Calculations to Determine 2011–12 P-2

Second Principal Apportionment (Fiscal Year 2011–12)

The Second Principal (P-2) Apportionment for fiscal year 2011–12 was certified on July 3, 2012, pursuant to California Education Code (EC) Section 41335. The details of the P-2 apportionment as well as the details of the updated calculations of the 2010–11 apportionment (2010–11 Annual R1) and the 2009–10 apportionment (2009–10 Annual R3) that were certified as part of the P-2 Apportionment are described below.

School Districts and County Offices of Education (Fiscal Year 2011–12)

The average daily attendance (ADA) and other data reported in the Principal Apportionment Revenue software were used to calculate this apportionment. Revenue limits were adjusted by the 2011–12 statutory cost-of-living adjustment (COLA) of 2.24 percent. EC sections 42238.146 and 2558.46 (amended by Senate Bill 81, Chapter 2, Statutes of 2012) prescribed the following reductions to the revenue limit: 20.404 percent for school districts and 20.691 percent for county offices of education (COEs). Additionally, because state revenues fell below expectations, pursuant to EC Section 46201.3, revenue limits were reduced by an additional 0.1979 percent for school districts and 0.1972 percent for COEs. As a result, deficit factors of 0.79398 and 0.79111 were applied to school district and COE revenue limits, respectively, in the P-2 Apportionment.

Inflation (Cost-of-living) Adjustment for District Revenue Limits

The chart below shows the COLA applied to revenue limits for each type of district for 2011–12. The COLA is calculated by multiplying the 2010–11 statewide average base revenue limit per ADA by the 2011–12 COLA of 2.24 percent for each type of district.

Adult Education

The 2011–12 funding for Adult Education was calculated by multiplying each local educational agency's (LEA’s) base year proportionate share percentage by the $634,805,000 appropriated for the program.

Adults in Correctional Facilities (AICF)

The 2011–12 funding for AICF program is based on the lesser of each LEA’s 2010–11 rate per ADA or 80 percent of the 2007–08 statewide average revenue limit for adult education. This amount is multiplied by the lesser of prior-year annual ADA or a cap based on 2002–03 ADA funding increases of 2.5 percent each year. The amount appropriated for this program equals $14,967,000. The growth funding was sufficient to fund all of the growth in the program.

Apprenticeship Program

The 2011–12 funding for the Apprenticeship program was calculated by multiplying the lesser of the 2011–12 reported apprentice hours or the 2011–12 approved (cap) apprentice hours by the hourly rate of $5.04. Sufficient funds were available to fully fund the program.

Community Day School (CDS) Additional Funding for “All Other” Pupils

The 2011–12 funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $41,685,000 appropriated for the program.

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

The 2011–12 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC Section 48915(c) was calculated using 2011–12 P‑2 ADA for the 5^th and 6^th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils will receive waiver funding that equals the amount displayed on the necessary small schools funding table for one certificated teacher less revenue limit received for any community day school pupils. The additional funding provided by the waiver is reduced by the current dollar value of any waiver funding included in the base-year funding for “All Other” CDS pupils. The current dollar value is calculated by multiplying the 2007–08 amount by a 0.80119 adjustment factor. The adjustment factor recognizes the decrease in funding for “All Other” CDS pupils from the 2007–08 level and is determined by dividing the statewide total dollars available for CDS “All Other” pupils for the 2011–12 fiscal year, by the amount used to calculate the 2007–08 base.

County Beginning Teachers Salary (BTS)

• BTS #1: Funding was calculated by multiplying the 2010–11 P-2 ADA by $13.16 (prior year rate of $12.87 adjusted by the 2.24 percent COLA). Pursuant to statute, the same calculation was performed separately for Regional Occupational Centers/Programs (ROC/P) using 2007–08 second period ADA. The two totals were combined and added to the county revenue limit.
• BTS #2: Funding for COEs that chose option one was calculated by multiplying the 2011–12 P-2 ADA by $8.58 (prior year rate of $8.39 adjusted by the 2.24 percent COLA). Funding for COEs that chose option two was calculated by multiplying each LEA’s individual prior year rate by the 2.24 percent COLA, and multiplying the new rate by the reported 2011–12 P-2 ADA. The same calculations were performed separately for ROC/P using 2007–08 second period ADA. Adult and Block Grant funded charter school ADA were excluded in all calculations.

