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Regular Session, 2010
SENATE CONCURRENT RESOLUTI ON NO. 20
BY SENATOR NEVERS
SCHOOLS. Provides legislative approval of the MFP formula for FY 2010-2011 adopted
by BESE on March 11, 2010.
A CONCURRENT RESOLUTI ON1
To provide for legislative approval of the formula to determine the cost of a minimum2
foundation program of education in all public elementary and secondary schools as3
well as to equitably allocate the funds to city, parish, and other local public school4
systems as developed by the State Board of Elementary and Secondary Education5
and adopted by the board on March 11, 2010.6
WHEREAS, Article VIII, Section 13(B) of the Constitution of Louisiana requires the7
State Board of Elementary and Secondary Education to develop and adopt annually a8
formula which shall be used to determine the cost of a minimum foundation program of9
education in all public elementary and secondary schools as well as to allocate equitably the10
funds to parish and city school systems; and11
WHEREAS, at a special meeting of the State Board of Elementary and Secondary12
Education on March 11, 2010, the board adopted a formula for such cost determination and13
the equitable allocation of funds; and14
WHEREAS, the board has indicated that the adopted formula considers all statutory15
and board policy requirements necessary to achieve an appropriate cost determination for16
a minimum education program as well as to distribute equitably the cost; and17
WHEREAS, the following goals are recommended for the minimum foundation18 SCR NO. 20
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program:1
GOAL 1 - - EQUITY: The school finance system in Louisiana provides equal2
treatment of pupils with similar needs with the requirement that local school systems have3
a tax burden sufficient to support Level 1.4
GOAL 2 - - ADEQUACY: The school finance system in Louisiana provides5
programs and learning opportunities that are sufficient for providing a minimum educational6
program for every individual. The State Board of Elementary and Secondary Education and7
the legislature through the adoption of the minimum foundation program formula establish8
a minimum program.9
GOAL 3 - - LOCAL CHOICE: The school finance system in Louisiana provides10
that local taxpayers and the school board establish the budget and set the tax levy for11
operating the schools above a set level of support for the minimum program.12
GOAL 4 - - EVALUATION OF THE STATE SCHOOL FINANCE SYSTEM:13
The school finance system in Louisiana ensures the attainment of the goals of equity,14
adequacy, and local choice. Whereas the school finance system utilizes significant state15
general fund revenues, it is important that the system be evaluated on a systematic basis16
annually.17
GOAL 5 - - PERFORMANCE MEASURES: The school finance system in18
Louisiana provides for financial accountability and program efficiency maximizing student19
achievement. Accountability means that city, parish, and other local public school districts20
can demonstrate that they are operating in conformance with state statutes, financial21
accounting standards, and student performance standards.22
WHEREAS, to properly measure the achievement of the goals, a comprehensive23
management information system containing state-level and district-level components shall24
continue to be developed; and25
WHEREAS, to provide fiscal and programmatic accountability, a fiscal26
accountability program and a school and district accountability program shall continue to27
be developed; and28
WHEREAS, the fiscal accountability program shall verify data used in allocating29
minimum foundation program funds and report fiscal information on the effectiveness of the30 SCR NO. 20
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manner in which the funds are used at the local school system level; and1
WHEREAS, the school and district accountability program in establishing the state2
goals for schools and students creates an easy way to communicate to schools and the public3
how well a school is performing, recognizes schools for effectively demonstrating growth4
in student achievement, and focuses attention, energy, and resources on schools needing help5
in improving student achievement; and6
WHEREAS, the Constitution of Louisiana requires the legislature to fully fund the7
current cost to the state of the minimum foundation program as determined by applying the8
legislatively approved formula; and9
WHEREAS, this minimum foundation program formula is designed to provide10
greater equity and adequacy in both state and local funding of local school systems; and11
WHEREAS, the Constitution of Louisiana requires the appropriated funds to be12
allocated equitably to parish and city school systems according to the formula as adopted by13
