Indiana Department of Education Overview of the State Tuition Support Formula
Agenda Background Formula Terms The Formula Reconciliation Other Grants Resources Contacts
State Tuition Support Formula Background Established by the IN General Assembly Funded through state revenues without a property tax component School corporations do, however, have the opportunity to raise operating dollars through a property tax referendum. Adopted as a two year formula during the long session in odd-numbered years Effective 7/1/13, the funding formula became a fiscal year formula Fiscal year formula runs from July 1 through June 30
State Tuition Support Formula Background Sets the fiscal year cap or maximum amount of dollars available for tuition support funding State tuition support Choice scholarships Mitch Daniels Early Graduation Scholarship Currently supports six categorical grants Basic tuition support Complexity Full-day kindergarten Honors Special education Career & Tech. Educ.
Tuition Support Stats September 2013 ADM count 989,696.28 February 2014 ADM count 983,135.11 September 2014 ADM count 988,673.02 FY14 Average TS per ADM $4,622.99 FY14 Average CI per ADM $1,160.26 FY 15 Average TS per ADM $4,622.44 FY15 Average CI per ADM $1,169.08
Tuition Support Stats FY14 Basic Tuition $4,560,189,077 FY14 Complexity $1,144,499,350 FY14 Ave. mo. payment (gross) $544,890,577 FY 15 Basic Tuition (est) $4,570,469,843 FY15 Complexity (est) $1,155,846,600 FY15 Ave. mo. payment (gross) $546,372,116
Foundation CY2011- $4,505 CY2012- $4,280 CY2013- $4,505 FY2014- $4,569 FY2015- $4,587 Tuition Support Stats
Tuition Support Stats Full-day kindergarten per student funding: 2010-2011- $1,029.46 2011-2012- $1,234.48 2012-2013- $2,400.00 FY2014 - $2,448.00 FY2015 - $2,472.00
IDOE Monitors the cap Ensuring that distributions made do not exceed funds available for the fiscal year Cap FY2013- $6,313,700,000 FY2014- $6,622,800,000 FY2015- $6,691,600,000 FY2016- TBD
IDOE Creates the worksheet Work with a small committee of fiscal analysts, school business officials, school associations and IDOE staff to prepare a draft worksheet Test, retests and finalizes the calculations Determines and distributes grant amounts Twelve payments per year with at least one payment occurring every forty (40) days
IDOE Calculates a gross monthly payment to public school corporations and charter schools Finalizes the net monthly payments after adjustments Plus and minus adjustments Common school loans Medicaid Veteran loans Other adjustments
DOE- ME Membership Report Used to gather average daily membership (ADM) and full-day kindergarten (FDK) counts Two counts Formula Terms September (fall count) determines July through December funding February (spring count) determines January through June funding Kindergarten students count as ½ student for purposes of the membership count used for the basic tuition support and complexity grants Kindergarten students count as 1 student for purposes of the FDK grant ME counts are used to determine basic tuition support, FDK and complexity funding
DPI54 - Form 54 Formula Terms Fiscal year Basic Grant Monthly Distribution worksheet found in the State Aid Program https://dc.doe.state.in.us/stateaid/ lists actual and estimated monthly state tuition support payments by grant Shows gross and net monthly payments and any plus or minus adjustments.
Formula Terms Inters Form 30A - Career and technical Education Report Data collected in September determines career and technical education funding for a fiscal year Uses Labor Market more than, moderate, less than moderate Wage Rates- high, moderate, less than moderate FY- fiscal year, or the period of July 1 through June 30
Formula Terms DOE- GR Graduate Report For FY2015, the count of students, who graduated or left school with a certificate of completion after September 30, 2013 and before October 1, 2014. The number of students who graduated with either an Academic Honors or Core 40 with Technical Honors diploma determined Honors funding in the FY2015 formula.
DOE-TB Textbook Formula Terms Data collection of the cost of providing textbook assistance to students who were eligible to receive a free or reduced lunch. The percentage of students that received textbook assistance in October 2013 divided by pupil enrollment was a factor used to determine FY2015 complexity grant funding.
Formula Terms DOE- SE Special Education Report Count of students who received special education services on December 1 and April 1 The Department uses the December 1 counts to determine special education grant funding Severe Mild and Moderate Communication and Homebound Special education preschool
Formula Terms Adjusted ADM The current ADM in the case of the September ADM count The current ADM or not less than ninety percent of the school corporation s September count of ADM, regardless of the actual amount of the February ADM count. IC 20-43-4-7 ADM of the previous year The average of the previous year s fall and spring adjusted ADM counts.
