Calculations to Determine 2019–20 P-2

LCFF Exhibit Changes | LCFF Entitlement | Basic Aid Interdistrict | Basic Aid Supplement | Adults in Correctional Facilities
Special Education | Infant | Funding Transfer | Charter Special Advance | Charter Overpayments | Payment Schedule and Deferrals | Resources

The California Department of Education (CDE) certified the Second Principal Apportionment (P-2) for fiscal year 2019–20 on June 22, 2020, pursuant to California Education Code (EC) Section 41335. The following provides specific details regarding the calculation of funding for each Principal Apportionment program, including the Local Control Funding Formula (LCFF).

Local educational agency (LEA) funding calculations are available through the Principal Apportionment Funding Exhibits. In addition to certifying the 2019–20 P-2 funding calculations, fiscal years 2018–19 (Annual R-1) and 2017–18 (Annual R-3) have been recalculated, as well as other prior years, as necessary. The cumulative amount of prior year adjustments are reflected on Line A-17 of the 2019–20 P-2 Principal Apportionment Summary (XLSX), and further detailed on the Adjustments and Prior Year Recomputations (XLSX) Excel file. For more information about these adjustments and other resources, please see the Resources for Understanding Principal Apportionment Entitlements and Payments section below.

2019–20 LCFF Exhibit Changes

The LCFF was fully funded in the 2018–19 fiscal year, which concluded the LCFF transition period. To account for the changes associated with the full implementation of LCFF, the CDE has modified or retired many of the LCFF funding exhibits, effective as of the 2019–20 First Principal Apportionment (P-1). Several exhibits including the retired “LCFF Target” and “LCFF Transition” have been consolidated into new exhibits titled School District LCFF Calculation and Charter School LCFF Calculation.

Additionally, two new exhibits have been created to reflect the changes related to the transfer of funds for county served, district funded ADA.

Data source information for the new and amended exhibits is available in the Principal Apportionment Exhibit Crosswalk.

LCFF Entitlement and 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 Calculation, School District LCFF Calculation, and Charter School LCFF Calculation, respectively.

For all LEAs, LCFF state aid is determined by subtracting local property taxes (or in-lieu of taxes for charter schools) and the 2019–20 Education Protection Account (EPA) Entitlement from the LCFF Entitlement. If applicable, the LCFF state aid is increased to reach the LCFF minimum level of state aid required by law, and includes additional LCFF state aid for county offices of education (COE) as specified below.

LCFF Entitlement

For school districts and charter schools, the LCFF Entitlement is primarily comprised of grade span specific per-ADA base grants, plus supplemental and concentration grant funding based on the Unduplicated Pupil Percentage (UPP) of targeted disadvantaged students.

The LCFF Entitlement for COEs funded at the LCFF Target is comprised of an Operations Grant based on the size of the county, and an Alternative Education Grant based on a specific student population served by the COE. COEs that received revenue limit and categorical program funding at a higher level than their LCFF Target entitlement are subject to the hold harmless provisions that hold their funding at the 2012–13 levels, adjusted by current year Alternative Education Grant ADA, until their LCFF Entitlement grows and surpasses the 2012–13 funding levels. These calculations comprise the LCFF Floor which is used in lieu of the LCFF Target for determination of the LCFF Entitlement for COEs funded on the “hold harmless” provisions of EC Section 2575(g)(2).

Descriptions of the LCFF components are available on the LCFF Overview web page. The details of each LEA’s LCFF Entitlement are displayed on the School District LCFF Calculation, Charter School LCFF Calculation, and County LCFF Calculation exhibits. All applicable current year funding rates used in the calculations are available on the Funding Rates and Information web page.

Unduplicated Pupil Percentage

The UPP is a percentage based on three years of data (current, prior, and second prior year). The UPP is not an average of each year’s percentage; rather, the sum of the unduplicated pupil count for the three years is divided by the sum of enrollment for the three years to produce the current year’s UPP. In the subsequent years, the newest year will be added and the oldest will be dropped off.

The enrollment and unduplicated pupil count, which form the basis of the UPP, were collected by the CDE in the California Longitudinal Pupil Achievement Data System (CALPADS) Fall 1 2019 data collection. Data certified in CALPADS Fall 1 as of the close of the final amendment window (January 24, 2020), was used for the 2019–20 P-2 UPP calculations. Subsequent changes to CALPADS counts for LCFF can only be submitted through the audit process. Additional information on Audit Adjustments to CALPADS Data is available in the Data Reporting Instruction Manual (DOCX).