Gifted and Talented Education (GATE)

The 2011–12 funding for GATE was calculated by multiplying each LEA’s base year proportionate share percentage by the $44,225,000 appropriated for the program.

Necessary Small Schools (NSS)

The Allowance for NSS is based on the combination of ADA and the number of full-time teachers (for elementary schools) or the number of certificated employees (for high schools), whichever provides the lesser amount. The allowance amounts shown in the following tables reflect the 2.24 percent COLA for 2011–12:

For necessary small elementary schools

For necessary small high schools

Note: Fractional ADA units of 0.5 and above are rounded up, and those below 0.5 are rounded down.

Public Employees' Retirement System (PERS) Reduction

To restore a portion of the PERS Reduction, $44.554 million was appropriated in 2011–12. To arrive at the statewide total adjustment, a restoration rate of 0.2961075914 was applied to the PERS adjustment before deducting the amount from the revenue limit, thereby increasing the total revenue limit for school districts and county offices.

Regional Occupational Centers/Programs (ROC/P)

The 2011–12 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $384,708,000 appropriated for the program. Local income savings were distributed to all LEAs based on the same percentage.

Supplemental Instructional Programs

The 2011–12 funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts appropriated for each program as shown in the following table:

Direct Services

Funding for COEs equals the COE’s 2010–11 rate per ADA for direct services funding, adjusted by the 2.24 percent COLA, multiplied by the total of the 2010–11 Annual ADA for all applicable school districts, as follows:

• Elementary districts with less than 901 ADA.
• High school districts with less than 301 ADA.
• Unified districts with less than 1,501 ADA.

Charter school ADA units are included in the calculation.

Other County Service Fund Operations

Funding equals the COE’s 2010–11 rate per ADA, adjusted by the 2.24 percent COLA, multiplied by the total of the 2011–12 P-2 ADA for the COE, school districts, and charter schools in the county. The 2011–12 P-2 ADA also includes the ADA amounts for Adult Education and ROC/Ps that were used in the 2007–08 other county service fund calculation.

Charter Schools (Fiscal Year 2011–12)

Charter Schools

The 2011–12 P-2 ADA and other data reported in the Principal Apportionment Revenue software were used to calculate this apportionment. In addition, the non‑classroom based ADA was adjusted for charter schools that received a determination of funding from the State Board of Education.

Charter School General Purpose Block Grant Funding Calculations

The general purpose apportionment for charter schools is calculated using two funding models – the block grant funding model and the district or COE revenue limit funding model.

• The block grant rates are recalculated at each apportionment. The 2011–12 P-2 amounts are as follows:

• Pursuant to SB 319 (Chapter 355, Statutes of 2005), those conversion charter schools in unified school districts, that converted between 2007–08 and 2009–10, are funded based on the block grant rate certified by the sponsoring school district. This rate is adjusted annually by the current year COLA amount applied to unified school districts, and the reduction made pursuant to EC Section 42238.146.

Beginning in 2010-11, except for school districts that have excess taxes or that receive basic aid supplement funding, the in-lieu of property taxes for charter schools will be held constant at the amount reported and calculated in the annual reporting period. Funding adjustments made after the annual period, such as for changes in ADA, property taxes, etc., will be solely to state aid.

Charter School Categorical Block Grant Calculations

The Categorical Block Grant is calculated pursuant to EC Section 47634.1 and the 2011–12 Budget Act.

• A funding rate of $500 per unit of charter school ADA is used for the 2011–12 fiscal year. However, the provisions of Section 12.42 of the Budget Act reduced the amount available for this program. Consequently, each charter school’s per-ADA categorical block grant funding has been reduced by a proration factor of 0.7956234589.

