Virginia Senate Bill SB117

Virginia 2022 Regular Session

• Introduced: 1/7/22
• Refer: 1/7/22

Caption

Local school divisions; budget bill to include appropriation of surplus for operational costs.

Impact

If enacted, the bill would directly affect the operational funding for local school divisions in Virginia by setting a new requirement for state budget practices. This legislative change aims to ensure that school divisions receive a more consistent and potentially increased funding stream during fiscal years with surplus revenues. The contemplation of using lottery proceeds in funding raises discussions about the long-term sustainability of relying on gaming revenues for education, as these sources can fluctuate significantly.

Summary

SB117 introduces an amendment to the Code of Virginia requiring that the state budget bill includes an appropriation of a portion of any budget surplus specifically for the operational costs of local school divisions. The bill defines 'surplus' as the excess of actual general fund revenues over estimated revenues after making necessary deposits to stabilization and reserve funds. The proposal proposes that five percent of this surplus be allocated to support local schools, adjusting the funding model reliant on the Lottery Proceeds Fund accordingly.

Contention

Although there appears to be a general consensus on the need for stable funding for local schools, there may be contention surrounding the reliance on lottery funding as a mechanism for education financing. Critics might argue that linking school funding directly to lottery revenue is precarious and reliant on a non-recurring source of income, potentially jeopardizing the stability of school funding in uncertain times. Legislative discussions could delve into alternative funding models to avoid potential pitfalls associated with lottery lotteries as the primary source of operational costs for educational institutions.