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Calculations to Determine 2007-08 P-2

Calculations to the determine the 2007-08 Second Principal Apportionment (P-2).

The Second Principal (P-2) Apportionment for fiscal year (FY) 2007–08 was certified on July 2, 2008 pursuant to Education Code (EC) Section 41332. Also certified with the P-2 are the updated calculations of the 2006–07 apportionment (2006–07 Annual R-1) and the 2005–06 apportionment (2005-06 Annual R-3). The details used in the calculation of the apportionments are described below.

School Districts and County Offices of Education (Fiscal Year 2007-08)

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 2007–08 statutory cost-of-living adjustment (COLA) of 4.53 percent (EC Sections 42238 and 42238.1).

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

The chart below shows the COLA increase applied to Revenue Limits for each type of district for 2007-08. The COLA is calculated by multiplying the 2006–07 statewide average base revenue limit per ADA by the 2007–08 COLA of 4.53 percent for each type of district.

Type of District

Prior Year Statewide Average Base Revenue Limit

2007–08 COLA (4.53%)

Elementary District $5,326 $241
High School District $6,400 $290
Unified District $5,569 $252
Adult Education

The entitlement for adult education was calculated by multiplying the adult education 2007–08 base revenue limit per ADA by the lesser of the 2007–08 P-2  reported ADA or the 2007–08 adult education ADA cap. The 4.53 percent COLA was added to the 2006–07 base revenue limit per ADA to establish the rate for 2007–08.

Adults in Correctional Facilities (added to the Principal Apportionment beginning in 2007–08)

Entitlements were calculated by dividing prior year total funding by prior year funded ADA to determine individual local educational agency (LEA) prior year rates per ADA. The prior year rates per ADA are increased by the prior year COLA (5.92 percent) and compared to 80 percent of the prior year statewide average rate per ADA for the adult education program; the fundable rate is the lesser of the two. Funding available at the 2007–08 P-2 Apportionment was sufficient to fully fund the program.

Apprentice Program: Funding was calculated by multiplying the lesser of the 2007–08 reported apprentice hours or the 2007–08 approved (cap) apprentice hours by the hourly rate of $5.06. Funding available at the 2007–08 P-2 Apportionment was sufficient to fully fund the program.

Beginning Teacher Salary (BTS)
Community Day School

2007–08 P-2 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 Budget Act of 2007 appropriated $51.999 million for Community Day Schools. Due to insufficient funding, a proration factor of 0.9308870500 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)

Funding was calculated by multiplying the 2007-08 P-2 ADA by the higher of the school district’s and county office’s 1999–2000 per-ADA funding rate, or the 2007–08 statewide per-ADA funding rate of $10.02 (which was calculated by dividing the total funds appropriated for GATE in the Budget Act of 2007 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 $3,188, or their 1998–99 GATE allowance, as increased by annual COLAs.

The Budget Act of 2007 appropriated $55.634 million for GATE. Total statewide claims at 2007–08 P-2 were $58.719 million, resulting in a proration factor of 0.9474612251.

Meals for Needy Pupils

Funding was calculated by multiplying the 2007–08 P-2 pupil participation in Meals for Needy Pupils by the school district’s current year per-pupil meal amount, which equals the prior year per-pupil meal amount increased by the 4.53 percent COLA. (Note: The 2007–08 P-2 Apportionment for Meals for Needy Pupils was inadvertently calculated using a COLA of 4.23 percent. The COLA will be updated to 4.53 percent at the Annual certification.)

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 4.53 percent COLA for 2007–08:

For necessary small elementary schools:

Number of Teachers

Average Daily Attendance

Amount to Be Computed

1

1 to 24

$125,700

2

25 to 48

$251,500

3

49 to 72

$377,250

4

73 to 96

$503,000

For necessary small high schools:

Minimum Number of Certificated Employees

Average Daily Attendance

Amount to be Computed

2 or less

1 to   19

$102,085 per teacher

3

1 to   19

$453,480

4

20 to 38

$555,565

5

39 to 57

$657,650

6

58 to 71

$759,735

7

72 to 86

$861,820

8

87 to 100

$963,905

9

101 to 114

$1,065,990

10

115 to 129

$1,168,075

11

130 to 143

$1,270,160

12

144 to 171

$1,372,245

13

172 to 210

$1,474,330

14

211 to 248

$1,576,415

15

249 to 286

$1,678,500

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

Public Employees' Retirement System (PERS) Reduction

To restore a portion of the PERS Reduction, $40.736 million was appropriated in 2007–08 P-2. To arrive at this statewide total adjustment, a restoration rate of 0.1467749741 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 base funding for this program is equal to the ROC/P 2007–08 base revenue limit per ADA multiplied by the lesser of the 2006–07 Annual reported ADA or the 2007–08 ROC/P ADA cap. A 4.53 percent COLA of $156.09 per ADA was added to the prior year weighted average base revenue limit per ADA to establish the 2007–08 base revenue limit per ADA.

