{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/22.1-98.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/22.1-98.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/22.1-98.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/22.1-98.2.html"}],"law_id":355029,"edition_id":2,"section_id":355029,"structure_id":50686,"section_number":"22.1-98.2","catch_line":"Certain agreements; adjustment of state share for basic aid","history":"2004, c. 820; 2008, cc. 589, 705; 2019, cc. 405, 406; 2022, c. 355.","full_text":"A\n\nAny school board of a school division in which fewer than 1,100 students were included in average daily membership for the preceding school year, in a locality that has a local composite index of .6000 or greater, and has 65 percent or more of its local taxes coming from real estate taxes, as calculated by the Auditor of Public Accounts and reported annually to the Department, upon entering into certain cost-savings agreements with a contiguous school division for the consolidation or sharing of educational, administrative, or support services, shall receive the state share for basic aid computed on the basis of the composite index of local ability-to-pay of the contiguous school division, calculated annually.\n\t\t\tThe Board shall develop eligibility criteria for such cost-savings and service-sharing agreements and for the adjustment of the state share for basic aid, consistent with the appropriation act.\n\n\t\t\tThe Governor shall approve the adjustment to the state share prior to the disbursement of funds. The Department shall annually report to the Chairmen of the House Committee on Appropriations and Senate Committee on Finance and Appropriations the cost-savings agreements made and the adjusted state shares so approved.\n\nB\n\nThe local school board receiving the adjusted state share shall not use the additional funds received to supplant local funds appropriated for education. The adjusted state share shall be used solely for educational purposes and shall not be used to reduce local operating expenditures for public education from the prior fiscal year. However, no school division shall be required to maintain a per pupil expenditure for operations that exceeds the per pupil expenditure in the prior fiscal year. The superintendent of the school division shall inform the Superintendent of the public education purpose for which these local funds shall be used.\n\nC\n\nNothing in this section shall prohibit the Commonwealth from terminating or modifying any program or function under which distribution to a local school board has been made, and if so terminated or modified all obligations hereunder shall cease or be reduced in proportion with such modifications, as the case may be.\n\nD\n\nExcept as provided in subsection C, such contractual agreements shall remain in effect until terminated by the relevant school divisions. If any such contractual agreements between the relevant school divisions terminate, the Commonwealth’s obligation under this section shall cease.\n\nE\n\nThis agreement and adjusted state payment shall be in lieu of any existing funds a locality receives from a Small School Division Assistance grant.\n\n","order_by":null,"text":{"0":{"id":1321937,"text":"Any school board of a school division in which fewer than 1,100 students were included in average daily membership for the preceding school year, in a locality that has a local composite index of .6000 or greater, and has 65 percent or more of its local taxes coming from real estate taxes, as calculated by the Auditor of Public Accounts and reported annually to the Department, upon entering into certain cost-savings agreements with a contiguous school division for the consolidation or sharing of educational, administrative, or support services, shall receive the state share for basic aid computed on the basis of the composite index of local ability-to-pay of the contiguous school division, calculated annually.\n\t\t\tThe Board shall develop eligibility criteria for such cost-savings and service-sharing agreements and for the adjustment of the state share for basic aid, consistent with the appropriation act.\t\t\tThe Governor shall approve the adjustment to the state share prior to the disbursement of funds. The Department shall annually report to the Chairmen of the House Committee on Appropriations and Senate Committee on Finance and Appropriations the cost-savings agreements made and the adjusted state shares so approved.