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Calculations to Determine 2006-07 P-1

Calculations to the determine the 2006-07 First Principal Apportionment (P-1).

The First Principal (P-1) Apportionment for fiscal year 2006-07 was certified on February 20, 2007 pursuant to California Education Code (EC) Section 41332. Also certified with the P-1 are the updated calculations of the 2005-06 apportionment (2005-06 Annual) and the 2004-05 apportionment (2004-05 R-2). The details used in the calculation of the apportionments are described below.

School Districts and County Offices of Education (Fiscal Year 2006-07)

The average daily attendance (ADA) and other data reported on the Principal Apportionment Revenue software were used to calculate this apportionment. Revenue limits were increased by the 2006-07 cost-of-living adjustment (COLA) of 5.92 percent and an equalization adjustment (for school districts). Assembly Bill (AB) 1802 (Chapter 79, Statutes of 2006) eliminated revenue limit deficits for school districts and county offices of education (COEs).

Inflation (Cost-of-living) Adjustment: The statutory COLA for 2006-07 is 5.92 percent (EC Sections 42238 and 42238.1). The amounts below reflect multiplying the 2005-06 statewide average base revenue limit per ADA by 5.92 percent for each type of district.

Type of Districts

Prior Year
Statewide Average
Base Revenue Limit

2006-07
COLA (5.92%)

Elementary Districts $ 4,985 $ 295
High School Districts $ 5,986 $ 354
Unified Districts $ 5,195 $ 308

Equalization Adjustment: An adjustment to the base revenue limit rate was made to those school districts whose 2005-06 base revenue limit per unit of ADA fell below the 2005-06 base revenue limit per ADA above which fall not more than ten percent of the total statewide units of ADA for each category as displayed below. AB 1802 appropriated $350 million for purposes of this adjustment, determined pursuant to EC Section 42238.48. A factor of 0.731441079 was applied to each adjustment to prorate entitlements down to the appropriation. The calculation details are displayed on the Equalization Adjustment exhibit.

Type of District

2005-06 P-2 ADA

Base Revenue Limit Rate of District at
the 90th Percentile

Elementary Less than 101 $5,877.68
Elementary More than 100 $4,823.34
High School Less than 301 $6,337.77
High School More than 300 $5,761.29
Unified Less than 1,501 $5,437.67
Unified More than 1,500 $5,020.65

Adult Education: The entitlement for adult education was calculated using the lesser of the 2005-06 Annual reported ADA or the 2006-07 adult education ADA cap. The 5.92 percent COLA was added to the 2005-06 base revenue limit to establish the 2006-07 revenue limit.

Apprentice Program: Funding was calculated by multiplying the lesser of the 2006-07 reported apprentice hours or the 2006-07 approved (cap) apprentice hours by the hourly rate of $4.86.

Beginning Teacher Salary (BTS):

BTS #1: Funding was calculated by multiplying the 2005-06 Second Principal (P-2) Apportionment ADA by $11.22 (prior year rate of $10.59 increased by the 5.92 percent COLA). Pursuant to statute, the same calculation was performed separately for Regional Occupational Centers and Programs (ROC/P) ADA. The two totals were combined and added to the revenue limit.

BTS #2: Funding for districts and COEs that chose option one was calculated by multiplying the 2006-07 P-1 ADA by $7.32 (prior year rate of $6.91 increased by the 5.92 percent COLA). Funding for districts and COEs that chose option two was calculated by multiplying each agency’s individual prior year rate by the 5.92 percent COLA, and multiplying the new rate by the reported 2006-07 P-1 ADA. The same calculations were performed separately for ROC/P ADA. Adult and Block Grant funded charter school ADA were excluded in all calculations.

