Composite index will likely lead to funding cuts

Virginia Gov. Robert F. McDonnell’s decision to support updating the state’s education spending index could cost strapped area school districts hundreds of thousands of dollars.

Northern Virginia districts, conversely, would pull in an additional $128.3 million.

Former Gov. Timothy M. Kaine proposed freezing the so-called local composite index, using 2005 data instead of updating the index with 2007 figures.

The composite index relies on such figures as total real estate values, sales tax revenues, adjusted gross income and enrollment. It is aimed at ensuring that poorer districts get a larger share of state money than their wealthier counterparts.

Under the updated index, Augusta County’s share of state aid would drop by $700,000, Waynesboro’s by $500,000 and Staunton’s by $300,000. Nelson would lose $25,000.

Fairfax County, meanwhile would get an additional $62 million; Loudoun, $35 million; and Prince William, $23 million.

“This is the worst time this could happen to school divisions,’’ said Gary McQuain, superintendent at Augusta, where officials already were struggling to cover $8 million in lost local, state and federal money.

The updated data reflect the fact that housing prices slipped in Northern Virginia during the early stages of the market collapse precipitating the national recession.

Places such as Augusta, meanwhile, remained relatively insulated against housing’s woes. In fact, average real estate values increased by almost a fourth under last year’s reassessment, meaning that when those numbers are calculated into the index in another two years, the district likely will lose still more state money.

Updating the index, McDonnell said, is the surest way to ensure impartiality in funding under practices dating nearly 40 years.

The lost money in Waynesboro could be equal “to 10 teaching positions,” Superintendent Robin Crowder said.

Staunton Schools Superintendent Steven Nichols said he plans to ask the school board next week to appeal to state lawmakers to freeze the index.

“This is another piece of the hole,’’ Nichols said.

The area is represented in the General Assembly by three Republicans, delegates Dickie Bell, of Staunton, and Steve Landes, of Weyers Cave, and Sen. Emmett Hanger, of Mount Solon. McDonnell also is a Republican.

The index covers the state’s 134 school districts. Updating the data will cost the state an additional $29 million at a time when it is facing a $4.2-billion budget gap.