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Calculations, 2010-11 Recertified Advance

Detail of calculations to determine the 2010-11 Recertified Advance Apportionment.

The Advance Principal Apportionment (Advance) for 2010-11 is based on a statutory derivation pursuant to California Education Code (EC) sections 14002 through 14007 and 41301 and certified pursuant to EC Section 41330. The following provides specific details regarding the calculation of funding for each program.

County Offices of Education Revenue Limits

The state-aid portion of the revenue limit for each county office of education (COE) was calculated using the most current estimates from the California Department of Finance (DOF). To tie to that number, the 2009-10 Second Principal (P-2) Apportionment for each COE was adjusted as follows:

School District Revenue Limits

The state-aid portion of the revenue limit for each district was calculated using the most current estimate of state aid from DOF. To tie to that number, the 2009-10 P-2 revenue limit state-aid for each district was adjusted as follows:

Note: Local revenue was adjusted to back out 2009-10 P-2 in-lieu tax transfers for charter schools that have closed, and for charters whose general-purpose entitlement was fully funded thru in-lieu tax transfers at 2009-10 P-2.

Charter Schools General-purpose Entitlement

The apportionment for charter schools funded through the charter school funding model was developed using the most current estimates from DOF and the 2009-10 P-2 general-purpose entitlement as a base. A factor of 1.0019835196 was applied to the P-2 general-purpose entitlement. This factor includes the -0.39 percent statutory COLA, DOF’s estimated 0.11 percent increase in statewide ADA, and a new statutory deficit of 17.963 percent as authorized by AB 1610. The revised total entitlement was then reduced by the P-2 in lieu of property taxes to determine the general purpose state aid amount for each charter school.

As we mentioned in the initial advance apportionment calculations letter, that advance apportionment was calculated without a deficit factor. Because a deficit factor has been reinstated through the 2010-11 budget process, the entitlement amounts are significantly reduced from the first calculated advance apportionment. As a result, the October payment has been adjusted to reflect a lower entitlement amount.

Charter School Categorical Block Grant

Funding for the per-ADA portion of the categorical block grant was based on 2009-10 P-2 ADA and the statutory funding rate of $500 per ADA. This amount was then adjusted by a factor of 0.8208976666 to reduce the entitlements pursuant to Section 12.42 of the 2010-11 Budget Act. This adjustment yields an estimated funding rate of approximately $410.45 per 2009-10 P-2 ADA; this rate will be adjusted at the First Principal Apportionment and again at the Second Principal Apportionment.

Funding for the Economic Impact Aid portion of the categorical block grant was based on 2009-10 P-2 amounts. Funding rates will be revised and ADA changes will be incorporated at the 2010-11 First Principal Apportionment.

Other Charter School Apportionments

Item 6110-488-0001 of the 2010-11 Budget Act also provides $9 million in funding for charter schools that were new in 2008-09, 2009-10 or 2010-11. Pursuant to AB 1610, this one-time funding will be allocated at a rate of $127 per 2010-11 P-2 ADA. We anticipate providing a partial payment some time after the P-1 apportionment, and will revise the entitlements after the Second Principal Apportionment.

Note: AB 1610 specifies that new schools will not be entitled to receive any program funds that were flexed pursuant to EC Section 42605. Therefore, schools that were new in 2008-09 and were previously receiving any of the flexed funds, such as supplemental instruction, will no longer receive those funds.

Charter School Overpayments (Prior and Current Years)

The apportionment also includes funding adjustments to charter schools that had received overpayments of state aid at P-2 due to changes in the block grant rates, ADA, local revenue, and adjustments to prior years (Line A-26 on the Advance Apportionment Summary). Charter schools that have insufficient funding to offset a prior year overpayment will also have a current year overpayment adjustment (Line A-25).

The overpayment adjustment(s) for the charter school is an amount owed back to the state and, as part of recouping this amount over the entire year, is reflected in the advance apportionment. This adjustment will continue in the charter school’s subsequent apportionments until the state recovers the full amount owed. In some cases, an invoice will be sent directly to the charter school.

Basic Aid “Choice”/Court-ordered Voluntary Pupil Transfer and Basic Aid Supplement Charter School Adjustment

Funding for Basic Aid “Choice”/Court-ordered Voluntary Pupil Transfer and Basic Aid Supplement Charter School Adjustment was calculated by multiplying the 2009-10 P-2 amounts by a factor of 1.00088.

Adult Education

Funding for Adult Education was calculated by multiplying each LEA’s base year proportionate share percentage by the $589,100,000 budgeted for item 6110-156-0001 in the Budget Act of 2010. An additional $45,896,000 in funding for 2010-11 is deferred to fiscal year 2011-12 and was not included in the calculation.

Adults in Correctional Facilities (AICF)

Funding for AICF was calculated by multiplying the 2009-10 P-2 apportionment amounts for each LEA by a factor of 1.0004 in order to reach the $14,971,000 budgeted for item 6110-158-0001 in the Budget Act of 2010.

