Calculations to Determine 2010–11 P-1

First Principal Apportionment (Fiscal Year 2010-11)

The First Principal (P-1) Apportionment for fiscal year 2010-11 was certified on February 18, 2011 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 2009-10 apportionment (2009-10 Annual) and the 2008-09 apportionment (2008-09 Annual R2) that were certified as part of the P-1 Apportionment are described below.

School Districts and County Offices of Education (Fiscal Year 2010-11)

The average daily attendance (ADA) and other data reported in the Principal Apportionment Revenue software were used to calculate this apportionment. Revenue limits were adjusted by the 2010-11 statutory cost-of-living adjustment (COLA) of -0.39 percent. EC sections 42238.146 and 2558.46 prescribed the following reductions to the revenue limit: 17.963 percent for school districts and 18.250 percent for county offices of education (COE). As a result, deficit factors of 0.82037 and 0.81750 were applied to school district and COE revenue limits, respectively, in the P-1 Apportionment.

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

The chart below shows the COLA applied to Revenue Limits for each type of district for 2010-11. The COLA is calculated by multiplying the 2009-10 statewide average base revenue limit per ADA by the 2010-11 COLA of -0.39 percent for each type of district.

Add-on Amounts for Meals for Needy Pupils, Beginning Teachers Salary, and Special Adjustments

EC sections 42238(c)(1)(A) and 42238(c)(2), added by Assembly Bill 851 (Chapter 374, Statutes of 2009), provide that revenue limit add-on funding adjustments be made to local educational agencies (LEAs) for the changes made to Meals for Needy Pupils funding, Beginning Teachers Salary funding, and special adjustments for Live Oak Elementary and Soquel Union Elementary. A new section was added to the School District Revenue Limit – Calculations report, entitled Add-on Portion for Meals, BTS, and Special Adjustments (Lines C-1 through C-4), to calculate the add-on amount for the current year. The result is added to the Base Revenue Limit per ADA. A detail summary (XLS) of the data used to calculate the prior year amounts shown on lines C-1 and C-3 of the Revenue Limit – Calculations report can be found on the CDE’s Web site.

Adult Education

The 2010-11 funding for Adult Education was calculated by multiplying each LEA’s base year proportionate share percentage by the $589,100,000 budgeted for item 6110-156-0001 in the Budget Act of 2010. An additional $45,896,000 in funding for 2010-11 is deferred to fiscal year 2011-12 and was not included in the calculation. An LEA’s total Adult Education Funding will be increased by its percentage share of the deferred amount when the Second Principal (P-2) Apportionment is certified in July 2011.  

Adults in Correctional Facilities (AICF)

The 2010-11 funding for AICF program is based on the lesser of each LEA’s 2007-08 rate per ADA or 80 percent of the 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 $14.9 million. The Statewide claims totaled $13.9 million. The growth funding was sufficient to fund all of the additional growth in the program.

Apprentice Program

The 2010-11 funding for the Apprenticeship program was calculated by multiplying the lesser of the 2010-11 reported apprentice hours or the 2010-11 approved (cap) apprentice hours by the hourly rate of $5.04. Sufficient funds were available to fully fund the program.

Community Day School (CDS) Additional Funding for “All Other” Pupils

The 2010-11 funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $36,946,000 budgeted for item 6110-190-0001 in the Budget Act of 2010. An additional $4,751,000 in funding for 2010-11 is deferred to fiscal year 2011-12 and was not included in the calculation. An LEA’s total Community Day School Additional Funding will be increased by its percentage share of the deferred amount when the P-2 Apportionment is certified in July 2011. 

Community Day School (CDS) Additional Funding for Mandatory Expelled Pupils

The 2010-11 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC Section 48915(c) was calculated using 2010-11 P-1 ADA for the 5th and 6th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils will receive waiver funding that equals the amount displayed on the 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 0.80142 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 in the 2010-11 fiscal year, by the amount used to calculate the 2007-08 base.