Community Day School: 2006-07 P-1 ADA for community day schools was used in the calculation. Schools with newly approved small school waivers will receive the amount displayed on the necessary small schools funding table for one certificated teacher. The 2006 Budget Act, AB 1801 (Chapter 47, Statutes of 2006), appropriated $49.295 million for the Community Day School Program; however, this amount was later reduced to $44.995 million by AB 1811 (Chapter 48, Statutes of 2006). Due to insufficient funding, a proration factor of 0.8691468040 was applied to the funding for the 5th and 6th hours ADA (for pupils other than mandatory expelled), the approved small school waiver (for pupils other than mandatory expelled), and the 7th and 8th hours. Additional funding of $4.751 was authorized by AB 1802 to be deferred to fiscal year 2007, to be expended consistent with the requirements in the 2006 Budget Act; this appropriation will be included in the funding calculations at the 2006-07 P-2 Apportionment, which should reduce the proration factor.

Gifted and Talented Education (GATE): Funding was calculated by multiplying the 2005-06 P-2 ADA by the higher of the school district’s and county office’s 1999-2000 per ADA funding rate or the 2006-07 statewide per ADA funding rate of $9.46, which was calculated by dividing the total funds appropriated for GATE in the 2006 Budget Act by the total prior year P-2 ADA for the eligible school districts and county offices that reported participation in the current year. Agencies with fewer than 1,500 ADA received the greater of the funding amount calculated above, a minimum funding guarantee of $3,050, or their 1998-99 GATE allowance, as increased by annual COLAs.

The 2006 Budget Act appropriated $49.186 million for GATE. Total statewide claims at 2006-07 P-1 were $55.730 million, resulting in a proration factor of 0.9477685806. Additional funding of $4.294 million was authorized by AB 1802 to be deferred to fiscal year 2007-08, to be expended consistent with the requirements in the 2006 Budget Act. This appropriation will be included in the funding calculations at the 2006-07 P-2 Apportionment, which should reduce the proration factor.

Necessary Small Schools: The Allowance for Necessary Small Schools 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 5.92 percent COLA for 2006-07:

For necessary small elementary schools:

Number of Teachers

Average Daily Attendance

Amount to be Computed

1 1 to 24 $120,300
2 25 to 48 $240,600
3 49 to 72 $360,900
4 73 to 96 $481,200

For necessary small high schools:

Minimum Number of
Certificated Employees

Average Daily Attendance

Amount to be Computed

2 or less 1 to 19 $97,660 per teacher
3 1 to 19 $433,980
4 20 to 38 $531,640
5 39 to 57 $629,300
6 58 to 71 $726,960
7 72 to 86 $824,620
8 87 to 100 $922,280
9 101 to 114 $1,019,940
10 115 to 129 $1,117,600
11 130 to 143 $1,215,260
12 144 to 171 $1,312,920
13 172 to 210 $1,410,580
14 211 to 248 $1,508,240
15 249 to 286 $1,605,900

Note: Fractional ADA units of .5 and above are rounded up, and those below .5 are rounded down.

Public Employees' Retirement System (PERS) Reduction: $39.468 million was appropriated in 2006-07 to restore a portion of the PERS Reduction. To arrive at this statewide total adjustment, a restoration factor of 0.8473328427 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. (Note: The 2006-07 P-1 Apportionment for PERS was calculated using .09116 as the current year PERS rate. This amount will be updated to .09124 at the P-2 certification.)

Supplemental Instructional Programs: The funding for these programs, shown below, is $3.90 per hour of 2006-07 P-1 pupil attendance in the supplemental instructional programs, subject to a maximum number of hours (“cap”) for Core and Low Standardized Testing and Reporting (STAR) and At-Risk of Retention.

Districts for which the October 2005 enrollment was less than 500 hours (“small districts”) and that offered between 1,500 to 2,138 hours of supplemental instruction were funded at $8,337. Small districts that offered less than 1,500 hours had their funding reduced proportionately, at a funding rate of $5.56 per hour; those that offered more than 2,138 hours were funded at the $3.90 hourly rate.

