Bacon's Rebellion

School Finance in Virginia – the Issue of State Contributions

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sherlockj
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7 responses to “School Finance in Virginia – the Issue of State Contributions”

  1. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    The process used to determine state aid for local schools is too labyrinthine to get into here, but there some general answers that will address the seeming anomalies you have pointed out.

    First, a locality’s composite index may not reflect its median income because local income is only one component of the composite index, and not the major component. The three factors and their weights are:

    True value of real property–50 percent
    Adjusted gross income–40 percent
    Taxable retail sales–10 percent

    Localities that have relatively high real property valuations will end up with a high composite index score. The presence of major Dominion Energy properties within their boundaries thus account for the .80 composite index of Surry, Bath, and Highland counties.

    Second, not all the state aid is distributed using the composite index. The funding streams can be broken down into three main categories:

    1, SOQ funding–distribution based on composite index
    2, Sales tax–distribution of the local share of sales tax collected by state, based on pupil population
    3. Categorical–these are special education activities or areas that are funded by GA outside of SOQ funding. Each has its own distribution formula.

    Sussex
    Total per pupil—$8,191
    SOQ–$5,079
    Sales tax–$1,293
    Categorical–$1,819

    Tazewell
    Total per pupil–$6,572
    SOQ–$4,798
    Sales tax–$1,233
    Categorical–$541

    Sussex received $1619 more per pupil than Tazewell did. Obviously, the $1,278 difference in categorical funding accounts for most of that difference. However, Sussex, with a higher composite index, received $281 more per pupil in SOQ funding also. A lot more digging is needed to account for that difference, as well as for the slight difference in sales tax distribution per pupil.

    1. Stephen Haner Avatar
      Stephen Haner

      Fools rush in…..Few things in state government are more complicated or controversial. Dick’s summary fits my understanding. Yet all see this as a huge electrified third rail and avoid the topic. Pull on one thread and the battle will begin.

      1. James C. Sherlock Avatar
        James C. Sherlock

        Maybe it should.

      2. James C. Sherlock Avatar
        James C. Sherlock

        See my response to Dick above.

    2. James C. Sherlock Avatar
      James C. Sherlock

      One of the reasons I wrote this piece is to let members of the GA see the practical results of their laws.

      Not sure they get to see the outcomes presented in this way.

      One of the major anomalies in the Sussex – Tazewell comparison I presented was the $8000 per student that Sussex contributed with local funds. Good for them. But the composite index seems to assess that they could not raise that level of funds.

      I know this is complex, but the real world outcome that Sussex students ($17,500 per pupil) and Tazewell students (a little over $10,000 per student) have public educational support funding at that level of difference is worth at least exposing to public view.

      Money is certainly not everything, as I have shown many times, but it does indicate public investment and should be monitored.

      If the GA and the Governor intended these funding distribution outcomes, then they can say so.

      With this much money in play, they should let us know how they manage it.

      1. Atlas Rand Avatar
        Atlas Rand

        I would caution you James that white kids in Sussex are so few as to not constitute an applicable sample size. Also, the few white kids who do attend Sussex are almost always low income, and unable to attend the local private schools, Tidewater Academy, Southampton Academy, and Isle of Wight Academy. Some also attended St. Joseph’s in Petersburg. Sussex is still very much segregated, with white kids nearly universally still attending the segregation academies, and black kids in public school. I say this as a former Sussex resident and attendee of one of the academies, though during my time Sussex was the worst rated school system in the state.

        1. James C. Sherlock Avatar
          James C. Sherlock

          All of that I am sure is true. Yet by the state standards, that cohort is large enough to report upon. The only reason I reported the results of SOLs was in answer to Dick. I think you are right. I have edited my response.

          If the GA intended the extra funding to go to Sussex to raise the quality of failing schools, then they will look at these funding numbers and be pleased. If that was the reason, I may agree with them when and if they explain themselves.

          But it is public money, and a full airing of how it is distributed and why is warranted.

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