Newly Operational Charter Schools, FY 2017-18

September 12, 2017

Dear County Superintendents of Schools, Chief Business Officials, and Directors of Newly Operational Charter Schools:

SPECIAL ADVANCE APPORTIONMENT FOR NEWLY OPERATIONAL
CHARTER SCHOOLS, FISCAL YEAR 2017–18

This special apportionment, in the amount of $29,357,465, is made in accordance with California Education Code (EC) Section 47652 for fiscal year 2017–18. The purpose of this advance apportionment (Advance) is to fund charter schools that are newly operational this year.

This Advance is for the months of July 2017 through November 2017, and equals 37 percent of the charter schools’ estimated funding for the 2017–18 fiscal year. This Advance is calculated pursuant to EC sections 42238.02 and 42238.03, as well as Chapter 6 of Part 26.8 of the EC. The amount apportioned to each participating charter school and charter school sponsoring local educational agency (LEA) is available on the California Department of Education (CDE) Charter School Special Advance Apportionment Web page at https://www.cde.ca.gov/fg/aa/pa/chschspcadv1718.asp.

Local Control Funding Formula Entitlement Calculations

The Local Control Funding Formula (LCFF) entitlement calculations for new charter schools are based on the estimated average daily attendance (ADA), enrollment, unduplicated pupil percentage (UPP), and district(s) of charter school physical location reported in the Pupil Estimates for New and Significantly Expanding Charter Schools data collection.

In accordance with the LCFF statutes, each charter school’s LCFF Transition entitlement is based on the lesser of the charter school’s estimated 2017–18 Target or Floor entitlement. If funded on the Floor, the charter school’s entitlement includes Gap funding equal to approximately 50 percent of the estimated LCFF Need (difference between the LCFF Target and Floor).

A new charter school’s Floor entitlement is determined based on the 2016–17 Floor and Gap funding rate per ADA of the school district in which the charter school is physically located. In addition, the UPP used for concentration funding included in the LCFF Target entitlement is capped at the lesser of the charter school’s own estimated UPP or the UPP of the district in which the charter school is physically located. If the charter school has more than one physical location, the location with the highest 2016–17 funding rate per ADA and district UPP is used.

For additional information on 2017–18 LCFF funding, visit CDE’s Funding Rates and Information Web page at https://www.cde.ca.gov/fg/aa/pa/ratesandinfo.asp.

Education Protection Account

The state aid calculated in this apportionment is reduced by $200 per unit of estimated ADA to reflect the 2017–18 Education Protection Account (EPA) revenues as established by Chapter 36 of Article XIII of the California Constitution. The CDE will allocate EPA revenues on a quarterly basis, meaning LEAs will receive separate quarterly payments equal to 25 percent of their annual EPA entitlement (for new charter schools this means quarterly payments of $50 for each unit of funded ADA). The first payment will be made in September 2017. Note that future payments may be adjusted for ADA changes and previous over-or- under payments of EPA funds. More information on the EPA is available on the CDE’s Education Protection Account Web page at https://www.cde.ca.gov/fg/aa/pa/epa.asp.

Funding In-Lieu of Property Taxes

Also included in this special apportionment is funding to sponsoring school districts that were not basic aid in the prior fiscal year to backfill their transfer to charter schools of funding in-lieu of property taxes for the months of August 2017 through November 2017, which equals 28 percent of the charter school’s projected total in-lieu of property taxes funding for the 2017–18 fiscal year. For most charter schools, EC Section 47632 defines the sponsoring LEA as the district that approved the charter, or in the case of a charter that was denied by a district and subsequently approved by a county office of education, the district that initially denied the charter.

School districts that were basic aid in the prior year will not receive an Advance apportionment of state aid for in-lieu of property tax. The amount of in-lieu these school districts are required to transfer for the months of July through November is provided on the Advance Apportionment Summary for Newly Operational Charter Schools Excel file but an apportionment of state aid is not reflected in the Payment Schedule for Newly Operational Charter Schools Excel file available on CDE’s Charter School Special Advance Apportionment Web page at https://www.cde.ca.gov/fg/aa/pa/chschspcadv1718.asp.

For a county office of education approved charter school whose students do not meet the criteria in EC Section 2574(c)(4), or for a countywide charter whose students reside in a district that was basic aid in the prior year, the sponsoring LEA is the district of residence for those pupils. That means some county-approved charter schools may have multiple sponsoring districts if the school has students who reside in different districts. The In-lieu of Taxes for Countywide and Charter Funded County Programs Excel file provides this detail and is available at the Web page address noted in the prior paragraph. For a charter that was denied by an LEA and subsequently approved by the State Board of Education (SBE), the sponsoring LEA is the LEA that initially denied the charter or the LEA designated by the SBE pursuant to paragraph (1) of subdivision (k) of EC Section 47605.

Method for Receipt of State Aid

Pursuant to EC Section 47651, for charter schools that elect to receive funding directly, the warrant is drawn in favor of the superintendent of schools of the county in which the LEA that approved the charter is located, for deposit to the appropriate funds or accounts of the charter school in the county treasury. For all other charter schools, the funds are deposited in the appropriate funds or accounts of the LEA that approved the charter. Please refer to the enclosed payment schedule for the amounts apportioned to the applicable charter schools and the charter schools’ sponsoring school districts. The CDE anticipates warrants will be issued by State Controller’s Office within two weeks of the date of this letter. For standardized account code structure coding, use Resource 0000, Unrestricted, and Revenue Object 8011, LCFF State Aid – Current Year.

What’s Next

Apportionments for newly operational charter schools for the months of December 2017 and January 2018 will be revised based on the actual first 20 school days of attendance as reported by the charter school; the payment for December and January should occur in late December. The actual ADA counts for the December payment must be reported to the CDE no later than five business days immediately following the 20th school day. The CDE will provide notification for this attendance reporting process within the next few weeks through the PASE listserv.

All communication related to the Principal Apportionment and LCFF funding is available on the CDE’s Web site, and funding specific information is sent electronically via the CDE’s PASE listserv. The listserv provides LEAs and other interested parties important information, such as notifications regarding LCFF updates, software releases, key deadlines, reminders of due dates for submission of data, and any other pertinent topics related to the Principal Apportionment. If you do not already belong to the PASE listserv and would like to subscribe, send a "blank" message to: join-pase-contacts@mlist.cde.ca.gov.

If you have any questions regarding this apportionment or about funding for charter schools, please contact the Principal Apportionment Section by phone at 916-324-4541 or by e-mail at PASE@cde.ca.gov.

Sincerely,

 

Nick Schweizer, Deputy Superintendent
Systems Support Branch

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Enclosure