The 2006 Budget Act appropriated $74.955 million for this program. Statewide claims totaled $83.317 million, resulting in a proration factor of 0.899632. There was no appropriation deferred to 2007-08 for this program.

Regional Occupational Centers/Programs (ROC/P): The base funding for this program is equal to the 2006-07 revenue limit per ADA multiplied by the lesser of the 2005-06 Annual reported ADA or the 2006-07 ROC/P ADA cap. A 5.92 percent COLA of $192.59 per ADA was added to the weighted base revenue limit to establish the 2006-07 revenue limit per ADA.

Direct Services: Funding equals the county office’s 2005-06 rate per ADA for direct services funding, increased by the 5.92 percent COLA, multiplied by the total of the 2005-06 Annual ADA for all applicable school districts, as follows:

Charter schools ADA units are included in the calculation.

Other County Service Fund Operations: Funding equals the COE’s 2005-06 rate per ADA, increased by the 5.92 percent COLA, multiplied by the total of the 2005-06 Annual ADA for the COE and those for the school districts and charter schools in the county. This amount will be updated using the 2006-07 Annual ADA at the 2007-2008 P-1 certification.


Special Education (Fiscal Year 2006-07)

Assembly Bill (AB) 602 Funding: The prior year’s supplemental base rate of $9.68 was added to the prior year statewide target rate, resulting in a rate of $412.47. The COLA of 5.92 percent on this amount equals $24.42, resulting in a 2006-07 statewide target rate of $436.89. Similar to prior year, $50.6 million was added as a $8.37 supplement to each Special Education Local Plan Area (SELPA) base rate. All 2006-07 AB 602 entitlements, i.e., base, COLA, growth, special disabilities adjustment, and program specialist/regionalized services, are fully funded at 2006-07 P-1. Again, funding for pre-referral mental health services are outside of the principal apportionment in 2006-07 and are being apportioned separately.

Out-of-Home Care (OHC): The 2006-07 Budget Act appropriated $196.3 million for the third year of this program, which replaced the 100 percent reimbursement funding for nonpublic school and agency tuition for students residing in licensed children’s institutions (NPS/LCI). Because bed and pupil counts for this program are based on data as of April 1, 2007, counts from the 2005-06 P-2 were carried over to 2006-07 P-1; at 2006-07 P-2, counts will be updated with new data and 2006-07 rates will be applied. Also, fiscal year 2006-07 is the first year of the hold harmless phase-out. Specifically, if a SELPA’s 2006-07 OHC funding entitlement is less than the amount it received for the 2005-06 fiscal year, the SELPA shall receive the same amount it received for the 2005-06 fiscal year less 20 percent of the difference between the two amounts (EC Section 56836.173(c)). Similar to prior years, any SELPA with a 2006-07 OHC funding entitlement greater than the amount received for the prior year shall receive the same amount it received for the prior year plus a portion of the difference between the two amounts, based on proration factor.

Infant (ages two and younger) Program: Total funding for the Infant Program for 2006-07 increased by about 6.4 percent from 2005-06, to a total of $64,978,591. Following are the 2006-07 Infant Program statewide average unit rates:

Program

2005-06 Statewide Average Rate

2006-07 COLA (5.92%)

2006-07 Statewide Average Rate

Special Day Class
$51,421 $3,044 $54,465
Resource Specialist
$54,215 $3,210 $57,425
Designated Instruction
$50,784 $3,006 $53,790
Aide
$20,880 $1,236 $22,116

Charter Schools (Fiscal Year 2006-07)

The 2006-07 P-1 ADA and other data reported on 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. The apportionment for charter schools was calculated using two funding models – the district or county office revenue limit and the block grant funding model. The School District Revenue Limit report provides the computation for a school district in which all schools have been converted to charter schools pursuant to EC Section 47606 and 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 report. Charter School Block Grant Funding and Charter School Categorical Block Grant Funding reports provide the computations for charter schools that are funded through the block grant funding model. Funding information for block grant funded charter schools is provided on the Principal Apportionment Summary. The detail for adjustments to prior years for block grant charter schools is provided on the Prior Year Corrections report. Funding entitlements change, in general, to reflect revised ADA or updated property tax information. Only those charter schools with prior changes (“corrections”) are displayed.