The CALPADS data used to determine each LEA’s UPP also reflects transfers reported in CALPADS for students that are served by the COE but funded for LCFF at the district of residence, as well as transfers for charter school students who are funded through the LCFF COE formula. The Report of Attendance and CALPADS Enrollment/Unduplicated Pupil Count Transfers for District Funded County Program Students (XLSX) Excel file shows the District Funded County Program ADA reported by COEs by district of residence and CALPADS enrollment and unduplicated pupil count transfers as of the CALPADS Fall 1 report. Similarly, the Report of Attendance and CALPADS Enrollment/Unduplicated Pupil Count Transfers for County Program Charter School Students (XLSX) Excel file shows the Charter Served, County Funded ADA reported by the charter schools and CALPADS enrollment and unduplicated pupil count transfers. The CDE published a series of Frequently Asked Questions on the transfer of enrollment and unduplicated pupils, as well as the flow of funds under LCFF for these students.

Details of the UPP calculations are displayed on the County Unduplicated Pupil Percentage, School District Unduplicated Pupil Percentage, and Charter School Unduplicated Pupil Percentage exhibits.

Necessary Small Schools (NSS) Allowance and Add-on Amounts

If applicable, the NSS Allowance and NSS ADA are taken into account for the School District LCFF Entitlement. ADA funded through the NSS formula is excluded from the Base Grant Funding but is included for purposes of Supplemental and Concentration Grant calculations. The CDE calculated the NSS Allowance for the LCFF Entitlement based on the NSS Funding Band amounts for the applicable fiscal year. The CDE calculated the NSS Allowance for the EPA Proportionate Share calculation 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 allowance. Additional details can be found on the School District Necessary Small Schools Allowance funding exhibit.

School district and COE LCFF 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. School district and charter school LCFF Entitlements include, if applicable, Economic Recovery Target (ERT) Add-on funding. ERT is based upon a calculation done in 2013–14 that determined if the LEA would have generated a higher entitlement under the revenue limit/categorical funding model rather than the LCFF model. With full implementation of the LCFF in 2019–20, the total ERT Entitlement has become a permanent add-on to an eligible LEA’s LCFF Entitlement.

Minimum State Aid Guarantee

Some LEAs receive additional state aid above the LCFF Entitlement, to meet the level of the statutory minimum guarantee based on 2012–13 funding, known as Minimum State Aid Guarantee. The additional state aid to meet the Minimum State Aid Guarantee is added to the school district, charter school or COE LCFF State Aid, as applicable.

Additional COE LCFF State Aid

EC Section 2575.1, effective as of the 2017–18 fiscal year, provides each COE funded at the LCFF Target as of the 2016–17 Second Principal Apportionment additional LCFF state aid based on the number of school districts under its jurisdiction, or a statutory minimum. Details of the funding calculation can be found in the County LCFF Calculation funding exhibit.

EC Section 2575.2, effective as of the 2018–19 fiscal year, provides all COEs with more than one school district under its jurisdiction $200,000 in additional LCFF state aid plus an allowance based on school districts identified for differentiated assistance pursuant to EC Section 52071. Details of the funding calculation can be found in the County Funding Based on Districts Identified for Differentiated Assistance funding exhibit.

LCFF State Aid pursuant to EC Section 2575.1 and EC Section 2575.2 represents a portion of a COE’s overall LCFF State Aid and is included in standardized account code structure (SACS) Object Code 8011.

Class Size Penalties

Class Size Penalties (CSP) are financial penalties applied to a school district’s LCFF entitlement for exceeding the average class size maximums in kindergarten and grades one through eight. The provisions governing the calculation of CSP are not the same as the conditions of apportionment for the LCFF K–3 Grade Span Adjustment. The penalties calculated for CSP are found on Line F-2 of the exhibit titled Class Size Penalties and are applied through the Miscellaneous Adjustments, Line H-2, and Minimum State Aid Adjustments, Line J-5, of the School District LCFF Calculation. The CSP section of the Data Reporting Instruction Manual (DOCX) provides detail on how the penalties are calculated and on the distinction between the CSP and LCFF K–3 Grade Span Adjustment.

In-lieu of Property Taxes

In-lieu of property taxes have been recalculated for fiscal year 2019–20 as well as for fiscal years 2017–18 and 2018–19 to reflect revised ADA and sponsoring school district tax per ADA rates. Total in-lieu of property taxes for each charter school are shown on Line I-4 of the Charter School LCFF Calculation exhibit. Countywide charter schools, county program charter schools and charter schools authorized by the State Board of Education may have multiple sponsoring school districts, as defined in EC Section 47632(i). A summary of the in-lieu of property taxes for these charter schools is shown on the ADA and In-lieu of Property Taxes by District of Residence (XLSX) Excel file. Details of the calculation are provided in the Local Revenue Detail by District of Residence exhibit. In-lieu of property taxes are final as of the third annual recertification.

