Local Control Funding Formula LCFF Calculator

Transcription

1 Local Control Funding Formula LCFF Calculator Presented by: Marisa Ploog, CPA, CFE, CICA, CGMA Fiscal Crisis and Management Assistance Team Andrea Alvarado Fiscal Crisis and Management Assistance Team Kate Lane Marin County Office of Education Diane Lacombe El Dorado County Office of Education William Pickering San Diego County Office of Education

2 Goals Provide an overview of recent changes and updates included in the February 2014 release of the LCFF Calculator v.15.1 Provide a general understanding of how to navigate within the calculator and prepare estimated 13/14 and 14/15 LCFF Phase-In Entitlements Provide an overview of various factors that will affect revenue estimates Provide an overview of the various components of the LCFF Target and LCFF Phase-In Entitlement 2

3 Introduction Local Control Funding Formula signed: Legislation & set of revisions - July 1, 2013 Clean-up legislation September 26, 2013 Sweeping funding reform Rush to determine What does it mean for us? Marin COE / BASC developed the initial calculator Support requirements kept growing November 2013: FCMAT began providing support 3

4 A word of caution This continues to be a fluid environment. CDE guidance is still being developed. Information could change. Read the caveats posted on the FCMAT website 4

5 What is the Calculator? A tool to estimate revenue based on the LCFF A budget tool A multi-year modeling tool An education/communication tool 5

6 The Current Situation Proposition 98 guarantee is still in effect 13/14 is the start of the transition to LCFF could be 8 years or so Some uncertainties pertaining to the exact methodology and application of the formula still exist At this time, there are no CDE apportionment schedules that reflect how the LCFF formula will be applied CDE will certify LEAs revenue at P-2 July 2014, after the year is over Districts and charter schools need to become well versed in estimating their own LCFF revenue 6

7 Calculator Resources FCMAT maintains and supports the LCFF Calculator and associated resources including a help desk support accessible at Calculator release notifications and updates are communicated through FCMAT s listserv be sure to subscribe FCMAT s LCFF Calculator webpage includes a link to CALPADS reporting and access to a short self-paced tutorial covering student data collections and LCFF If you need assistance FCMAT has an online helpdesk available to support your needs 7

8 LCFF Resource Page Identifies current version Open the web-browser and go to Click on LCFF button Click on LCFF Calculator button to download excel file Save to the desktop or flash drive 8

9 Calculator Foundation The calculator will do the heavy work for you Microsoft Excel is a must (Version 2010 and newer is preferred) Lots and lots of formulas Links & Arrays Vlookups & HLookups Calculations If statements & conditional logic Worksheets are password protected Accidental or incorrect changes to the formulas or links can cause an unknown and/or miscalculation of your estimated revenue If you have a question regarding a calculation contact the FCMAT help desk 9

10 Calculator Navigation Tabs are established in step by step order for preparation Instructions Assumptions Awards District MYP Data Charter MYP Data Class Size District NSS District In-Lieu Taxes EPA Calculator Summary Graphs LCAP MP% Local 1 Local 2 10

11 Instructions Tab Purpose and general instructions for completing each tab in workbook Updated with each release users should review Identifies version number and release date of calculator V.15.1 added new title box at the top of instructions tab which flows to the other tabs 11

12 Assumptions Tab All assumptions prefilled based on the Department of Finance estimates 12

13 Awards tab Where it all begins the Awards tab Enter 5 digit district or 7 digit charter school CDS # Adjust for 12/13 close 13

14 Awards tab Charter Schools Use the calculator for EITHER a charter school OR a district A separate calculation for must be completed for each charter school and/or district 14

15 Awards tab Necessary Small Schools Adjustments for should be entered and users must complete the Necessary Small Schools tab. Use the adjustment column to update P2 data to the final figures for 12/13. 15

