Calculations to Determine the 2011–12 Advance

The Advance Principal Apportionment (Advance) for 2011−12 is based on a statutory derivation pursuant to California Education Code (EC) sections 14002 through 14007 and 41301 and is certified pursuant to EC Section 41330. The following provides specific details regarding the calculation of funding for each program.

County Offices of Education Revenue Limits

The state-aid portion of the revenue limit for each county office of education (COE) was calculated using the most current statewide estimate from the California Department of Finance (DOF). To tie to that number, the 2010−11 Second Principal (P-2) Apportionment for each COE was adjusted as follows:

• A factor of 1.0875250426 was applied to the P-2 state-aid amounts (line C-5 of the County Revenue Limit exhibit) that were positive. This factor includes the revenue limit cost-of-living adjustment (COLA) of 2.24 percent, the increase in the COE revenue limit deficit (the 2011−12 COE deficit authorized by Assembly Bill 114 [AB 114] [Chapter 43, Statutes of 2011] is 20.014 percent), estimated increases to the Public Employees’ Retirement System (PERS) contribution rate, funding to mitigate the PERS reduction, and increases to unemployment insurance expenditures. This factor also includes DOF’s estimated statewide decrease in average daily attendance (ADA) and increase in local revenues.
• The P-2 amounts for special education, county community school, and nonpublic, nonsectarian school/licensed children’s institutions county office funds transfers were multiplied by a factor of 1.00008.

School District Revenue Limits

The state-aid portion of the revenue limit for each district was calculated using the most current statewide estimate of state aid from DOF. To tie to that number, the 2010−11 P-2 revenue limit state-aid for each district was adjusted as follows:

• The P-2 state-aid amount for each district was adjusted for estimated increases to the PERS contribution rate and funding to mitigate the PERS reduction (applied a factor of 0.60093621702 to the 2010−11 P-2 PERS adjustment) and estimated increases in unemployment insurance (UI) expenditures (applied a factor of 2.1315495425 to the 2010−11 P-2 UI revenue).
• A factor of 0.9198036727 was then applied to the adjusted P-2 state-aid amount for each district. This factor includes the revenue limit COLA of 2.24 percent, the increase in the school district revenue limit deficit (the 2011−12 school district deficit authorized by AB 114 is 19.754 percent), and DOF’s estimated statewide increase in ADA and local revenues.

Note: Local revenue was adjusted to back out 2010−11 P-2 in-lieu tax transfers for charter schools that have closed, and for charters whose general-purpose entitlement was fully funded thru in-lieu tax transfers at 2010−11 P-2.

Charter School General-Purpose Entitlement

The apportionment for charter schools funded through the charter school funding model was developed using the most current estimates from DOF and the 2010−11 P-2 general-purpose entitlement as a base. A factor of 1.0024795498 was applied to the P-2 general-purpose entitlement. This factor includes the 2.24 percent statutory COLA, DOF’s estimated 0.24 percent increase in statewide ADA, and a new statutory deficit factor of 0.80246 as established by AB 114. The revised total entitlement was then reduced by the P-2 in lieu of property taxes to determine the general purpose state aid amount for each charter school.

Charter School Categorical Block Grant

Funding for the per-ADA portion of the categorical block grant was based on 2010−11 P-2 ADA and the statutory funding rate of $500 per ADA. This amount was then adjusted by a factor of 0.8243612194 to reduce the entitlements pursuant to Section 12.42 of the 2011−12 Budget Act. This adjustment yields an estimated funding rate of approximately $412.18 per 2010−11 P-2 ADA; this rate will be adjusted at the First Principal Apportionment and again at the Second Principal Apportionment.

Funding for the Economic Impact Aid portion of the categorical block grant was based on undeficited 2010−11 rates and pupil counts used in the 2010−11 P-2 apportionment. Funding rates will be revised and ADA changes will be incorporated at the 2011−12 First Principal Apportionment.

Charter School Overpayments (Prior and Current Years)

The apportionment also includes funding adjustments to charter schools that had received overpayments of state aid at P-2 due to changes in the block grant rates, ADA, local revenue, and adjustments to prior years (Line A-27) on the Advance Apportionment Summary). Charter schools that have insufficient funding to offset a prior year overpayment will also have a current year overpayment adjustment (Line A-26).

The overpayment adjustment(s) for the charter school is an amount owed back to the state and, as part of recouping this amount over the entire year, is reflected in the Advance Apportionment. 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.

Basic Aid “Choice”/Court-ordered Voluntary Pupil Transfer and Basic Aid Supplement Charter School Adjustment

Funding for Basic Aid “Choice”/Court-ordered Voluntary Pupil Transfer and Basic Aid Supplement Charter School Adjustment was calculated by multiplying the 2010−11 P-2 amounts by a factor of 1.00008.