Since the sponsoring school district is not always the same as the authorizing entity, a complete list of charter schools included in the Principal Apportionment will be published with each certification beginning with 2019–20 P-1 to identify the authorizer, sponsoring school district(s), petition type, and petition expiration date for each charter school included in the Principal Apportionment. The new Excel file, titled Charter Schools in the 2019–20 Second Principal Apportionment (XLSX) is available on the Funding Excel Files web page.

Education Protection Account Entitlement

EPA revenues, as authorized by Section 36 of Article XIII of the California Constitution, are generated by increases in personal income tax rates for upper-income taxpayers. LEAs will receive quarterly EPA payments through the 2030–31 fiscal year, paid outside of the Principal Apportionment. For information on the 2019–20 P-2 EPA calculations, refer to the Fourth Quarter EPA apportionment letter.

Details of the EPA calculations are displayed on the Education Protection Account Calculation exhibit. EPA entitlements are also displayed on the County LCFF Calculation, School District LCFF Calculation, and Charter School LCFF Calculation exhibits, and are shown for informational purposes on the Principal Apportionment Summary.

For additional information on EPA and quarterly payments to LEAs, visit the CDE’s EPA web page.

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 basic aid (excess tax) school districts that are serving students from non-basic aid districts. The calculation of state aid shown on lines A-4, A-5, and A-6 of the Principal Apportionment Summary can be found on the exhibits titled School District Basic Aid Choice Calculation, School District Basic Aid Court-Ordered Voluntary Pupil Transfer Calculation, and School District Basic Aid Open Enrollment Calculation, respectively.

The 2019–20 P-2 statewide totals are as follows:

Basic Aid Supplement Funding (Charter School Adjustment)

The School District Basic Aid Supplement program provides to basic aid (excess tax) school districts supplemental funding for the loss of local property taxes due to charter schools that provide instruction to nonresident (out-of-district) students. The calculation of state aid shown on Line A-7 of the Principal Apportionment Summary can be found on the exhibits titled School District Basic Aid Supplement Calculation and School District Basic Aid Supplement Funding. The statewide total amount for this program at P-2 is $34,391,947.

Adults in Correctional Facilities

The Adults in Correctional Facilities (AICF) program provides funding on a reimbursement basis to eligible LEAs that offer schools and classes for adults in correctional facilities. The calculation of state aid shown on Line A-8 of the Principal Apportionment Summary can be found on the exhibit titled Adults in Correctional Facilities Funding.

Funding for the 2019–20 AICF program is based on the LEA’s prior year AICF entitlement, plus an increase or decrease in funding based on the ADA funded in the prior year compared to the ADA funded in the second prior year. Decreases in ADA are multiplied by the LEA-specific prior year funded rate per ADA, while increases in ADA and Cost of Living Adjustment (COLA) are funded at a statewide average rate for the program. For most LEAs, ADA growth is capped at 2.5 percent. Growth and COLA funding may be prorated if there are insufficient funds.

The 2019–20 Budget Act appropriates $15,746,000 for the AICF program, which was sufficient to fully fund the program at P-2.

Special Education Funding Assembly Bill (AB) 602

The Special Education Program, also known as AB 602, provides funding to Special Education Local Plan Areas (SELPA) based on the SELPA’s ADA and other data elements. Note: funding for the Extraordinary Cost Pool Claims Process (ECP) and the Necessary Small SELPAs’ Extraordinary Cost Pool for Mental Health Services Process (NSS ECPMH) is not calculated until the Annual Apportionment and funding for mental health services is apportioned outside of the Principal Apportionment.

The calculation of state aid shown on Line A-9 of the Principal Apportionment Summary can be found on the exhibits titled SELPA Special Education Funding Exhibit, SELPA Special Education Funding Exhibit – LA Court, and SELPA Special Education Funding Exhibit – Charter SELPA. The Special Education AB 602 ADA and Statewide Rates and Factors information can be viewed on the Special Education web page.

Pursuant to EC Section 56836.08, as amended by AB 114 (Chapter 413, Statutes of 2019), current year entitlements for each SELPA are the greater of the funding calculated for the base with growth and COLA or funding at the 2019–20 statewide target rate per ADA of $557.27. As such, the SELPA Special Education funding exhibits were amended to align with the changes to the funding formula. Data source information for the amended exhibits is available in the Principal Apportionment Exhibit Crosswalk.

