Calculations to Determine 2015–16 P-1

LCFF Transition | Basic Aid Interdistrict | Basic Aid Supplement | AICF | AB 602 | Infant | Funding Transfer | Resources

The California Department of Education (CDE) certified the First Principal Apportionment (P-1) for fiscal year 2015−16 on February 19, 2016, pursuant to California Education Code (EC) Section 41332. The following provides specific details regarding the calculation of funding for each Principal Apportionment program, including the Local Control Funding Formula (LCFF).

LCFF Transition 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 Transition Calculation, School District LCFF Transition Calculation, and Charter School LCFF Transition Calculation, respectively. The accompanying exhibit reference guides also provide additional details on how funding for the programs is calculated.

For school districts and charter schools, the LCFF Transition Entitlement is equal to the sum of a local educational agency's (LEA’s) LCFF Target or Floor, Current Year Gap, and Economic Recovery Target (ERT) funding. For county offices of education (COEs) the LCFF Transition Entitlement is equal to the LCFF Floor or LCFF Target. A summary of these calculations is noted below under the applicable sub-headers.

For all LEAs, LCFF state aid is determined by subtracting from the LCFF Transition Entitlement the amount of local property taxes (or in-lieu of taxes for charter schools) and the 2015–16 Education Protection Account (EPA) Entitlement. If applicable, the LCFF state aid is increased to reach the minimum level of state aid required by law.

2014–15 and 2013–14 Fiscal Years

Beginning with the 2013–14 Annual R1 Apportionment, charter school funding for in-lieu of property taxes is no longer held constant as of the Annual Apportionment. Adjustments for funding in-lieu of property taxes were made to reflect revised ADA and tax per ADA rates for in-lieu of property taxes as of each recertification.

Education Protection Account Entitlement

2015−16 Fiscal Year (P-1)

EPA revenues, as authorized by Proposition 30, The Schools and Local Public Safety Protection Act of 2012, are generated by temporary increases in the state’s sales tax rate for all taxpayers, and the personal income tax rates for upper-income taxpayers. All LEAs will receive quarterly EPA payments through the 2018–19 fiscal year, paid outside of the Principal Apportionment.

Using a 2015–16 EPA revenue estimate of approximately $7.34 billion, the CDE recalculated EPA entitlements using a factor of 25.94735836 percent based on the 2015–16 statewide total of revenue limits and charter school block grant funding. With the 2013−14 implementation of LCFF, EPA entitlements continue to be calculated based on adjusted revenue limits, including the allowance for necessary small schools, and charter school block grant funding, in accordance with Proposition 30. These funding amounts continue as components of the LCFF Floor.

Each LEA’s EPA entitlement was reduced so that funding from local property taxes and the EPA combined did not exceed the LEA’s adjusted revenue limit or charter school general purpose funding, provided that each LEA received the minimum EPA funding at a rate of $200 per unit of average daily attendance (ADA). Additionally, charter schools newly operational in the 2013–14 fiscal year or after received the minimum funding of $200 per ADA. Except for LEAs fully funded through local revenue, EPA funding offsets LCFF state aid allocated through the Principal Apportionment.

The 2015–16 EPA entitlements, as of P-1, are shown for informational purposes only on the 2015–16 First Principal Apportionment Summary (XLS). EPA entitlements can also be seen on the 2015–16 P-1 County, School District, and Charter School LCFF Transition Calculation exhibits.

Note that the 2015–16 EPA entitlements will be recalculated at the Second Principal Apportionment and become final at the Annual Apportionment. The final EPA amount will be used in the calculation of 2015–16 LCFF state aid at the 2015−16 Annual Apportionment and subsequent apportionment recalculations.

For additional information, visit the EPA Web page.

