State Surplus to Mean Extra Funds for Schools (VA)

July 15, 2010

The state’s unexpected $220 million estimated budget surplus will mean a windfall for area schools and state employees.

Gov. Bob McDonnell announced the estimated surplus Wednesday for the fiscal year that ended June 30. It comes after the state cut spending to localities, schools, agencies and others to cover a $1.8 billion shortfall through the end of fiscal 2010 and a $4.2 billion shortfall in the fiscal year 2011-12 budget.

Because of the surplus, the Henry County School System is projected to receive $117,845; Martinsville School System, $43,332; and Patrick County School System, $40,440, according to information from the governor’s office.

The primary source of the surplus is individual withholding and non-withholding and corporate income tax receipts, the Governor’s Office release states.

Based on the release and/or information from Stacey Johnson, the governor’s press secretary, roughly $143 million of the $220 million is expected to go to four areas:

• About $83 million will fund a one-time 3 percent bonus for Virginia’s state employees, who have not had a pay increase for nearly four years, McDonnell said. Early this year, the governor asked state employees to identify how the commonwealth could save m oney, and state employees identified more than $28 million in savings, Johnson said.

• About $18 million from increased sales tax collections will go to local school districts, the release states.

• About $22 million will go for Virginia’s Water Quality Fund for continuing efforts to clean up the Chesapeake Bay, the release states.

• At least $20 million will go into the Transportation Trust Fund, Johnson said.

“The allocation of the remainder of the surplus will be determined in the weeks ahead in accordance with statutory requirements and final financial calculations,” McDonnell stated.

Henry County Schools Superintendent Anthony Jackson said Wednesday the division had not received official notice of the funds from the state, but he welcomes any new or restored funds.

“We would use it (the money) to plug holes in our current budget and to see where if possible we can restore things that were taken out of our budget. Until we get an actual number, it will be hard to say exactly what we’re going to do,” he said.

Henry County Schools lost about $8.1 million in state funds in the fiscal year that started July 1, which was in addition to state budget cuts in 2009-2010.

Henry County School Board Chairman Kathy Rogers of the Collinsville District said: “It’s great news, not only for school systems, but the economy of the state.”

Martinsville School Board Chairman Jim Johnson said: “I’m sure we can use the money. I was not expecting any additional funds.” The school board is meeting today and will discuss it then, he said.

Pam Heath, acting su perintendent of Martinsville Schools, also said she had received no official notification about the money. But, she said, “We’re always excited to hear we may receive additional money.”

The city schools lost $1.8 million in state funding this fiscal year, according to previous reports.

Officials with Patrick County Schools could not be reached for comment.

Henry County Administrator Benny Summerlin said he doesn’t think it would be realistic to think Henry County will get any of the surplus money, because the state budget already has been set for the current fiscal year and because the General Assembly, which does not convene again until 2011, would have to appropriate funds.

He said the surplus is “positive news” that hopefully will mean there will be no further funding cuts this year.

Henry County Sheriff Lane Perry, when asked his reaction to the surplus, said: “I’m relieved. I say that for society as a whole.” Efforts have been made, especially by governmental agencies, to try to conserve and cut back, he said. “Hopefully, this has made some difference.”

“I would hope public safety would be one of the first looked-at areas” if any surplus money remains, he said.

Perry estimates that state funds for the sheriff’s office and jail reimbursement have been cut by a total of about $750,000 in the fiscal year that ended June 30 and the one that began July 1.

As a result of the surplus now, he said, he hopes the state won’t cut the budget midyear.

Martinsville Sheriff Steve Draper said the surplus is “good news.”

“What it means for us, not o nly my office but for sheriff’s offices across the state … I think it will eliminate any midyear (budget) reductions,” he said.

He said his office faced midyear cuts twice last year under former governor Tim Kaine. The state cuts in September and at the end of the year totaled $236,290, said Martinsville Sheriff’s Maj. Laura Hopkins.

Martinsville Commonwealth’s Attorney Joan Ziglar said, “I’m just baffled where all this money is coming from and how the General Assembly and all the other officials missed it.”

She and her staff have had to take unpaid furlough days three of the last four years, which she considers a reduction in pay, and her office has lost an assistant commonwealth’s attorney position.

Because of the office’s heavy caseload and the furlough days, she and her assistant commonwealth’s attorneys work late for no extra pay, she said. Just because the office has lost an attorney doesn’t mean crime has stopped or that court has stopped, she added.

“We’re expected to be there (in court) and be prepared,” she said.

“Everybody is always yelling they’re tough on crime,” she said. It’s time to back that up by funding police and filling empty positions in commonwealth attorneys’ offices, she said.

“I’m sure” the commonwealth’s attorneys association “will be speaking on our behalf,” she said.

City Manager Clarence Monday said if there is any way the city could get any of the state surplus money, he would like to lobby. But for now he wants to get more information, he said.

The state surplus is good news, he said, but “I’m not optimistic our local economy has rebounded yet.”

The final figure for the surplus will come in August when all year-end adjustments are made and the governor appears before the joint money committees of the General Assembly, his release states.