16 Awards tab Basic Aid Districts How is the Basic Aid Fair Share Reduction calculated? Permanent reduction until reach Target based on a snapshot in time Limited to ceiling of Excess Tax Limited to ceiling of categorical funding included in LCFF Deducted from other sources if LCFF sources insufficient in ONLY BASIC AID DISTRICTS FAIR SHARE CALCULATION 8.92% Undeficited RL Multiplied by 8.92% 9,440, Excess Property Tax 7,935,771 Fair Share Reduction as limited by ceiling of Excess Tax & or Categoricals 7,935,771 Fair Share Fair Share per CDE advance apportionment 7,935,771 CDE Schedule Re Certified June Fair Share taken in $ RDA Asset Liquidation Revenues Fair Share reduction w RDA fix $ 1,003,724 (effective pending legislation) on Fair Share Reduction as limited by the lessor of Categoricals or Excess Taxes $ 1,003,724 16

17 District MYP tab Pre-populated factors come from new assumptions tab Must enter estimated local revenue (gross before in lieu transfers) 17

18 District MYP tab Users enter enrollment and unduplicated pupil counts Note Unduplicated count is not entered as a percentage. This is your percentage used to calculate Supplemental and Concentration Grant add-ons 18

19 District MYP tab Average Daily Attendance enter by grade span, district separate from COE operated Greater of current or prior ADA Current Annual ADA Current Annual ADA 19

20 District MYP tab Charter Shift Charter Shift for declining enrollment districts No student is funded more than once 20

21 District MYP tab Average Daily Attendance calculates greater of current or prior year Redistributes ungraded ADA 21

22 Charter MYP tab In Lieu taxes and unduplicated % both come from the district where the charter school is physically located. Unduplicated % of the district is used to calculate the Concentration grant add on. UNDUPLICATED % OF DISTRICT Enter data for the district that the charter school is physically located in. If located in more than one district, enter % for the district with the highest percentage. District Unduplicated % % 1 yr average % 2 yr average % 3 yr average yr rolling avg yr rolling avg 22

23 Charter MYP tab Average Daily Attendance is calculated on current year AVERAGE DAILY ATTENDANCE (ADA) Enter P2 Data Note Charter School ADA is always funded on Current Year Grade Span LCFF ADA Ungr Total Grades K Grades Grades Grades Ungraded (or enter by grade) SUBTOTAL ADA Grade Span LCFF ADA Ungr Total Grades K Grades Grades Grades Ungraded (or enter by grade) SUBTOTAL ADA Grade Span LCFF ADA Ungr Total Grades K Grades Grades Grades Ungraded (or enter by grade) SUBTOTAL ADA

24 K-3 Class Size Conditions Does not apply to charter schools Does not apply if have a collectively-bargained alternative Condition of apportionment Calculates adequate progress If ONE site fails, district fails Green sections are for documenting your site calculations Purple section drives LCFF Revenue estimate 24

25 K-3 Class Size Conditions Enter Average Class Size in each year to determine if make progress Consider using different GAP funding rates to model possible outcomes Purple section drives calculations in Calculator Tab 25

26 Determine qualifying Necessary Small Schools (NSS) Review legislative changes regarding NSS eligibility Distance criterion from the nearest public school must now consider charter schools Distance criterion now eligibility requirement for all NSS Automatic NSS eligibility for a unified district that maintains only one high school has been deleted Single school districts no longer automatically qualify based on small size EC et al Necessary Small School Tab 26

27 Necessary Small School Tab Target uses 12/13 undeficited bands and NSS per ADA Add-on increased for COLA Transition Base for NSS uses 12/13 deficited bands and NSS per ADA Add-on NSS ADA also gets credit for SUI/PERS add-on Hold Harmless Based on deficited NSS allowance received in 12/13 27

28 Necessary Small School Tab Enter data for all NSS schools 1. P-2 ADA by school and grade-span 2. FTE by school 3. Indicate if school qualifies as NSS 28

29 District In-Lieu Taxes Calculating In-Lieu on the lesser of taxes per ADA 29

30 District In-Lieu Taxes Calculating on the state-wide average Basic Aid districts 30

31 District In-Lieu Taxes Calculating on the state-wide average 31

32 District In-Lieu Taxes Workflow for calculating the state-wide average 1. Complete Awards Tab and MYP Tab 2. Complete separate calculator for each charter without entering in-lieu tax 3. Go back to district Calculator and enter charter ADA by grade span, Target grant and Transition grant to the District In-Lieu tab 4. Enter the results for in-lieu taxes to each charter s calculator 32

