total revenue derived from each tax base in the 1970s, when the composite index was developed." The 2002 report noted that real property, “other” revenue, and taxable sales comprised 44, 49, and seven percent, respectively, of total revenue in 1997; thus, the "proportion of revenue derived from real property and taxable sales has decreased over time, while the proportion from 'other' revenues has increased."


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