Following is a summary of the changes reflected in the P-2 Apportionment:

• Consolidated Base, COLA, and Growth sections to one. This section includes funding for a SELPA at the SELPA’s base rate for base, growth or decline adjustment, and COLA (lines B-1 through B-16).
• Added a new section to calculate funding for a SELPA at the statewide target rate (lines C-1 through C-8).
• Added a new section to determine a funding entitlement for a SELPA (lines D-1 through D-7).
• The special education local revenue was deducted from a SELPA’s funding entitlement (Line D-1) rather than the SELPA’s base funding but this change has no impact on the determination of AB 602 state aid.
• A new SELPA exhibit called SELPA Special Education Local Revenue was created to show detailed calculation of the special education property taxes and excess Educational Revenue Augmentation Funds. The amounts calculated populate on the Special Education Funding exhibits, as applicable.

In addition to the above changes, the SELPA Special Education Funding exhibits also incorporate the recent changes to the following programs as a result of the amendments enacted by Senate Bill 75 (Chapter 51, Statutes of 2019):

• Funding for COLA is based on prior year SELPA funded ADA (greater of prior or prior prior year ADA).
• Funding for Program Specialists & Regionalized Services is based on SELPA funded ADA (greater of current or prior year ADA).

The current year appropriation of $2,980,375,000 continues to be insufficient to fully fund AB 602 entitlements at P-2. As a result, a proration factor continues to be applied to the Base Entitlement. The proration factor was 0.9903458778 at P-1, and is 0.9981351366 at P-2.

Special Education Out-of-Home Care

The Out-of-Home Care (OHC) Program provides funding to SELPAs for pupils residing in facilities located within each SELPA’s geographic boundaries. The calculation details for OHC funding, which is a component of the AB 602 entitlement, are displayed on the Out-of-Home Care Funding exhibit.

The 2019–20 Budget Act appropriates $143,594,000 for the OHC Program, which is sufficient to fully fund the program at P-2. There were no changes in the 2019–20 facility rates from P-1 to P-2; the facility rates can be viewed on the Funding Rates and Information web page. Funding for group homes and foster homes was calculated based on the bed count and pupil count data from the 2016–17 fiscal year and 2019–20 funding rates. Funding for Community Care, Intermediate Care, and Skilled Nursing facilities was calculated based on the pupil count data collected as of April 1, 2020. For each fiscal year, CDE provides facility information used for the OHC Program by SELPA on the Out-of-Home Care Funding Results web page.

AB 602 State Aid Adjustments and Prior Year Recomputations

2018–19 Annual R-1

The 2018–19 AB 602 entitlements continue to have a proration factor applied to the Base Entitlement. The proration factor was 0.9821854195 at 2018–19 Annual, and is 0.9820481120 at 2018–19 Annual R-1. There are no changes for the 2018–19 OHC, ECP, and NSS ECPMH programs from Annual to Annual R-1.

2017–18 Annual R-3

The 2017–18 AB 602 entitlements continue to have a proration factor applied to the Base Entitlement. The proration factor was 0.9880064580 at 2017–18 Annual R-2, and is 0.9880016042 at 2017–18 Annual R-3 . There are no changes for the 2017–18 OHC, ECP, and NSS ECPMH programs from Annual R-2 to Annual R-3.

Special Education Infant (Ages Two and Younger) Program

The Infant Program provides funding for SELPAs that operate early education programs for individuals with exceptional needs who are younger than three years of age. The calculation of state aid shown on Line A-10 of the Principal Apportionment Summary can be found on the exhibit titled Infant Entitlement.

The 2019–20 Budget Act appropriates $80,671,000 for the Infant Program which is sufficient to fully fund the program at P-2. The statewide average unit rates information can be viewed on the Funding Rates and Information web page.

Prior year adjustments are included on Line A-17 of the Principal Apportionment Summary and details are displayed on the Adjustments and Prior Year Recomputations (XLSX) Excel file.

County Funding Transfer Process

The calculations for the transfer of funds shown on Line A-11 of the Principal Apportionment Summary can be found on the exhibits titled County Transfer of Funds for County Served District Funded ADA for COEs and School District Transfer of Funds for County Served District Funded ADA for school districts.

Beginning with 2019–20 P-1, the CDE calculates the transfer of funds in accordance with the provisions of Assembly Bill 2235 (Chapter 99, Statutes of 2018) which requires the CDE to transfer funds from a school district of residence to a COE for all ADA served by the COE and not eligible for funding under the COE Alternative Education Grant. LCFF funding for this ADA is credited to the district of residence, as part of its LCFF Entitlement, and is used to determine the school district’s LCFF State Aid. The amount transfered to the COE is equal to the ADA attributed to the district of residence multiplied by the district’s LCFF rate, comprised of the LCFF base, supplemental and concentration grant per ADA, unless the COE and the district of residence agree on an alternative amount.