33 LCFF Calculator Component Relationship Historical $ Minimum State Aid (MSA) Phase-in $ Floor + Gap + Economic Recovery Target (ERT) Implemented $ Target + Economic Recovery Target (ERT) All components are calculated on the Calculator tab 33

34 Calculator tab Target Calculation Know your students ADA by grade span & ungraded Unduplicated count Fall census enrollment is Oct 2 nd Know your sub-populations FRPM, EL, & FY monitor Base grant Adds COLA annually Grade span adjustments 10.4% for K-3...only if LEA meets requirement 2.6% for 9-12 Supplemental 20% of adjusted base grant and unduplicated count Concentration 50% of unduplicated count in excess of 55% Add-ons Transportation & TIIBG 34

35 LCFF Target Target a simple formula ADA feeds from data found on MYP tab Necessary Small School data found on District NSS Tab Unduplicated Enrollment found on District MYP Tab COLA found on Assumptions Tab TIIG and Transportation data found on Awards tab 35

36 Calculator tab - Economic Recovery Target (ERT) Calculations Add on funding for districts whose LCFF Target is less than they would have received under the revenue limit LEAs whose LCFF Target per ADA is below the undeficited RL+ Categorical per ADA AND whose RL+ Categorical per ADA is below the 90th percentile ($14,500) Permanent add-on to LCFF grant Receive 1/8 of total ERT in 13/14, 2/8 in 14/15 until reach 8/8 36

37 Awards tab ERT Per ADA How is the Economic Recovery Target rate calculated? This base rate is measured against the LCFF Target per ADA If the base rate is higher than the Target, District may qualify for ERT Factors feed into ERT from the Awards tab CALCULATE ECONOMIC RECOVERY TARGET 2013/ /21 Revenue Limit per ADA inflated to 2020/21 6, , Charter General Purpose BG/ADA inflated to 2020/21 Categorical Base per ADA Total Economic Recovery Target per ADA 7, , Statewide 90 th percentile rate 14, , LCFF Target rate per ADA 199, , ECONOMIC RECOVERY TARGET per ADA ECONOMIC RECOVERY TARGET x ADA This district does NOT qualify for ERT ECONOMIC RECOVERY TARGET PAYMENT 1/8 37

38 Calculator tab Floor Calculation Floor Funding per ADA from Awards tab - Feeds Floor calculation into the Calculator tab per ADA rate comes from the Awards tab Recalculates based on next fiscal year ADA Prior year Gap funding per ADA carries forward and is applied to each new year s ADA 38

39 Calculator Tab - Phase-In Funding The Transition not so simple Step One: Compares the LCFF Target to the LCFF Floor the difference = GAP Step Two: Determine GAP and Apply GAP funding rate Step Three: Calculate Phase-In Entitlement before Minimum State Aid: Add GAP funding to Floor (UNLESS funded at Target - Once funded at Target always funded at Target ) Add ERT Payment 39

40 Calculator Tab - Minimum State Aid Former RL 12/13 Total RL divided by 12/13 RL ADA multiplied by 13/14 LCFF ADA $82,978,660 / 13,448 = $6, X 13,483 = $83,194,622 NSS allowance 12/13 deficited NSS allowance provides funding floor for all schools that received NSS funding in /13 categorical funds not offset by property taxes Basic Aid districts continue to receive State Aid for categorical funds received in 2012/13 net of fair share. If categorical funds included in the LCFF are insufficient for the State to fully recover the fair share, it will be deducted from other sources in ONLY. 40

41 Calculator Tab - Minimum State Aid How much State Aid is my district entitled to? CALCULATE STATE AID LCFF Funding before Minimum State Aid 91,658,433 Less Property Taxes including RDA (85,526,479) LCFF state aid (before Min State Aid) 6,131,954 CALCULATE MINIMUM STATE AID 2012/ Rate ADA N/A RL/Charter Gen BG adjusted for ADA 82,978,660 6, , ,193, NSS Allowance Less Current Year Property Taxes/In Lieu (90,914,431) (85,526,479) Subtotal State Aid for Historical RL/Charter General BG Categorical funding from ,446,822 4,511,051 Charter Categorical Block Grant adjusted for ADA Total Minimum State Aid 12,446,822 4,511,051 STATE AID 6,131,954 Addition to LCFF due to Minimum State Aid provision LCFF Phase In Entitlement (before COE transfer, Choice & Charter Supplemental) 91,658,433 41