• The in lieu of Economic Impact Aid (EIA) funding rate is $338 per eligible educationally disadvantaged pupil; this amount was increased pursuant to EC Section 54021.1. The minimum grant amounts continue to be $5,749 for one to ten eligible pupils and $8,676 for eleven or more eligible pupils. Because there are insufficient funds available to support the reported eligible pupils at this rate, each charter school’s EIA entitlement has been reduced by a proration factor of 0.9613187485.

Charter School Funding Exhibits

Detailed charter school funding exhibits and funding excel files are available on the CDE Web site.

• Charter School Block Grant Funding and Charter School Categorical Block Grant Funding exhibits provide the computations for individual charter schools that are funded through the block grant funding model. Funding information for these schools is also provided on the Principal Apportionment Summary excel file.

• The School District Revenue Limit exhibit provides the computations for school districts in which all schools have been converted to charter schools pursuant to EC Section 47606, that are funded through the district revenue limit model. There is no special exhibit for charter schools funded through the county revenue limit model; the funding for these charter schools is included in the County Revenue Limit exhibit.
  
  
• The Adjustments and Prior Year Recomputations excel file includes detail for current year adjustments and prior year recomputations for block grant-funded charter schools; only those charter schools with adjustments or recomputations are included in the file. The prior year recomputations typically reflect revised ADA or updated in lieu of property taxes information. The information in this file is also provided in Column A-27 of the Principal Apportionment Summary excel file.
  

  Note: If you received a special apportionment in June as a result of an exemption from the June to July Principal Apportionment deferral, the amount you received will be labeled as “Special Apportionment State Aid Adjustment.” To the extent that the special apportionment resulted in a current year charter overpayment (see Line A-25 on the Principal Apportionment Summary and the next bullet below) this amount will offset, or reduce, your deferred P-1 apportionment payments that will be released in July and August.

• Funding adjustments for charter schools are also displayed in Columns A-25 and A-26 of the Principal Apportionment Summary excel file. Column A-26, PY Amount Charter Overpaid, includes prior year overpayments that were not collected in the prior year that are reducing the current year payments. Column A-25, Amount Charter Overpaid, includes amounts overpaid through the current year advance or P-1 apportionment periods, i.e., payments received to date, including P-1 deferrals, exceed annualized funding calculated at P-2. These overpayments typically result from current year changes in block grant rates, ADA, in lieu of property taxes, or other data used in the apportionment calculations. For most charter schools, the overpayment will be collected through the apportionment process in the current fiscal year. In some cases, an invoice will be sent directly to the charter school. As noted above, charter schools that received a special apportionment in June as a result of an exemption from the June to July deferral may have an amount listed in Column A-25 if the charter’s annualized P-2 entitlement is less than the payments received to date, including any P-1 deferrals scheduled to be paid in July and August 2012.

• The “In-Lieu of Taxes by District of Residence” excel file includes in-lieu of taxes calculations for charter schools that have been approved on appeal by a county office of education pursuant to EC 47605(j). Pursuant to EC 47632(j)(2), the district of residence is still responsible for transferring in-lieu of taxes to the charter school. This file also contains in-lieu of taxes calculations for countywide charter schools approved pursuant to EC 47605.6, where the district of residence is a basic aid district and therefore is still the sponsoring district. In both circumstances, the in-lieu of taxes must be transferred at the local level.

Special Education (Fiscal Year 2011–12)

Assembly Bill (AB) 602 Funding

In FY 2011–12, the statewide target rate remains the same as the prior fiscal year’s value of $465.44 given a zero percent COLA. This year, an increase in federal aid for special education of $429,501 provides each Special Education Local Plan Area (SELPA) $0.0720766164 per unit of ADA in supplement to base funding. All other 2011–12 AB 602 entitlements, i.e., base, growth, and program specialist/regionalized services, are fully funded at the P-2 Apportionment.