2014−15 Fiscal Year (Annual)

The 2014–15 EPA entitlements were final as of the 2014–15 Annual Apportionment and those amounts were incorporated into the calculation for 2014–15 LCFF state aid. 2014–15 EPA revenues of approximately $7.75 billion were allocated based on each LEA’s proportionate share of statewide total of revenue limits and charter school block grant funding in the LCFF Floor, using a factor of 26.76692016 percent; entitlements for charter schools that closed and those LEAs that had EPA overpayments at 2014–15 P-2 were held constant as of the 2014–15 P-2 certification. LEAs fully funded through local revenue and in-lieu of property taxes received $200 per ADA. Except for excess tax LEAs, the amount of EPA funding each LEA received resulted in a corresponding reduction to the LEA’s 2014–15 Annual LCFF state aid funding.

The 2014–15 EPA apportionment and related calculations can be viewed on CDE’s Web site.  

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Current Year Gap Funding

The details for the calculation of current year gap funding can be found on the School District LCFF Transition Calculation and Charter School LCFF Transition Calculation exhibits and exhibit reference guides. An LCFF Need is calculated for each LEA, which is the difference between its adjusted prior-year funding level, called the LCFF Floor and its LCFF Target Entitlement.

For school districts and charter schools, Senate Bill (SB) 78 (Chapter 19, Statutes of 2015) provided approximately $6 billion to fund LCFF Need for the 2015–16 fiscal year, which resulted in a statewide gap funding rate of 50.49926763 percent that is applied to each school district’s and charter school’s LCFF Need to determine its current year gap funding. Note that the gap funding rate calculated at P-1 does not reflect state aid gap funding that will be available as a result of LEA’s that fund gap through local revenue. As such, the gap funding rate percentage is expected to increase at P-2. School districts and charter schools that did not have LCFF Need at the 2014–15 P-2 certification are funded based on the LCFF Target commencing with the 2015–16 fiscal year.

As of 2014–15, the COE LCFF Need has been fully funded, therefore there was no Gap appropriation provided for COEs in 2015–16.

Note that the LCFF statutes freeze the statewide gap funding rates as of the P-2 Apportionment to prevent unanticipated adjustments to LEA entitlements. This provides stability to all LEAs by preventing the recalculation of the statewide gap rate at subsequent apportionments that would have occurred anytime any LEA submitted an adjustment. The amount an LEA receives in gap funding can still change if the LEA’s LCFF Need changes in subsequent calculations.

LCFF Target Entitlement

The LCFF Target Entitlement is a component of the LCFF Transition Entitlement. The details of the LCFF Target are displayed on the School District LCFF Target Entitlement, Charter School LCFF Target Entitlement, and County LCFF Target Entitlement exhibits and exhibit reference guides. The base grants per unit of ADA, operations grants, and supplemental and concentration grant factors used in the Target Entitlement calculations are listed on the Funding Rates and Information, Fiscal Year 2015–16 Web page.

If applicable, the Necessary Small School (NSS) Allowance and ADA is taken into account for the School District LCFF Target Entitlement. ADA funded by the NSS formula is excluded from the Base Grant funding but is included for purposes of Supplemental and Concentration Grant calculations. Details for the NSS allowance calculation can be found on the School District Necessary Small Schools Allowance for the LCFF Target exhibit and exhibit reference guide.

School district and COE LCFF Target 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. COEs may also have an add-on for Foster Youth Necessary Small High School, effective for 2014−15 through 2016−17.

Unduplicated Pupil Percentage

The Unduplicated Pupil Percentage (UPP) is used in calculating LCFF Supplemental and Concentration Grants, which are components in the LCFF Target Entitlements. Details of the UPP and calculations are displayed on the School District Unduplicated Pupil Percentage, Charter School Unduplicated Pupil Percentage, and County Unduplicated Pupil Percentage exhibits and exhibit reference guides.

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 unduplicated pupil counts for the three years is divided by the sum of enrollment for the three years to produce the current year’s UPP. In the fourth and subsequent years the newest year will be added and the oldest will be dropped off.

