Calculations to Determine 2014–15 P-1

First Principal Apportionment (Fiscal Year 2014–15)

The P-1 Apportionment for fiscal year 2014−15 was certified on February 20, 2015, pursuant to California Education Code (EC) Section 41332. The details of the P-1 Apportionment as well as the details of the updated calculations of the 2013−14 Annual Apportionment and the 2012–13 Annual R2 Apportionment that were certified as part of the P-1 Apportionment are described below.

Local Control Funding Formula Implementation

The Local Control Funding Formula (LCFF) was established by Assembly Bill (AB) 97 (Chapter 47, Statutes of 2013), as amended by Senate Bill (SB) 91 (Chapter 49, Statutes of 2013) and SB 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.

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

LCFF Exhibits and Exhibit Guides

The CDE has updated for 2014−15 the LCFF Exhibit Reference Guides that provide important information about LCFF funding exhibits, such as the purpose of each exhibit, data sources, preceding and subsequent calculations, and calculation details. The exhibits are listed 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.

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. 

The LCFF Transition Entitlement is equal to the sum of an LEA’s LCFF Floor or Target, Gap, and Economic Recovery Target (ERT) funding.

LCFF state aid is determined by subtracting from the LCFF Transition Entitlement, the amount of local property tax receipts and the 2014–15 Education Protection Account (EPA) Entitlement. If applicable, the LCFF state aid is increased to reach the minimum level of state aid required by law.

Note that the 2014–15 EPA entitlements will be recalculated at the Second Principal Apportionment (P-2) and become final at the Annual Apportionment. The recalculated EPA amount will be used in the calculation of 2014–15 LCFF state aid at the 2014−15 Annual Apportionment and subsequent recalculations.

Current Year Gap Funding

The details for the calculation of current year gap funding can be found on the County LCFF Transition Calculation, School District LCFF Transition Calculation, and Charter School LCFF Transition Calculation exhibits and the accompanying exhibit guides. An LCFF Need is calculated for each LEA, which 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, SB 859 (Chapter 33, Statutes of 2014) provided $4.7 billion to fund LCFF Need, which resulted in a preliminary statewide gap funding rate of 29.27267659 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 did not have LCFF Need at the 2013–14 P-2 certification will be funded based upon the LCFF Target commencing with the 2014–15 fiscal year.

For county offices of education (COEs), SB 859 provided $25.9 million to fund LCFF Need, which resulted in a preliminary statewide gap funding rate of 100 percent that is applied to each COE’s LCFF Need to determine current year Gap Funding.

Note that SB 859 freezes the statewide gap funding rates as of the P-2 Apportionment 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 any 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.

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.

Using a 2014–15 EPA revenue estimate of approximately $6.6 billion, the CDE recalculated EPA entitlements using a factor of 22.23537438 percent based on the 2014–15 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 Floor.

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 average daily attendance (ADA). Additionally, charter schools newly operational in the 2013–14 fiscal year or after 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 2014–15 EPA entitlements, as of P-1, are shown for information purposes only on the 2014–15 First Principal Apportionment Summary (XLS). EPA entitlements can also be seen on the 2014–15 P-1 County, School District, and Charter School LCFF Transition Calculation exhibits.

For additional information, visit the EPA Web page.

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

County Offices of Education

For school districts and charter schools, Supplemental Grant funding is based upon the LEA’s base grant funding by grade level, times its Unduplicated Pupil Percentage (UPP), times a factor of 20 percent. The Concentration Grant funding also starts with base grant funding by grade level, but the factor is 50 percent times just the portion (if any) of the UPP that exceeds 55 percent. Additionally for charter schools, the UPP for Concentration Grant starts with the lesser of its own UPP or the UPP of its determinative school district.

For COEs, Supplemental Grant funding is based upon the LEA’s base grant funding times its UPP, times a factor of 35 percent. For Concentration Grant funding for non-juvenile court students, the factor is 35 percent times just the portion (if any) of the UPP that exceeds 50 percent. For juvenile court students the Concentration Grant factor is 17.50 percent of the total base grant.

