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<br />Minimum Ten Percent Local Matching Funds Waiver Request Attachment <br /> <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. <br /> <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. <br /> <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. <br /> <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. <br /> <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. <br /> <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: <br /> <br />a. an unusually high unemployment rate, compared with the statewide or regional average <br />unemployment rate; <br /> <br />b. a decreasing tax base or declining tax revenues; <br /> <br />c. the existence of local government budget deficits; or <br /> <br />d. major unanticipated local government capital or operating expenditures (e.g., for flood <br />damage). <br /> <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. <br /> <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. <br />