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Virginia Schools Requested $1 billion in 2004 for Schools

Virginia Lottery for Education founded September 20, 1988

The first Virginia Lottery ticket was sold on September 20, 1988. According to the Virginia Lottery website, "All Lottery profits are required by Virginia's constitution to be used for public education (K-12) in Virginia. Every school district in the Commonwealth shares in that Lottery funding... "

"On August 4, 2004, I had the privilege of presenting to Governor Mark Warner a ceremonial check in the amount of $408 million, representing Lottery profits for the 2004 fiscal year. Not only is that amount a record, but it shattered the old record of $375 million, which was set the previous year. Our sales for the 2004 fiscal year totaled more than $1.26 billion, which is another record," according to the Lottery Director, Penelope Kyle. (Virginia Lottery website, 3/4/05 http://www.valottery.com/director/ ) Director Kyle said that "All of those funds are sent to Virginia's public schools, grades K-12," according to the website.

On March 4, 2005, the website of the Fairfax County Council of PTA's stated their legislative positions for the 2004 General Assembly (http://www.fccpta.org/legislative_committee/2004_legis_positions.htm ).

"FCCPTA...endorses the following priorities for critical education funding...FCCPTA supports efforts to revise and restructure the tax code of Virginia...

Section 2: FCCPTA supports providing localities with the authority to add a local education "piggy back" onto the state income tax...

Section 3: FCCPTA supports increasing the state tax on cigarettes...designated towards K-12 public education.

Section 4. The Local Composite Index (LCI) — the formula through which state education aid is distributed to localities — should be adjusted annually...

Section 5: FCCPTA supports...referendum...to levy additional local sales taxes...dedicated to school facilities.

In addition, the Northern Virginia Regional Commission, along with the North Virginia localities, the Virginia Municipal League and the Virginia Association of Counties, supports legislative initiatives (2004) that address the inadequacy of state funding for K-12 education:

HB 1013: Noncompetitive grants...the amount of grants and required local matching funds shall be determined as provided in the appropriation act.

SB 74: ...state cigarette tax from 2.5 cents per pack to 65 cents per pack...All moneys distributed shall be used solely for public school construction, public school additions and renovations, including retrofitting and enlarging public school buildings, public school infrastructure, including technology infrastructure; site acquisition for public school buildings and public school facilities; or debt serve payments...

SB 20(HB 395): ...Authorize the Virginia Public School Authority to issue bonds to fund grants to local school divisions in the total amount of $1 billion to pay the costs of school construction, school renovation and other school infrastructure projects...

HB 531: Increases state portion of sales and use tax from 3.5 percent to 5.5 percent with ½ of the addition revenues...to be used solely to fund the Standards of Quality for public education...

Virginia's deficit in 2004 according the Rescue American Jobs website (http://www.rescueamericanjobs.net/research/deficit.php) on March 5, 2005, is as follows:

Virginia

FY 2003 State Budget Deficit (millions of dollars) = 950
Deficit as Percent of State Budget = 7.7%
FY 2004 Budget Deficit (millions of dollars) = 1,116
Deficit as Percent of State Budget = 9.3%

* The main feature on the Web site of Virginia Governor Mark R. Warner is "The Budget Challenge." The site states: "The Commonwealth is presently facing one of the most challenging budget periods in its history. Already undergoing spending cuts in order to balance the 2002-2004 budget, state government now faces an additional revenue shortfall of nearly $1.5 billion." Governor Warner is hoping to generate $83 million through cuts in the Medicaid program.

Virginia's Budget

The following information was listed for North Carolina from the same website:

North Carolina


FY 2003 State Budget Deficit (millions of dollars) = 1,700
Deficit as Percent of State Budget = 11%
FY 2004 Budget Deficit (millions of dollars) = 1,700 to 2000
Deficit as Percent of State Budget = 12.4% to 14.6%

* North Carolina balanced its 2003 fiscal budget. However, an additional $1.5 billion is needed for the next budget. Legislators are debating new taxes and spending cuts of up to 10 percent in all agencies.

North Carolina Office of State Budget and Management

Christian Action League of North Carolina, Inc
809 Spring Forest Road
Suite 1000
Raleigh, North Carolina 27609
Phone: 919.787.0606
Email: calact@aol.com