If applicable, the Necessary Small School (NSS) Allowance and ADA is taken into account for the School District LCFF Target Entitlement. ADA funded by the NSS formula is excluded from the Base Grant funding 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 Schools Allowance for the LCFF Target exhibit and exhibit guide. Additional information related to NSS funding is provided below.

School district and COE LCFF Target Entitlements include, if applicable, add-on funding based on three 2012−13 programs: Targeted Instructional Improvement Block Grant, Home-to-School Transportation, and Small School District Bus Replacement Program. COEs may also have an add-on for Foster Youth Necessary Small High School, effective for 2014−15 through 2016−17.

Unduplicated Pupil Percentage

The UPP is used in calculating LCFF Supplemental and Concentration Grants, which are components in the LCFF Target Entitlements. Details of the UPP and calculations are displayed on the School District Unduplicated Pupil Percentage, Charter School Unduplicated Pupil Percentage, and County Unduplicated Pupil Percentage exhibits and accompanying exhibit guides.

The UPP is a percentage that will ultimately have three years of data (current, prior, and second prior year). Having a three-year rolling percentage means multiple years of data are used in the calculation. In the fourth and subsequent years the newest year will be added and the oldest will be dropped off. Because 2014−15 is only the second year of the LCFF, the UPP will have data for 2014−15 (current year) and 2013−14 (prior year). SB 859 modified the data used for the 2014−15 and 2015−16 UPP calculations. EC Section 42238.02(b)(5)(D)(i) allows 2014−15 data to be used in place of 2013−14 data if doing so yields a higher UPP in the 2014−15 and/or 2015−16 UPP calculation. The UPP exhibits have been revised to calculate both the regular UPP and the alternate UPP, and to use the highest one in the calculation of Supplemental and Concentration Grant funding.

Major components of the UPP, the enrollment and unduplicated pupil counts, are collected by CDE in the California Longitudinal Pupil Achievement Data System (CALPADS) Fall 1 data collection. Only data certified in CALPADS by December 19, 2014, were used for the 2014−15 P-1 UPP calculations. LEAs that did not certify by that date, or that have missing data or certified zero, will have zeros for current year enrollment and unduplicated pupil counts.

The second Fall 1 deadline to amend/certify/re-certify CALPADS Fall 1 data is February 27, 2015. LEAs should look at all segments of their UPP calculations carefully and quickly since if changes are needed to CALPADS there is only one week between the February 20 P-1 certification and the February 27 close of the Fall 1 amendment window. Fall 1 data certified or recertified by February 27 will be used in the P-2 UPP calculations. Additional information on the CALPADS certifications and review of LCFF data are addressed in CALPADS Update FLASH #100 [Note: Preceding link is no longer valid.].

LCFF Floor

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

The LCFF Floor is based on the current year funded ADA multiplied by the 2012–13 Revenue Limit and General Purpose funding rates plus the 2012–13 categorical funding subsumed into LCFF. 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 County Revenue Limit for Floor Calculation, 2012–13 Adjusted District Revenue Limit Rate Per ADA Rate Calculation, and Charter School LCFF Transition Calculation exhibits and exhibit guides. If a school district is funded by NSS in the LCFF Target Entitlement, the Floor also includes the applicable deficited allowance based on 2012–13 funding amounts.

Commencing with 2014−15, the LCFF Floor also includes prior year gap funding. For COEs, this is the same dollar amount received in 2013−14 for gap. For school districts and charter schools, it is the LEA’s 2013−14 gap funding divided by 2013−14 funded ADA to determine a rate, which is then multiplied by current year ADA. Additional details for school districts and charter schools are available on the Prior Year Gap Rate per ADA Calculation Exhibit and exhibit guide.

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 full-time equivalent certificated employees (for high schools), whichever provides the lesser amount.

2014–15 NSS Funding Bands for School District NSS Allowance for the LCFF Target

The allowance amounts shown in the following tables reflect the 0.85 percent COLA for 2014–15:

Necessary Small Elementary Schools

Necessary Small High Schools

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

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

Necessary Small High Schools

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

County Necessary Small Schools (NSS)

SB 859 authorized NSS funding for a high school maintained by a COE for the exclusive purpose of educating foster youth if the high school provided instruction in the 2012–13 fiscal year, and the high school is the only one maintained by the COE that exclusively educates foster youth. The County NSS Calculation for the LCFF Target exhibit and the County NSS Calculation for the LCFF Floor exhibit contain data and calculations for the NSS funding add-on for the County LCFF Target and County LCFF Floor Entitlements.

