State Literary Fund

November 30, 1998

Point Of Contact: 
Robert Whiteman, FCCPTA First Vice President
robert.whiteman@delusw.cec.eu.int

(202) 867-9550 (days) 
(703) 435-1773 (home)

13155 Ruby Lace Court
Herndon, VA 20171

Fairfax County Council Of PTA’s Position: 
The State Literary Fund should (1) be restored to its historic role of supporting local school construction, and (2) be distributed on a per pupil basis.

Background: 
The Virginia State Literary Fund was enacted in 1810 to provide funding for schools. Funding came from all fines and forfeitures paid to the state, from repaid loans to the federal government, and later from the Capitation Tax. In 1829, when the Literary Fund Report showed 26 schools of all types in Fairfax County, the General Assembly provided for the funding of schoolhouse construction. (Cornelius J. Heatwole, A History of Education in Virginia, 1916, pp. 108-109) In 1906, the Williams Building Act permitted districts to borrow money from the Literary Fund to build schools. (J. L. Blair Buck, The Development of Public Schools in Virginia, July, 1952, p. 144)

In recent years, this historic function has been diluted as some funds have been diverted. According to Larry O'Dell ("Members of the panel say they're unsure schools need more state aid" Fairfax Journal, A3, October 15, 1998), "The state's biggest role has been making low-interest loans through the Literary Fund, which consists largely of various fines and unclaimed lottery prizes. Since the 1982-83, the state has made $554.3 million in loans from the Literary Fund. The state loaned a record $78.2 million to schools last year. However, the state has also raided the Literary Fund in the past to help pay teacher pensions. For three years earlier this decade the state used so much of the fund for pensions that no money was available for construction loans.... Del J. Paul Councill ... has proposed a constitutional amendment that would restrict use of the fund to school construction."

Discussion: 
Projected Fairfax facilities spending shortfall for the next ten years is approximately $300 to 400 million.

The projected shortfall between current County contributions and FCPS facilities needs that have approved bond packages could be alleviated through proper use of the Literary Fund.

Diversification of taxes away from real estate values is essential.

Recommendations: 

1.Restore the Literary Fund to its historic role of providing a state lending source for below market funding for school construction.

2. Seek significant funds from the entertainment, tourist, and other Virginia industries to contribute to the Literary Fund.

3. Distribute Literary Fund loans on a per pupil basis.

Last Updated 01/27/2005 20:22:31