AB 184 (Chapter 403, Statutes of 2010) authorized the use of special education incidence multiplier formula through fiscal year 2010–11. As a result, the CDE eliminated the incidence multipliers or special disabilities adjustment funding from the AB 602 calculations.

Funding for mental health services is outside of the principal apportionment, and is apportioned separately.

Out-of-Home Care (OHC)

The Budget Act of 2011 appropriated $179.930 million to the OHC program. Funding for the 2011–12 P-2 Apportionment is calculated solely based on the bed and pupil count data collected as of April 1, 2012, and funded at the FY 2011–12 budgeted amount for the program. The program was fully funded at P-2.

Infant (ages two and younger) Program

Total funding apportioned for the Infant Program for 2011–12 is $68,647,802. Following are the 2011–12 Infant Program statewide average unit rates:

Prior Years

The following provides updates to the 2010–11 (2010–11 Annual R1) and 2009–10 (2009–10 Annual R3) apportionments certified at the same time as the 2011–12 P-2 Apportionment. The types of data used and the method of calculating the apportionment are similar to those given above unless specified.

School Districts and County Offices of Education (Fiscal Year 2010–11 Annual R1)

Adult Education

The 2010–11 funding for Adult Education was calculated by multiplying each LEA’s base year proportionate share percentage by the $634,996,000 appropriated for the program.

Adults in Correctional Facilities (AICF)

The 2010–11 funding for AICF program is based on the lesser of each LEA’s 2009–10 rate per ADA or 80 percent of the 2007–08 statewide average revenue limit for adult education. This amount is multiplied by the lesser of prior-year annual ADA or a cap based on 2002–03 ADA funding increases of 2.5 percent each year. The amount appropriated for this program equals $14,971,000. The growth funding was sufficient to fund all of the growth in the program.

Community Day School (CDS) Additional Funding for “All Other” Pupils

The 2010–11 funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $41,697,000 appropriated for the program.

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

The 2010–11 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC 48915(c) was calculated using 2010–11 Annual ADA for the 5^th and 6^th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils will receive waiver funding that equals the amount displayed on the necessary small schools funding table for one certificated teacher less revenue limit received for any community day school pupils. The additional funding provided by the waiver is reduced by the current dollar value of any waiver funding included in the base-year funding for “All Other” CDS pupils. The current dollar value is calculated by multiplying the 2007–08 amount by a 0.80142 adjustment factor. The adjustment factor recognizes the decrease in funding for “All Other” CDS pupils from the 2007–08 level and is determined by dividing the statewide total dollars available for CDS “All Other” pupils for the 2010–11 fiscal year, by the amount used to calculate the 2007–08 base.

Gifted and Talented Education (GATE)

The 2010–11 funding for GATE was calculated by multiplying each LEA’s base year proportionate share percentage by the $44,239,000 appropriated for the program.

Charter Schools Funding In Lieu of Property Taxes

Beginning in 2010-11, except for school districts that have excess taxes or that receive basic aid supplement funding, the in lieu of property taxes for charter schools will be held constant at the amount reported and calculated in the annual reporting period. Funding adjustments made after the annual period (Annual R1 and later), such as changes in ADA, property taxes, etc., will be solely to state aid.

Public Employees’ Retirement System (PERS) Reduction

The restoration factor resulting from the $43.802 million appropriated to reduce the PERS Reduction in 2010–11 was 0.2698452238 of the total PERS adjustment.

Regional Occupational Centers/Programs (ROC/P)

The 2010–11 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $384,824,000 appropriated for the program. Local income savings were distributed to all LEAs based on the same percentage.

Supplemental Instructional Programs

The 2010–11 funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts appropriated for each program as shown in the following table:

School Districts and County Offices of Education (Fiscal Year 2009-10 Annual R3)

Adult Education

The 2009–10 funding for Adult Education was calculated by multiplying each LEA’s base year proportionate share percentage by the $634,753,000 appropriated for the program.