The apportionment also includes funding adjustments to charter schools that have received an overpayment of state aid in current and prior years due to one or more changes in the block grant rates, ADA, local revenue, or data used in the apportionment calculations. The overpaid amounts are displayed in Lines A-22 and A-23 on the Principal Apportionment Summary. The overpayment is a liability owed to the State and, for most charter schools, will be collected through the apportionment process in the 2007-08 fiscal year. In some cases, an invoice will be sent directly to the charter school.

The general purpose (block grant) amounts per ADA are based on statewide average revenue limits for the applicable grade levels. These amounts are calculated at each apportionment and the 2006-07 P-1 Apportionment amounts are as follows:

Grade Levels

General Purpose Block Grant Rates

Kindergarten and Grades One through Three
$5,348
Grades Four through Six
$5,428
Grades Seven through Eight
$5,583
Grades Nine through Twelve
$6,473

Pursuant to AB 740 (Chapter 359, Statutes of 2005) and the 2006 Budget Act, a single funding rate of $400 shall be used per ADA for the categorical block grant program for fiscal year 2006-07.

 

AB 1802 and Senate Bill (SB) 1131 (Chapter 371, Statutes of 2006) revised the funding formula effective in fiscal year 2006-07 for the Economic Impact Aid (EIA) Program. AB 1802 revised the EIA funding formula for charter schools and SB 1131 made further revisions to the data that charter schools are required to report for use in the EIA formula. The funding for the in lieu of EIA is $303 per eligible educationally disadvantaged pupil. The minimum grant amounts are $5,500 for one to ten eligible pupils and $8,300 for eleven or more eligible pupils.

The 2006-07 P-1 Apportionment for the Categorical Block Grant and the in lieu of EIA for economic impact aid-eligible pupils include a proration factor as a result of changes in this year’s Budget. We anticipate full funding for the 2006-07 Categorical Block Grant and the in lieu of EIA in the 2006-07 P-2 Apportionment.


PRIOR YEARS – The following provides updates to the 2005-06 and 2004-05 apportionments certified at the same time as the 2006-07 P-1 Apportionment. The types of data used and the method of calculating the apportionment are similar to those given above unless specified.

2005-06 Annual

School Districts and County Offices of Education (Fiscal Year 2005-06)

Adult Education: Adult education funding was calculated using the lesser of the 2005-06 Annual reported ADA or the 2004-05 adult education ADA cap, increased by a growth factor of 2.5 percent.

Pursuant to AB 23 (Chapter 502, Statutes of 2005), school districts and COEs that earned ADA above the cap received additional funds. The 2005 Budget Act and SB 65 appropriated a total of $647.950 million for the program. Total statewide claims to date were $636.269 million. As a result, the agencies received $2,389.22 for each excess ADA over cap.

Adult Education and Regional Occupational Centers and Programs (ROC/P) Cal-WORKS: The 2005-06 contract agreement with the California Department of Social Services (DSS) appropriated $9.744 million to be reimbursed to the California Department of Education for these programs; however, the reimbursement was not received from the DSS in time for the 2006-07 P-1 Apportionment. As a result, this Cal-WORKS funding for 2005-06 will be allocated at the P-2 Apportionment in July 2007.

Community Day Schools: Funding was based on the 2005-06 Annual ADA for community day schools. Due to insufficient funding appropriated for the program in the 2005 Budget Act, a proration factor of 0.9309989920 was applied to the funding for the 5th and 6th hours ADA (for pupils other than mandatory expelled), the approved small school waiver (for pupils other than mandatory expelled), and the 7th and 8th hours.

Gifted and Talented Education (GATE): Statewide claims at 2005-06 Annual totaled $54.128 million. Based on the $50.491 million appropriation, a proration factor of 0.9328114990 was applied.