Formula terms Attending Physical or virtual presence of a student with the expectation of continued services in the educational programs for which the student is registered (IC 20-43-1-7.5) Current ADM Spring count (February) for distributions from January through June Fall count (September) for distributions from July through December
Formula Terms Enrolled Registered with a school corporation to attend educational programs offered by or through the school corporation; and attending their educational programs or receiving educational services. (IC 20-43-1-11.5)
The Formula
Variables needed FY2014 Basic Tuition Support (DOE SA54 Tuition Support, 1st Column) Prior Year Form 54 FY2014 Honors Diploma Grant Prior Year Form 54 FY2014 Special Ed Grant Prior Year Form 54 FY2014 Career and Tech Ed Grant Prior Year Form 54 FY2014 Complexity Grant Prior Year Form 54 FY2014 Full Day Kindergarten Grant Prior Year Form 54
Variables needed September 2013 ADM Count (2013-2014) Prior year DOE-ME report February 2014 ADM Count (2013-2014) Prior year DOE-ME report September 2014 ADM Count (2014-2015) Current year DOE-ME report February 2015 ADM Count (2014-2015) Current year DOE-ME report
Variables needed Number of Students-academic honors diploma Current year DOE- GR report Number of Students- Core 40 diploma w/tech honors in 2013-2014 sch year Current year DOE-GR report Percent of Students that received or are eligible to receive free textbooks in 2013-2014 (2013-2014 textbook student count/pupil enrollment) Prior year textbook claim submission and Oct. 1 pupil enrollment data Sept. 2014 Full Day Kindergarten (FDK) Count Current year Sept. ME report Feb. 2015 Full Day Kindergarten (FDK) Count Current year Feb. ME report
Variables needed Dec 2014 Special Education Severe Disabilities Pupil Count Current year DOE-SE report Dec 2014 Special Education Mild and Moderate Disabilities Pupil Count Current year DOE-SE report Dec 2014 Special Education Communication and Homebound Pupil Count Current year DOE-SE report Dec 2014 Special Education Preschool Count Current year DOE-SE report
Variables needed 1. More Than Moderate Labor Market Need/High Wage 2. More Than Moderate Labor Market Need/Moderate Wage 3. More Than Moderate Labor Market Need/Less than Moderate Wage 4. Moderate Labor Market Need/High Wage 5. Moderate Labor Market Need/Moderate Wage 6. Moderate Labor Market Need/Less than Moderate Wage 7. Less Than Moderate Labor Market Need/High Wage 8. Less Than Moderate Labor Market Need/Moderate Wage 9. Less Than Moderate Labor Market Need/Less than Moderate Wage 10. Area Participation Student Count 11. Student Count for All Other Approved CTE Programs Data is from the Current year (Sept. 2014) inters Form 30A- through DWD
Sections A and B Previous Year Revenue Tuition support revenue for the prior fiscal year- DPI54 tuition support column total Adjusted ADM Determines three counts used in the formula: Ave. adjusted ADM, Fall count (September), and Spring count (February)
Section C Transition to Foundation Revenue Applies to all school corporations, charter schools, and virtual charter schools Uses the applicable fall and spring counts Lines 1-4 determine transition to foundation revenue per student Lines 5-6 multiplies the revenue per student by the applicable fall or spring count (ADM) to determine each six month period of basic tuition support funding.
Section C1 Virtual Charter Schools Applies to virtual charter schools only Uses the applicable fall and spring count Determines basic tuition support funding for virtual charter schools for each six month period at a rate of 90% of the transition to foundation revenue per student multiplied by the applicable fall and spring count (ADM).
Honors Grant Section D Applies to school corporations, charter schools and virtual charter schools Uses applicable DOE-GR counts Provides $1,000 for each student who graduated with an Academic Honors or Core 40 with Technical Honors diploma in the previous school year.
Section E Special Education Applies to school corporations, charter schools and virtual charter schools Uses DOE-SE and DOE-HB counts Allows school corporations funding for Severe disability students at $8,350 Mild/Moderate students at $2,265 Communication/homebound students at $533 Special ed. preschool students at $2,750
Section F Career and Technical Education Applies to school corporations, charter schools and virtual charter schools More than moderate labor mkt. need/high wage at $450 More than moderate labor mkt. need/moderate wage at $375 More than moderate labor mkt. need/less than moderate wage at $300
Section F cont d Career and Technical Education Moderate labor mkt. need/high wage at $375 Moderate labor mkt. need/moderate wage at $300 Moderate labor mkt. need/less than moderate wage at $225 Less than moderate labor mkt. need/high wage at $300 Less than moderate labor mkt. need/ moderate wage at $225 Less than moderate labor mkt. need/less than moderate wage at $150
Section F cont d Career and Technical Education All other career and technical education programs at $250 per student count Area participation count at $150
Section G Complexity Grant Applies to school corporations, charter schools and virtual charter schools Uses the percentage of students eligible to receive textbook assistance (FY15 formula) to determine complexity index funds. Multiplies the complexity index by the school corporation s foundation amount to determine funding.
Section H Full-day kindergarten Applies to school corporations, charter schools and virtual charter schools. Multiplies the FDK membership count by $2472 (in FY15) to determine FDK funding.
Section I Capital Projects Fund References the amount of allowable expenditures from the capital projects fund for utility services or property and casualty insurance Requires school corporations to advertise and adopt a CPF budget, levy and rate sufficient to cover costs Maintains the amount at 3.5% of the school corporation s 2005 calendar year distribution.
Sections J and K FY State Tuition Support Provides the fiscal year funding amount by grant Funding Comparison Provides a grant by grant comparison of current and previous fiscal year grant totals and the overall percentage change from one fiscal year to the next.