SB 859 (Chapter 33, Statutes of 2014) modified the data used for the 2014−15 and 2015−16 UPP calculations. EC Section 42238.02(b)(5)(D)(i) allows 2014−15 data to be used in place of 2013−14 data if doing so yields a higher UPP in the 2014−15 and/or 2015−16 UPP calculation. The UPP exhibits for 2015–16 calculate both the regular UPP and the alternate UPP, and use the highest one in the calculation of Supplemental and Concentration Grant funding. See the exhibit reference guides for calculation details.

The enrollment and unduplicated pupil counts, which form the basis for the UPP, were collected by CDE in the California Longitudinal Pupil Achievement Data System (CALPADS) Fall 1 data collection. CALPADS Fall 1 data certified as of December 18^th were not available in time for the 2015–16 P-1 calculations; therefore, the CALPADS data in the 2015–16 column of the UPP calculations will be zero. An exception to this is charter schools newly operational in 2015–16 will include data in the 2015–16 column that reflects, with few exceptions, their enrollment and unduplicated pupil counts from the Charter School 20 Day Attendance Report. Because the UPP is a combination of three years of data, the absence of 2015–16 CALPADS data will not cause LEAs to have a zero UPP. Rather, for the majority of LEAs, the 2015–16 P-1 UPP will match the LEA’s 2014–15 Annual UPP. The 2015–16 CALPADS Fall 1 amendment window deadline has been extended from February 19, 2016, to March 18, 2016. It is crucial for LEAs to certify by the close of the amendment window in order for 2015–16 enrollment and unduplicated pupil counts to be used in the calculation of the UPP at 2015–16 P-2. For more information about the Fall 1 data and private preview, please refer to CALPADS Update FLASH #114 and #115 [Note: The preceding link is no longer valid.] available on CDE’s Web site under the What’s New header.

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LCFF Floor

The LCFF Floor is a component of the LCFF Transition Entitlement. The details of the LCFF Floor are displayed on the County LCFF Transition Calculation, School District LCFF Transition Calculation, and Charter School LCFF Transition Calculation exhibits and exhibit reference guides.

The LCFF Floor is based on the current year funded ADA multiplied by the 2012–13 Revenue Limit and General Purpose funding rates plus the 2012–13 categorical funding subsumed into LCFF. For COEs, the LCFF Floor includes an amount of 2012–13 Revenue Limit funding that is not adjusted by current year ADA and is held constant as of the 2012–13 Annual Apportionment. The details of the rates and funding used in the LCFF Floor calculation are displayed on the 2012−13 Adjusted County Revenue Limit for Floor Calculation, 2012–13 Adjusted District Revenue Limit Per ADA Rate Calculation, and Charter School LCFF Transition Calculation exhibits and exhibit reference guides. If a school district is funded by NSS in the LCFF Target Entitlement, the Floor also includes the applicable deficited NSS allowance based on 2012–13 funding amounts.

Commencing with 2014−15, the LCFF Floor also includes prior year gap funding. For school districts and charter schools, a cumulative prior year’s gap rate is calculated for each LEA by taking the sum of each prior year’s gap funding divided by funded ADA (from the most recent recertification of each prior year), which is then multiplied by current year ADA. Additional details for school districts and charter schools are available on the Prior Year Gap Rate per ADA Calculation exhibit and exhibit reference guide. For COEs, this is the same dollar amount received in 2013−14 and 2014–15 for gap.

2012–13 Categorical Program Entitlements Subsumed into LCFF

The 2015­–16 P-1 certification reflects the adjustments authorized in Assembly Bill (AB) 104 (Chapter 13, Statutes of 2015) that transferred home-to-school transportation entitlements to specific LEAs. These adjustments are reflected in the calculation of the affected LEA’s Floor and Target amounts. In addition to the former categorical programs becoming part of the district’s LCFF Floor funding, they are also included in the minimum state aid guarantee. The Pupil Transportation maintenance of effort requirements now apply to the recipient school district’s beginning with 2015–16.

