Local school districts are chewing the legislative equivalent of a Tums.
General Assembly budget writers have recommended "hold harmless" payments to school districts that would lose state funding when the formula used to allocate education dollars is updated.
The payments would mitigate losses from an update that means millions less for school districts in the Richmond area and across much of the state -- on top of millions in other proposed cuts.
An index update means Richmond stands to receive $11.1 million less, Chesterfield $3.4 million less, Henrico $1.3 million less and Hanover $742,523. less. Many Northern Virginia localities stand to gain.
The House Appropriations Committee's proposal would restore about 80 percent of what school districts would lose in the update for fiscal year 2011. The Senate Finance Committee's plan would restore all that districts would lose from the updated formula.
Kevin Smith, assistant superintendent of finance for Henrico County schools, said news of the hold-harmless provisions "was definitely good cheer."
Hanover County schools Superintendent Stewart D. Roberson visited legislators earlier this month with Richmond Superintendent Yvonne W. Brandon and Chesterfield Superintendent Marcus J. Newsome to appeal for assistance.
"The hold harmless proposal demonstrates a high level of responsiveness by the General Assembly to the well articulated, justifiable needs of all Virginia school districts," Roberson said in an e-mail yesterday.
He anticipates receiving details of both budgets to determine "the extent to which the strategies actually avoid cutting more deeply than already will be required."
Richmond schools spokeswoman Felicia Cosby said the hold-harmless proposals "are encouraging for the teachers, parents, and, most especially, the students of this district."
"The proposals illustrate an understanding of the importance of public education and the impact the deep budget cuts previously proposed would have on the progress made by school districts throughout the state," she said.
Shawn Smith, Chesterfield schools spokesman, said "We continue to review different legislative proposals which have a financial impact on Chesterfield schools."
Outgoing Gov. Timothy M. Kaine proposed freezing the local composite index and delaying the readjustment for one year to save money, but Gov. Bob McDonnell requested an update to the index, which has been in use for 40 years. It updates every two years.
McDonnell spokesman Tucker Martin said the governor is pleased that the House and Senate agree that freezing the index was "unfair to school districts and bad policy."
"He is also pleased that both committees identified funding to assist school districts in mitigating the impact of this annual update," Martin said. "He will work with the budget conferees to ensure that this can be accomplished in a fiscally responsible manner that does not violate the basic parameters of budget development he has laid out."
The proposal put forth by the House committee allows the index to update on schedule while helping school districts already grappling with cuts, said Del. M. Kirkland Cox, R-Colonial Heights, vice-chairman of House Appropriations and a budget conferee.
"We also felt like in these times, 90 localities were losers, this is a pretty substantial loss, and that we were going to try to mitigate that as much as possible," he said. The 80 percent hold harmless "would at least take most of the bite out of it."
After the House and Senate approve their drafts of the budget, about a dozen lawmakers will find a compromise that both chambers would approve just ahead of the General Assembly's scheduled adjournment, March 13.
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