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Calculations to Determine 2013–14 P-2

Detail of calculations to determine the 2013–14 Second Principal (P-2) Apportionment.

Second Principal Apportionment (Fiscal Year 2013–14)

The P-2 Apportionment for fiscal year 2013−14 was certified on June 25, 2014, pursuant to California Education Code (EC) Section 41335. The details of the P-2 Apportionment as well as the details of the updated calculations of the 2012−13 Annual R1 Apportionment and the 2011–12 Annual R3 Apportionment that were certified as part of the P-2 Apportionment are described below.

Local Control Funding Formula Implementation

This is the first apportionment to be calculated using the new Local Control Funding Formula (LCFF). LCFF was established by Assembly Bill 97 (Chapter 47, Statutes of 2013), as amended by Senate Bill 91 (Chapter 49, Statutes of 2013) and Senate Bill 97 (Chapter 357, Statutes of 2013). The LCFF represents a significant change in how California’s kindergarten through grade twelve (K–12) local educational agencies (LEAs) are funded. As such, most funding exhibits and calculations have changed, and many are brand new.

Additional information about the LCFF is available on the California Department of Education’s (CDE) LCFF Web page.

LCFF Exhibits and Exhibit Guides

The CDE has developed or revised the exhibits listed below, which illustrate the calculations required to determine LCFF entitlements and apportionments. The CDE has also made available on its Web site an Exhibit Reference Guide that provides important information about these exhibits, such as the purpose of each exhibit, data sources, preceding and subsequent calculations, and calculation details. The exhibits are listed below in the order in which they should be reviewed, so that the calculations can be followed in the same general order as they were performed.

School District (Including all-charter school districts)
Target Entitlement:
  • School District Necessary Small School Allowance for the LCFF Target
  • Prior Year School District ADA (for 2013–14 only)
  • School District ADA
  • School District Unduplicated Pupil Percentage
  • School District LCFF Target Entitlement
Transition Entitlement:
  • 2012–13 Categorical Program Entitlements Subsumed into LCFF
  • School District Necessary Small School Allowance for the LCFF Floor
  • Economic Recovery Target
  • School District Local Revenue
  • 2012–13 Adjusted District Revenue Limit Rate Per ADA Rate Calculation
  • School District LCFF Transition Calculation
Charter School
Target Entitlement:
  • Charter School ADA
  • Charter School Unduplicated Pupil Percentage
  • Charter School LCFF Target Entitlement
Transition Entitlement:
  • 2012–13 Categorical Program Entitlements Subsumed into LCFF
  • Economic Recovery Target
  • Local Revenue Limit Detail by District of Residence
  • Charter School LCFF Transition Calculation
County Office of Education
Target Entitlement:
  • County Operations ADA Grant
  • County Unduplicated Pupil Percentage
Transition Entitlement:
  • 2012–13 Categorical Program Entitlements Subsumed into LCFF
  • County Office Local Revenue
  • 2012–13 Adjusted County Revenue Limit for Floor Calculation
  • County LCFF Transition Calculation

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LCFF State Aid - All Local Educational Agencies

The calculation of LCFF state aid shown on lines A-1, A-2, and A-3 of the Principal Apportionment Summary can be found on the exhibits titled County LCFF Transition Calculation, School District LCFF Transition Calculation, and Charter School LCFF Transition Calculation, respectively.

For most LEAs the LCFF Transition Entitlement is equal to the sum of an LEA’s LCFF Floor, Gap Funding, and Economic Recovery Target (ERT) Funding. LEAs with zero LCFF Need will not receive gap funding.

LCFF state aid is determined by subtracting from the LCFF Transition Entitlement, the amount of local property tax receipts and the 2013–14 Education Protection Account (EPA) Entitlement. If applicable, the LCFF state aid is increased to reach the minimum level of state aid required by law. For standardized account code structure (SACS) coding, LCFF state aid should be recorded to LCFF State Aid—Current Year (Resource 0000, Object 8011).

Note that the 2013–14 EPA entitlements will be recalculated and become final at 2013–14 Annual. The recalculated EPA amount will be used in the calculation of 2013–14 LCFF state aid at the 2013-14 Annual Apportionment and subsequent calculations.