Public Employees’ Retirement System (PERS) Reduction: The restoration factor resulting from the $37.885 million appropriated to reduce the PERS Reduction in 2005-06 was 0.1595141812 of the total PERS adjustment.

Regional Occupational Centers and Programs (ROC/P): Base funding equals the lesser of the 2005-06 Annual reported ADA or the 2005-06 ROC/P ADA cap multiplied by the 2005-06 revenue limit. A 4.23 percent COLA of $132.03 was added to the weighted base revenue limit increasing the 2005-06 revenue limit.

Supplemental Instructional Programs: The funding for these programs is based on the 2005-06 Annual hours of attendance in the supplemental instructional programs.

Other County Service Fund Operations: Funding to COEs was based on the 2005-06 Annual ADA of the districts, COEs, and charter schools.


Special Education (Fiscal years 2005-06 and 2004-05)

Assembly Bill (AB) 602 Funding: All 2005-06 AB 602 entitlements are fully funded at the 2005-06 Annual Apportionment. The only exception is claims for the Extraordinary Cost Pool, with a proration factor of 0.4125. All 2004-05 AB 602 entitlements were fully funded at the recertification of Annual (Annual R-2).

Out-of-Home Care: As a result of a few minor changes to pupil counts and placements, the proration factor increased slightly from 0.6304260977 at 2005-06 P-2 to 0.6305228050 at 2005-06 Annual. There were no changes made to the 2004-05 OHC entitlements.

Infant (ages two and younger) Program: The 2005-06 Infant Program entitlement decreased $22,000 from P-2 for a revised program total allocation of $61,122,685. There was no change to the 2004-05 Infant Program entitlement.


2004-05 Annual R-2
School Districts and County Offices of Education (Fiscal Year 2004-05)

Adult Education: Pursuant to Assembly Bill (AB) 1266 (Chapter 573, Statutes of 2003), the entitlement for adult education was calculated using the lesser of the 2004-05 Annual reported ADA or the 2003-04 fundable adult education ADA cap, increased by a growth factor of 2.5 percent. The 2004-05 adult education base revenue limit COLA/equalization amount was calculated pursuant to EC Section 52616.16 and was fully equalized.

Also, pursuant to AB 23, school districts and COEs that earned ADA above their cap received additional funding. The 2004 Budget Act appropriated a total of $606.492 million for the program; however, total statewide claims to date were $592.152 million. As a result, the agencies received $2,061.74 for each excess ADA over Cap.

Community Day Schools: 2004-05 Annual ADA for community day schools was used. Due to insufficient funding appropriated for the program in the 2004 Budget Act, a proration factor of 0.9227360000 was applied to the funding for 5th and 6th hours ADA (for pupils other than mandatory expelled), the approved small school waiver (for pupils other than mandatory expelled), and the 7th and 8th hours.

Gifted and Talented Education (GATE): Statewide claims at 2004-05 Annual totaled $53.654 million. Based on the $48.110 million appropriation, a proration factor of 0.896669199900 was applied.

Public Employees’ Retirement System (PERS) Reduction: The restoration factor resulting from the $36.177 million appropriated by the 2004 Budget Act (Chapter 208, Statutes of 2004) to reduce the PERS reduction was 0.2024068886 of the total PERS adjustment.

Regional Occupational Centers and Programs (ROC/P): Base funding equals the lesser of the 2004-05 Annual reported ADA or the 2004-05 ROC/P ADA cap multiplied by the 2004-05 revenue limit. A 2.41 percent COLA of $73.45 was added to the weighted base revenue limit to calculate the 2004-05 revenue limit.

Supplemental Instructional Programs: The funding for these programs is based on the 2004-05 Annual hours of attendance in the supplemental instructional programs.

Other County Service Fund Operations: Funding to COEs was based on the 2004-05 Annual ADA of the districts, COEs, and charter schools.

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