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HB748 • 2026

Bath County and Augusta County School Boards; cost-savings agreements, requirements.

<p class=ldtitle>A BILL to amend and reenact the third enactment of Chapter 589 of the Acts of Assembly of 2008 and to permit the Bath County School Board and the Augusta County School Board to enter into certain cost-savings agreements.</p>

Education Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Runion
Last action
2026-02-18
Official status
Failed
Effective date
Not listed

Plain English Breakdown

The bill summary and text do not provide specific details about the conditions under which Bath County and Augusta County school boards can enter into cost-saving agreements beyond the requirement related to real estate taxes.

Bath County and Augusta County School Boards; Cost-Savings Agreements

This bill allows Bath County and Augusta County school boards to enter into cost-saving agreements despite not meeting the usual requirement of having at least 65% of local taxes from real estate.

What This Bill Does

  • Removes a limit that stops school boards from getting extra state money if they share services with another school board in a neighboring area.
  • Allows Bath County and Augusta County school boards to make cost-saving agreements even though Bath County does not meet the usual requirement of having at least 65% of its local taxes come from real estate taxes.

Who It Names or Affects

  • Bath County School Board
  • Augusta County School Board

Terms To Know

cost-savings agreements
Agreements between school boards to share or consolidate services to save money.
state share of basic aid
Money given by the state to help schools pay for basic education needs.

Limits and Unknowns

  • The bill only applies to Bath County and Augusta County school boards.
  • Any additional funds must be specifically approved by the state before they can be paid out.

Bill History

  1. 2026-02-18 House

    Left in Committee Appropriations

  2. 2026-01-30 Elementary & Secondary Education

    Subcommittee recommends laying on the table (6-Y 0-N)

  3. 2026-01-29 House

    Fiscal Impact Statement from Department of Planning and Budget (HB748)

  4. 2026-01-20 Elementary & Secondary Education

    Assigned HAPP sub: Elementary & Secondary Education

  5. 2026-01-13 House

    Prefiled and ordered printed; Offered 01-14-2026 26102780D

  6. 2026-01-13 Appropriations

    Referred to Committee on Appropriations

Official Summary Text

Certain school divisions; cost-savings agreements; requirements.
Removes the limitation on any school board that enters into certain cost-savings agreements with a school board that governs a contiguous school division for the consolidation or sharing of educational, administrative, or support services and thus qualifies for adjustment of state share of basic aid computed annually on the basis of the composite index of local ability-to-pay of such contiguous school division that caps such adjusted basic aid payment at an amount equal to the basic aid payment appropriated to such locality by the 2007 Session of the General Assembly. The bill also permits, notwithstanding the requirement set forth in relevant law that a school division have 65 percent or more of its local taxes coming from real estate taxes in order for the school board that governs such school division to be eligible to enter into such cost-savings agreements with a contiguous school division, the Bath County School Board to enter into such cost-savings agreements with the Augusta County School Board, provided that all other conditions and limitations set forth in relevant law apply to any such agreement.

Current Bill Text

Read the full stored bill text
A BILL to amend and reenact the third enactment of Chapter 589 of the Acts of Assembly of 2008 and to permit the Bath County School Board and the Augusta County School Board to enter into certain cost-savings agreements.

Be it enacted by the General Assembly of Virginia:

1.
§ 1.
Notwithstanding the
requirement set forth in subsection A of §
22.1-98.2
of the Code of Virginia
that a school division ha
ve
65 percent or more of its local taxes coming from real estate taxes in order for the school board
that governs such school division
to be eligible
to enter into certain cost-savings agreements with a contiguous school division for the consolidation or sharing of educational, administrative, or support services and subsequently receive the state share for basic aid computed
annually
on the basis of the composite index of local ability-to-pay of the contiguous school division
,
the
Bath County School Board may enter into such cost-savings agreement
s
with the Augusta County School Board, provided that all other conditions and limitations set forth in §
22.1-98.2
of the Code of Virginia shall apply to
any
such agreement.

2. That the third enactment of Chapter 589 of the Acts of Assembly of 2008 is amended and reenacted as follows:

3. That additional funds to a school board as a result of this
Act
act
shall not be paid unless there is a specific appropriation for such additional funds in the appropriation act at the time payment is proposed
, and in no event shall any payments be made prior to July 1, 2010, or will the sum of the basic aid payment and the supplemental basic aid payment exceed the basic aid payment that the locality received pursuant to Chapter 847 of the Acts of Assembly of 2007
.