Class Size Penalties (CSP)

California Education Code (EC) sections 41376 and 41378 prescribe the maximum class sizes and penalties for districts with any classes that exceed the limits established in 1964. Class size penalties are typically applied at the Second Principal Apportionment from information reported to the CDE on the Report of Regular Day Classes and Enrollment for Kindergarten and Elementary Grades. Class size penalties were not imposed in the P-2 Apportionment; we anticipate they will be applied at the 2013–14 Annual Apportionment.

Current Year Gap Funding

The details for the calculation of current year gap funding can be found on the exhibits titled School District LCFF Transition Calculation, County LCFF Transition Calculation, and Charter School LCFF Transition Calculation and the accompanying exhibit guides. Each LEA “LCFF Need” is the difference between its adjusted prior-year funding level, called the “LCFF Floor” and its “LCFF Target Entitlement”.

For school districts and charter schools, the Budget Act of 2013 provided $2.1 billion to fund LCFF Need, which resulted in a statewide gap funding rate of 12.00169574 percent that is applied to each school district’s and charter school’s LCFF Need to determine its current year Gap Funding. School districts and charter schools that do not have LCFF Need in 2013–14 will be funded based upon the LCFF Target commencing with the 2014–15 fiscal year.

For county offices of education (COE), the Budget Act of 2013 provided $32 million to fund LCFF Need, which resulted in a statewide gap funding rate of 63.31567500 percent that is applied to each COE’s LCFF Need to determine current year Gap Funding.

Note that Senate Bill 859, recently signed into law, freezes the statewide gap funding rates as of the P-2 certification to prevent unanticipated adjustments to LEA entitlements. This legislative change provides stability to all LEAs by preventing the recalculation of the statewide gap rate at subsequent apportionments that would have occurred anytime an LEA submitted an adjustment. The amount an LEA receives in gap funding can still change if the LEA’s LCFF Need changes in subsequent calculations.

District Funded County Served Students

Students who attend non-juvenile court schools operated by the COE and who do not meet the following requirements are credited to the district of residence, for purposes of LCFF funding:

  1. Probation-referred pursuant to Sections 300, 601, 602, and 654 of the Welfare and Institutions Code.
  2. On probation or parole and not in attendance in a school.
  3. Expelled for any of the reasons specified in subdivisions (a) or (c) of Education Code Section 48915.

Under the prior funding system, revenue limit funding for students in county-operated special day classes and community schools was transferred to COEs based on the revenue limit of the student’s district of residence. This process was referred to as the “County Funds Transfer”. Under LCFF, the County Funds Transfer process is eliminated. For additional information, please review the letter and frequently asked questions related to this topic.

Economic Recovery Target (ERT) Funding

A school district or charter school is eligible for ERT funding if its per ADA funding under the old funding model (adjusted to projected 2020–21 levels) is below the 90th percentile ($12,921.15) and if it would have been better off under the old funding model rather than the LCFF model. The details of the ERT funding calculation can be found on the ERT exhibit and exhibit guide. Most school districts and charter schools did not generate an ERT funding amount. The ERT funding is added to the LCFF Transition Entitlement.

By law, ERT entitlements are frozen based upon the calculations in the 2013–14 P-2 Apportionment certification.

Education Protection Account (EPA) Entitlement

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 LEAs will receive quarterly EPA payments through the 2018-19 fiscal year, paid outside of the Principal Apportionment. Except for an excess tax LEA, EPA revenues offset state aid allocated through the Principal Apportionment.

Using a revised 2013–14 EPA revenue estimate of approximately $6.3 billion, the CDE recalculated EPA entitlements using a factor of 21.0317 percent based on the 2013–14 statewide total of revenue limits and charter school block grant funding. With the 2013-14 implementation of LCFF, EPA entitlements will continue to be calculated based on adjusted revenue limits, including the allowance for necessary small schools, and charter school block grant funding, in accordance with Proposition 30. These funding amounts continue as components of the LCFF.