Supplemental Instruction Programs

The funding for these programs, shown below, is $4.08 per hour of 2007–08 P-2 pupil attendance in the supplemental instruction programs, subject to a maximum number of hours (“cap”) for Core and Low Standardized Testing and Reporting (STAR) and At Risk of Retention.

Direct Services

Funding for County Offices of Education (COEs) equals the COE’s 2006-07 rate per ADA for direct services funding, increased by the 4.53 percent COLA, multiplied by the total of the 2006–07 Annual ADA for all applicable school districts, as follows:

Charter schools ADA units are included in the calculation.

Other Purpose

Funding equals the COE’s 2006–07 rate per ADA for other purpose funding, increased by the 4.53 percent COLA, multiplied by the total of the 2007–08 P-2 ADA for the COE, school districts, and charter schools in the county.

Special Education (Fiscal Year 2007-08)

Assembly Bill (AB) 602 Funding

The prior year’s supplement to base rate of $8.37 was added to the prior year statewide target rate, resulting in a rate of $445.27. This amount is increased by the current year COLA of 4.53 percent, equal to $20.17, resulting in a 2007–08 statewide target rate of $465.44. This year, an increase in federal aid for special education of approximately $14.5 million provides each Special Education Local Plan Area (SELPA) $2.41 per unit of ADA in supplement to base funding. All 2007–08 AB 602 entitlements, i.e., base, COLA, growth, special disabilities adjustment, and program specialist/regionalized services, are fully funded at 2007–08 P-2. Note, funding for pre-referral mental health services is outside of the principal apportionment in 2007–08 and is apportioned separately.

Out-of-Home Care (OHC)

The Budget Act of 2007 appropriated $205.02 million for the fourth 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). Funding for the 2007–08 P-2 Apportionment is calculated based on the bed and pupil count data collected as of April 1, 2008 of the fiscal year and funded at the FY 2007–08 budgeted amount for the program. In addition, fiscal year 2007–08 is the second year of the hold harmless phase-out. Specifically, if a SELPA’s 2007–08 OHC funding entitlement is less than the amount it received for the 2006–07 fiscal year, the SELPA shall receive the same amount it received for the 2006–07 fiscal year less 25 percent of the difference between the two amounts (EC Section 56836.173(c)). Similar to prior years, any SELPA with a 2007–08 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 a proration factor of 0.6443445928.

Infant (ages two and younger) Program

Total funding apportioned for the Infant Program for 2007-08 increased by 5.3 percent from 2006–07, from $65,363,546 to $68,825,063. Following are the 2007–08 Infant Program statewide average unit rates:

Programs

2006-07 Statewide Average Rate

2007-08 COLA (4.53%)

2007-08 Statewide Average Rate

Special Day Class

$54,465

$2,467

$56,932

Resource Specialist

$57,425

$2,601

$60,026

Designated Instruction

$53,790

$2,437

$56,227

Aide

$22,116

$1,002

$23,118

Charter Schools (Fiscal Year 2007-08)

The 2007–08 P-2 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 model 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 changes in the block grant rates, ADA, local revenue, or other data used in the apportionment calculations. The overpaid amounts are displayed in Lines A-24 and A-25 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 2008–09 fiscal year. In some cases, an invoice will be sent directly to the charter school.

With the exception of those students funded in accordance with the provisions of Senate Bill (SB) 319 (Chapter 355, Statutes of 2005), the general purpose (block grant) amounts per ADA are based on statewide average school district revenue limits for the applicable grade levels. These amounts are calculated at each apportionment and the 2007–08 P-2 Apportionment amounts are as follows:

Grade Level Amount
Kindergarten and Grades One through Three $5,586
Grades Four through Six $5,670
Grades Seven through Eight $5,832
Grades Nine through Twelve $6,767

Those students that are funded pursuant to SB 319, i.e. the “resident ADA” in unified school districts, are funded at the rate certified by the school district.

Pursuant to EC Section 47634.1, for the 2007–08 fiscal year a funding rate of $500 per ADA is used for the Categorical Block Grant. The additional funding for the in lieu of Economic Impact Aid (EIA) is $318 per eligible educationally disadvantaged pupil. The minimum grant amounts are $5,749 for one to ten eligible pupils and $8,676 for eleven or more eligible pupils. However, due to insufficient funding provided in the 2007 Budget Act, the 2007–08 P-2 Apportionment for the Categorical Block Grant and the in lieu of EIA for economic impact aid-eligible pupils includes a proration factor of 0.9197459061. The California Department of Education has submitted a request to the Department of Finance for deficiency funding but to date there has been no approval.

PRIOR YEARS – The following provides updates to the 2006–07 and 2005–06 apportionments certified at the same time as the 2007–08 P-2 Apportionment. The types of data used and the method of calculating the apportionment are similar to those given above unless specified.