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":1321938,"text":"The local school board receiving the adjusted state share shall not use the additional funds received to supplant local funds appropriated for education. The adjusted state share shall be used solely for educational purposes and shall not be used to reduce local operating expenditures for public education from the prior fiscal year. However, no school division shall be required to maintain a per pupil expenditure for operations that exceeds the per pupil expenditure in the prior fiscal year. The superintendent of the school division shall inform the Superintendent of the public education purpose for which these local funds shall be used.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":1321939,"text":"Nothing in this section shall prohibit the Commonwealth from terminating or modifying any program or function under which distribution to a local school board has been made, and if so terminated or modified all obligations hereunder shall cease or be reduced in proportion with such modifications, as the case may be.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":1321940,"text":"Except as provided in subsection C, such contractual agreements shall remain in effect until terminated by the relevant school divisions. If any such contractual agreements between the relevant school divisions terminate, the Commonwealth’s obligation under this section shall cease.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":1321941,"text":"This agreement and adjusted state payment shall be in lieu of any existing funds a locality receives from a Small School Division Assistance grant.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":50686,"edition_id":2,"name":"State and Local Funds","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":50685,"metadata":{"child_laws":23,"child_structures":0},"date_created":"2026-08-02 02:31:28","date_modified":"2026-08-02 12:31:00","permalink":{"id":1411217,"object_type":"structure","relational_id":50686,"identifier":"1","token":"22.1\/8\/1","url":"\/22.1\/8\/1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":50685,"edition_id":2,"name":"Public School Funds","identifier":"8","label":"chapter","depth":2,"order_by":8,"parent_id":50682,"metadata":{"child_laws":48,"child_structures":6},"date_created":"2026-08-02 02:31:28","date_modified":"2026-08-02 12:31:00","permalink":{"id":1411215,"object_type":"structure","relational_id":50685,"identifier":"8","token":"22.1\/8","url":"\/22.1\/8\/","edition_id":2,"permalink":0,"preferred":1}},{"id":50682,"edition_id":2,"name":"Education","identifier":"22.1","label":"title","depth":1,"order_by":60,"parent_id":null,"metadata":{"child_laws":858,"child_structures":99},"date_created":"2026-08-02 02:31:28","date_modified":"2026-08-02 12:30:57","permalink":{"id":1407951,"object_type":"structure","relational_id":50682,"identifier":"22.1","token":"22.1","url":"\/22.1\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":354177,"structure_id":50686,"section_number":"22.1-100","catch_line":"Unexpended school and educational funds; capital reserve fund permitted","url":"\/22.1-100\/","token":"22.1\/8\/1\/22.1-100","metadata":false},{"id":354176,"structure_id":50686,"section_number":"22.1-100.1","catch_line":"Lottery proceeds nonrecurring costs escrow accounts","url":"\/22.1-100.1\/","token":"22.1\/8\/1\/22.1-100.1","metadata":false},{"id":354179,"structure_id":50686,"section_number":"22.1-101","catch_line":"Repealed","url":"\/22.1-101\/","token":"22.1\/8\/1\/22.1-101","metadata":false},{"id":354178,"structure_id":50686,"section_number":"22.1-101.1","catch_line":"Increase of funds for certain nonresident students; how increase computed and paid; billing of out-of-state placing agencies or persons","url":"\/22.1-101.1\/","token":"22.1\/8\/1\/22.1-101.1","metadata":false},{"id":355011,"structure_id":50686,"section_number":"22.1-88","catch_line":"Of what school funds to consist","url":"\/22.1-88\/","token":"22.1\/8\/1\/22.1-88","metadata":false},{"id":355016,"structure_id":50686,"section_number":"22.1-89","catch_line":"Management of funds","url":"\/22.1-89\/","token":"22.1\/8\/1\/22.1-89","metadata":false},{"id":355012,"structure_id":50686,"section_number":"22.1-89.1","catch_line":"Management of cafeteria funds","url":"\/22.1-89.1\/","token":"22.1\/8\/1\/22.1-89.1","metadata":false},{"id":355013,"structure_id":50686,"section_number":"22.1-89.2","catch_line":"Financial records retention and disposition schedule","url":"\/22.1-89.2\/","token":"22.1\/8\/1\/22.1-89.2","metadata":false},{"id":355014,"structure_id":50686,"section_number":"22.1-89.3","catch_line":"Repealed","url":"\/22.1-89.3\/","token":"22.1\/8\/1\/22.1-89.3","metadata":false},{"id":355015,"structure_id":50686,"section_number":"22.1-89.4","catch_line":"Certain policy required; partnerships and sponsorships","url":"\/22.1-89.4\/","token":"22.1\/8\/1\/22.1-89.4","metadata":false},{"id":355020,"structure_id":50686,"section_number":"22.1-90","catch_line":"Annual report of