Adult Education

Funding for Adult Education was calculated by multiplying each LEA’s base year proportionate share percentage by the $588,909,000 budgeted for item 6110-156-0001 in the Budget Act of 2011. An additional $45,896,000 in funding for 2011−12 is deferred to fiscal year 2012−13 and was not included in the calculation.

Adults in Correctional Facilities (AICF)

Funding for reimbursement of services for the AICF program was calculated at the same level as 2010−11 P-2 for each LEA.

Apprenticeship

The funding was calculated by multiplying the amount each LEA received in 2010−11 P-2 by a factor of 0.8118128160 in order to reach the $9,467,000 budgeted for item 6110-103-0001 in the Budget Act of 2011. An additional $6,227,000 in funding for 2011−12 is deferred to fiscal year 2012−13 and was not included in the calculation.

Community Day School (CDS) Additional Funding for Mandatory Expelled Pupils

Funding for CDS for pupils who were expelled for any of the mandatory expulsion offenses as described in EC Section 48915(c) is equal to the 2010−11 P-2 amounts.

Community Day School (CDS) Additional Funding

Funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $36,934,000 budgeted for item 6110-190-0001 in the Budget Act of 2011. An additional $4,751,000 in funding for 2011−12 is deferred to fiscal year 2012−13 and was not included in the calculation.

County Office Funds Transfer

Funding for county office funds transfers was calculated by multiplying the 2010−11 P-2 amounts for special education, county community school, and nonpublic, nonsectarian school/licensed children’s institutions county office funds transfers by a factor of 1.00008.

Gifted and Talented Education (GATE)

Funding for GATE was calculated by multiplying each LEA’s base year proportionate share percentage by the $39,931,000 budgeted for item 6110-124-0001 in the Budget Act of 2011. An additional $4,294,000 in funding for 2011−12 is deferred to fiscal year 2012−13 and was not included in the calculation.

Regional Occupational Centers/Programs (ROC/P)

In order to approximate the funding that will be apportioned in 2011−12, given the $345,078,000 that is budgeted for item 6110-105-0001 in the Budget Act of 2011, each LEA’s 2010−11 P-2 amount for ROC/P (less the Local Income distribution) was multiplied by a factor of 0.8967164233. The distribution of excess taxes and the additional $39,630,000 in funding for 2011−12 deferred to fiscal year 2012−13 were not included in the calculation and will be included when the P-2 Apportionment is certified in July 2012.

Special Education

The apportionment for the special education programs was calculated using the 2010−11 P-2 apportionment amounts as a base. AB 184 (Chapter 403, Statutes of 2010) authorized the use of special education incidence multiplier (IM) formula through fiscal year 2010−11. As a result, an adjustment was made to several Special Education Local Plan Areas’ (SELPA’s) fiscal year 2010−11 P-2 apportionment totals to reflect the elimination of the incidence multipliers from the AB 602 calculations (Growth IM and special disabilities adjustment funding were reduced to zero). The following factors were applied to the adjusted 2010−11 P-2 amounts:

• AB 602 Program: 1.0308737660
• Infant (Ages Two Years and Younger) Program: 1.00
• ROC/P Handicapped Program: 1.00

Supplemental Instructional Programs

Funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts budgeted for item 6110-104-0001 as shown in the following table. The table also shows the additional funds for 2011−12 that were deferred to fiscal year 2012−13, which were not included in the calculation.

Basic Aid Reduction

The basic aid reduction has been applied to categorical programs funded through the Principal Apportionment for basic aid district’s pursuant to Senate Bill (SB) 70 (Chapter 7, Statutes 2011) on Line A-29 of the Advance Apportionment Summary. A schedule of the categorical program recoveries and each district’s reduction is posted on the California Department of Education’s (CDE) Web site. As shown on the schedule, the following programs from the Principal Apportionment were reduced: Supplemental Instruction Core Academic Programs, Remedial Program, Retained and Recommended for Retention, Low STAR score and at Risk of Retention; Community Day School Additional Funding; Gifted and Talented Education; Regional Occupational Centers and Programs; and Adult Education. For the Advance, Special Education, Apprenticeship, and Adults In Correctional Facilities funding were not reduced. Because these programs are not precluded from a reduction, if necessary, a reduction will be applied to these programs at the First and/or Second Principal Apportionment.

Payment Schedule and Deferrals

Monthly payments for the Advance Apportionment are available on CDE’s Web site at the county summary level and by local educational agency. SB 82 (Chapter 12, Statutes of 2011) enacted several intra-year deferrals that affect payments during the Advance period (July through January). These deferrals are reflected in the posted payment schedules. SB 82 defers the following payments:

An LEA that applied and received approval of an exemption from the SB 82 deferral received the full statutory payment for the month.