Each LEA's EPA entitlement was reduced so that funding from local property taxes and the EPA combined did not exceed the LEA’s adjusted revenue limit or charter school general purpose funding, provided that each LEA received the minimum EPA funding at a rate of $200 per unit of ADA. Additionally, charter schools newly operational in the 2013–14 fiscal year received the minimum funding of $200 per ADA. Except for LEAs fully funded through local revenue, EPA funding offsets LCFF state aid allocated through the Principal Apportionment.

The 2013–14 EPA entitlements, as of P-2, are shown for information purposes only on the 2013–14 Second Principal Apportionment Summary (XLS). EPA entitlements can also be seen on the 2013–14 P-2 County, School District, and Charter School LCFF Transition Calculation exhibits. The 2013–14 fourth quarter EPA payment made in June reflects this revision.

See the EPA Web page for more information relating to EPA.

LCFF Target Entitlement

The details of the calculation of LCFF Target Entitlement, which is a component of the LCFF Transition Entitlement, are displayed on the School District LCFF Target Entitlement, Charter School LCFF Target Entitlement, and County LCFF Target Entitlement exhibits and accompanying exhibit guides. The following table summarizes the base grants per unit of ADA that were used in the Target Entitlement calculations.

School Districts and Charter Schools
Grade Span Initial Base Grant Grade Span Adjustment Cost-of-Living Adjustment (COLA) Total Per-ADA
K–3

$6,845

$712

$119

$7,676

4–6

$6,947

N/A

$109

$7,056

7–8

$7,154

N/A

$112

$7,266

9–12

$8,289

$216

$133

$8,638

County Offices of Education
Grant Multiplier Rate

Operations Grant

Per County

$655,920

Operations Grant

Per School District

$109,320

Operations Grant

Per Countywide ADA (1-30,000) 

$70

Operations Grant

Per Countywide ADA (30,001-60,000)

$60

Operations Grant

Per Countywide ADA (60,001-140,000)

$50

Operations Grant

Per Countywide ADA (over 140,000)

$40

Alternative Education Grant

Per ADA

$11,217

Supplemental and Concentration Grants are based upon the total base grant amount for each LEA and the LEA’s own unduplicated pupil percentage (UPP) or for charter schools, the lesser of its UPP or that of its determinative school district. Details of the UPP, which included adjustments for County Served District Funded Pupils, can be found on the Unduplicated Pupil Percentage exhibit and exhibit guide.

If applicable, the Necessary Small School (NSS) Allowance is applied to the LCFF Target Entitlement. ADA funded by the NSS formula is excluded from the base grant but is included for purposes of the calculation of the Supplemental and Concentration grant amounts. Details for the NSS allowance calculation can be found on the School District Necessary Small School Allowance for the LCFF Target exhibit and exhibit guide. Additional information related to NSS funding is below.

LCFF Floor

The LCFF Floor is a component of the LCFF Transition Entitlement. The details of the LCFF Floor are displayed on the School District LCFF Transition Calculation, Charter School LCFF Transition Calculation, and County LCFF Transition Calculation exhibits and accompanying exhibit guides.

For COEs, school districts, and charter schools, the LCFF Floor is based upon the current year funded ADA multiplied by the 2012–13 Revenue Limit (general purpose block grant for charter schools) funding rates plus the 2012–13 Categorical Funding Subsumed into LCFF. In addition, for COEs, the LCFF Floor includes an amount of 2012–13 Revenue Limit funding that is not adjusted by current year ADA and is held constant as of the 2012–13 Annual Apportionment. The details of the rates and funding used in the LCFF Floor calculation are displayed on the 2012–13 Adjusted District Revenue Limit Rate Per ADA Rate Calculation and 2012–13 Adjusted County Revenue Limit for Floor Calculation exhibits and exhibit guides. If a district is funded by NSS in the LCFF Target Entitlement, the floor includes the applicable deficited allowance from 2012–13. Charter schools did not require adjustments for the General Purpose funding that is used in the Floor calculation.

Necessary Small Schools (NSS)

During the LCFF Transition period, the CDE will calculate the NSS Allowance for the LCFF Target based on NSS Funding Band amounts for the applicable fiscal year, and the NSS Allowance for the LCFF Floor based on the 2012–13 Deficited NSS Funding Band amounts. For both calculations, the allowance 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.