2006–07 Annual R-1--School Districts and County Offices of Education

Adult Education

The entitlement for adult education was calculated by multiplying the Adult Education 2006–07 base revenue limit per ADA by the lesser of the 2006–07 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 per ADA to establish the rate for 2006–07.

Pursuant to Assembly Bill (AB) 23 (Chapter 502, Statutes of 2005), school districts and COEs that earned ADA above the cap received additional funds. The Budget Act of 2006 and Assembly Bill (AB) 1802 (Chapter 79, Statutes of 2006) appropriated a total of $703.467 million for the program. The statewide claims to date totaled $692.658 million. As a result, the agencies received $2,530.66 for each excess ADA over cap ADA (Annual apportionment only).

Community Day Schools

Funding was based on the 2006–07 Annual ADA for community day schools. The Budget Act of 2006, Assembly Bill (AB) 1802 (Chapter 79, Statutes of 2006) and Senate Bill (SB) 78, (Chapter 172, Statutes of 2007) appropriated a total of $53.846 million for the program, which exceeds total statewide claims to date.  As a result, the agencies received a percentage increase of .0750720680 for additional funding above the cap funding not to exceed fifty percent of the cap amount (Annual apportionment only).

Gifted and Talented Education (GATE)

Statewide claims for 2006–07 Annual totaled $56.420 million. Based on the $53.480 million appropriation, a proration factor of 0.9478846867 was applied.

Public Employees’ Retirement System (PERS) Reduction

The restoration rate resulting from the $39.302 million appropriated to reduce the PERS Reduction in 2006–07 was 0.1455814369 of the total PERS adjustment.

Regional Occupational Centers and Programs (ROC/P)

The base funding for this program is equal to the ROC/P 2006–07 base revenue limit per ADA multiplied by the lesser of the 2006–07 Annual reported ADA or the 2006–07 ROC/P ADA cap. A 5.92 percent COLA (applied to the prior year Statewide Average Revenue Limit per Growth ADA) of $192.59 was added to the prior year weighted average base revenue limit per ADA to establish the 2006–07 base revenue limit per ADA. Statewide claims for 2006–07 totaled $458.962 million for Base and Growth ADA. Based on the $457.587 million appropriation, a proration factor of 0.9131745255 was applied to Growth ADA.

Supplemental Instruction Programs

The funding for these programs is based on the 2006–07 Annual hours of attendance in the supplemental instruction programs.

2005–06 Annual R-3--School Districts and County Offices of Education

Adult Education

Adult education funding was calculated using the lesser of the 2005–06 Annual reported ADA or the 2005–06 adult education ADA cap.

Pursuant to AB 23, school districts and COEs that earned ADA above their cap received additional funding. The Budget Act of 2005 and Senate Bill (SB) 65 (Chapter 491, Statutes of 2005) appropriated a total of $647.950 million for the program; however, total statewide claims to date were $635.873 million. As a result, the agencies received $2,389.22 for each excess ADA over cap ADA (this funding is available at the Annual Apportionment only).

Community Day Schools

2005–06 Annual ADA for community day schools was used to calculate funding. Due to insufficient funding appropriated for the program in the Budget Act of 2005, a proration factor of 0.9379011060 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 for 2005–06 Annual totaled $54.130 million. Based on the $50.491 million appropriation, a proration factor of 0.9327502427 was applied.

Public Employees’ Retirement System (PERS) Reduction

The restoration rate resulting from the $37.855 million appropriated to reduce the PERS reduction was 0.1560551597 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 to calculate the 2005–06 revenue limit.

Supplemental Instruction Programs

The funding for these programs is based on the 2005–06 Annual hours of attendance in the supplemental instruction programs.

Special Education (Fiscal Years 2006–07 and 2005–06)

Assembly Bill (AB) 602 Funding

Both 2006–07 (Annual R-1) and 2005–06 (Annual R-3) AB 602 entitlements are fully funded at the 2007–08 P-2 Apportionment. The only exceptions are claims for the Extraordinary Cost Pool (ECP) and Out-of-Home Care. For ECP, the proration factors are 0.9750357699 for 2006–07 and 0.3979812623 for 2005–06.

Out-of-Home Care

The 2006–07 (Annual R-1) Out-of-Home Care entitlements have changed from 2006–07 Annual at the SELPA level due to an OHC facilities remap. Total 2005–06 (Annual R-3) entitlements remained the same as in the prior apportionment period. The OHC proration factors for the gain in funding are 0.3694703177 and 0.6305228037 for 2006–07 and 2005–06, respectively.

Infant (ages two and younger) Program

Total entitlements are $65,363,546 for 2006–07 (Annual R-1) and $61,122,685 for 2005–06 (Annual R-3).

Questions:   Office of Principal Apportionment and Special Education | 916-324-4541
Office of Charter Apportionments and District Reorganization | 916-324-4541
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