Amortization: The process of decreasing, or accounting for, an amount over a period of time.

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1 Joint County/School Capital Process Team Glossary The Joint County/School CIP Committee requested a listing of terminology the both the School Board members and the County members might find useful in discussing issues or programs within each group. The following list is broken down into as School list of terms and then a County list of terms. This glossary will be updated as other terms are identified. School Terminology Advertised Budget: This is the second phase of the budget process and reflects the School Board's changes to the Superintendent's proposed budget. This budget is submitted by the School Board to the Prince William County Board of Supervisors detailing proposed revenues, expenditures, and transfers for the coming fiscal year. Agency: An individual school, centrally administered instructional program, or central office department for which an individual budget is presented. Allocation: The amount of funding appropriated to an agency. Types of allocations include per pupil allocations, fixed allocations, and replacement equipment allocations. Amortization: The process of decreasing, or accounting for, an amount over a period of time. Approved Budget: The third and final phase of the budget process. The approved budget reflects all adjustments approved by the School Board in May/June resulting from revised revenue, expenditures, membership, and other projections and is the budget implemented on the following July 1. Average Daily Membership (ADM): The average daily membership for grades K 12 is the enrollment figure used to distribute state per pupil funding. It includes students with disabilities ages 5 21, and students for whom English is a second language who entered school for the first time after reaching their 12th birthday, and who have not reached their 22nd birthday. Preschool and post graduate students are not included in the ADM. BAB: The Build America Bonds (BAB) program was included in the American Recovery and Reinvestment Act (AARA) of 2009, which was created to stimulate the national economy out of economic recession. The BAB program was intended to help state and local agencies regain access to bond markets after the financial collapse made it difficult to borrow and construct infrastructure improvements. It provided access to a larger pool of investors through taxable bond markets, which allowed them to lock in lower rates for long term debt compared to the high interest rates demanded by investors in tax exempt debt markets. The BAB program also allowed municipalities to issue taxable bonds with the federal government subsidizing 35% of the interest payments. Baldrige in the Classroom: Also known as Baldrige in Education. It is a knowledge based approach to performance excellence where data drives decision making and progress results influence direction of classroom instruction. Pg 1

2 Capital Budget: A plan of proposed capital outlays and the means of financing them for the current fiscal period. Capital Improvement Plan (CIP): The five year plan for School Division construction projects. Capital Equipment: Fixed assets valued above $5,000, such as automobiles, furniture, or instruments. Categorical Aid: Funding targeted toward a specific student population or that fulfills a particular state or federal regulation. Co Curricular: Programs offered as an extension of the instructional program includes activities such as field trips, clubs, student organizations, assemblies and performances, interscholastic activities, and publication productions. Composite Index: Article VIII, Section 2, of the Constitution of Virginia authorizes the General Assembly to determine the cost of education as prescribed by the Standards of Quality and to apportion those costs between the state and local governments. Local governments are required to pay their respective shares of this prescribed cost from local taxes and other sources of local revenue. The composite index of local ability to pay is the measure used to determine the state and local shares of education costs, and it is based on local sources of revenue. The composite index is expressed as a ratio, indicating the local percentage share of the cost of education programs. For example, if a given locality has a composite index of , then it would pay 50 percent of the costs and the state would pay 50 percent of the applicable program costs. If a locality's index is , then it must pay 30 percent of the cost of education and the state will pay 70 percent. Cost of Competing Adjustment (COCA): A factor in the state funding formula that provides additional funding to Northern Virginia school divisions to recognize the higher costs to recruit and retain staff in the more competitive Northern Virginia labor market. Cost of Living Adjustment (COLA): An annual adjustment in wages to offset a change (usually a loss) in purchasing power (also known as a market scale adjustment or MSA). Direct Aid (Direct Aid to public education): funding appropriated for the operation of the Commonwealth's public schools that is generally divided among categorical payments, funding for school employee benefits, funding of the Standards of Quality, incentive based programs, allotment of sales tax and lottery revenues, and specific appropriations for programs such as Governor's Schools and adult literacy initiatives. Both state and federal funds are appropriated in direct aid. All lottery proceeds are earmarked for public education. English for Speakers of Other Languages (ESOL, ESL): This program helps limited English proficient students learn literacy and content concepts in order to be successful in the general education program. Extra Curricular: Programs offered as an extension of the instructional program includes activities such as field trips, clubs, student organizations, assemblies and performances, interscholastic activities, and publication productions. Impact Aid: A federal education program administered by the Department of Education designed to provide funds local school districts that have lost property tax revenue due to the presence of tax exempt Federal property, or that have experienced increased expenditures due to the enrollment of federally connected children. Pg 2

