Calculations to Determine the 2009–10 Advance

The Advance Apportionment for 2009–10 is based on a statutory derivation pursuant to California Education Code (EC) sections 14002 through 14007 and 41301 and certified pursuant to EC Section 41330. The following provides specific details regarding the calculation of funding for each program.

County Offices of Education Revenue Limits

The state-aid portion of the revenue limit for each county office of education (COE) was calculated using the most current estimates from the California Department of Finance (DOF). To tie to that number, the 2008–09 Second Principal (P-2) Apportionment for each COE was adjusted as follows:

• A factor of 1.1032488287 was applied to the P-2 state-aid amounts that were positive. This factor includes the revenue limit cost-of-living adjustment (COLA) of 4.25 percent, the increase in the COE revenue limit deficit (the 2009–10 COE deficit authorized by Senate Bill 4 of the 2009–10 Third Extraordinary Session [SBX3 4] [Chapter 12, Statutes 2009] is 13.360 percent), estimated increases to the Public Employees’ Retirement System (PERS) contribution rate, funding to mitigate the PERS reduction, and unemployment insurance expenditures. The factor also includes DOF’s estimated increases in average daily attendance (ADA) and local revenues.
• The P-2 amounts for special education, county community school, and nonpublic, nonsectarian school/licensed children’s institutions county office funds transfers were divided by the 2008–09 school district revenue limit deficit factor (0.92156). The result was then increased by the 4.25 percent COLA then reduced by the 13.094 percent school district revenue limit deficit authorized by SBX3 4. The calculated amount was added to the state-aid portion of the revenue limit.

School District Revenue Limits

The state-aid portion of the revenue limit for each district was calculated using the most current estimate of state aid from DOF. To tie to that number, the 2008–09 P-2 revenue limit state-aid for each district was adjusted as follows:

• The P-2 state-aid amount for each district was adjusted for estimated increases to the PERS contribution rate and funding to mitigate the PERS reduction (applied a factor of 0.972435748 to 2008-09 P-2 PERS Adjustment) and estimated increases in unemployment insurance (UI) expenditures (applied a factor of 1.179989746 to 2008-09 P-2 UI revenues).
• A factor of 0.9754367494 was then applied to the adjusted P-2 state-aid amount for each district. This factor includes the 4.25 percent COLA, the increase in the school district revenue limit deficit (the 2009–10 deficit authorized by SBX3 4 is 13.094 percent) and DOF’s estimated decrease in ADA and increase in local revenues.

Note: Local revenue was adjusted to back out 2008–09 P-2 in-lieu tax transfers for charter schools that have closed.

Charter Schools General-purpose Entitlement

The apportionment for charter schools funded through the charter school funding model was developed using the most current estimates from DOF and the 2008–09 P-2 general-purpose entitlement as a base. A factor of 0.97996426 was applied to the P-2 general-purpose entitlement. This factor includes the 4.25 percent COLA, the increase in the school district revenue limit deficit (the 2009–10 deficit authorized by SBX3 4 is 13.094 percent) and DOF’s estimated decrease in ADA. This amount was then reduced by the P-2 in lieu of property taxes to determine the state aid amount for each charter school.

Charter School Categorical Block Grant

Funding for the categorical block grant was based on 2008–09 P-2 ADA and the P-2 funding rates and proration factor. Funding rates will be revised and ADA changes will be incorporated at the 2009–10 First Principal Apportionment.

Charter School Overpayments (Prior and Current Years)

The apportionment also includes funding adjustments to charter schools that had received overpayments of state aid at P-2 due to changes in the block grant rates, ADA, local revenue, and adjustments to prior years (Line A-25 on the Advance Apportionment Summary). Charter schools that have insufficient funding to offset a prior year overpayment will also have a current year overpayment adjustment (Line A-24).

The overpayment adjustment(s) for the charter school is an amount owed back to the state and, as part of recouping this amount over the entire year, is reflected in the advance apportionment. This adjustment will continue in the charter school’s subsequent apportionments until the state recovers the full amount owed. In some cases, an invoice will be sent directly to the charter school.

Adult Education

The funding methodology for this program was changed pursuant to SBX3 4. For the advance, the 2009–10 funding for Adult Education was estimated by determining the amount each LEA received for the program for 2007–08 (as of Annual R-1) as a percentage of the statewide total ($753,690,263) and then multiplying that percentage by the $588,856,000 budgeted for item 6110-156-0001 in the Budget Act of 2009. An additional $45,896,000 in funding for 2009–10 is deferred to fiscal year 2010–11 and was not included in the estimate.

