2016-17 Advance Apportionment Letter
July 19, 2016
Dear County Superintendents of Schools:
2016–17 ADVANCE PRINCIPAL APPORTIONMENT
Towards the end of July, county treasurers will receive a warrant that reflects state aid for programs included in the 2016–17 Advance Principal Apportionment (Advance) for local educational agencies (LEA). The California Department of Education (CDE) certified the Advance on July 19, 2016 pursuant to California Education Code (EC) Section 41330. The statewide total was $36,673,651,284. County superintendents of schools should advise school districts and charter schools immediately of this apportionment.
The 2016–17 Advance is apportioned on the basis of Second Principal Apportionment (P-2) funding from the preceding fiscal year pursuant to EC Section 41330 using funding appropriations provided in the 2016–17 Budget Act and related trailer bills (Senate Bill 826, Chapter 23, Statutes of 2016, and Senate Bill 828, Chapter 29, Statutes of 2016). The 2016–17 statutory COLA is fractional and rounds to 0.00%, therefore many of the funding amounts provided in the Advance are equal to the LEA’s 2015–16 P-2 Apportionment.
A summary of the Advance calculations is described below. This letter, as well as Excel files that provide funding amounts, are available on the CDE Web page at http://www.cde.ca.gov/fg/aa/pa/pa1617.asp. Additionally, the CDE has posted 2016–17 amounts and updated the Local Control Funding Formula (LCFF) Gap percentages on the Funding Rates and Information Web page at http://www.cde.ca.gov/fg/aa/pa/ratesandinfo.asp. The information on this page will be updated periodically throughout the year.
2016–17 Advance Calculations by Program
The following provides specific details regarding the calculation of funding for each program, including the LCFF. Because this apportionment is merely a means to begin allocating funds in accordance with EC Section 41330, it should not be used by LEAs for budgeting.
LCFF State Aid – County Offices of Education
The estimated 2016–17 state aid for each county office of education (COE) is based on funding from the 2015–16 P-2 certification and reflects the following:
- The Advance carries forward the COE’s 2015–16 P-2 LCFF Entitlement because the statutory cost-of-living adjustment (COLA) is zero for 2016–17.
- The 2015–16 P-2 local revenue amount was used to determine the COE’s Advance State Aid and excludes any one-time Redevelopment Agency (RDA) Asset Liquidation funds reported as part of the COE’s 2015–16 P-2 property taxes.
- The Education Protection Account (EPA) Entitlement, which is an offset to state aid, has been recalculated to reflect the 2016–17 funding estimate of $6.9 billion. See the EPA section below for additional detail.
LCFF State Aid – School Districts and Charter Schools
The estimated 2016–17 state aid for each school district and charter school is based on funding from the 2015–16 P-2 certification and reflects the following:
- The Advance carries forward the school district’s or charter school’s 2015–16 P-2 LCFF Entitlement because the statutory COLA is zero for 2016–17. Districts and charter schools funded based on the Target formula as of the 2015–16 P-2 certification are funded at their Target in the Advance.
- The 2015–16 Floor Entitlement was recalculated to include 2015–16 Gap funding.
- A new 2016–17 estimated Need, which is the difference between the Target and Floor, was derived from the Target and revised Floor calculations. This amount was used to estimate 2016–17 Gap funding for the purposes of the Advance calculations.
- The 2016–17 Budget includes an appropriation of $2,941,980,000 for Gap in this fiscal year. The Advance Apportionment provides approximately 52.56 percent of the estimated Need. This is less than the Department of Finance’s (DOF) Preliminary Gap Percentage of 54.18 percent (as of the 2016–17 Budget Act) because at the Advance and First Principal Apportionment (P-1) CDE’s calculations do not reflect additional Gap funding that will be available for LEAs that fund Gap through local revenue. Note: The percentage used at Advance and P-1 will change in subsequent certifications when the calculations reflect current year average daily attendance (ADA), unduplicated pupil counts (UPC), and local revenue data. The CDE will finalize the 2016–17 Gap Percentage at the 2016–17 P-2 Apportionment in June 2017.
- For those districts and charters receiving an Economic Recovery Target payment, the additional 2016–17 payment was included.
