The following provides specific details regarding the 2013–14 Advance Principal Apportionment (Advance) funding calculations for each program in the Advance. For more general information about the Advance and information on the LCFF please view the Advance Apportionment letter. References in parentheses in each subject line of this attachment (e.g. A-1) are to the appropriate column in the Advance Apportionment Summary.
2012–13 Adjusted County Office of Education Total Revenue Limit Net State Aid – (A-1)
The 2012–13 county office of education (COE) revenue limits certified at P-2 are the basis for the 2013–14 Advance. Adjustments were made to back out the one-time redevelopment agency asset liquidation revenue (Line A-14 of the County Office of Education Local Revenue exhibit) reported at P-2. Adjustments were also made to reflect 2013–14 Education Protection Account (EPA) revenue estimates and to allocate a portion of the additional funds appropriated by AB 97 to implement the LCFF.
- AB 97 appropriated an additional $32 million for COEs to begin implementation of the provisions of the LCFF. As a means to begin flowing these funds, a portion, approximately $20 million, is being allocated equally to all COEs through the Advance. This is an increase of approximately 3.66 percent of each COE’s adjusted revenue limit (Line B-6 from the County Office of Education Revenue Limit exhibit). For an excess tax COE, this increase was offset by excess property taxes. It is important to note that this funding amount will change for each COE in the 2013–14 P-2 LCFF calculations, so caution should be used in building these funds into budgets and spending plans.
2012–13 Adjusted School District Total Revenue Limit and Charter School General Purpose Entitlement Net State Aid – (A-2 and A-3)
School district revenue limits and charter school general purpose entitlements certified at P-2 are the basis for the 2013–14 Advance. Adjustments were made to school district revenue limit funding to eliminate the class size penalties applied at P-2 (Line B-8 of the School District Revenue Limit exhibit) and to back out the one-time redevelopment agency asset liquidation revenue (Line A-5 of the School District Local Revenue Limit exhibit) reported at P-2. Adjustments were also made to reflect 2013–14 EPA revenue estimates and to allocate a portion of the additional funds appropriated by AB 97 to implement the LCFF.
- AB 97 appropriated an additional $2.1 billion for school districts and charter schools to begin implementation of the provisions of the LCFF. As a means to begin flowing these funds to LEAs, a portion of these funds, approximately $1.5 billion, is being allocated equally to all school districts and charter schools through this Advance. This is an increase of approximately 4.62 percent of each school district’s adjusted revenue limit or charter school’s general purpose entitlement funding. For an excess tax school district, this increase was offset by excess property taxes. It is important to note that this funding amount will change for each school district and charter school in the 2013–14 P-2 LCFF calculations, so caution should be used in building these funds into budgets and spending plans.
EPA revenues, as authorized by Proposition 30, The Schools and Local Public Safety Protection Act of 2012, are generated by temporary increases in the state’s sales tax rate for all taxpayers and the personal income tax rates for upper-income taxpayers. All LEAs will receive quarterly EPA payments through the 2018–19 fiscal year, which will be paid outside of the Principal Apportionment. Except for an excess tax LEA, EPA revenues offset state aid allocated through the Principal Apportionment. Using a 2013–14 EPA revenue estimate of approximately $5.6 billion, the CDE recalculated EPA offsets against the 2012–13 P-2 revenue limits as adjusted for class size penalties, and general purpose entitlements, using a factor of 17.91987342 percent. The EPA offset was recalculated prior to the adjustment for AB 97 funding. If an LEA’s 2012–13 EPA entitlement was based on $200 per ADA (the minimum), the 2013–14 estimated EPA entitlement was not recalculated for this Advance.
Basic Aid “Choice,” Basic Aid Court-ordered Voluntary Pupil Transfer, and Basic Aid Open Enrollment – (A-4 through A-6)
Funding for Basic Aid “Choice,” Basic Aid Court-ordered Voluntary Pupil Transfer, and Basic Aid Open Enrollment are equal to the 2012–13 P-2 amounts.
Basic Aid Supplement Charter School Adjustment – (A-7)
The 2012–13 P-2 basic aid supplement funding is the basis for the 2013–14 Advance funding. In accordance with AB 97, adjustments were made to cap funding for individual school districts at the amount of total in-lieu of property taxes paid to charter schools. The remaining provisions of AB 97 will be applied to basic aid supplement funding later in the 2013–14 fiscal year.