42 Proposition 30 EPA Tab How is Proposition 30 ( EPA ) calculated? Uses adjusted Revenue Limit in LCFF Floor Minimum $200 per ADA 42

43 Proposition 30 EPA Tab How is Proposition 30 EPA applied? Reduces gross state aid 43

44 Summary Tab 44

45 The Graphs Tab The graphs tab includes various ways of looking at the new funding: By LCFF Component On a per ADA basis comparing entitlement to actual sources Target components Summary Table of Funding by component By Budget Object Code May be modified by user 45

46 LCAP Minimum Proportionality Percentage NEW Follows Title 5 CCR Section Calculates percentage by which services for unduplicated students must be increased or improved over services for all students in the LCAP year Not a maintenance of effort calculation LEA only required to demonstrate how it is meeting MP% in LCAP year, not across all three years 46

47 LCAP Minimum Proportionality Percentage Minimum Proportionality Percentage (MPP): Summary Supplemental & Concentration Grant ** ** 1. LCFF Target Supplemental & Concentration Grant Funding from Calculator tab 807, , , Prior Year (estimated) Expenditures for Unduplicated Pupils above what was spent on services for all pupils 150, , ,000 Enter estimated expenditures on unduplicated pupils & EIA expenditures Prior Year EIA expenditures 103, py exp ( exp) must >= EIA exp TRUE 3. Difference [1] less [2] 657, , , Increase in Estimated Supplemental & Concentration Grant Funding [3] * GAP funding rate 184, ,245 74,295 GAP funding rate 28.05% 33.95% 21.67% 5. Estimated Supplemental and Concentration Grant Funding [2] plus [4] (unless [3]<0 then [1]) 334, , , Base Funding LCFF Phase In Entitlement less [5] 7,978,724 8,521,623 8,456,671 LCFF Phase In Entitlement 8,885,959 8,982,868 8,980,966 7/8. Minimum Proportionality Percentage* [5] / [6] 4.19% 5.41% 6.20% Est. Supp. & Conc. Divided by Base is MP % 47

48 Final Thoughts

49 Version 15.1 Changes Updated instructions New Title box New Assumptions tab Updated assumptions based on the Governor s budget proposal Addition of fiscal year New Summary Tab Updated formatting and calculations Awards tab Addition of Agriculture Voc. Ed & Specialized Secondary Ed Calculator tab New LCAP Proportionality Percentage (MP%) tab 2 new Local Use tabs 49

50 Caveats Default assumptions are official estimates as prescribed by law. LEAs should consider running multiple fiscal scenarios to understand the implications of changes. The calculator does not take into account the impact of district reorganizations on LCFF funding. The calculator is not designed to estimate funding for charter schools established in or subsequent years. The calculator does not take into account all funding adjustments for basic aid school districts (see doc for full list). 50

51 Know your sub-populations Items to Monitor EL has been targeted with supplemental instructional programs for many years Goal 4760 FY or FRPM students have traditionally not been targeted with stand alone programs outside of NSL Business staff will need to collaborate with C&I staff to strategize on methodologies of tracking Develop systems for accurate and complete FRPM reporting CDE will collect ADA on a grade-span basis for all instructional settings at P2 51

52 State Board of Education Items to Monitor SBE published a draft LCAP template on the WestEd website on December 11, 2013 The final LCAP regulations and template were adopted at the SBE meeting in January 2014 Next meeting: March Topic: Grade Span Adjustment 52

53 The Acronyms ADA Average Daily Attendance CY Current Year EL English Learners ERT Economic Recovery Target FRPM Free Reduced Priced Meals FY Foster Youth LCAP Local Control Accountability Plan NSL National School Lunch NSS Necessary Small School PY Prior Year RL Revenue Limit SACS Standards Accounting Codes Structure SBE State Board of Education SDC Special Day Class SED Socioeconomically Disadvantaged TIIBG Targeted Instructional Improvement Block Grant 53

54 Questions 54