Adults in Correctional Facilities (AICF)

The 2009–10 funding for AICF program is based on the lesser of each LEA’s 2008–09 rate per ADA or 80 percent of the 2007–08 statewide average revenue limit for adult education. This amount is multiplied by the lesser of prior-year annual ADA or a cap based on 2002–03 ADA funding increases of 2.5 percent each year. The amount appropriated for the program equals $14,965,000. The growth funding was insufficient to fund all of the additional growth in the program. As a result, a factor of 0.1398259000 was used to adjust the per-pupil growth rate to allocate funding for growth.

Community Day School (CDS) Additional Funding for “All Other” Pupils

The 2009–10 funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $41,681,000 appropriated for the program.

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

The 2009–10 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC 48915(c) was calculated using 2009–10 Annual ADA for the 5^th and 6^th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils will receive waiver funding that equals the amount displayed on the necessary small schools funding table for one certificated teacher less revenue limit received for any community day school pupils. The additional funding provided by the waiver is reduced by the current dollar value of any waiver funding included in the base-year funding for “All Other” CDS pupils. The current dollar value is calculated by multiplying the 2007–08 amount by a 0.80111 adjustment factor. The adjustment factor recognizes the decrease in funding for “All Other” CDS pupils from the 2007–08 level and is determined by dividing the statewide total dollars available for CDS “All Other” pupils for the 2009–10 fiscal year, by the amount used to calculate the 2007–08 base.

Gifted and Talented Education (GATE)

The 2009–10 funding for GATE was calculated by multiplying each LEA’s base year proportionate share percentage by the $44,222,000 appropriated for the program.

Public Employees’ Retirement System (PERS) Reduction

The restoration factor resulting from the $44.383 million appropriated to reduce the PERS Reduction in 2009–10 was 0.1856395898 of the total PERS adjustment.

Regional Occupational Centers/Programs (ROC/P)

The 2009–10 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $384,677,000 appropriated for the program. Local income savings were distributed to all LEAs based on the same percentage.

Supplemental Instructional Programs

The 2009–10 funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts appropriated for each program as shown in the following table:

Special Education (Fiscal Years 2010-11 and 2009-10)

Assembly Bill (AB) 602 Funding

The 2010–11 (Annual R1) and 2009–10 (Annual R3) AB 602 entitlements are fully funded at the 2011–12 P-2 Apportionment. The only exceptions are funding for the 2010–11 and 2009–10 Extraordinary Cost Pool (ECP) Program, for which proration factors of 0.75 and 0.79, respectively, were applied.

Out-of-Home Care (OHC)

Total OHC entitlements are $164,246,408 for 2010–11 (Annual R1) and $180,795,958 for 2009–10 (Annual R3).

Infant (ages two and younger) Program

Total Infant entitlements are $68,579,569 for 2010–11 (Annual R1) and $68,451,735 for 2009–10 (Annual R3).

Basic Aid Reduction

A reduction has been applied to categorical programs funded through the Principal Apportionment for basic aid districts pursuant to Senate Bill (SB) 70 (Chapter 7, Statutes 2011) on Line A-28 of the Principal Apportionment Summary. A schedule of the categorical program recoveries and each district’s amount is posted on the California Department of Education’s (CDE) Web site. As shown on the schedule, the following programs from the Principal Apportionment were reduced: Supplemental Instruction Core Academic Programs, Remedial Program, Retained or Recommended for Retention, Low STAR Score and At-Risk for Retention; Community Day School Additional Funding; Gifted and Talented Education; Regional Occupational Centers and Programs; Adult Education, Basic Aid Choice; and Special Education AB 602 funding.

Payment Schedule and Deferrals

Monthly payments for the P-2 Apportionment are available on CDE’s Web site at the county summary level and by local educational agency. The P-2 payment schedule also reflects the repayment of several inter-year deferrals from the P-1 period that are scheduled to be paid in July and August 2012.

Additional information on Principal Apportionment payments and deferrals is available on CDE’s Web site.