Calculation to Determine the 2006–07 Advance

The Advance Apportionment for 2006–07 is based on a statutory derivation pursuant to California Education Code sections 14002 through 14007 and 41301. The following provides specific details regarding the calculation of funding for each program.

County Offices of Education

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 2005–06 Second Principal Apportionment (P‑2) state aid for each COE was adjusted as follows:

• A factor of 1.259137297 was applied to the P-2 state aid amount. This factor includes increases for funding to mitigate the Public Employees’ Retirement System (PERS) reduction, and for estimated decreases to the PERS contribution rate and unemployment insurance expenditures. The factor also includes the elimination of the deficit factor of 0.898 percent pursuant to Assembly Bill (AB) 1802 (Chapter 79, Statutes of 2006), and DOF’s estimated decrease in average daily attendance (ADA) and increase to projected local revenues. The factor also includes the effect of additional property tax shifts of Educational Revenue Augmentation Fund (ERAF) and other property taxes as a result of Senate Bill (SB) 1096 (Chapter 211, Statutes of 2004).

• The P-2 amounts for special education, county community school, and nonpublic, nonsectarian school/licensed children’s institutions flow-through were increased by the revenue limit cost-of-living adjustment (COLA) factor of 5.92 percent and 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 also calculated using the most current estimate of state aid from the DOF. To tie to that number, the 2005–06 P-2 total amount for each district was adjusted as follows:

• The P-2 state aid amount for each district was adjusted for estimated funding to mitigate the PERS reduction, and for estimated decreases to the PERS contribution rate and unemployment insurance expenditures.

• A factor of 1.0788577968 was applied to the adjusted P-2 state aid amount for each district. This factor includes the elimination of the revenue limit deficit factor of 0.892 percent pursuant to AB 1802, COLA factor of 5.92 percent, and DOF’s estimated decline in ADA and increase to projected local revenues. The factor also includes the effect of additional property tax shifts of ERAF and other property taxes as a result of SB 1096.

• AB 1802 authorized $350 million for school district revenue limit equalization to further the purpose of the Fairness in Education Funding Act, which was established in 2001. The funding will be included at the 2006–07 First Principal Apportionment or in a subsequent recertification of the Advance Apportionment.

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 the DOF and the 2005–06 P-2 state aid as a base. A factor of 1.0788577964 was applied to the P-2 state aid amount for each charter school.

Charter School Categorical Block Grant

Pursuant to AB 740 (Chapter 359, Statutes of 2005) and the 2006 Budget Act (Chapter 47, Statutes of 2006), the 2005–06 P-2 ADA for each charter school was multiplied by a single rate of $400. The funding in lieu of Economic Impact Aid for economic impact aid-eligible pupils was not included due to changes to the program that will be implemented this year pursuant to AB 1802.

Supplemental Instructional Programs

For direct funded charters, the 2005–06 P-2 funded hours was multiplied by the reimbursement rate of $3.90 per hour and the funding reflected in each supplemental instructional program category on the Advance Apportionment Summary (Lines A-6 through A-9). For locally funded charters, supplemental instruction funding is included in the advance apportionment of the authorizing local educational agency (LEA) for each eligible charter school.

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-22 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-21).

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.

School Districts and County Offices of Education

Supplemental Instructional Programs

• Core Supplemental Instruction (Kindergarten and Grades One through Twelve). The 2005–06 P-2 funded hours was multiplied by the reimbursement rate of $3.90 per hour pursuant to the 2006 Budget Act. Due to insufficient funding appropriated for the program in the 2006 Budget Act, a proration factor of 0.783792457 was applied to the funding for all LEAs.
• Supplemental instruction for pupils who do not demonstrate sufficient progress toward passing the High School Exit Examination (Grades Seven through Twelve). The 2005–06 P-2 funded hours was multiplied by the reimbursement rate of $3.90 per hour.
• Supplemental Instruction for Pupils Retained or Recommended for Retention (Grades Two through Nine). The 2005–06 P-2 funded hours was multiplied by the reimbursement rate of $3.90 per hour. Due to insufficient funding appropriated for the program in the 2006 Budget Act and AB 1802, a proration factor of 0.86796657 was applied to the funding for all LEAs.
• Low Standardized Testing and Reporting (STAR) Program and At-Risk of Retention (Grades Two through Six). The 2005–06 P-2 funded hours was multiplied by the reimbursement rate of $3.90 per hour. Due to insufficient funding appropriated for the program in the 2006 Budget Act, a proration factor of 0.59455087 was applied to the funding for all LEAs.

Apprenticeship Funding

There was no increase to the hourly reimbursement rate of $4.86 in the 2006 Budget Act; therefore, the P-2 funding for eligible LEAs was maintained in the Advance Apportionment.

Community Day School Program

The 2005–06 P-2 (pre-deficit) amounts were increased by the COLA factor of 5.92 percent. Due to insufficient funding appropriated for the program in the 2006 Budget Act, as amended by AB 1811 (Chapter 48, Statutes of 2006), and AB 1802, a proration factor of 0.9453243980 was applied to the funding for 5th and 6th hours (for pupils other than mandatory expelled), the approved small school waiver funding (for pupils other than mandatory expelled), and the funding for 7th and 8th hours.

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

The P-2 amount was increased by the COLA factor of 5.92 percent.

Gifted and Talented Education (GATE)

The P-2 funding rates for GATE were increased by the COLA factor of 5.92 percent. Due to insufficient funding appropriated for the program in the 2006 Budget Act and AB 1802, a proration factor of 0.94959 was applied to the funding for all LEAs.

Regional Occupational Centers and Programs (ROC/Ps)

The apportionment for ROC/Ps was calculated using the 2005–06 P-2 Apportionment amount as a base which was increased by a factor of 1.171669697 for all LEAs.

Adult Education Block Grant

The apportionment for the Adult Education Block Grant was calculated using the 2005–06 P-2 Apportionment amount as a base which was increased by a factor of 1.209299948 for all LEAs.

Special Education Programs

The apportionments for the special education programs were developed using the 2005–06 P-2 Apportionment as a base with the following factors applied:

• A factor of 1.0792775301 was used for the AB 602 Special Education Program.

• A factor of 1.0636852533 was used for the Special Education Infant (Ages Two Years and Younger) Program.

• A factor of 1.0569771138 was used for the Special Education ROC/P Handicapped Program.

County Office Funds Transfer

The P-2 amounts for special education, county community school, and nonpublic, nonsectarian school/licensed children’s institutions flow-through were increased by the revenue limit COLA factor of 5.92 percent.