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<br />Minimum Ten Percent Local Matching Funds Waiver Request Attachment
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<br />A Board should maintain its local matching funds at least at the same level as that shown in
<br />its FY 2006 final performance contract revision. The 2007 Appropriation Act prohibits using state
<br />funds to supplant local governmental funding for existing services. Board includes operating and
<br />administrative policy community services boards (CSBs), local government departments with
<br />policy-advisory CSBs, and behavioral health authorities.
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<br />If a Board is not able to include at least the minimum 10 percent local matching funds,
<br />required by S 37.2-509 of the Code of Virginia and State Board Policy 4010, in its original
<br />performance contract, any subsequent contract revision, or its annual (fourth quarter) performance
<br />contract reports, it must submit a written request for a waiver of that requirement, pursuant to
<br />S 37.2-509 of the Code of Virginia and State Board Policy 4010, to the Office of Community
<br />Contracting with the original or revised contract or performance contract reports.
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<br />In accordance with sections 6.d.3.), f. and g. and 7.e.3.), g, and L, if only a Board's
<br />participation in the Discharge Assistance Project (DAP) , its receipt of reinvestment funds, or its
<br />participation in a regional program, as defined in Exhibit J of the contract, causes it to be out of
<br />compliance with the 10 percent local matching funds requirement in S 37.2-509 of the Code of
<br />Virginia, the Department will grant an automatic waiver of that requirement, related to the funds for
<br />the DAP, reinvestment program, or regional program. The Board must submit a written request for
<br />the waiver, identifying the specific amounts and types of those funds that cause it to be out of
<br />compliance with the local matching funds requirement, but without the documentation required
<br />below in items 3, 4, and 5, and the Department will approve an automatic waiver in a letter to the
<br />Board.
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<br />1. State Board Policy 4010 defines acceptable local matching funds as local government
<br />appropriations, philanthropic cash contributions from organizations and individuals, in-kind
<br />contributions of space, equipment, professional services (for which the Board would otherwise
<br />have to pay), and, in certain circumstances, interest revenue. All other revenues, including
<br />fees, federal grants, and other funds, as well as uncompensated volunteer services, are not
<br />acceptable as local matching funds.
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<br />2. Section 37.2-509 of the Code of Virginia states that allocations of state funds to any Board for
<br />operating expenses, including salaries and other costs, shall not exceed 90 percent of the total
<br />amount of state and local matching funds provided for these expenses. This section effectively
<br />defines the 10 percent minimum amount of local matching funds as 10 percent of the total
<br />amount of state and local matching funds.
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<br />3. The written waiver request must include an explanation of each local government's inability to
<br />provide sufficient local matching funds at this time. This written explanation could include,
<br />among other circumstances, the following factors:
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<br />a. an unusually high unemployment rate, compared with the statewide or regional average
<br />unemployment rate;
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<br />b. a decreasing tax base or declining tax revenues;
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<br />c. the existence of local government budget deficits; or
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<br />d. major unanticipated local government capital or operating expenditures (e.g., for flood
<br />damage).
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<br />4. Additionally, the waiver request must include information and documentation about the Board's
<br />efforts to obtain sufficient local matching funds. Examples of such efforts could include
<br />newspaper articles, letters from Board members to local governing bodies outlining statutory
<br />matching funds requirements, and Board resolutions.
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<br />5. Finally, the waiver request must include a copy of the Board's budget request that was
<br />submitted to each local government and a copy or description of the local government's
<br />response to the request.
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