Calculations to Determine 2008–09 P-2

Second Principal Apportionment (Fiscal Year 2008–09)

The Second Principal (P-2) Apportionment for fiscal year (FY) 2008–09 was certified on July 2, 2009, pursuant to California Education Code (EC) Section 41335. Also certified with the P-2 are the updated calculations of the 2007–08 apportionment (2007–08 Annual R1) and the 2006–07 apportionment (2006–07 Annual R3). The details of the calculations used to determine the apportionments are described below.

School Districts and County Offices of Education (Fiscal Year 2008–09)

The average daily attendance (ADA) and other data reported on the Principal Apportionment Revenue software were used to calculate this apportionment. Revenue limits were increased by the 2008–09 statutory cost-of-living adjustments (COLA). Senate Bill 4 of the 2009–10 Third Extraordinary Session (SBX3 4) (Chapter 12, Statutes of 2009) prescribed reductions to the revenue limit by 7.844 percent for school districts and 7.839 percent for county offices of education. As a result, deficit factors of 0.92156 and 0.92161 were applied to the revenue limits, respectively, in the P-2 Certification.

Inflation (Cost-of-living) Adjustment for District Revenue Limits

The chart below shows the COLA increase applied to Revenue Limits for each type of district for 2008–09. The COLA is calculated by multiplying the 2007–08 statewide average base revenue limit per ADA by the 2008–09 COLA of 5.66 percent for each type of district.

Adult Education

The entitlement for adult education was calculated by multiplying the adult education 2008–09 base revenue limit per ADA by the lesser of the 2008–09 P-2 reported ADA or the 2008–09 adult education ADA cap. SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for the program equals $653.744 million. Total statewide claims were $744.757 million, resulting in a proration factor of 0.8777955648.

Adults in Correctional Facilities (AICF)

SBX3 4 prescribed a reduction of 15.3795523995 percent to the AICF program. As a result, the new total amount appropriated for this program equals $15.414 million. The Statewide claims totaled $15.045 million. Entitlements were calculated by dividing prior year total funding by prior year funded ADA to determine individual local educational agency (LEA) prior year rates per ADA. The rate per ADA is the lesser of the rate received in 2007–08, or 80 percent of the 2007–08 statewide average adult education revenue limit amount; the fundable rate is the lesser of the two. The growth funding was insufficient to fund the additional growth in the program. A factor of 0.3450890349 was used to adjust the per-pupil growth rates to conform to available funds.

Apprentice Program

The entitlement for apprentice was calculated by multiplying the lesser of the 2008–09 P-2 reported apprentice hours or the 2008–09 approved (cap) apprentice hours by the hourly rate of $5.06. Funding available at the 2008–09 P-2 Apportionment was sufficient to fully fund the program.

Beginning Teacher Salary (BTS)    

• BTS #1: Funding was calculated by multiplying the 2007–08 P-2 Principal Apportionment ADA by $12.39 (prior year rate of $11.73 increased by the 5.66 percent COLA). Pursuant to statute, the same calculation was performed separately for Regional Occupational Centers and Programs (ROC/P) ADA. The two totals were combined and added to the revenue limit.
• BTS #2: Funding for districts and COEs that chose option one was calculated by multiplying the 2008–09 P-2 Principal Apportionment ADA by $8.08 (prior year rate of $7.65 increased by the 5.66 percent COLA). Funding for districts and COEs that chose option two was calculated by multiplying each agency’s individual prior year rate by the 5.66 percent COLA, and multiplying the new rate by the reported 2008–09 P-2 ADA. The same calculations were performed separately for ROC/P ADA. Adult and Block Grant funded charter school ADA were excluded in all calculations.

Community Day School (CDS)

Funding for CDS was calculated using 2008–09 P-2 ADA for CDS. Schools with newly-approved small school waivers will receive the amount displayed on the necessary small schools funding table for one certificated teacher. SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for CDS equals $44.002 million. Due to insufficient funding, a proration factor of 0.7739819228 was applied to the funding for the 5th and 6th hours ADA (for pupils other than mandatory expelled), the approved small school waiver (for pupils other than mandatory expelled), and the 7th and 8th hours.

Gifted and Talented Education (GATE)

The entitlement for GATE was calculated by multiplying the 2007–08 P-2 ADA by the higher of the school district’s and county office’s 1999–2000 per-ADA funding rate, or the 2008–09 statewide per-ADA funding rate of $8.48, which was calculated by dividing the total funds appropriated for GATE by the total prior year P-2 ADA for the eligible school districts and county offices that reported participation in the current year. Agencies with fewer than 1,500 ADA received the greater of the funding amount calculated above, a minimum funding guarantee of $3,188, or their 1998–99 GATE allowance, as increased by annual COLAs.

SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for GATE equals $46.833 million. Total statewide claims were $53.638 million, resulting in a proration factor of 0.8731344959.

Necessary Small Schools (NSS)

The Allowance for NSS 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. The allowance amounts, shown in the following tables, reflect the 5.66 percent COLA for 2008–09:

For necessary small elementary schools

For necessary small high schools

Note: Fractional ADA units of .5 and above are rounded up, and those below .5 are rounded down.

Public Employees' Retirement System (PERS) Reduction

To restore a portion of the PERS Reduction, $42.776 million was appropriated in 2008–09 P-2. To arrive at this statewide total adjustment, a restoration rate of 0.1546964266 was applied to the PERS adjustment before deducting the amount from the revenue limit, thereby increasing the total revenue limit for school districts and county offices.

Regional Occupational Centers/Programs (ROC/P)

The base funding for this program is equal to the 2008–09 base revenue limit per ADA multiplied by the lesser of the 2007–08 Annual reported ADA or the 2008–09 ADA cap. SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for ROC/P equals $408.704 million. Due to insufficient funding, the base funding was reduced by a proration factor of 0.8391780268.

Supplemental Instructional Programs

The funding for the programs shown below is $4.08 per hour of 2008–09 P-2 pupil attendance in the supplemental instructional programs, subject to a maximum number of hours (“cap”) for Core and Low Standardized Testing and Reporting (STAR) and At-Risk of Retention.

• California High School Exit Examination Remedial, Grades Seven through Twelve: Funding was for attendance in supplemental instructional programs for pupils enrolled in grades seven through twelve who did not demonstrate sufficient progress toward passing the high school exit examination (EC Section 37252). SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for this program equals $212.647 million. Funding available at the 2008–09 P-2 Apportionment was sufficient to fully fund the program.
• Core Academic Program for Kindergarten and Grades One through Twelve: Funding was for attendance in supplemental instructional programs in core academic areas for kindergarten and grades one through twelve, subject to a maximum number of hours equal to five (5) percent of a district’s October 2007 California Basic Educational Data System (CBEDS) kindergarten and grades one through twelve enrollment, multiplied by 120 hours (EC Section 37253).
  
  Districts for which the October 2007 enrollment was less than 500 (“small districts”) and that offered between 1,500 to 2,181 hours of supplemental instruction were funded at $8,900. Small districts that offered less than 1,500 hours had their funding reduced proportionately, at a funding rate of $5.93 per hour; those that offered more than 2,181 hours were funded at the $4.08 hourly rate.
  
  SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for this program equals $74.143 million. Statewide claims totaled $105.236 million, resulting in a proration factor of 0.7045389659.

• Low Standardized Testing and Reporting (STAR) and At-Risk of Retention, Grades Two through Six: Funding was for attendance in supplemental instructional programs for grades two through six pupils identified as having a deficiency in mathematics, reading, or written expression based on the Standardized Testing and Reporting Program (STAR) scores or identified as at risk of retention pursuant to EC Section 48070.5. Fundable hours are limited to five (5) percent of the October 2007 CBEDS grades two through six enrollment, multiplied by 120 hours. SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for this program equals $17.924 million. Statewide claims totaled $24.099 million, resulting in a proration factor of 0.7437633621.
• Retained or Recommended for Retention, Grades Two through Nine: Funding was for attendance in supplemental instructional programs for grades two through nine for pupils who have been recommended for retention or who have been retained pursuant to EC Section 48070.5 (EC Section 37252.2). SBX3 4 prescribed a reduction of 15.3795523995 percent to the program. As a result, the new total amount appropriated for this program equals $51.360 million. Statewide claims totaled $56.180 million, resulting in a proration factor of 0.9142029115.

Direct Services

Funding for County Offices of Education (COEs) equals the COE’s 2007–08 rate per ADA for direct services funding, increased by the 5.66 percent COLA, multiplied by the total of the 2007–08 Annual ADA for all applicable school districts, as follows:

• Elementary districts with less than 901 ADA.
• High school districts with less than 301 ADA.
• Unified districts with less than 1,501 ADA.

Charter school ADA units are included in the calculation.

Other County Service Fund Operations

Funding equals the COE’s 2007–08 rate per ADA, increased by the 5.66 percent COLA, multiplied by the total of the 2008–09 P-2 ADA for the COE, school districts, and charter schools in the county.