expenditures","url":"\/22.1-90\/","token":"22.1\/8\/1\/22.1-90","metadata":false},{"id":355019,"structure_id":50686,"section_number":"22.1-90.1","catch_line":"Inclusion of instructional spending in the School Performance Report Card","url":"\/22.1-90.1\/","token":"22.1\/8\/1\/22.1-90.1","metadata":false},{"id":355021,"structure_id":50686,"section_number":"22.1-91","catch_line":"Limitation on expenditures; penalty","url":"\/22.1-91\/","token":"22.1\/8\/1\/22.1-91","metadata":false},{"id":355022,"structure_id":50686,"section_number":"22.1-92","catch_line":"Estimate of moneys needed for public schools; notice of costs to be distributed","url":"\/22.1-92\/","token":"22.1\/8\/1\/22.1-92","metadata":false},{"id":355023,"structure_id":50686,"section_number":"22.1-93","catch_line":"Approval of annual budget for school purposes","url":"\/22.1-93\/","token":"22.1\/8\/1\/22.1-93","metadata":false},{"id":355024,"structure_id":50686,"section_number":"22.1-94","catch_line":"Appropriations by county, city or town governing body for public schools","url":"\/22.1-94\/","token":"22.1\/8\/1\/22.1-94","metadata":false},{"id":355025,"structure_id":50686,"section_number":"22.1-95","catch_line":"Duty to levy school tax","url":"\/22.1-95\/","token":"22.1\/8\/1\/22.1-95","metadata":false},{"id":355026,"structure_id":50686,"section_number":"22.1-96","catch_line":"Proration of operating cost, expenditures for capital outlay purposes and indebtedness for construction of buildings in certain school divisions","url":"\/22.1-96\/","token":"22.1\/8\/1\/22.1-96","metadata":false},{"id":355027,"structure_id":50686,"section_number":"22.1-97","catch_line":"Calculation and reporting of required local expenditures; procedure if locality fails to appropriate sufficient educational funds","url":"\/22.1-97\/","token":"22.1\/8\/1\/22.1-97","metadata":false},{"id":355030,"structure_id":50686,"section_number":"22.1-98","catch_line":"Reduction of state aid when length of school term below 180 days or 990 hours","url":"\/22.1-98\/","token":"22.1\/8\/1\/22.1-98","metadata":false},{"id":355028,"structure_id":50686,"section_number":"22.1-98.1","catch_line":"Extended School Year Incentive Program","url":"\/22.1-98.1\/","token":"22.1\/8\/1\/22.1-98.1","metadata":false},{"id":355029,"structure_id":50686,"section_number":"22.1-98.2","catch_line":"Certain agreements; adjustment of state share for basic aid","url":"\/22.1-98.2\/","token":"22.1\/8\/1\/22.1-98.2","metadata":false},{"id":355031,"structure_id":50686,"section_number":"22.1-99","catch_line":"Approval and certification of apportionment of school funds","url":"\/22.1-99\/","token":"22.1\/8\/1\/22.1-99","metadata":false}],"previous_section":{"id":355028,"structure_id":50686,"section_number":"22.1-98.1","catch_line":"Extended School Year Incentive Program","url":"\/22.1-98.1\/","token":"22.1\/8\/1\/22.1-98.1","metadata":false},"next_section":{"id":355031,"structure_id":50686,"section_number":"22.1-99","catch_line":"Approval and certification of apportionment of school funds","url":"\/22.1-99\/","token":"22.1\/8\/1\/22.1-99","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/22.1-98.2\/","history_text":"

This law was first created in 2004. The record of its establishment is cataloged in chapter 820<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2008, chapters 589<\/a> and 705<\/a>; in 2019, chapters 405<\/a> and 406<\/a>; in 2022, chapter 355<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1411303,"object_type":"law","relational_id":355029,"identifier":"22.1-98.2","token":"22.1\/8\/1\/22.1-98.2","url":"\/22.1-98.2\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/22.1-98.2\/","token":"22.1\/8\/1\/22.1-98.2","dublin_core":{"Title":"Certain agreements; adjustment of state share for basic aid","Type":"Text","Format":"text\/html","Identifier":"\u00a7 22.1-98.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any school board<\/span> of a school division in which fewer than 1,100 students were included in average daily membership for the preceding school year, in a locality that has a local composite index of .6000 or greater, and has 65 percent or more of its local taxes coming from real estate taxes, as calculated by the Auditor of Public Accounts and reported annually to the Department<\/span>, upon entering into certain cost-savings agreements with a contiguous school division for the consolidation<\/span> or sharing of educational, administrative, or support services, shall receive the state share for basic aid computed on the basis of the composite index of local ability-to-pay of the contiguous school division, calculated annually.\n\t\t\tThe Board shall develop eligibility criteria for such cost-savings and service-sharing agreements and for the adjustment of the state share for basic aid, consistent with the appropriation act.

