Title
Resolution to Amend the Fiscal Year 2022 Council Approved Budget to Appropriate $2,767,491 of Fiscal Year 2021 State Carryover Funds to the General Fund's School Operating Budget to Offset the Impact of Fiscal Year 2022 State Revenue Adjustments
Purpose
PURPOSE/BACKGROUND:
This appropriation request is authorized by Chapter 552, Item 145, Section (B)24.a of the 2021 Acts of Assembly (2021 Appropriation Act), which provides that any locality that has met its required local effort for the Standards of Quality accounts for FY 2021 and has met its required local match for incentive or Lottery-funded programs in which the locality elected to participate in for FY 2021 may carry over into FY 2022 any remaining state Direct Aid to Public Education fund balances available to help minimize any FY 2022 revenue adjustments that may occur in state funding to that locality. Localities electing to carry forward such unspent state funds must appropriate the funds to the school division for expenditure in FY 2022.
Discussion:
The School Board of the City of Hampton is requesting appropriation of $2,767,491 of fiscal year 2021 state carryover funds to offset the impact of fiscal year 2022 state revenue reductions. If the reductions do not occur, the funds will be spent for operational and instructional technology capital projects; instructional expenditures; the Academies of Hampton; and other one-time expenditures.
Recommendation:
Approve.
Body
WHEREAS, Chapter 552, Item 145, Section (B) 24.a of the 2021 Acts of Assembly (2021 Appropriation Act) permits school divisions that have met the required local effort for the Standards of Quality accounts and required local match for incentive or Lottery-funded programs in which the locality elected to participate in for fiscal year 2021 to carry forward fiscal year 2021 unexpended state funds to fiscal year 2022 to help minimize the impact of any fiscal year 2022 state revenue adjustments to the school division;
WHEREAS, the School Board of the City of Hampton, Virginia has closed its books for fiscal year 2021 and has reported unexpended state funds of $2,767,491;
WHEREAS, the School Board of the City of Hampton, Virginia has stated that they have met the required local effort for the Standards of Quality and local match for incentive or Lottery-funded programs in which it elected to participate in for fiscal year 2021;
WHEREAS, the School Board of the City of Hampton, Virginia determined it best to be prudent in identifying specific needs that align with the strategic plan and support continued focus in ensuring all students are college, career and life ready;
WHEREAS, the School Board of the City of Hampton, Virginia will use the $2,767,491 in unexpended state funds in fiscal year 2022 to offset the impact of fiscal year 2022 state revenue reductions to the school division, if necessary. However, if those reductions do not materialize, the division plans to spend the carryover funds on operational and instructional technology capital projects; instructional expenditures; the Academies of Hampton; and other one-time expenditures (collectively, the "One-Time Purchases"); and
WHEREAS, the School Board of the City of Hampton, Virginia is requesting that the City Council of the City of Hampton approve and appropriate the carryover of unexpended state funds to the General Fund's School Operating Budget.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hampton, Virginia hereby amends its Fiscal Year 2022 Council Approved Budget to appropriate the sum of $2,767,491 in Fiscal Year 2021 qualifying carryover funds (State Funds) to the General Fund's School Operating Budget for use by the School Board of the City of Hampton to solely offset the impact of revenue reductions to the school division, if necessary, or for one-time operational and instructional expenditures.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager, or her designee, to take any and all actions necessary to implement this request.