Charter Schools (Fiscal Year 2008–09)

The 2008–09 P-2 ADA and other data reported on the Principal Apportionment Revenue software are used to calculate this apportionment. In addition, the non-classroom based ADA is adjusted for charter schools that received a determination of funding from the State Board of Education.

Charter School (General Purpose) Block Grant Funding Calculations

The general purpose apportionment for charter schools is calculated using two funding models – the block grant funding model and the school district or county office of education (COE) revenue limit funding model.

• With the exception of those students funded in accordance with the provisions of SB 319 (Chapter 355, Statutes of 2005), the block grant funding model amounts per ADA are based on statewide average school district revenue limits for the applicable grade levels. These amounts are calculated at each apportionment; the 2008–09 P-2 Apportionment block grant amounts are as follows:

• As of the 2007–08 fiscal year, students attending conversion charter schools that are funded pursuant to SB 319 (i.e. the “resident ADA” in unified school districts) are funded at a rate certified by the school district.
• The funding rates for the school district and COE revenue limit funding model vary as they are dependent on the rate provided to the authorizing district and COE.

Charter School Categorical Block Grant Calculations

The Charter School Categorical Block Grant is calculated pursuant to EC Section 47634.1, and SBX3 4.

• A funding rate of $500 per unit of charter school ADA is used for the 2008–09 fiscal year.
• The in lieu of Economic Impact Aid (EIA) funding rate is $318 per eligible educationally disadvantaged pupil. The minimum grant amounts are $5,749 for one to ten eligible pupils and $8,676 for eleven or more eligible pupils.
• To implement the provisions of Section 34 of SBX3 4, after entitlements are calculated based on the above rates, each charter school’s 2008–09 total categorical block grant funding is then reduced by a proration factor of .8628936164.

Charter School Funding Exhibits

Detailed charter school funding exhibits and funding excel files are available on the CDE website.

• Charter School Block Grant Funding and Charter School Categorical Block Grant Funding exhibits provide the computations for individual charter schools that are funded through the block grant funding model. Funding information for these schools is also provided on the Principal Apportionment Summary excel file.
• The School District Revenue Limit exhibit provides the computations for a school district in which all schools have been converted to charter schools pursuant to EC Section 47606 and are funded through the district revenue limit model. There is no special exhibit for charter schools funded through the county revenue limit model; the funding for these charter schools is included in the County Revenue Limit exhibit.
• The Prior Year Corrections excel file includes detail for prior year adjustments for block grant-funded charter schools; only those charter schools with prior corrections are included in the file. In general, these corrections reflect revised ADA or updated property tax information. This information is also provided in Column A-26 of the Principal Apportionment Summary excel file.
• Funding adjustments for charter schools are also displayed in Columns A-24 and A-25 of the Principal Apportionment Summary excel file. These columns represent charter school overpayments of state aid in current or prior years due to one or more changes in the block grant rates, ADA, local revenue, or data used in the apportionment calculations. For most charter schools, the overpayment will be collected through the apportionment process in the current fiscal year. In some cases, an invoice will be sent directly to the charter school.
• The “In-Lieu of Taxes by District of Residence” excel file includes in lieu of taxes calculations for charter schools that have been approved on appeal by a county office of education pursuant to EC Section 47605(j). Pursuant to EC Section 47632(j)(2), the district of residence is still responsible for transferring in lieu of taxes to the charter school. This file also contains in lieu of taxes calculations for countywide charter schools approved pursuant to EC Section 47605.6, where the district of residence is a basic aid district and therefore is still the sponsoring district. In both circumstances, the in lieu of taxes must be transferred at the local level.

Special Education (Fiscal Year 2008–09)

Assembly Bill (AB) 602 Funding

In accordance to the FY 2007 Budget Act language, the FY 2008–09 statewide target rate no longer includes prior year’s supplement to base rate. The statewide target rate is thereby computed by adding the prior year statewide target rate to the current year COLA of zero percent, resulting in a rate of $465.44. This year, an increase in federal aid for special education of approximately $12 million provides each Special Education Local Plan Area (SELPA) $2 per unit of ADA in supplement to base funding. All 2008–09 AB 602 entitlements, i.e., base, COLA, growth, special disabilities adjustment, and program specialist/regionalized services, are fully funded at the 2008–09 P-2 Apportionment. Note, funding for pre-referral mental health services is outside of the principal apportionment, and is apportioned separately.

