Calculations, 2009–10 Recertified 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 0.9471491947 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 Assembly Bill 2 of the 2009–10 Fourth Extraordinary Session [ABX4 2] [Chapter 2, Statutes of 2009] is 18.621 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 18.355 percent school district revenue limit deficit authorized by ABX4 2. 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 0.8846446133 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 ABX4 2 is 18.355 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 0.920640488 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 ABX4 2 is 18.355 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 per ADA portion of the categorical block grant was based on 2008–09 P-2 ADA and the P-2 funding rates and proration factor. Funding for the Economic Impact Aid (EIA) portion of the categorical block grant was based on 2008–09 P-2 amounts, but was not adjusted by a 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.

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 18.355 percent deficit for school district revenue limits.   

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 18.355 percent school district revenue limit deficit.

Supplemental Instructional Programs

For the recertified 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) and 2008–09 (as of 2008–09 recertified P-1 for direct-funded charter schools that began operation in 2008–09) as a percentage of the statewide total (shown below) and then multiplying that percentage by the amounts budgeted for item 6110-104-0001 in ABX4 1 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.

Per-ADA Reduction

Pursuant to Assembly Bill 3 of the 2009–10 Fourth Extraordinary Session (ABX4 3) (Chapter 3, Statutes of 2009) a per-ADA reduction was applied to apportionments for revenue limits and charter school general purpose entitlements. The $252.83 per-ADA rate, which was calculated by dividing $1.516 billion by the statewide total 2008–09 P-2 apportionment ADA, was multiplied by each LEA’s 2008–09 P-2 apportionment ADA.

The ADA used in the calculation came from the following 2008–09 P-2 exhibits:

School Districts:

• School District ADA-sum of lines C1+D1+D2 minus County Transfers Lines B6 through B12.

COEs:

• County Special Schools and Classes-sum of lines A-4, A-9, A-17, A-20, B-4, B-8, B-15 and C-1
• County Revenue Limit-line D-3
• County Community Day School Additional Funding-line A-3
• County Operated Community School Transfer-line A-2
• County Operated NPS Transfer-line A-2
• County operated NPS/LCI Transfer-line A-2
• County Operated Special Day Class Transfer-line A-2

Charter Schools:

• Charter School Block Grant Funding Unified-line E-2
• Charter School Block Grant Funding EHS-line B-2
• Charter School Categorical Block Grant Funding COE-line A-1
• Charter School Categorical Block Grant Funding SBC-line A-1

If an LEA’s total principal apportionment amount minus funds apportioned for special education was greater than the reduction amount, the CDE applied the reduction to the total principal apportionment amount in the Recertified Advance. If this criteria was not met, no offset was applied in the Recertified Advance. The CDE will apply the reduction for these LEAs at the 2009–10 First Principal Apportionment (P-1) if funds are available. If funds are not available at P-1, the offset will be applied to categorical programs that are not included in the Principal Apportionment.

For standardized account code structure (SACS) coding, this apportionment reduction is to be considered a reduction to Revenue Limit State-Aid—Current Year (Object 8011, Resource 0000) or Charter Schools General Purpose Entitlement—State Aid (Object 8015, Resource 0000). If the reduction exceeds the amount available in these Object codes, LEAs can allocate the reduction to other categorical apportionments in the Principal Apportionment, but may not reduce apportionments for Special Education.

Programs that Did Not Change from the July Advance Certification

The following programs are included in the Recertified Advance, but were not recalculated: Adult Education, Adults in Correctional Facilities, Apprenticeship, Community Day School Program, Gifted and Talented Education, Regional Occupational Centers and Programs, and Special Education. Information on the funding calculations can be found on the Calculations letter for the July 20, 2009 Advance Apportionment.

Payment Schedule and Deferrals

Senate Bill 16 of the Fourth Extraordinary Session (SBX4 16) (Chapter 23, Statutes of 2009) modified the monthly payment schedule for most LEAs. The payment amount for LEAs paid pursuant to EC Section 14041 (a)(2) was changed to 5 percent of the principal apportionment amount in July and August, and 9 percent in September through January. The recertification reflects these changes. SBX4 16 also changed the payment calculation for the months of February through May to one fifth of the principal apportionment balance due for LEAs that are paid pursuant to EC sections 14041 (a)(2) and 14041 (a)(7).

In addition to the existing deferrals of the July and August payments, SBX4 16 added a deferral of the November payment. The deferrals during the advance period are as follows:

• July- $1 billion to be paid in December. This resulted in a deferral of 81.30436422 percent of each LEA’s July payment.
• August- $1.5 billion to be paid in October. Because the total August payment was less than the required deferral, the entire payment for each LEA was deferred.
• November- $1 billion to be paid in January. This resulted in a deferral of 49.89842987 percent of each LEA’s November payment.

Finally, the July payment was recalculated to reflect the recertified principal apportionment amount and the payment schedule changes. The amount was then compared to the actual July payment and any over- or under-payments were added to August payments (which was deferred until October). If the August payment for an LEA was not adequate to recapture an over-payment, the subsequent months, beginning with September, were adjusted.

A spreadsheet of the payment schedule (XLS) is available on the CDE Web site.