County Beginning Teachers Salary (BTS)

• BTS #1: Funding was calculated by multiplying the 2009-10 second period ADA by $12.87 (prior year rate of $12.92 adjusted by the -0.39 percent COLA). Pursuant to statute, the same calculation was performed separately for Regional Occupational Centers/Programs (ROC/P) using 2007-08 second period ADA. The two totals were combined and added to the revenue limit.
• BTS #2: Funding for COEs that chose option one was calculated by multiplying the 2010-11 P-1 ADA by $8.39 (prior year rate of $8.42 adjusted by the -0.39 percent COLA). Funding for COEs that chose option two was calculated by multiplying each LEA’s individual prior year rate by the -0.39 percent COLA, and multiplying the new rate by the reported 2010-11 P-1 ADA. The same calculations were performed separately for ROC/P using 2007-08 second period ADA. Adult and Block Grant funded charter school ADA were excluded in all calculations.     

Gifted and Talented Education (GATE)

The 2010-11 funding for GATE was calculated by multiplying each LEA’s base year proportionate share percentage by the $39,945,000 budgeted for item 6110-124-0001 in the Budget Act of 2010. An additional $4,294,000 in funding for 2010-11 is deferred to fiscal year 2011-12 and was not included in the calculation. An LEA’s total GATE Funding will be increased by its percentage share of the deferred amount when the P-2 Apportionment is certified in July 2011. 

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 -0.39 percent COLA for 2010-11:

For necessary small elementary schools

For necessary small high schools

Note: Fractional ADA units of 0.5 and above are rounded up, and those below 0.5 are rounded down.

Public Employees' Retirement System (PERS) Reduction

To restore a portion of the PERS Reduction, $43,995,788 was appropriated in 2010-11. To arrive at the statewide total adjustment, a restoration rate of 0.2635247778 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 2010-11 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $345,194,000 budgeted in item 6110-105-0001 in the Budget Act of 2010. The distribution of excess taxes and the additional $39,630,000 in funding were not included in the calculation and will be included when the P-2 Apportionment is certified in July 2011.

Supplemental Instructional Programs

The 2010-11 funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts budgeted for item 6110-104-0001 as shown in the following table. The table also shows the additional funds for 2010-11 that were deferred to fiscal year 2011-12, which were not included in the calculation. An LEA’s total Supplemental Instructional Programs Funding will be increased by its percentage share of the deferred amount when the P-2 Apportionment is certified in July 2011. 

Direct Services

Funding for county offices of education (COEs) equals the COE’s 2009-10 rate per ADA for direct services funding, adjusted by the -0.39 percent COLA, multiplied by the total of the 2009-10 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 2009-10 rate per ADA, adjusted by the -0.39 percent COLA, multiplied by the total of the 2010-11 P-1 ADA for the COE, school districts, and charter schools in the county. The 2010-11 P-1 ADA also includes the ADA amounts for Adult Education and ROC/Ps that were used in the 2007-08 other county service fund calculation.

Charter Schools (Fiscal Year 2010-11)

Charter Schools

The 2010-11 P-1 ADA and other data reported in the Principal Apportionment Revenue software were used to calculate this apportionment. In addition, the non-classroom based ADA was 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 district or county office 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 amounts per ADA are based on statewide average school district revenue limits for the applicable grade levels. The block grant amounts are calculated at each apportionment and the 2010-11 P-1 Apportionment amounts are as follows:

• As of the 2007-08 fiscal year, students that are funded pursuant to SB 319 (i.e. the “resident ADA” in unified school districts) are funded at the rate certified by the charter-authorizing school district.

Charter School Categorical Block Grant Calculations

The Categorical Block Grant is calculated pursuant to EC Section 47634.1 and the 2010-11 Budget Act (Chapter 712, Statutes of 2010).

• A funding rate of $500 per unit of charter school ADA is used for the 2010-11 fiscal year. However, the provisions of Section 12.42 of the 2010-11 Budget Act reduced the amount available for this program. Consequently, each charter school’s 2010-11 per-ADA categorical block grant funding has been reduced by a proration factor of 0.792502959.
• The in lieu of Economic Impact Aid (EIA) funding rate is $319 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. Because there are insufficient funds available to fund the reported eligible pupils at this rate, each charter school’s EIA entitlement has been reduced by a proration factor of 0.964892019.