Out-of-Home Care (OHC)

The Budget Act of 2008 appropriated $205.213 million for the fifth year of this program, which replaced the 100 percent reimbursement funding for nonpublic school and agency tuition for students residing in licensed children’s institutions (NPS/LCI). Funding for the 2008–09 P-2 Apportionment is calculated based on the bed and pupil count data collected as of April 1, 2009 of the fiscal year and funded at the FY 2008–09 budgeted amount for the program. In addition, fiscal year 2008–09 is the third year of the hold harmless phase-out. Specifically, if a SELPA’s 2008–09 OHC funding entitlement is less than the amount it received for the 2007–08 fiscal year, the SELPA shall receive the same amount it received for the 2007–08 fiscal year less 33 percent of the difference between the two amounts (EC Section 56836.173(c)). Similar to prior years, any SELPA with a 2008–09 funding entitlement greater than the amount received for the prior year shall receive the same amount it received for the prior year. 

Infant (ages two and younger) Program

Total funding apportioned for the Infant Program for 2008–09 is $68,867,473. Following are the 2008–09 Infant Program statewide average unit rates:

Prior Years

The following provides updates to the 2007–08 and 2006–07 apportionments certified at the same time as the 2008–09 P-2 Apportionment. The types of data used and the method of calculating the apportionment are similar to those given above unless specified.

2007–08 Annual R1--School Districts and County Offices of Education

Adult Education

The entitlement for adult education was calculated by multiplying the Adult Education 2007–08 base revenue limit per ADA by the lesser of the 2007–08 Annual reported ADA or the 2007–08 adult education ADA cap. The 4.53 percent COLA was added to the 2006–07 base revenue limit per ADA to establish the rate for 2007–08. Sufficient funds were available to fund excess ADA at $1,928.12 per excess ADA.

Adults in Correctional Facilities (AICF)

The entitlement for AICF was calculated by using prior year funded ADA and prior year total funding to determine individual LEA prior year rates per ADA. The rates are increased by the prior year COLA (5.92 percent) and compared to 80 percent of the prior year statewide rate for the adult education program. The fundable rate is the lesser of the two and multiplied by ADA to determine total funding. Funding available at the 2007–08 Annual R1 Apportionment was sufficient to fully fund the program.

Community Day Schools (CDS)

Funding for CDS was calculated using 2007–08 Annual ADA for CDS. Schools with newly-approved small school waivers will receive the amount displayed on the necessary small schools funding table for one certificated teacher. The total amount appropriated for CDS was $51.999 million. Due to insufficient funding, a proration factor of 0.9046523644 was applied to the funding for the 5th and 6th hours ADA (for pupils other than mandatory expelled), the approved small school waiver (for pupils other than mandatory expelled), and the 7th and 8th hours.

Gifted and Talented Education (GATE)

 Funding for GATE was calculated by multiplying the 2006–07 P-2 ADA by the higher of the school district’s and county office’s 1999–2000 per-ADA funding rate, or the 2007–08 statewide per-ADA funding rate of $10.02, which was calculated by dividing the total funds appropriated for GATE by the total prior year P-2 ADA for the eligible school districts and county offices that reported participation in the current year. Agencies with fewer than 1,500 ADA received the greater of the funding amount calculated above, a minimum funding guarantee of $3,188, or their 1998–99 GATE allowance, as increased by annual COLAs.

The total amount appropriated for GATE was $55.634 million. Statewide claims totaled $58.720 million, resulting in a proration factor of 0.9474467321.

Public Employees’ Retirement System (PERS) Reduction

The restoration factor resulting from the $40.736 million appropriated to reduce the PERS Reduction in 2007–08 was 0.1469396569 of the total PERS adjustment.

Regional Occupational Centers and Programs (ROC/P)

The base funding for this program is equal to the 2007–08 base revenue limit per ADA multiplied by the lesser of the 2007–08 Annual reported ADA or the 2007–08 ADA cap. A 4.53 percent COLA of $156.09 was added to the prior year weighted average base revenue limit per ADA to establish the 2007–08 base revenue limit per ADA.

Supplemental Instructional Programs

The funding for these programs is based on the 2007–08 Annual hours of attendance in the supplemental instructional programs.