\t\t\tThe Governor shall approve the adjustment to the state share prior to the disbursement of funds. The Department<\/span> shall annually report to the Chairmen of the House Committee on Appropriations and Senate Committee on Finance and Appropriations the cost-savings agreements made and the adjusted state shares so approved. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The local school board<\/span> receiving the adjusted state share shall not use the additional funds received to supplant local funds appropriated for education. The adjusted state share shall be used solely for educational purposes and shall not be used to reduce local operating expenditures for public education from the prior fiscal year. However, no school division shall be required to maintain a per pupil expenditure for operations that exceeds the per pupil expenditure in the prior fiscal year. The superintendent<\/span> of the school division shall inform the Superintendent<\/span> of the public education purpose for which these local funds shall be used. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Nothing in this section shall prohibit the Commonwealth from terminating or modifying any program or function under which distribution to a local school board<\/span> has been made, and if so terminated or modified all obligations hereunder shall cease or be reduced in proportion with such modifications, as the case may be. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Except as provided in subsection C, such contractual agreements shall remain in effect until terminated by the relevant school divisions. If any such contractual agreements between the relevant school divisions terminate, the Commonwealth’s obligation under this section shall cease. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> This agreement and adjusted state payment shall be in lieu of any existing funds a locality receives from a Small School Division Assistance grant. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCERTAIN AGREEMENTS; ADJUSTMENT OF STATE SHARE FOR BASIC AID (\u00a7 22.1-98.2)\n\nA. Any school board of a school division in which fewer than 1,100 students were\nincluded in average daily membership for the preceding school year, in a\nlocality that has a local composite index of .6000 or greater, and has 65\npercent or more of its local taxes coming from real estate taxes, as calculated\nby the Auditor of Public Accounts and reported annually to the Department, upon\nentering into certain cost-savings agreements with a contiguous school division\nfor the consolidation or sharing of educational, administrative, or support\nservices, shall receive the state share for basic aid computed on the basis of\nthe composite index of local ability-to-pay of the contiguous school division,\ncalculated annually.\n\t\t\tThe Board shall develop eligibility criteria for such cost-savings and\nservice-sharing agreements and for the adjustment of the state share for basic\naid, consistent with the appropriation act.\t\t\tThe Governor shall approve the\nadjustment to the state share prior to the disbursement of funds. The Department\nshall annually report to the Chairmen of the House Committee on Appropriations\nand Senate Committee on Finance and Appropriations the cost-savings agreements\nmade and the adjusted state shares so approved.\n\nB. The local school board receiving the adjusted state share shall not use the\nadditional funds received to supplant local funds appropriated for education.\nThe adjusted state share shall be used solely for educational purposes and shall\nnot be used to reduce local operating expenditures for public education from the\nprior fiscal year. However, no school division shall be required to maintain a\nper pupil expenditure for operations that exceeds the per pupil expenditure in\nthe prior fiscal year. The superintendent of the school division shall inform\nthe Superintendent of the public education purpose for which these local funds\nshall be used.\n\nC. Nothing in this section shall prohibit the Commonwealth from terminating or\nmodifying any program or function under which distribution to a local school\nboard has been made, and if so terminated or modified all obligations hereunder\nshall cease or be reduced in proportion with such modifications, as the case may\nbe.\n\nD. Except as provided in subsection C, such contractual agreements shall remain\nin effect until terminated by the relevant school divisions. If any such\ncontractual agreements between the relevant school divisions terminate, the\nCommonwealth’s obligation under this section shall cease.\n\nE. This agreement and adjusted state payment shall be in lieu of any existing\nfunds a locality receives from a Small School Division Assistance grant.\n\nHISTORY: 2004, c. 820; 2008, cc. 589, 705; 2019, cc. 405, 406; 2022, c. 355.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}