McDonnell proposes thaw of local composite index

Gov. Bob McDonnell said he will support thawing the freeze of the Local Composite Index.

The index, which is updated every two years, determines how much funding goes to local school systems.

Former Gov. Tim Kaine proposed the freeze which meant that Northern Virginia schools stood to be shortchanged by $128.3 million, according to a press release from McDonnell's office.

Local officials were upset over the freeze to the system that has been in place for about 40 years and uses real estate prices and poverty levels to determine state allotments to local school systems.

Recently falling real estate prices in the area meant that the Prince William, Manassas and Manassas Park school systems were in for more more money as the LCI was refigured.

Prince William Board of County Supervisors Chairman Corey A. Stewart was glad to hear the governor's proposal.

"That's great news. I knew I could depend upon him," Stewart said.

Stewart, Manassas Mayor Harry "Hal" Parrish II, Manassas Park Mayor Frank Jones and seven other chairs and mayors from across Northern Virginia recently sent a letter to the governor saying that changing the formula was unfair.

In the past, Northern Virginia jurisdictions typically got back a smaller percentage of the money they shipped to the state compared to other jurisdictions.

Stewart said using the formula prevents jurisdictions from fighting over education money.

"If you open this up and start jiggering with the formula you are forever going to be debating -- not only what the level of education is going to be -- but how that's going to be divided up. This is clearly the right thing for him to do," Stewart said.

McDonnell's statements in the release indicated that he agreed with Stewart.

"Ensuring that we have a fair formula that is implemented ... is the best means by which to appropriate education funding in the commonwealth," McDonnell stated in the release.

"Every time the Index is readjusted some school systems gain funding, while others receive less. This has occurred for nearly forty years, and local officials understand the routine and objective biennial implementation of the index." McDonnell said. "The local composite index must be applied to all localities, at all times, in the same objective and fair manner by which it has always been utilized."

Parrish said the most important thing is that the system is equitable.

"The governor finally decided that the state budget needs to be fair with regard to the LCI and that's a good thing," Parrish said.

The LCI update will cost the state $29 million in fiscal 2011, the release stated.

To cover this increased funding, McDonnell will recommend that the General Assembly transfer $13 million from the Literary Fund; $8 million from the Health Insurance Fund to reduce state health insurance premiums; $5.2 million from Real ID savings and $3 million from Non-General Fund balances, the release stated.

Manassas Bureau Chief Keith Walker can be reached at 703-369-6751.