To account for this transfer in SACS, 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.

To help understand the basis for the transfers, the CDE has published a series of Frequently Asked Questions on the transfer of enrollment and unduplicated pupil counts in CALPADS and the flow of funds under the LCFF for students served by a COE for which the funding is allocated to the district of residence. Additionally, the Report of Attendance and CALPADS Enrollment/Unduplicated Pupil Count Transfers for District Funded County Program Students (XLSX) Excel file provides a summary of ADA and pupil counts by district of residence.

New or Expanding Charter Special Advance Payments

New or Expanding Charter Advance Payments shown on Line A-13 of the Principal Apportionment Summary are the total payments made in the First and Second Charter School Special Advance Apportionments as a result of the data submitted in the Pupil Estimates for New or Significantly Expanding Charters (PENSEC) and Charter School 20 Day Attendance (20 Day) reports. The PENSEC and 20 Day reports provide estimated and actual attendance data, respectively, for newly operational charter schools and charter schools that are expanding to add one or more grade levels.

School District Advance Payments of In-lieu Property Tax Transfers for New or Expanding Charter Schools, Line A-14 of the Principal Apportionment Summary, are the total in-lieu of property tax payments made to school districts at the First and Second Special Advance Apportionments based on the PENSEC and 20 Day charter school data used in the apportionment calculations.

See the CS Special Advance Apportionment, FY 2019–20 web page for information on the First and Second Charter School Special Advance apportionments.

Charter School Overpayments

Funding adjustments for charter schools are displayed on lines A-15 and A-16 of the Principal Apportionment Summary. Line A-16, PY Amount Charter Overpaid, includes overpayments not collected in the prior year that are brought forward and reduce the charter school’s current year LCFF State Aid apportionment payments. Line A-15, Amount Charter Overpaid, includes amounts overpaid based on calculations in the current period, i.e., when payments received to date exceed annualized funding in the current period. Overpayments typically result from changes between periods in ADA, local property taxes (in-lieu of property taxes for charter schools), or other data used in the apportionment calculations. In some cases, an invoice will be sent directly to the charter school to recover the overpayment.

Payment Schedule and Deferrals

On June 15, 2020, the California Legislature passed Assembly Bill 76, that would amend EC Section 14041.5, deferring the P-2 payment from June 2020 to July 2020. The P-2 payment reflects the final principal apportionment payment for the fiscal year. A summary of the data is available at the county level and by LEA.

For general information on the payment schedule, refer to the Principal Apportionment Payment Schedule web page.

Resources for Understanding Principal Apportionment Entitlements and Payments

The following resources are available to LEAs to help with understanding the calculation of Principal Apportionment program entitlements:

• Principal Apportionment Funding Exhibits
  Detailed entitlement calculations by LEA for each Principal Apportionment program.
  
• Principal Apportionment Exhibit Crosswalk
  Provides data source information for current year Principal Apportionment Funding Exhibits that have changed due to full transition of the LCFF. The CDE recommends using in conjunction with the 2018–19 Principal Apportionment Exhibit Reference Guides available on the same web page.
• 2019−20 Funding Rates and Information
  Provides 2019−20 fiscal year funding rates and other information used in the calculation of funding for Principal Apportionment programs.
• Funding Excel Files
  Below is a summary of notable Excel files applicable to most LEAs:
  • Principal Apportionment Summary (XLSX): Reflects an LEA’s total state aid for all programs included in the Principal Apportionment, including prior year recomputations. This forms the basis for determining an LEA’s monthly payments. For SACS coding, Resource and Object codes are shown on the Excel file.
  • Adjustments and Prior Year Recomputations (XLSX): Detail by LEA, fiscal year, and program of the adjustments and prior year recomputations reflected on Line A-17 of the Principal Apportionment Summary.
  • Monthly payment schedule (XLSX): Provides an LEA’s Principal Apportionment payment for the month of June (deferred to July as detailed above). The P-2 payment is based on the total P-2 Principal Apportionment amount, net of payments to date. Payment information , including offsets, is available on the State Controller’s (SCO) website.
  • Charter Schools in the 2019–20 Second Principal Apportionment (XLSX): List of charter schools that appear on the 2019–20 Principal Apportionment Summary by authorizing entity and sponsoring school district.
• LCFF Summary Data
  A high-level summary of the main LCFF funding components for each LEA, including base, supplemental, and concentration grant funding amounts. Details of the funding are also available in each funding exhibit.