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 at or below the 90^th 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.

County Served District Funded 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:

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

These students are referred to as “District Funded County Program Students” and the ADA is reported to CDE by district of residence in the Attendance District Funded County Program entry screen of the Principal Apportionment Data Collection (PADC) software. The ADA for students who do meet these criteria is reported to CDE in the Attendance COE entry screen of the PADC software.

California Longitudinal Pupil Achievement Data System (CALPADS) Transfer Reporting

Beginning in 2014–15, all COEs are required to report the type of transfer and district of residence for all non-juvenile court school students that enroll. Students that do not meet the criteria listed above will be identified with a transfer code other than 5 – Disciplinary COE School Transfer. CDE will use the information reported by COEs in CALPADS to transfer the enrollment and any unduplicated pupil count for any non-transfer code 5 students to the district of residence when calculating the Unduplicated Pupil Percentage for both the COE and district of residence.

The Report of Attendance and CALPADS Enrollment/Unduplicated Pupil Count Transfers for District Funded County Program Students (XLS) Excel file available on CDE’s Web site shows the District Funded County Program ADA reported by district of residence and CALPADS enrollment and unduplicated pupil count transfers as of December 19, 2014.

New Funding Transfer Process

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” and was eliminated under LCFF. Although the funding transfer is no longer automatic, an optional methodology is now available beginning with 2014−15 P-1 that allows the CDE to transfer funding from the district to the COE with agreement by both the county office of attendance and the district of residence. The COE must also provide transfer rates to the CDE for this to occur. Details of the requirements for the transfer can be found in the School District Transfer of Funds for County Served District Funded ADA and County Transfer of Funds for County Served District Funded ADA exhibit guides, as well as the Attendance District Funded County Programs and County Served District Funded ADA Transfer Selection sections of the Data Reporting Instruction Manual (DOC) [Note: The preceding link is longer valid. Please contact PAS@cde.ca.gov for more information.].

To account for this transfer, school districts will use Object Code 7142 (Other Tuition, Excess Costs, and/or Deficit Payments to County Offices) to record the payment to COEs. COEs will use Object Code 8710 (Tuition) to record the receipt from districts. All LEAs will use the unrestricted Resource Code 0000.

CDE has published a series of Frequently Asked Questions on the transfer of enrollment and unduplicated pupil counts and flow of funds under LCFF for these students.

Charter Served County Funded Students

Beginning in 2014–15, all charter schools that operate county programs are required to report the type of transfer and district of residence for all non-juvenile court school students that enroll. Students that meet the following criteria will be identified with a transfer code of 5 – Disciplinary COE School Transfer:

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

CDE will use the information reported in CALPADS to transfer the enrollment and any unduplicated pupil count for any transfer code 5 students to the COE when calculating the Unduplicated Pupil Percentage for both the COE and charter school.

The Charter to COE CALPADS Transfers (XLS) Excel file available on CDE’s Web site shows the enrollment and unduplicated pupil count transfers for these students as of December 19, 2014.

2014–15 Other Programs Included in the Principal Apportionment

Adults in Correctional Facilities (AICF)

The 2014−15 funding for the AICF program was based on the lesser of each LEA’s 2013−14 rate per ADA times the 2013−14 COLA of 1.0157 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 $15,096,000. 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 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. There were no participants in the Basic Aid Open Enrollment program as of the P-1 Apportionment.

Special Education Assembly Bill (AB) 602 Funding

In FY 2014−15, the budget includes a 0.85 percent statutory COLA for special education which increases the statewide target rate to $527.30. However, the current year appropriation was not sufficient to fully fund AB 602 at P-1. As a result, a proration factor of 0.9707032164 was applied to the Base Entitlement.