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2013–14 NSS Funding Bands for School District NSS Allowance for the LCFF Target

The allowance amounts shown in the following tables reflect the 1.57 percent COLA for 2013–14:

Necessary Small Elementary Schools
Number of Teacher(s) Average Daily Attendance Amount to be Computed

1

1 to 24

$147,925

2

25 to 48

$295,850

3

49 to 72

$443,775

4

73 to 96

$591,700

Necessary Small High Schools
Minimum Number of Certificated Employee(s) Average Daily Attendance Amount to be Computed

1

1 to 19

$120,085

2

1 to 19

$240,170

3

1 to 19

$533,580

4

20 to 38

$653,665

5

39 to 57

$773,750

6

58 to 71

$893,835

7

72 to 86

$1,013,920

8

87 to 100

$1,134,005

9

101 to 114

$1,254,090

10

115 to 129

$1,374,175

11

130 to 143

$1,494,260

12

144 to 171

$1,614,345

13

172 to 210

$1,734,430

14

211 to 248

$1,854,515

15

249 to 286

$1,974,600

Note that fractional ADA units of 0.5 and above are rounded up, and those below 0.5 are rounded down.

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2012–13 Deficited NSS Funding Bands for the School District NSS Allowance for the LCFF Floor

The allowance amounts shown in the following tables reflect the 2012–13 deficit factor of 22.272 percent:

Necessary Small Elementary Schools
Number of Teacher(s) Average Daily Attendance Amount to be Computed

1

1 to 24

$113,211

2

25 to 48

$226,422

3

49 to 72

$339,632

4

73 to 96

$452,843

Necessary Small High Schools
Minimum Number of Certificated Employee(s) Average Daily Attendance Amount to be Computed

1

1 to 19

$91,898

2

1 to 19

$183,796

3

1 to 19

$408,259

4

20 to 38

$500,156

5

39 to 57

$592,054

6

58 to 71

$683,952

7

72 to 86

$775,850

8

87 to 100

$867,748

9

101 to 114

$959,645

10

115 to 129

$1,051,543

11

130 to 143

$1,143,441

12

144 to 171

$1,235,339

13

172 to 210

$1,327,237

14

211 to 248

$1,419,135

15

249 to 286

$1,511,032

Note that fractional ADA units of 0.5 and above are rounded up, and those below 0.5 are rounded down.

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2013–14 Other Programs Included in the Principal Apportionment

Adults in Correctional Facilities (AICF)

The 2013–14 funding for the AICF program was based on the lesser of each LEA’s 2012–13 rate per ADA or 80 percent of the 2007–08 statewide average revenue limit for Adult Education. This amount is multiplied by the lesser of prior year annual ADA or a cap based on 2002–03 ADA funding increases of 2.5 percent each year. The amount appropriated for this program equals $14,967,000. The appropriation was sufficient to fund all of the growth in the program.

Basic Aid Supplement Charter School Adjustment

The School District Basic Aid Supplement Funding provides basic aid school districts supplemental funding for the loss in local revenue due to charter schools that provide instruction to nonresident (out of district) students. The Basic Aid Supplement calculation was modified effective 2013–14 to incorporate the new LCFF funding calculations into both the determination of a school district’s basic aid status and the determination of the funding used to generate the Basic Aid Supplement. The Basic Aid Supplement was also revised effective 2013–14, to limit the amount of funding that may be provided to supplement a basic aid school district for the loss in local revenue.

Basic Aid “Choice”, Basic Aid Court-Ordered Voluntary Pupil Transfer, and Basic Aid Open Enrollment

The 2013–14 funding for the Basic Aid Choice, Basic Aid Court-Ordered Voluntary Pupil Transfer, and Basic Aid Open Enrollment programs are inter-district attendance programs that provide state aid to a basic aid district roughly equivalent to 70 percent of the LCFF entitlement the student’s district of residence would have received. For detail calculations for each program refer to the exhibit guides. Note: there were no participants in the Basic Aid Open Enrollment program for the 2013–14 fiscal year.

