School Operating Revenue Summary

The School Board adopted the Provisional Budget April 25, 2023 with the expectation that the State would finalize their budget resulting in future budget amendments.

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Revenues

Revenue Analysis

Virginia's public schools are financed through a combination of state, local, and federal funds. The private sector also contributes through partnerships with schools and school divisions. The apportionment of the state funds for public education is the responsibility of the General Assembly, through the Appropriations Act. General fund appropriations serve as the mainstay of state support for the commonwealth's public schools, augmented by retail sales and use tax revenues, state lottery proceeds, and other sources. Counties, cities, and towns comprising school divisions also support public education by providing the locality's share to maintain an educational program meeting the commonwealth's Standards of Quality. While public education is primarily a state and local responsibility, the federal government provides assistance to state and local education agencies in support of specific federal initiatives and mandates.

State Funding - $242.0M

The Commonwealth of Virginia provides primarily two types of revenue: state Standards of Quality (SOQ) funding and sales tax. School divisions receive the majority of state aid based on their Local Composite Index (LCI). The state uses the LCI to equalize direct aid payments so that counties and cities with a lower composite index receive more state funding and those with a higher index receive less. Sales tax revenue is distributed to school districts based on each locality’s number of school-age children.

State Local Composite Index (LCI)

Most SOQ funding is equalized based on local ability to pay as determined by the Local Composite Index (LCI). The LCI is calculated using three indicators of a locality's ability to pay:

  • True value of real property (weighted 50 percent)
  • Adjusted gross income (weighted 40 percent)
  • Taxable retail sales (weighted 10 percent)

For state aid formulas that incorporate enrollment, rising enrollment results in increased payments. For state aid programs that use the composite index to adjust projected payments, a higher LCI results in lower payments.

Federal Funding - $2.6M

While public education is primarily a state and local responsibility, the federal government provides assistance to state and local education agencies in support of specific federal initiatives and mandates. Federal money accounts for less than one percent (1%) of school operating revenues and helps provide vital services in specific areas. See the Grants Fund for additional federal revenues. The majority of the federal dollars received are recorded in our Grants Fund.

County Transfers - $159.1M

Stafford Schools receives local funding in the form of transfers from the Stafford County government. This includes $1M for prior year fund balance and $1.2M for the Public Day School. The County fund transfer for operations makes up approximately 39% of the operating budget.

Other Local Funds - $4.8M

Other local funds include revenue from:

  • the sale of property;
  • rental of facilities;
  • charges for service;
  • reimbursements from other entities and agencies for costs incurred by the school division on their behalf;
  • funds that are not classified in any other category; and
  • contingency funds.