Charter School Funding Exhibits

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

• 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 year 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-27 of the Principal Apportionment Summary excel file.
• Funding adjustments for charter schools are also displayed in Columns A-25 and A-26 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 47605(j). Pursuant to EC 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 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 2010-11)

Assembly Bill (AB) 602 Funding

In FY 2010-11, the statewide target rate remains the same as the prior fiscal year’s value of $465.44 given a zero percent COLA. In addition, due to a decrease in federal aid for special education from the prior fiscal year, there is no supplement to base funding. All other 2010-11 AB 602 entitlements, i.e., base, growth, special disabilities adjustment, and program specialist/regionalized services, are fully funded at the P-1 Apportionment. Note, funding for pre-referral mental health services is outside of the principal apportionment, and is apportioned separately.

Another item to note is the passage of Assembly Bill (AB) 184 (Chapter 403, Statute of 2010), which authorizes the continued use of special education incidence multiplier formula through fiscal year 2010-11. Incidence multipliers are a key component to SELPAs’ special disabilities adjustment (SDA) funding and growth funding. Please be advised that the CDE will not include incidence multipliers or special disabilities adjustment funding in AB 602 calculations after 2010-11 if the statute is not extended.

Out-of-Home Care (OHC)

The Budget Act of 2010 appropriated $198 million to the OHC program. Funding for the 2010-11 P-1 Apportionment is calculated using prior year data funded at the program’s FY 2010-11 budgeted amount. In the coming FY 2010-11 P-2 Apportionment, the program’s funding calculation will be updated to reflect the true bed and pupil count data as of April 1, 2011.

Following the complete phase-out of the hold harmless provision in 2009-10, the 2010-11 OHC funding entitlement will be calculated solely base on the SELPAs’ bed and pupil count data. In the case where total entitlement amount exceeds the program’s budget appropriation, a proration factor will be applied.

Infant (ages two and younger) Program

Total funding apportioned for the Infant Program for 2010-11 is $68,184,151. Following are the 2010-11 Infant Program statewide average unit rates:

Prior Years

The following provides updates to the 2009-10 (2009-10 Annual) and 2008-09 (2008-09 Annual R2) apportionments certified at the same time as the 2010-11 P-1 Apportionment. The types of data used and the method of calculating the apportionment are similar to those given above unless specified.

School Districts and County Offices of Education (Fiscal Year 2009-10)

Adult Education

The 2009-10 funding for Adult Education was calculated by multiplying each LEA’s base year proportionate share percentage by the $634,753,000 appropriated for the program.

Adults in Correctional Facilities (AICF)

The 2009-10 funding for AICF program is based on the lesser of each LEA’s 2007-08 rate per ADA or 80 percent of the 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 the program was $14.9 million. The Statewide claims totaled $15.1 million. The growth funding was insufficient to fund all of the additional growth in the program. As a result, a factor of 0.1398259000 was used to adjust the per-pupil growth rate to allocate funding for growth.

Community Day School (CDS) Additional Funding for “All Other” Pupils

The 2009-10 funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $41,681,000 appropriated for the program.

Community Day School (CDS) Additional Funding for Mandatory Expelled Pupils

The 2009-10 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC 48915(c) was calculated using 2009-10 Annual ADA for the 5th and 6th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils will receive waiver funding that equals the amount displayed on the 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 0.80111 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 in the 2009-10 fiscal year, by the amount used to calculate the 2007-08 base.

Gifted and Talented Education (GATE)

The 2009-10 funding for GATE was calculated by multiplying each LEA’s base year proportionate share percentage by the $44,222,000 appropriated for the program.

Public Employees’ Retirement System (PERS) Reduction

The restoration factor resulting from the $44.383 million appropriated to reduce the PERS Reduction in 2009-10 was 0.1855447213 of the total PERS adjustment.