Adults in Correctional Facilities (AICF)

Funding for AICF was calculated by multiplying the 2008–09 P-2 apportionment amounts for each LEA by 0.9947656159 in order to reach the $14,966,000 budgeted for item 6110-158-0001 in the Budget Act of 2009.

Apprenticeship

The hourly reimbursement rate for the Apprenticeship program remained the same for 2009–10 as the 2008–09 amount of $5.06. The advance apportionment was calculated by multiplying the amount each LEA received in 2008–09, as certified at P-2, by 0.6637423485 in order to reach the $9,466,000 budgeted for item 6110-103-0001 in the Budget Act of 2009. An additional $6,227,000 in funding for 2009–10 is deferred to fiscal year 2010–11 and was not included in the calculation.

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

Funding for Basic Aid “Choice”/Court-ordered Voluntary Pupil Transfer and Basic Aid Supplement Charter School Adjustment was calculated by dividing the 2008–09 P-2 amount by the 2008–09 deficit factor for school district revenue limits (0.92156), increasing the result by the 4.25 percent COLA, and then reducing the result of that calculation by the 13.094 percent deficit for school district revenue limits.   

Community Day School Program (CDS)

The funding methodology for this program was changed pursuant to SBX3 4. For the advance, the 2009–10 funding for CDS was estimated by determining the amount each LEA received for the program (excluding funding for mandatory-expelled students) for 2007–08 (as of Annual R-1) as a percentage of the statewide total ($52 million) and then multiplying that percentage by the $36,930,000 budgeted for item 6110-190-0001 in the Budget Act of 2009. An additional $4,751,000 in funding for 2009–10 is deferred to fiscal year 2010–11 and was not included in the estimate.

The 2008–09 P-2 amount that each LEA received for mandatory-expelled students was added to the amounts calculated above.

County Office Funds Transfer

Funding for county office funds transfers, was calculated by dividing the 2008–09 P-2 amounts for special education, county community school, and nonpublic, nonsectarian school/licensed children’s institutions county office funds transfers by the 2008–09 school district revenue limit deficit factor (0.92156). The result was then increased by the 4.25 percent COLA and then reduced by the 13.094 percent school district revenue limit deficit.

Gifted and Talented Education (GATE)

The funding methodology for this program was changed pursuant to SBX3 4. For the advance, the 2009–10 funding for GATE was estimated by determining the amount each LEA received for GATE for 2008–09 P-2 as a percentage of the statewide total ($46,833,000) and then multiplying that percentage by the $39,937,000 budgeted for item 6110-124-0001 in the Budget Act of 2009. An additional $4,294,000 in funding for 2009–10 is deferred to fiscal year 2010–11 and was not included in the estimate.

Regional Occupational Centers and Programs (ROC/Ps)

The funding methodology for this program was changed pursuant to SBX3 4. For the advance, the 2009–10 funding for ROC/Ps was estimated by determining the amount each LEA received for ROC/Ps for 2007–08 (as of Annual R-1 and including from excess taxes for county operated ROC/P’s) as a percentage of the statewide total ($529,836,595) and then multiplying that percentage by the $345,046,000 budgeted for item 6110-105-0001 in the Budget Act of 2009. An additional $39,630,000 in funding for 2009–10 is deferred to fiscal year 2010–11 and was not included in the estimate.

Special Education

The apportionment for the special education programs were calculated using the 2008–09 P-2 apportionment amounts as a base with the following factors applied:

• AB 602 Program: 1.0126672499. 
• Infant (Ages Two Years and Younger) Program: 1.00
• ROC/P Handicapped Program: 1.00

Supplemental Instructional Programs

The funding methodology for this program was changed pursuant to SBX3 4. For the advance, the 2009–10 funding for each supplemental instructional program was estimated by determining the amount each LEA received for each program for 2007–08 (as of Annual R-1) as a percentage of the statewide total (shown below) and then multiplying that percentage by the amounts budgeted for item 6110-104-0001 in the Budget Act of 2009 as shown in the following table. The table also shows the additional funds for 2009–10 that were deferred to fiscal year 2010–11 and that were not included in the estimate.