School District Necessary Small Schools (NSS) Funding

During the LCFF Transition period, the CDE will calculate the NSS Allowance for the LCFF Target, to be included in the School District LCFF Target Entitlement, based on NSS Funding Band amounts for the applicable fiscal year. In addition, CDE will calculate the NSS Allowance for the LCFF Floor, to be included in the School District LCFF Transition 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 amount. Details for the NSS allowance calculations can be found on the School District Necessary Small Schools Allowance for the LCFF Target and School District Necessary Small Schools Allowance for the LCFF Floor exhibits and accompanying exhibit reference guides.

Economic Recovery Target (ERT) Funding

A school district or charter school is eligible for ERT funding if its per-ADA funding under the old funding model (adjusted to projected 2020–21 levels) is at or below the 90^th percentile ($12,921.15) and if it would have been better off under the old funding model rather than the LCFF model. Details of the funding calculation can be found on the Economic Recovery Target exhibit and exhibit reference guide. Most school districts and charter schools did not generate an ERT funding amount. The ERT funding is added to the LCFF Transition Entitlement.

By law, ERT entitlements are frozen based upon the calculations in the 2013–14 P-2 Apportionment certification.

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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 accompanying exhibit reference guides also provide additional details on how funding for the programs are calculated.

The 2015–16 P-1 Statewide Totals are as follows:

Basic Aid Supplement Funding (Charter School)

The School District Basic Aid Supplement program provides basic aid (excess tax) school districts supplemental funding for the loss of local revenue 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 accompanying exhibit reference guides also provide additional details on how funding for the program is calculated. The statewide total amount for this program at P-1 is $18,775,573.

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Adults in Correctional Facilities

The Adults in Correctional Facilities (AICF) program provides funding to eligible LEAs that offer schools and classes for prisoners. 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. The accompanying exhibit reference guide also provides additional details on how funding for the program is calculated. The 2015–16 funding for the AICF program was based on the lesser of each LEA’s 2014–15 rate per ADA times the 2014–15 COLA of 1.0085, or 80 percent of the 2007–08 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 2015–16 Budget Act appropriates $15,096,000 for the AICF program. The appropriation was not sufficient to fund all of the growth in the program; therefore, a proration factor of 0.4899991940 was applied to the growth calculation. The statewide total amount funded for the AICF program at P-1 is $15,095,277.

Special Education Assembly Bill 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 mental health services is a separate program apportioned outside of the Principal Apportionment.  

2015−16 Fiscal Year (P-1)

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, or SELPA Special Education Funding Exhibit – LA Court, or SELPA Special Education Funding Exhibit – Charter SELPA. The accompanying exhibit reference guides also provide additional details on how funding for the programs is calculated. The 2015–16 Budget Act appropriated $2,743,893,000 and includes a 1.02 percent statutory COLA for special education which increases the statewide target rate to $532.68. However, the current year appropriation was not sufficient to fully fund AB 602 entitlements at P-1. As a result, a proration factor of 0.9627352627 was applied to the Base Entitlement. The statewide total amount for this program at P-1 is $2,743,893,000. The Special Education AB 602 ADA and Statewide Rates and Factors information can be viewed on the Special Education Web page.

2014−15 Fiscal Year (Annual)

There is no change in the 2014–15 statewide target rate from P-2 to Annual of $527.30 per ADA. The 2014–15 Budget Act appropriation of $2,824,351,000 for special education continues to be insufficient to fully fund AB 602 at Annual. As a result, a proration factor of 0.9987700126 was applied to the Base Entitlement. In addition, funding for the 2014–15 Extraordinary Cost Pool Program was prorated and a factor of 0.8049561084 was applied to the calculation.

2013−14 Fiscal Year (Annual R2)

The 2013–14 AB 602 base entitlement, including growth and COLA, are fully funded at the Annual R2 apportionment. In addition, funding for the 2013–14 Extraordinary Cost Pool Program was prorated and a factor of 0.7539544723 was applied to the calculation.

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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 details of the calculation of OHC funding, which is a component of the AB 602 entitlement, are displayed on the Out of Home Care Funding exhibit and exhibit reference guide.

