SACS Minutes, October 2016, Attachment B

Every Student Succeeds Act (ESSA) School-Level Per Pupil Expenditure Reporting

ESSA, which was signed into law in December 2015 and reauthorizes Elementary and Secondary Education Act (ESEA), includes new per-pupil expenditure reporting requirements to be included in State and LEA report cards. In addition to LEA-level per-pupil expenditures, each State and LEA report card must identify school-level per-pupil personnel and non-personnel expenditures, in the aggregate and by funding source (federal and state/local). The U.S. Department of Education’s proposed regulations would require states to develop a uniform procedure to be used by LEAs to determine these per-pupil expenditures; thus, CDE would be expected to develop these guidelines. Per-pupil expenditures would be required to be reported in State and LEA reports cards beginning with 2017-18 information, due December 31, 2018. However, CDE plans to file a one-time extension that postpones the first due date to December 31, 2019. There are many issues related to school-level expenditure reporting that the CDE will explore and share as necessary. Excerpts from the ESSA and the Federal Register are attached to this handout.

The entire ESSA law (PDF) and proposed regulations are available on the internet.

Excerpt from Every Student Succeeds Act (ESSA)

1111(h)(1)(C)(x) and 1111(h)(2)(C):

(1) ANNUAL STATE REPORT CARD.—

(C) MINIMUM REQUIREMENTS…

(x) The per-pupil expenditures of Federal, State, and local funds, including actual personnel expenditures and actual non-personnel expenditures of Federal, State, and local funds, disaggregated by source of funds, for each local educational agency and each school in the State for the preceding fiscal year.

(2) ANNUAL LOCAL EDUCATIONAL AGENCY REPORT CARD

(C) MINIMUM REQUIREMENTS—The State educational agency shall ensure that each local educational agency collects appropriate data and includes in the local educational agency’s annual report the information described in paragraph (1)(C), disaggregated in the same manner as required under such paragraph, except for clause (xii) of such paragraph, as applied to the local educational agency and each school served by the local educational agency, including…

Excerpt from Proposed Rulemaking – State Plans and Data Reporting (Federal Register, May 31, 2016)

§200.35 Per‑pupil expenditures.

(a) State report card requirements. (1) Each State report card must include the following:

(i) Current expenditures per pupil from Federal, State, and local funds, for the preceding fiscal year, consistent with the timeline in § 200.30(e), for each LEA in the State, and for each school served by each LEA—

(A) In the aggregate; and

(B) Disaggregated by source of funds, including—

(1) Federal funds; and

(2) State and local funds combined (including Impact Aid funds), which must not include funds received from private sources.

(ii) The web address or URL of, or direct link to, a description of the uniform procedure required under paragraph (c) of this section that complies with the requirements under § 200.21(b)(1) through (3).

(2) Each State report card must also separately include, for each LEA, the amount of current expenditures per pupil that were not allocated to public schools in the LEA.

(b) LEA report card requirements. (1) Each LEA report card must include the following:

(i) Current expenditures per pupil from Federal, State, and local funds, for the preceding fiscal year, consistent with the timeline in § 200.31(e), for the LEA and each school served by the LEA—

(A) In total (Federal, State, and local funds); and

(B) Disaggregated by source of funds, including—

(1) Federal funds; and

(2) State and local funds combined (including Impact Aid funds), which must not include funds received from private sources.

(ii) The web address or URL of, or direct link to, a description of the uniform procedure required under paragraph (c) of this section.

(2) Each LEA report card must also separately include the amount of current expenditures per pupil that were not allocated to public schools in the LEA.

(c) Uniform procedures. A State must develop a single statewide procedure to calculate LEA current expenditures per pupil and a single statewide procedure to calculate school- level current expenditures per pupil, such that—

(1) The numerator consists of current expenditures, which means actual personnel costs (including actual staff salaries) and actual non-personnel expenditures of Federal, State, and local funds, used for public education—

(i) Including, but not limited to, expenditures for administration, instruction, instructional support, student support services, pupil transportation services, operation and maintenance of plant, fixed charges, and preschool, and net expenditures to cover deficits for food services and student body activities; but

(ii) Not including expenditures for community services, capital outlay, and debt service; and

(2) The denominator consists of the aggregate number of students in elementary and secondary schools to whom the State and LEA provide free public education on October 1, consistent with the student membership data collected annually by States for submission to the National Center for Education Statistics.

Authority: 20 U.S.C. 1221 e-3; 6311(h)