Minimum Proportionality Percentage & the LCFF Calculation - PowerPoint Presentation

Minimum Proportionality Percentage & the LCFF Calculation 1

Local Control Funding Formula (LCFF) Target Entitlement *Unduplicated Pupil Percentage (UPP) must be above 55% 2 Necessary Small School Base Grant(by grade span) Grade Span AdjustmentK-3 9-12 Supplemental Grant Concentration Grant* Targeted Instructional Improvement Block Grant Home-to-School Transportation Adjusted Base Grant Add-ons 12-13 Award Level Unduplicated Count English Learners Low IncomeFoster Youth ADA

Local Control Funding Formula (LCFF) 3 There are multiple c alculations during Transition…. Target Calculation – the funding goal, where we should be Economic Recovery Target (ERT): Provides additional funding for those LEAs that would have received more under undeficited revenue limits (RL) & categorical programs, when compared to LCFF. Calculated one-time as part of 2013-14 calculation and funded over 8 years (additional 1/8 each year). Transition-only Calculations - Floor: where we were before LCFFRemaining Need & Gap: the difference between the Target and Floor & the funded portion of the differenceMinimum State Aid (MSA)*: the protection from the change in funding methodology from RL to LCFF*Only exists until statewide full implementation as currently written in statute.

Minimum State Aid (MSA) Guarantee 4 The level of funding to ensure that LEAs receive at least the same amount in state aid as they received in 2012-13, adjusted for changes in ADA and property taxes. 10.18 % of LEAs received Additional State Aid in 2013-14Primarily occurs for:Basic Aid districts because categorical funding was not previously being offset by local property taxes.Necessary Small School districts because of loss of eligibility under new eligibility rules.It may occur under other infrequent/unusual situations.Exists only during transition as legislation is currently written.

Minimum Proportionality Percentage MPP is the lowest level of increased or improved services for unduplicated students A minimum, not a maximumServices funded with LCFF Not federal or other restrictedServices are above those provided for all students (base program) Not above services in prior year Not a maintenance of effort calculationIn the LCAP yearNot the current yearCan calculate additional years for transition planning5

Minimum Proportionality Percentage At full LCFF implementation The MPP calculation is: *Less TIIG and Transportation 6$$%

Example 1 - At full LCFF implementation $ 14,000,000 -------------- = 14.00% 100,000,0007 MPPComponentsAmountBase / NSS$ 96,000,000Grade Span Adj.3,000,000 Supplemental12,000,000Concentration2,000,000TIIG & Transportation1,000,000ERT1,000,000Total LCFF$ 115,000,000 S&CTotal LCFF $ 115,000,000TIIG/Transp. -1,000,000S & C -14,000,000--------------- --------------All other LCFF $ 100,000,000

Minimum Proportionality Percentage During LCFF Transition Part of the LCFF Transition total is attributed to Supplemental and Concentration for purposes of the MPP calculation Compare prior year spending for increased or improved services to unduplicated pupils to the Target S & C amount If spending more than Target S & C = Target S & CIf spending less than Target S & C = PY spending + part of difference (Gap %) between PY spending and Target S & CDo the math during transition, even when Floor is above Target 8 $$Increased or improved services

EXAMPLE 2 – LEA Floor below Target During LCFF Transition LCFF components are: TARGET PY spent on Base + GSA $9,000,000 unduplicated pupils $600,000Supplemental 1,000,000Concentration 100,000 CY Gap % 20%TIIG & Transp. 400,000TOTAL $10,500,000FLOOR 8,500,000TRANSITION FLOOR $8,500,000 CY Gap funding 400,000ERT 100,000Add’l St.Aid-MSA 500,000TOTAL $9,500,000 9What is the S&C and MPP?

Example 2 – LEA Floor below Target During LCFF Transition Target S & C Est. PY expenditures for unduplicated pupils Balance to target (step 1 – step 2) Portion of balance (step 3 x Gap %) Est. S & C (step 2 + step 4)All other LCFF (no TIIG/Transp) LCFF total 9,500,000 - TIIG/Transp. - 400,000 - Est. S&C - 700,000 All other LCFF 8,400,000MPP (step 5 ÷ step 6) $1,100,000 600,000 ------------ 500,000 x 20.00% 100,000 ------------- 700,000 ÷ 8,400,000 = 8.3%10 S&C MPP

EXAMPLE 3 – LEA Floor above Target During LCFF Transition LCFF components are: TARGET PY spent on Base + GSA $9,000,000 unduplicated pupils $600,000Supplemental 1,000,000Concentration 100,000 CY Gap % 20%TIIG & Transp. 400,000TOTAL $10,500,000FLOOR 12,500,000TRANSITION TARGET $10,500,000 ERT 100,000Add’l St.Aid-MSA 500,000TOTAL $11,100,000 11What is the S&C and MPP?

Example 3 – LEA Floor above Target During LCFF Transition Target S & C Est. PY expenditures for unduplicated pupils Balance to target (step 1 – step 2) Portion of balance (step 3 x Gap %) Est. S & C (step 2 + step 4)All other LCFF (no TIIG/Transp) LCFF total 11,100,000 - TIIG/Transp. - 400,000 - Est. S&C - 700,000 All other LCFF 10,000,000MPP (step 5 ÷ step 6) $1,100,000 600,000 ------------ 500,000 x 20.00% 100,000 ------------- 700,000 ÷ 10,000,000 = 7.0%12 S&C MPP

Use LCFF Calculator to Help 13 Enter PY spending estimates. Please pause for thought.. Step 5 is S & CStep 7 is MPP

Annual Update LEAs must complete an Annual Update table for each of the LEA’s goals for the current year … 14

Reporting Expenditures and Estimated Costs Why track? Need to list estimates in LCAP Annual UpdateBudgeted ExpendituresEstimated Actual Annual Expenditures Need estimates for Minimum Proportionality Percentage (MPP) calculationsTo prepare for your audit 15