Regional Occupational Centers and Programs (ROC/P)

The 2009-10 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $384,677,000 appropriated for the program. Local income savings were distributed to all LEAs based on the same percentage.

Supplemental Instructional Programs

The 2009-10 funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts appropriated for each program as shown in the following table:

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

Adult Education

The 2008-09 funding for Adult Education was calculated by multiplying each LEA’s base year proportionate share percentage by the $653,744,000 appropriated for the program.

Adults in Correctional Facilities (AICF)

The 2008-09 funding for AICF program is based on the lesser of each LEA’s 2007-08 rate per ADA or 80 percent of the 2007-08 statewide average revenue limit for adult education. The growth funding was insufficient to fund the additional growth in the program. As a result, a factor of 0.4028512000 was used to adjust the per-pupil growth rate to allocate funding for growth.

Community Day Schools (CDS)

The 2008-09 funding for CDS was calculated by multiplying each LEA’s base year proportionate share percentage by the $44,002,000 appropriated for the program.

Community Day School (CDS) Additional Funding for Mandatory Expelled Pupils

The 2008-09 funding for CDS pupils who were expelled for any of the mandatory expulsion offenses as described in EC 48915(c) was calculated using 2008-09 Annual ADA for the 5th and 6th hours for these pupils.

Schools with small school waivers that report ADA for mandatory expelled pupils will receive waiver funding that equals the amount displayed on the 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 0.84572 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 in the 2008-09 fiscal year, by the amount used to calculate the 2007-08 base.

Gifted and Talented Education (GATE)

The 2008-09 funding 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.

The total amount appropriated for GATE was $46.833 million. Statewide claims totaled $53.640 million, resulting in a proration factor of 0.8730969991.

Public Employees’ Retirement System (PERS) Reduction

The restoration factor resulting from the $42.776 million appropriated to reduce the PERS Reduction in 2008-09 was 0.1582727836 of the total PERS adjustment.

Regional Occupational Centers and Programs (ROC/P)

The 2008-09 funding for ROC/Ps was calculated by multiplying each LEA’s base year proportionate share percentage by the $408,704,000 appropriated for the program. Local income savings were distributed to all LEAs based on the same percentage.

Supplemental Instructional Programs

The 2008-09 funding for each supplemental instructional program was calculated by multiplying each LEA’s base year proportionate share percentage by the amounts appropriated for each program as shown in the following table:

Special Education (Fiscal Years 2009-10 and 2008-09)

Assembly Bill (AB) 602 Funding

The 2009-10 (Annual) and 2008-09 (Annual R2) AB 602 entitlements are fully funded at the 2010-11 P-1 Apportionment. The only exceptions are funding for the 2009-10 and 2008-09 Extraordinary Cost Pool (ECP) Program, where a proration factor of 0.80 and 0.76 was applied in each calculation.

Out-of-Home Care (OHC)

Total OHC entitlements are $180,793,482 for 2009-10 (Annual) and $196,429,215 for 2008-09 (Annual R2).

Infant (ages two and younger) Program

Total Infant entitlements are $68,286,297 for 2009-10 (Annual) and $69,127,248 for 2008-09 (Annual R2).

Payment Schedule and Deferrals

There are several Principal Apportionment payment deferrals that affect payments during the P-1 period (February through May). The deferrals during the P-1 period are as follows:

• February - $2 billion (equal to 90.5737634620684 percent of the February payment) to be paid in July (as part of the P-2 payment).
• March - $2.5 billion (equal to 100 percent of the March payment with the exception of LEAs exempt from the deferral) to be paid no later than April 29, 2011.
• April - $420 million (equal to 19.0204902782797 percent of the April payment) to be paid in July (as part of the P-2 payment).
• April - $679 million (equal to 30.732176638068 percent of the April payment) to be paid in August.
• May - $800 million (equal to 36.229505399922 percent of the May payment) to be paid in July (as part of the P-2 payment).
• May - $1 billion (equal to 45.2868817612251 percent of the May payment) to be paid in August.

Monthly Principal Apportionment payments are available on the CDE’s Web site. Payment information is available at the LEA level and at the county level.