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Bill

Bill

HB 1167

Public school funding; composite index of local ability-to-pay; calculation; exclusion of certain exempt property.

2026 Regular Session

Virginia bill excludes certain tax-exempt property from school funding formula calculations, potentially shifting state education dollars between districts based on local wealth reassessment.

Assigned HAPP sub: Elementary & Secondary Education
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Bill Summary · HB 1167

Legislative bill overview

HB 1167 modifies how Virginia calculates the "composite index of local ability-to-pay" (CILAP), a metric used to distribute state education funding to school districts. The bill specifically excludes certain tax-exempt property from this calculation, which affects how much local wealth is attributed to each district and thus how much state funding they receive.

Why is this important

The CILAP directly determines how education dollars are allocated across Virginia's school districts under the Standards of Quality funding formula. Changes to what counts as "local ability-to-pay" can shift millions of dollars between wealthier and less wealthy districts, impacting school budgets, teacher salaries, and educational resources available to students.

Potential points of contention

  • Defining "exempt property": Disagreement over which properties should be excluded (religious institutions, nonprofits, government buildings, etc.) and whether exclusions are fair to all communities
  • Funding redistribution effects: Some districts may lose state funding if their calculated local capacity decreases, while others gain—creating winners and losers in budget negotiations
  • Tax base consequences: Excluding property from the calculation could indirectly affect overall state revenue estimates and education funding adequacy across the system

Compiled from official sources — confirm details with the bill’s official record.

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