• California High School Exit Examination Remedial, Grades Seven through Twelve:  Funding was sufficient to fully fund the entitlement for 2007–08 claimed at the 2008–09 P-2 Apportionment.
• Core Academic Program for Kindergarten and Grades One through Twelve: The maximum fundable hours were determined based on the October 2006 CBEDS kindergarten and grades one through twelve enrollment. The total amount appropriated for the program was $101.384 million. Statewide claims totaled $113.253 million, resulting in a proration factor of 0.8951960350.
• Low Standardized Testing and Reporting (STAR) and At-Risk of Retention, Grades Two through Six: The maximum fundable hours were determined based on the October 2006 (CBEDS) grades two through six enrollment. The total amount appropriated for the program was $22.101 million. Statewide claims totaled $29.480 million, resulting in a proration factor of 0.7496907855.
• Retained or Recommended for Retention, Grades Two through Nine: Statewide claims totaled $81.568 million. Because this amount exceeds available funding for the program, a proration factor of 0.7819851499 was applied.

2006–07 Annual R3--School Districts and County Offices of Education

Adult Education

The entitlement for adult education was calculated by multiplying the adult education 2006–07 based revenue limit per ADA by the lesser of the 2006–07 Annual reported ADA or the 2006–07 adult education ADA cap. Sufficient funds were available to fund excess ADA at $2,530.66 per excess ADA.

Community Day Schools (CDS)

Funding for CDS was calculated using 2006–07 Annual ADA for CDS. Schools with newly-approved small school waivers will receive the amount displayed on the necessary small schools funding table for one certificated teacher. The total amount appropriated for CDS was $53.846 million. Due to sufficient funding, a proration factor was not applied to the funding for the 5th and 6th hours ADA (for pupils other than mandatory expelled), the approved small school waiver (for pupils other than mandatory expelled), or the 7th and 8th hours.

Gifted and Talented Education (GATE)

Funding for GATE was calculated by multiplying the 2005–06 P-2 ADA by the higher of the school district’s and county office’s 1999–2000 per-ADA funding rate, or the 2006–07 statewide per-ADA funding rate of $9.58, which was calculated by dividing the total funds appropriated for GATE by the total prior year P-2 ADA for the eligible school districts and county offices that reported participation in the current year. Agencies with fewer than 1,500 ADA received the greater of the funding amount calculated above, a minimum funding guarantee of $3,050, or their 1998–99 GATE allowance, as increased by annual COLAs.

The total amount appropriated for GATE was $53.480 million. Statewide claims totaled $56.420 million, resulting in a proration factor of 0.9478846867.

Public Employees’ Retirement System (PERS) Reduction

The restoration factor resulting from the $39.302 million appropriated to reduce the PERS Reduction in 2006–07 was 0.1456512086 of the total PERS adjustment.

Regional Occupational Centers and Programs (ROC/P)

Base funding equals the lesser of the 2006–07 Annual reported ADA or the 2006–07 ADA cap multiplied by the 2006–07 revenue limit. A 5.92 percent COLA of $192.59 was added to the prior year weighted base revenue limit to calculate the 2006–07 revenue limit per ADA.

Supplemental Instructional Programs

The funding for these programs is based on the 2006–07 Annual hours of attendance in the supplemental instructional programs.

• California High School Exit Examination Remedial, Grades Seven through Twelve: Funding available was sufficient to fully fund the entitlement for 2006–07 at the 2008–09 P-2 Apportionment.
• Core Academic Program for Kindergarten and Grades One through Twelve: The maximum fundable hours were determined based on the October 2005 CBEDS kindergarten and grades one through twelve enrollment. The total amount appropriated for the program was $96.991 million. Statewide claims totaled $107.564 million, resulting in a proration factor of 0.9017068917.
• Low Standardized Testing and Reporting (STAR) and At-Risk of Retention, Grades Two through Six: The maximum fundable hours were determined based on the October 2005 CBEDS grades two through six enrollment. The total amount appropriated for the program was $21.144 million. Statewide claims totaled $29.484 million, resulting in a proration factor of 0.7171374511.
• Retained or Recommended for Retention, Grades Two through Nine: Statewide claims totaled $73.980 million. Because this amount exceeds available funding for the program, a proration factor of 0.8514431457 was applied.

Special Education (Fiscal Years 2007–08 and 2006–07)

Assembly Bill (AB) 602 Funding

Both 2007–08 and 2006–07 fiscal years’ AB 602 entitlements are fully funded at the 2008–09 P-2 Apportionment. The only exceptions are the 2006–07 claims for the Extraordinary Cost Pool (ECP) and the 2006–07 and 2007–08 Out-of-Home Care funding. The 2006–07 proration factor for ECP is 0.98.

Out-of-Home Care (OHC)

The OHC proration factors for the gain in funding are 0.89 for 2007–08, and 0.37 for 2006–07.

Infant (ages two and younger) Program

Total entitlements are $68,474,082 for 2007–08 and $65,363,546 for 2006–07.