Special Education Assembly Bill (AB) 602 Funding

Assembly Bill (AB) 86 (Chapter 48, 2013) in conjunction with the 2013–14 State Budget, authorized several changes to the AB 602 funding formula in an effort to simplify the formula and provide Special Education Local Plan Areas (SELPAs) with additional funding flexibility. Following is a summary of the changes reflected in the P-2 Apportionment:

  • Removed the federal local assistance funding from AB 602 calculations.
  • Recalculated the statewide target rate, which increased the rate to $522.86 per ADA.
  • Added 2012–13 funding levels for the Program Specialist/Regionalized Services (PS/RS) and Personnel Development grants to the SELPA’s base formula. Small SELPAs will continue to receive supplemental PS/RS funding.
  • Consolidated the Low-Incidence (LI) funding: LI specialized services, LI equipment and materials, and LI Career Technical Education (formerly ROC/P Handicapped).

The budget includes a 1.57 percent statutory COLA for special education. However, the current year appropriation was not sufficient to fully fund AB 602 at P-2. A proration factor of 0.9721266925 was applied to the Base Entitlement. The CDE changed the proration methodology from P-1 to P-2. Instead of prorating the state aid Base Apportionment as was done at P-1, at P-2 the proration factor was applied to the Base Entitlement (before property taxes and excess ERAF are deducted) of all SELPAs for which the Base Entitlement is funded with state aid.

The Budget Act of 2013 appropriated $157.8 million for the Out of Home Care program. The facility rates were adjusted by a 1.57 percent statutory COLA. The 2013-14 rates and facility addresses can be viewed on the Special Education Web page [Note: this page is no longer available]. Funding for the 2013–14 P-2 Apportionment was calculated solely based on the bed and pupil count data collected as of April 1, 2014, and funded at the 2013–14 fiscal year budgeted amount for the program. The program was fully funded at P-2.

Funding for mental health services is outside of the Principal Apportionment, and is apportioned separately.

Special Education Infant (Ages Two and Younger) Program

Total funding apportioned for the Infant program for 2013−14 is $70,244,150. Following are the 2013−14 Infant program statewide average unit rates:

Instructional Settings 2012–13 Statewide Average Rate 2013–14 COLA (1.57%) 2013–14 Statewide Average Rate
Special Day Class

$56,932

$894

$57,826

Resource Specialist

$60,026

$942

$60,968

Designated Instruction

$56,227

$883

$57,110

Aide

$23,118

$363

$23,481

Payment Schedule and Deferrals

Monthly payments for the P-2 Apportionment are available on CDE’s Web site at the county level and by LEA. The P-2 payment schedule also reflects the repayment of several inter-year deferrals from the P-1 period that are scheduled to be paid in July 2014.

Additional information on Principal apportionment payments and deferrals is available on CDE’s Web site.

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Prior Year Adjustments (Fiscal Years 2012−13 and 2011−12)

The following provides updates to the 2012–13 Annual R1 and 2011–12 Annual R3 apportionments certified at the same time as the 2013–14 P-2 Apportionment. The Adjustments and Prior Year Recomputations (XLS) file includes details of prior year adjustments. In general, these corrections reflect revised ADA or updated property tax information. This information is also provided in Column A-15 of the Principal Apportionment Summary (XLS) file. Only programs where funding has changed at the 2012–13 Annual R1 or 2011–12 Annual R3 are listed below.

Fiscal Year 2012−13 Annual R1

Adults in Correctional Facilities (AICF)

The 2012–13 funding for the AICF program is based on the lesser of each LEA’s 2011–12 rate per ADA or 80 percent of the 2007–08 statewide average revenue limit for adult education. This amount is multiplied by the lesser of prior year annual ADA or a cap based on 2002–03 ADA funding increases of 2.5 percent each year. The amount appropriated for this program equals $14,967,000. The growth funding was sufficient to fund all of the growth in the program.