Reconciliation Grants that use two counts Basic Tuition Support Complexity Full-day kindergarten Grants that use one count Special Education Honors Career and Technical Education
Reconciliation with two counts The Department uses estimated ADM and FDK counts for the July through October payments. The Department then uses actual September counts to determine July through December funding and reconciles what was paid against what should have been paid. September actual counts are used to distribute funds November through March. The Department uses the February counts to determine January through June funding.
Reconciliation with two counts When the fall (September) count is loaded, the November and December payments increased or decreased to ensure the school corporation received the Basic Tuition Support, Complexity and FDK grant monies it was entitled to for the period of July through December.
Reconciliation with two counts Estimated ADM count used for July through December payments resulted in $600,000 tuition support due for six month period. July through October - DOE distributed $400,000 September (Fall) count loaded- ADM dropped School entitled to $500,000 for the six month period Amount due July through Dec. $500,000 Received July through October $400,000 Remainder $100,000 Nov. pmt. $ 50,000 Dec. pmt. $ 50,000 Jan. to June payment estimate $500,000
Reconciliation with two counts Estimated ADM count used for July through December payments resulted in $600,000 tuition support due for the six month period. July through October DOE distributed $400,000 September (Fall) count loaded- ADM increased School entitled to $700,000 for the six month period Amount due July through Dec. $700,000 Received July through Oct. $400,000 Remainder $300,000 Nov. pmt. $150,000 Dec. pmt. $150,000 Jan. to June payment estimate $700,000
Reconciliation with one count for CTE and Honors September (CTE) and October (GR) counts determine July through June funding. Prior year counts were used to distribute funds for July through November payments.
Reconciliation with one count for CTE and Honors When CTE and Honors counts are loaded, the December payment increased or decreased to provide school corporations with the level of funding it should have received for the period of July through December and anticipated funding for January to June (50/50 split of funds).
Reconciliation with one count- CTE and Honors Prior year counts were used for July through December payments and resulted in $240,000 CTE and Honors funds due for the six-month period. July through November - $200,000 distributed (40k*5) Final counts loaded- counts decreased, six month total is now $234,000 July to Dec. total $234,000 Received to date $200,000 Dec. pmt. $ 34,000 Jan. to June payment total $234,000
Reconciliation with one count- CTE and Honors Prior year counts were used for July through December payments and resulted in $240,000 CTE and Honors funds due for the six-month period. July through November - $200k distributed (40k*5) Final counts loaded- counts increased, six month total is now $300,000 July to December total $300,000 Received to date $200,000 Dec. pmt. $100,000 Jan. to June payment total will be $300,000
Reconciliation with one count for Sp. Ed. Prior year counts were used to distribute funds for July through January special education payments. The December 1 special education count determines fiscal year funding.
Reconciliation with one count- Sp. Ed. Final counts loaded- counts decreased School paid to date $315,000 of the $540,000 fiscal year estimate School actually entitled to $480,000 for the fiscal year February through May payments are prorated DOWN with the June payment being a normal monthly payment.
Reconciliation with one count- Sp. Ed. Entitled to: $480,000 Received: $315,000 (through Jan.) Remainder: $165,000 Pro-rate Feb. $ 31,250 Pro-rate Mar. $ 31,250 Pro-rate April $ 31,250 Pro-rate May $ 31,250 June pmt. $ 40,000 Total due: $480,000
Reconciliation with one count- Sp. Ed. Final counts loaded- counts increased School paid to date $315,000 of the $540,000 fiscal year estimate School actually entitled to $720,000 for the fiscal year Lump sum adjustment made for the February payment with March through June payments being normal monthly payments.
Reconciliation with one count- Sp. Ed. Entitled to: $720,000 Received: $315,000 (through Jan.) Remainder: $405,000 Feb. pmt. $165,000 Mar. pmt. $ 60,000 April pmt. $ 60,000 May pmt. $ 60,000 June pmt. $ 60,000 Total due: $480,000
Recap Grants are reconciled within each six month period to allow ½ of the grant to be distributed within a six-month period Exception special education Grants using two counts are membership, FDK and complexity Grants using one count are honors, career and technical education and special education
DPI 54 or Form 54 Provides estimated and actual tuition support gross and net monthly payment information Check your Form 54 every month July (new formula takes effect) November (Basic Tuition Support, FDK, and Complexity Grants updated) December (Honors and CTE updated) February (Special education updated) April (Basic Tuition Support, FDK and Complexity Grants updated)
Resources IDOE Staff Website STN Finance Application Center (State Aid) Workshops Digest of Public School Finance Learning Connection Finance Community School Associations clinics, seminars and email updates Talking to peers
IDOE Office of School Finance Contacts Melissa Ambre at mambre@doe.in.gov Kaitlin Boldt at kboldt@doe.in.gov Fatima Carson at fcarson@doe.in.gov LaTrice Akers at lakers@doe.in.gov Ashley Sims at asims@doe.in.gov Phone: 317-232-0840 Fax: 317-232-0504 Learning Connection > Finance Community