In November, the Albemarle County School Board formally asked state delegate Rob Bell to file legislation to adjust Virginia’s local composite index—the formula by which funds are directed to local school systems. The Albemarle board wants the composite index to account for the county’s revenue sharing agreement with Charlottesville. Passed in 1982, the agreement ensures a percentage of real estate tax revenue to Charlottesville so long as the city does not annex county land.
In response, Charlottesville School Board member Ned Michie gave himself a homework assignment. Michie, whose term expires in 2013, recently sent media a 50-page report on the history of the revenue sharing agreement, and his own analysis.
"This change will net the County school system—and cost the City school system—$2 [million] to $2.5 million a year in state funding," writes Michie in the report. "The issue surrounding the County’s attempt to make this spot change in a statewide funding formula is therefore inextricably linked together with the revenue-sharing agreement."
Michie adds that a land annexation by Charlottesville would still hold consequences for the tax bases of both localities. "Therefore, it is perfectly logical that the revenue-sharing agreement is set up that way, as well," he says.
Read the complete report here or posted below, and respond with your thoughts and questions.