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

The 2012–13 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC 48915(c) was calculated using 2012–13 Annual ADA for the 5th and 6th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils receive waiver funding that equals the amount displayed on the 2012–13 NSS funding table for one certificated teacher less revenue limit received for any community day school pupils. The additional funding provided by the waiver is reduced by the current dollar value of any waiver funding included in the base-year funding for “All Other” CDS pupils. The current dollar value is calculated by multiplying the 2007–08 amount by a 0.80119 adjustment factor. The adjustment factor recognizes the decrease in funding for “All Other” CDS pupils from the 2007–08 level and is determined by dividing the statewide total dollars available for CDS “All Other” pupils for the 2012–13 fiscal year, by the amount used to calculate the 2007–08 base.

Education Protection Account (EPA) Entitlement

The 2012–13 EPA entitlements were final as of the 2012–13 Annual apportionment and those amounts were incorporated into the calculation for 2012–13 revenue limit or charter school general purpose state aid. 2012–13 EPA revenues of approximately $6.5 million were allocated based on each LEA’s proportionate share of statewide deficited revenue limits and charter school general purpose funding as of the 2012–13 Annual period, using a factor of 21.5165 percent; entitlements for charter schools that closed were held constant as of the 2012–13 P-2 period. LEAs fully funded through local revenue and in-lieu of property taxes received $200 per ADA. Except for excess tax LEAs, the amount of EPA funding each LEA received resulted in a corresponding reduction to the LEA’s 2012–13 Annual R1 revenue limit or charter school general purpose state aid funding.

The 2012–13 EPA apportionment and related calculations can be viewed on CDE’s Web site.

Public Employees’ Retirement System (PERS) Reduction

The restoration factor resulting from the $45.781 million appropriated to reduce the PERS Reduction in 2012–13 was 0.4008569813 of the total PERS adjustment.

Regional Occupational Centers/Programs (ROC/P)

The 2012–13 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $384,708,000 appropriated for the program. Local income savings of $49,055,084 were distributed to all LEAs based on the same percentage.

Special Education AB 602 Funding

In FY 2012–13, the statewide target rate remains the same as the prior fiscal year’s value of $465.44 given a zero percent COLA. This year, an increase in federal aid for special education of $8,396,672 provides each SELPA $1.4101412041 per unit of ADA in supplement to base funding. The program’s appropriation was not sufficient to fully fund AB 602 at Annual R1. As a result, a proration factor of 0.9964702196 was applied to the base apportionment. Lastly, funding for 2012–13 Extraordinary Cost Pool Program was prorated, where a proration factor of 0.5667985303 was applied to the calculation.

Special Education Infant (Ages Two and Younger) Program

The 2012–13 Infant entitlement equals $68,491,715 and is fully funded at Annual R1.

Special Education Out-of-Home Care (OHC)

The 2012–13 OHC entitlement equals $149,034,544 and is fully funded at Annual R1.

Fiscal Year 2011−12 Annual R3

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

The 2011–12 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC 48915(c) was calculated using 2011–12 Annual ADA for the 5th and 6th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils receive waiver funding that equals the amount displayed on the 2011–12 NSS funding table for one certificated teacher less revenue limit received for any community day school pupils. The additional funding provided by the waiver is reduced by the current dollar value of any waiver funding included in the base-year funding for “All Other” CDS pupils. The current dollar value is calculated by multiplying the 2007–08 amount by a 0.80119 adjustment factor. The adjustment factor recognizes the decrease in funding for “All Other” CDS pupils from the 2007–08 level and is determined by dividing the statewide total dollars available for CDS “All Other” pupils for the 2011–12 fiscal year, by the amount used to calculate the 2007–08 base.

Regional Occupational Centers/Programs (ROC/P)

The 2011–12 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $384,708,000 appropriated for the program. Local income savings of $36,105,897 were distributed to all LEAs based on the same percentage.

Special Education AB 602 Funding

The 2011–12 AB 602 entitlements, i.e., base, growth, and program specialist/regionalized services, are fully funded at the Annual R3.

Special Education Out-of-Home Care (OHC)

The 2011–12 OHC entitlement equals $156,030,748 and is fully funded at the Annual R3.

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Questions:   Principal Apportionment Section | pase@cde.ca.gov | 916-324-4541
Last Reviewed: Monday, May 20, 2024
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