- For any district that received a class size penalty in 2015–16 (reflected in the miscellaneous adjustments and minimum state aid adjustments), this amount has been zeroed out in the Advance.
- The 2015–16 P-2 local revenue amount was used to determine the district’s Advance State Aid and excludes any one-time RDA Asset Liquidation funds reported as part of the district’s 2015–16 P-2 property taxes. (Charter in-lieu was not adjusted for the Advance.)
- The EPA Entitlement, which is an offset to state aid, has been recalculated to reflect the 2016–17 funding estimate of $6.9 billion. See the EPA section below for additional detail.
Education Protection Account
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 local educational agencies (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 entitlements offset state aid allocated through the Principal Apportionment.
Using a revised 2016–17 EPA revenue estimate of approximately $6.9 billion, the CDE calculated estimated EPA entitlements using a factor of 24.63180762 percent based on the 2015–16 P-2 statewide total of revenue limits and charter school block grant funding and 2015–16 P-2 local revenue data, adjusted to exclude one-time RDA Asset Liquidation funds. If an LEA’s 2015–16 P-2 EPA entitlement was based on $200 per ADA (the minimum), the 2016–17 estimated EPA entitlement was not recalculated for the Advance.
While the funding is not allocated through the Principal Apportionment, estimated 2016–17 EPA amounts are provided on the Advance Apportionment Summary available on the CDE’s Web page at http://www.cde.ca.gov/fg/aa/pa/iassf16adv.asp for your convenience.
Basic Aid “Choice”, Court-Ordered Voluntary Pupil Transfer, and Charter Supplement
Advance funding for Basic Aid “Choice”, Court-Ordered Voluntary Pupil Transfer, and Charter Supplement are equal to the 2015–16 P-2 state aid amounts.
Adults in Correctional Facilities (AICF)
LEAs that participate in the AICF program receive funding on a reimbursement basis. The 2016–17 Budget Act provides $15,096,000, which will be used to fund the 2015–16 program. Advance funding for the AICF program is equal to the 2015–16 P-2 state aid amounts.
Special Education – Assembly Bill (AB) 602 Program
The 2016–17 Budget Act appropriation for AB 602 declined from $2,743,893,000 in 2015–16 to $2,715,953,000. The estimated 2016–17 state aid for each Special Education Local Plan Area (SELPA) is based on funding from the 2015–16 P-2 certification and reflects the following:
- The 2015–16 P-2 Special Education Property Tax amount was used to determine the SELPA’s Advance State Aid and excludes any one-time RDA Asset Liquidation funds reported as part of the 2015–16 P-2 property taxes.
- A proration factor of 0.9891346439 was applied to each SELPA’s adjusted 2015–16 state aid amount.
Special Education – Infant (Ages Two Years and Younger) Program
Advance funding for the Special Education Infant program is equal to the 2015–16 P-2 amounts for each LEA. The 2016–17 Budget Act includes an appropriation of $74,359,000.
Transfer of Funds for County Served District Funded ADA
Funding for the Transfer of Funds for County Served District Funded ADA is equal to the 2015–16 P-2 amounts.
Other State Aid
A new line, Other State Aid, has been added to the Advance Apportionment Summary to capture pass-through payments made to LEAs for legislative priorities. Currently, these appropriations can be found in Assembly Bill 104 (Chapter 13, Statutes of 2015), and Senate Bill 828 (Chapter 29, Statutes of 2016).
Monthly payments for the Advance are available on CDE’s Web site at the county summary level and by LEA. For cash planning, a schedule of Principal Apportionment payments for the entire 2016–17 fiscal year are available on the CDE’s web page at http://www.cde.ca.gov/fg/aa/pa/papayschedule.asp. There are no payment deferrals for the 2016–17 fiscal year. The State Controller’s Web site provides monthly payment information, including offsets amounts at https://www.sco.ca.gov/ard_payments_k12.html, and estimated payment dates at https://www.sco.ca.gov/Files-ARD-Payments/sched_2016.pdf.
If you need assistance, or have any further questions, please contact the Office of Principal Apportionment and Special Education or the Office of Charter Apportionments and District Reorganization by phone at 916-324-4541 or by e-mail at PASE@cde.ca.gov.
Caryn Moore, Associate Director
Local Control Funding Formula Section
School Fiscal Services Division