Local composite index school funding formula; data center revenue.

Plain English Breakdown

The official source does not provide specific details on what happens if the General Assembly does not approve the revised formula.

School Funding Formula Change for Data Centers

This bill requires the Department of Education to update the school funding formula by December 1, 2026, to include revenue from data centers and ensures that local schools without data centers are not disadvantaged.

What This Bill Does

• Requires the Department of Education and the Department of Taxation to revise the school funding formula no later than December 1, 2026, to account for any local revenue generated by data centers in the calculation of required local effort.
• Includes real property taxes and business personal property taxes attributable to the operation of data centers as factors in the revised formula.
• Ensures that no local school division without a data center is disadvantaged by this revision.
• Requires the Department of Education to submit the revised formula to the General Assembly for approval before December 1, 2026.

Who It Names or Affects

• Local school divisions with or without data centers
• The Department of Education and the Department of Taxation

Terms To Know

Data center

A facility that houses computer systems, storage devices, and network equipment for processing, storing, and distributing large amounts of data.

Local composite index school funding formula

A method used to calculate the amount of money local schools need based on various factors including local revenue.

Limits and Unknowns

• The bill does not specify what happens if the General Assembly does not approve the revised formula.
• It is unclear how quickly changes will be implemented after approval by the General Assembly.

Official Summary Text

Department of Education; local composite index school funding formula; data center revenue.
Requires the Department of Education, in coordination with the Department of Taxation, no later than December 1, 2026, to revise the local composite index school funding formula to include as a factor in the calculation of required local effort any local revenue generated by any data center, as defined in relevant law, in the local school division, including real property taxes and business personal property taxes attributable to the operation of any such center, while also ensuring that no local school division that does not have such a data center is disadvantaged by any such revision. The bill requires the Department to submit such revised formula to the General Assembly no later than December 1, 2026, for approval pursuant to the general appropriation act enacted during any regular or special session during the 2026 calendar year before utilizing and making calculations according to the formula and provide that if the General Assembly grants such approval, the Department of Education shall apply such revised formula effective beginning with the 2028-2030 biennium.

Current Bill Text

A BILL to require the Department of Education to revise the local composite index school funding formula to account for data center revenue.

Be it enacted by the General Assembly of Virginia:

1.
§ 1.
The Depar
tment of Education
, in coordination with the Department of Taxation,
shall
, no later than December 1, 202
6
,
revise the local composite index school funding formula to

include
as a factor in the calculation of required local effort any
local revenue generated by any

data center
,
as such term is defined in subdivision A 43 of §
58.1-3506
of the Code of Virginia
,
in the local school division,
including real property taxes and business personal property taxes attributable to
the operation of any such center
,

while also ensuring that no local school division that does not have such a data center is

disadvantaged by an
y such revision
.
The Department of Education shall submit such revised formula to the General Assembly
no later than
December 1, 2026,
for approval pursuant to the gener
al appropriation act
enacted dur
ing any regular or special session during the 2026 calendar year
before utilizing and making calculations according to the
revised
formula.
If the General Assembly grants such approval, the

Depa
rtment of Education shall apply such revised formula effective beginning with the 202
8
–
20
30

biennium
.