3 Linear Weighted Average: The linear weighted average is a calculation that approximates what most school divisions spend to operate their schools. The formula incorporates the costs for every school division, but is not unduly influenced by divisions with unusually high or low expenditures. The formula weights division costs at the median at five and the most extreme costs (high and low) at one. It is used to establish the funded cost of many components of the Standards of Quality, such as instructional salaries. Local Composite Index (LCI): The relative wealth index used by the State to equalize state aid to localities. No Child Left Behind (NCLB): A 2001 federal law designed to improve student achievement and change the culture of America's schools. Per Pupil Allocation: An allocation to an agency based on the type and/or number of students enrolled. Portable Classroom: Installed at a school to provide additional classroom space when there is a shortage of capacity in the existing, permanent structure of the school. There are two types: Trailer: A movable classroom mounted on trailer axles installed without a permanent foundation. Modular: A modular building made up of two or more sections installed on a permanent foundation. Proposed Budget: The initial phase of the budget cycle. A plan of financial operations submitted by the Superintendent to the School Board detailing proposed revenues, appropriations, expenditures, and transfers for the coming fiscal year. QSCB: The Qualified School Construction Bond (QSCB) program was included in the American Recovery and Reinvestment Act (AARA) of 2009, which was created to stimulate the national economy out of economic recession. The program provides tax credits, in lieu of interest, to lenders who issue bonds to eligible school districts. The federal government provides 100% of the interest payment through a reimbursement to the locality. Therefore, the locality is only responsible for repayment of the bond principal. QSCB bond proceeds may be used to finance new school construction or rehabilitate and repair public school facilities. Replacement Equipment Allocation: A school's replacement equipment allocation is based upon the age of the school building; a central support agency's replacement equipment allocation is based on the value of its current equipment. SBM: Site Based Management. SOA: Standards of Accreditation. SOL: Standards of Learning. Special Education Programs: Services provided for eligible students in preschool through grade 12 countywide. Specific programs include autism, deaf/hard of hearing, emotional disabilities, learning disabilities, physical and occupational therapy, speech and language, and visual impairment. Pg 3

4 Standards of Quality (SOQ): The Standards of Quality prescribe the minimum program that all public school divisions in Virginia must meet. The Standards are established in the Constitution of Virginia (Article VIII, Section 2) and defined in the Code of Virginia (Sections :1 through :8). The Board of Education prescribes the Standards of Quality, subject to revision only by the General Assembly. A major portion of state funding for direct aid to public education is based on the Standards of Quality. The Standards of Quality address basic skills, programs, and personnel; support services; accreditation and assessment; graduation requirements; training and professional development; planning and public involvement; policy manual; and compliance and enforcement. Standards of Accreditation (SOA): As authorized in the SOQ (Sections :3 of the Code of Virginia), Standards of Accreditation are the Board of Education's regulations that establish criteria for approving public schools in Virginia. Standards of Learning (SOL): As specified by the SOQ (Sections :1 of the Code of Virginia), the Standards of Learning are the minimum grade level and subject matter educational objectives that students are expected to meet in Virginia public schools. The educational objectives describe the knowledge and skills "necessary for success in school and for preparation for life." State Category: The broad expenditure categories for school divisions determined by the State Board of Education. Current state categories are as follows: Administration, Health and Attendance Instruction Debt Service Operations & Maintenance Pupil Transportation Food Services & Other Non Instructional Educational Technology Facilities State Funding Formula: Through the Commonwealth's direct aid to public education budget, Virginia provides funding for 136 public school divisions that serve approximately 1.1 million students. General fund support for direct aid to public education totals approximately $8.0 billion over the biennium, which equals approximately 32 percent of the state's general fund budget. The three types of education programs funded in Virginia are: Standards of Quality (SOQ) funding is prescribed by statute and includes basic aid, special education, vocational education, remedial education, gifted education, and related fringe benefits for each of these programs. It also includes the one cent state sales tax dedicated to public education. Incentive Based Programs provide additional education funding that goes beyond the levels required to meet the Standards of Quality. The programs are voluntary but, in order to receive state funds, school divisions must certify that they will offer the program and provide a local match of funds for the program. Incentive based programs include the following: atrisk, primary class size reduction, at risk four year olds, early reading intervention, maintenance supplements, and distribution of lottery profits. Pg 4