2015−16 Fiscal Year (P-1)

The Budget Act of 2015 appropriated $150,095,000 for the OHC program. The facility rates were adjusted by a 1.02 percent statutory COLA. Funding for the 2015−16 P-1 Apportionment was calculated using prior year data funded at the program’s 2015−16 budgeted amount. The 2015–16 rates can be viewed on the Funding Rates and Information, Fiscal Year 2015–16 Web page. At the 2015−16 P-2 Apportionment, the program’s funding calculation will be updated to reflect the true bed and pupil count data as of April 1, 2016.

2014−15 Fiscal Year (Annual)

The 2014–15 OHC entitlement equals $146,308,379 and is fully funded at Annual.

2013−14 Fiscal Year (Annual R2)

There is no change to the 2013–14 OHC entitlement from Annual R1 to Annual R2.  

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.

2015−16 Fiscal Year (P-1)

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 2015–16 Budget Act total funding apportioned for the Infant program is $71,321,093. The 2015−16 Infant program statewide average unit rates can be viewed on the Funding Rates and Information, Fiscal Year 2015–16 Web page. The accompanying exhibit reference guide also provides additional details on how funding for the program is calculated.

The Budget Act provided an additional $30 million for early intervention services to infants and toddlers younger than three years of age. However, the 2016–17 Governor’s Budget proposes to reappropriate these funds.

2014−15 Fiscal Year (Annual)

The 2014–15 Infant entitlement equals $70,668,570 and is fully funded at Annual.

2013−14 Fiscal Year (Annual R2)

There is no change to the 2013–14 Infant entitlement from Annual R1 to Annual R2.

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County Funding Transfer Process

The calculation of state aid 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. This funding represents an increase in funding for the COE and a decrease in funding to the pupil’s school district of residence through the Principal Apportionment based on information reported by the COE and school district. Details of the requirements for the transfer can be found in the School District Transfer of Funds for County Served District Funded ADA and County Transfer of Funds for County Served District Funded ADA exhibit guides, as well as the Attendance District Funded County Programs and County Served District Funded ADA Transfer Selection sections of the Data Reporting Instruction Manual (DOC).

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.

CDE has published a series of Frequently Asked Questions on the transfer of enrollment and unduplicated pupil counts and flow of funds under LCFF for these students.

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. The CDE recommends that users review the exhibits in conjunction with the Principal Apportionment Exhibit Reference Guides.
• Principal Apportionment Exhibit Reference Guides
  Detailed explanation of all Principal Apportionment exhibits, including exhibit purpose, data sources, preceding and subsequent calculations, and calculation details.
• 2015-16 Funding Rates and Information
  Provides 2015–16 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 (XLS): Reflects an LEA’s total state aid for all programs included in the Principal Apportionment, including prior year adjustments. This total forms the basis for determining an LEA’s monthly payment amount. For standardized account code structure (SACS) coding, Resource and Object codes are shown on the Excel file.
  • Adjustments and Prior Year Recomputations (XLS): Detail by LEA, fiscal year, and program of the adjustments and prior year recomputations reflected on Line A-17 of the Principal Apportionment Summary. Most of the adjustments will be as a result of ADA, property tax, and other adjustments submitted by LEAs for the 2014–15 Annual and 2013–14 Annual R2 certifications, but some LEAs will see adjustments for fiscal years prior to 2013–14.
  • Monthly payment schedule (XLS): Provides an LEA’s monthly Principal Apportionment payment for the months of February through May. Each LEA’s monthly payment is determined based on a statutory formula, by fund type, calculated as a percentage of the LEA’s total P-1 Principal Apportionment amount, net of advance payments. Payment information , including offsets, is available on the State Controller’s (SCO) Web site, as well as estimated payment dates (PDF).
• LCFF Funding Snapshot
  Summarizes for each school district and charter school the main funding components of LCFF Transition funding. This snapshot combines into one document data elements from several different LCFF exhibits.
• Answers to LCFF Frequently Asked Questions

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