Adults in Correctional Facilities (AICF) – (A-8)
Funding for reimbursement of services for the AICF program was calculated at the same level as 2012–13 P-2 for each LEA for activities authorized pursuant to Item 6110-158-0001 of the Budget Act of 2012 (Chapters 21 and 29, Statutes of 2012).
Special Education – (A-9 and A-10)
Special education programs were calculated using the 2012–13 P-2 amounts as a base. Before the AB 602 factor listed below was applied, P-2 funding was adjusted to back out the share of one-time redevelopment agency asset liquidation revenue attributed to Local Special Education Property Taxes, which resulted in an increase to the affected SELPA’s AB 602 2012–13 P-2 apportionment. Also, pursuant to Assembly Bill 86 (Chapter 48, Statutes of 2013), ROC/P Handicapped Program funds have been rolled into AB 602 and were included in the factor calculation. The following factors were applied:
- AB 602 Program: 1.0120525040
- Infant (Ages Two Years and Younger) Program: 1.0691220120
Total County Office Funds Transfer – (A-11)
Funding for county office funds transfers is equal to 2012–13 P-2 amounts. Changes for LCFF implementation have not yet been made.
Charter School Overpayments (Prior and Current Years) – (A-12 and A-13)
The Advance includes funding adjustments to charter schools that received overpayments of state aid in the 2012–13 P-2 due to changes in the 2012–13 (or prior) block grant rates, ADA, local revenue, or other adjustments. These adjustments are included in the Advance Principal Apportionment Summary as prior year adjustments (Prior Year Amount Charter Overpaid, Line A-13). Charter schools that have insufficient current year funding to offset a prior year overpayment will also have a current year overpayment adjustment (Amount Charter Overpaid, Line A-12). 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.
Adjustments and Prior Year Recomputations – (A-14)
There are no Adjustments and Prior Year Recomputations in the 2013–14 Advance.
2012–13 Adjusted Local Control Funding Formula Categorical State Aid Education Code Sections 2575(h) and 42238.03(e)(2)(A) – (A-15)
AB 97 eliminated many categorical programs, and requires the dollars that were previously allocated for the eliminated programs to now be allocated as a lump sum as part of the continuous appropriation through the Principal Apportionment. Line A-15 is a combination of 56 separate categorical programs, most of which were previously allocated outside of the Principal Apportionment. The individual programs are listed separately by LEA on an Excel spreadsheet. The amounts reflect 2012–13 entitlements prior to the 2012–13 basic aid fair share reduction of 9.57 percent applied based on a district’s basic aid status in 2011–12. As required by Education Code Section 42238.03(e)(2)(A) a reduction equal to the lesser of: (1) the district’s 2012–13 Total Revenue Limit Subject to the Deficit Factor, calculated as of the 2012–13 certified Second Principal Apportionment, multiplied by 8.92 percent; or (2) the amount of the district’s excess taxes, was applied to Line A-15.
Note: The Excel spreadsheet does not include categorical funds that were previously allocated to entities other than LEAs. Because Principal Apportionment funds are currently only allocated to LEAs, it has not yet been determined how these funds will be allocated in the future.
At the time of the Advance, allocations for Teacher Dismissal Apportionments and the Standards for Preparation and Licensing of Teachers Program are not known (these programs are not administered by the CDE). Funds for these two programs will be incorporated at a later date.
Standardized Account Code Structure (SACS) Coding
The CDE is currently working to determine the appropriate SACS coding for the LCFF. In the meantime, pending accounting guidance from the CDE, for SACS coding purposes the funds received in Line A-15 should be recorded either to Revenue Limit State-Aid—Current Year (Resource 0000, Object 8011) or Charter Schools General Purpose Entitlement—State Aid (Resource 0000, Object 8015). Note that some reclassification entries may be necessary once CDE completes its research and issues accounting guidance.
Payment Schedule and Deferrals
Monthly payments for the Advance Apportionment are available on the CDE’s Web site at the county summary level and by LEA. There are no intra-year deferrals for the 2013–14 Advance.