5 Categorical Program funding also provides for additional education programs that go beyond the Standards of Quality. These programs focus on particular needs of special populations or fulfill particular state obligations. State and federal statutes and regulations mandate much of this funding. Examples of categorical funding include alternative education, funding for limited English proficient students, school nutrition, adult education, and various regional programs such as Project Discovery. Step: One of a series of incremental pay levels on a pay scale. Trailer: See Portable Classroom. Washington Area Boards of Education (WABE) Guide: An annual statistical report comparing area school division's salaries, budget, cost per pupil, and class size. County Terminology Activity: A specific and distinguishable line of work performed within a program; the most basic component of service delivery for each County agency and its budget. Adopted (Budget): The initial budget for the fiscal year approved by the Board of County Supervisors as a result of the annual budget process. Adopted differs from appropriated in the budget document s financial summaries because appropriated includes all budget revisions subsequent to the initial adopted budget such as off cycle budget adjustments, budget transfers and prior year budget carryovers. Agency: A separate organizational unit (such as department or office) of County government established to deliver services to citizens. Board Audit Committee (BAC): A Committee of the Board of County Supervisors (BOCS), supported by the internal audit function, established to assist the BOCS in its governance and oversight responsibilities. All members of the BOCS comprise the BAC, which consists of three regular voting members and five alternate members of the BAC. The internal audit function reports to the BOCS, through the BAC. Bond Rating: The rating of bonds is a statement of a locality s economic, financial, and managerial condition. It represents the business community s assessment of the investment quality of a local government. Highly rated bonds attract more competition in the marketplace, thereby lowering interest costs paid by the County government and its taxpayers. Budget: An itemized allotment of revenues and expenditures for a specific time period, tied to specific activities. Capital Expenditures: Expenditures incurred for the acquisition or construction of major capital assets (e.g. land, roads, buildings). Capital Projects Fund: This fund is used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Fund Types). The Capital Projects Fund accounts for construction projects including improvements to schools, roads, and various other projects. Pg 5

6 Community Outcomes: Key outcomes with targets that demonstrate how the community or individual will benefit or change based on achieving the goal. Community outcomes are adopted by the Board of County Supervisors in the Strategic Plan, taken from the biennial community telephone survey results, or developed by agencies based on their mission and goals. Comprehensive Plan: State mandated plan that guides the coordinated, adjusted, and harmonious land development that best promotes the health, safety, and general welfare of County citizens. It contains longrange recommendations for land use, transportation systems, community services, historic resources, environmental resources, and other facilities, services, and resources. Debt: An obligation resulting from the borrowing of money. Five Year Plan: The County s projected expenditures and revenues for the next five fiscal years beginning with the adopted budget fiscal year. The Board of County Supervisors adopts the Five Year Plan each year in concert with the adopted budget. The first year of each Five Year Plan is synonymous with the adopted budget. Proffers: Contributions of land, capital improvements, and funding collected from developers to address the demand for community services created by new development. Risk Management: The practice of identifying potential risks in advance, analyzing them, and taking precautionary steps to reduce and/or curb the risk, and in turn reduce the County s exposure to financial loss. Strategic Plan: A four year plan adopted by the Board of County Supervisors which establishes a County government mission statement, a limited number of high priority strategic goals, measurable community outcomes which indicate success in accomplishing these goals. Technology Improvement Plan (TIP): The portion of the County Capital Improvement Program that is dedicated to the upgrade, replacement, or addition of technology systems that support the various programs and activities throughout County agencies. Project examples include, but are not limited to, upgrades to , the replacement of the previous financial reporting system (Performance), and disaster recovery. Total Net Assets: The difference between assets and liabilities in a proprietary fund. This term has replaced Retained Earnings. Pg 6

TAZEWELL COUNTY PUBLIC SCHOOLS Budget Overview

TAZEWELL COUNTY PUBLIC SCHOOLS 2014 2015 Budget Overview Budget Management The budget is a policy document and it sets forth both general and specific plans that must be executed or formally changed. Budget