The Budget Act of 2014 appropriated $154.4 million for the Out of Home Care program. The facility rates were adjusted by a 0.85 percent statutory COLA. Funding for the 2014−15 P-1 Apportionment was calculated using prior year data funded at the program’s FY 2014−15 budgeted amount.  At the 2014−15 P-2 Apportionment, the program’s funding calculation will be updated to reflect the true bed and pupil count data as of April 1, 2015. The 2014−15 rates can be viewed on the Special Education Web page.

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 2014−15 is $70,728,428. Following are the 2014−15 Infant program statewide average unit rates:

Payment Schedule and Deferrals

Monthly payments for the P-1 Apportionment are available on CDE’s Web site at the county level and by LEA. SB 858 eliminated all the deferrals within the P-1 period.

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

Prior Year Adjustments (Fiscal Years 2013−14 and 2012−13)

The following provides updates to the 2013–14 Annual and 2012–13 Annual R2 apportionments certified at the same time as the 2014–15 P-1 Apportionment. The Adjustments and Prior Year Recomputations (XLS; 2MB) Excel 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-16 of the Principal Apportionment Summary (XLS) Excel file. Only programs where funding has changed at the 2013–14 Annual or 2012–13 Annual R2 are listed below.

Fiscal Year 2013−14 Annual

Class Size Penalties (CSP)

Class size penalties were applied at the 2013−14 Annual Apportionment, instead of the typical application at the Second Principal Apportionment, from information reported to the CDE on the Class Size Penalties entry screen in the PADC software. The penalties were calculated pursuant to EC sections 41376, 41376.1, and 41378 and reflect the LCFF funding calculations. The details of the CSP calculation are displayed on the Class Size Penalties exhibit. For additional information view the exhibit guide that can be found in the 2014–15 P-1 LCFF Exhibit Reference Guides.

Education Protection Account (EPA) Entitlement

The 2013–14 EPA entitlements were final as of the 2013–14 Annual Apportionment and those amounts were incorporated into the calculation for 2013–14 LCFF state aid. 2013–14 EPA revenues of approximately $6.3 billion were allocated based on each LEA’s proportionate share of statewide total of revenue limits and charter school block grant funding in the LCFF Floor, using a factor of 21.12293943 percent; entitlements for charter schools that closed and those LEAs that had EPA overpayments at 2013–14 P-2 were held constant as of the 2013–14 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 2013–14 Annual LCFF state aid funding.

The 2013–14 EPA apportionment and related calculations can be viewed on CDE’s Web site.

Special Education AB 602 Funding

There is no change in the statewide target rate from P-2 to Annual of $522.86 per ADA. As a result of AB 86 (Chapter 48, Statues of 2013) an additional $24.9 million was appropriated for the 2013−14 fiscal year. At Annual a proration factor is still being applied to the Base Entitlement but as a result of the additional funding the factor increased from 0.9721266925 to 0.9816990711. In addition, funding for the 2013–14 Extraordinary Cost Pool Program was prorated and a factor of 0.7747939490 was applied to the calculation.

Special Education Infant (Ages Two and Younger) Program

The 2013–14 Infant entitlement equals $69,961,629 and is fully funded as of the Annual Apportionment.

Special Education Out-of-Home Care (OHC)

The 2013–14 OHC entitlement equals $147,148,863 and is fully funded as of the Annual Apportionment.

Fiscal Year 2012−13 Annual R2

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 5^th and 6^th 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 necessary small schools 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.

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 $49,056,156 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 2012–13 AB 602 entitlements, i.e., base, growth, and program specialist/regionalized services, are fully funded at the Annual R2 Apportionment. Lastly, funding for the 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 as of the Annual R2 Apportionment.

Special Education Out-of-Home Care (OHC)

The 2012–13 OHC entitlement equals $149,034,544 and is fully funded as of the Annual R2 Apportionment.

Fiscal Year 2011−12 ROC/P Adjustment

The 2011–12 funding for ROC/Ps was not updated for changes in county excess tax when the 2011–12 Annual R3 Apportionment was certified in June 2014. This adjustment has been included in the 2014–15 P-1 certification and school districts and COEs who received ROC/P funding in 2011–12 have an adjustment ranging from $(1) to $(146). This adjustment can be seen on the Adjustments and Prior Year Recomputations (XLS; 2MB) Excel file.