Apprenticeship

The funding was calculated by multiplying the amount each LEA received in 2009-10 P-2 by a factor of 0.7958074300 in order to reach the $9,472,000 budgeted for item 6110-103-0001 in the Budget Act of 2010. An additional $6,227,000 in funding for 2010-11 is deferred to fiscal year 2011-10 and was not included in the calculation.

Community Day School (CDS) Additional Funding for Mandatory Expelled Pupils

Funding for CDS for pupils who were expelled for any of the mandatory expulsion offenses as described in EC Section 48915(c) was based on the 2009-10 P-2 amounts.

Community Day School Program (CDS)

Funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $36,946,000 budgeted for item 6110-190-0001 in the Budget Act of 2010. An additional $4,751,000 in funding for 2010-11 is deferred to fiscal year 2011-12 and was not included in the calculation.

County Office Funds Transfer

Funding for county office funds transfers was calculated by multiplying the 2009-10 P-2 amounts for special education, county community school, and nonpublic, nonsectarian school/licensed children’s institutions county office funds transfers by a factor of 1.00088.

Gifted and Talented Education (GATE)

Funding for GATE was calculated by multiplying each LEA’s base year proportionate share percentage by the $39,945,000 budgeted for item 6110-124-0001 in the Budget Act of 2010. An additional $4,294,000 in funding for 2010-11 is deferred to fiscal year 2011-12 and was not included in the calculation.

Regional Occupational Centers/Programs (ROC/P)

In order to approximate the funding that will be apportioned in 2010-11, given the $345,194,000 that is budgeted for item 6110-105-0001 in the Budget Act of 2010, each LEA’s 2009-10 P-2 amount for ROC/P (less the Local Income distribution) was multiplied by a factor of 0.8973606452. The distribution of excess taxes and the additional $39,630,000 in funding for 2010-11 deferred to fiscal year 2011-12 were not included in the calculation and will be included when the P-2 Apportionment is certified in July 2011.

Special Education

The apportionment for the special education programs was calculated using the 2009-10 P-2 apportionment amounts as a base. An exception was made for the AB 602 Program, where an adjustment was made to several Special Education Local Plan Areas’ (SELPA’s) fiscal year 2009-10 P-2 apportionment totals to account for the special disabilities adjustment funding that took place after the P-2 apportionment. The following factors are applied:

Supplemental Instructional Programs

Funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts budgeted for item 6110-104-0001 as shown in the following table. The table also shows the additional funds for 2010-11 that were deferred to fiscal year 2011-12, which were not included in the calculation.

Program Budget Act Amount Deferred to 2011-12

Core Academic Program for Kindergarten and Grades One through Twelve

$48,000,000

$22,036,000

California High School Exit Examination Remedial, Grades Seven through Twelve

149,805,000

51,061,000

Low Standardized Testing and Reporting (STAR) and At-Risk of Retention, Grades Two through Six

12,240,000

4,690,000

Retained or Recommended for Retention, Grades Two through Nine

36,185,000

12,330,000

Payment Schedule and Deferrals

A spreadsheet of the payment schedule (XLS) is available on the CDE Web site.

There are several Principal Apportionment payment deferrals that affect payments during the Advance period (July through January). Assembly Bill 5 of the Eighth Extraordinary Session (ABX8 5, Chapter 1, Statutes of 2010) amended by Assembly Bill 14 of the Eighth Extraordinary Session (ABX8 14, Chapter 10, Statutes of 2010) deferred $2.5 billion of the July and October payments. This October deferral was shifted to September. Assembly Bill 1624 (Chapter 713, Statutes of 2010) defers the entire October payment to as late as November 15.

The payments for all months during the advance period, including deferred payments, are recalculated based off of the new “Total Principal Apportionment” on the Advance Apportionment Summary. Any amount that was under- or over-paid in July through September (calculated by subtracting the new payment amounts from the amounts actually paid) was added to or subtracted from the October payment. If a charter school’s overpayment exceeds its October payment, the subsequent months’ payments, beginning with November’s, were decreased. The following table illustrates this calculation.

  Advance Recertified
Advance
Amount under-(over-) paid

Total Principal Apportionment

1,000,000

900,000

N/A

July deferred (paid in September)

50,000

45,000

(5,000)

July adjusted (paid in July)

0

0

0

August

50,000

45,000

(5,000)

September Deferred 90 days (not yet paid)

87,300

81,000

Not yet paid-no catch up*

September Adjusted (paid in September)

2,700

0

(2,700)

Total Catch up

   na

na

(12,700)

October Recertification
    Advance Recertified Payment Unadjusted Catch-up Adjusted payment

October payment after recertification

81,000

(12,700)

68,300

*The recertified amount will supersede the September amount previously scheduled to be paid as late as the end of December.

Questions:   PASE/CADR | pase@cde.ca.gov | 916-324-4541
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