the State Board of Elementary and Secondary Education and approved by the legislature14
prior to making the appropriation.15
THEREFORE, BE IT RESOLVED by the Legislature of Louisiana, that the formula16
to determine the cost of a minimum foundation program of education in all public17
elementary and secondary schools as well as to allocate equitably the funds to city, parish,18
and other local public school systems developed by the State Board of Elementary and19
Secondary Education and adopted by the Board on March 11, 2010, is hereby approved to20
read as follows:21
MINIMUM FOUNDATION PROGRAM22
ELEMENTARY AND SECONDARY EDUCATI ON23
COST DISTRIBUTION FORMULA24
2010 - 2011 SCHOOL YEAR25
I. BASIS OF ALLOCATION26
A. Preliminary and Final Allocations27
1. BESE shall determine preliminary allocations of the minimum foundation28
program formula for city, parish, and other local public school systems, Recovery School29
District schools, LSU and Southern Lab schools, and Office of Juvenile Justice schools using30 SCR NO. 20
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latest available data, no later than March 15 each year for the upcoming fiscal year. Upon1
adoption by the board of such preliminary allocations for the ensuing fiscal year, the2
superintendent shall submit the budget requirements in accordance with R.S. 39:33 and shall3
submit the minimum foundation program funding requirements to the Joint Legislative4
Committee on the Budget and to the House and Senate committees on education.5
2. Upon final adoption by BESE and the legislature of the minimum foundation6
program formula resolution in effect for the upcoming fiscal year, BESE shall determine7
final allocations of the minimum foundation program formula for city, parish, and other local8
public school systems, the Recovery School District, LSU and Southern Lab schools, and9
Office of Juvenile Justice schools using latest available data, no later than June 30 for the10
fiscal year beginning July 1.11
3. Latest available student count estimates will be utilized for newly opened school12
districts or local education agencies in the final allocations of the minimum foundation13
program formula no later than June 30 for the fiscal year beginning July 1.14
B. Mid-year Adjustments15
1. Districts and schools may request that the state superintendent make estimated16
monthly payments based on documented mid-year growth prior to the October 1 count.17
2. If any city, parish, or other local public school system's, Recovery School District18
schools', LSU and Southern Lab schools', and Office of Juvenile Justice schools' current year19
October 1 student count is more or less than the previous year's February 1 membership, a20
mid-year adjustment to per pupil funding shall be made for each student gained or lost based21
on the final MFP allocation per pupil amount for that city, parish, or other local public22
school system as approved by BESE.23
3. Districts and schools may request that the state superintendent make estimated24
monthly payments based on documented mid-year growth prior to the February 1 count.25
4. If any city, parish, or other local public school system's, Recovery School District26
schools', LSU and Southern Lab schools', and Office of Juvenile Justice schools' current year27
February 1 membership is more or less than the current year October 1 membership, a28
second mid-year adjustment to per pupil funding shall be made for each student gained or29
lost based on one-half the final MFP allocation per pupil amount for that city, parish, or30 SCR NO. 20
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other local public school system as approved by BESE.1
5. If the Recovery School District, the district of prior jurisdiction, and local2
education agencies have an increase in current year October 1 membership above the prior3
year February 1 number included in the final MFP allocation individually, the Recovery4
School District, the district of prior jurisdiction, and local education agencies shall receive5
individually a mid-year adjustment of MFP funding based upon the number of students6
identified above the membership number used in the final MFP allocation. This transfer shall7
be based on the final MFP allocation per pupil for the district of prior jurisdiction times the8
number of students identified. For increases in the current year February 1 membership9
above the October 1 membership, the Recovery School District, district of prior jurisdiction,10
and local education agencies shall receive individually a mid-year adjustment based on the11
number of students identified above the membership number times one-half of the final MFP12
allocation per pupil.13
6. If the Recovery School District's current year October 1 membership count14
qualifies for a mid-year adjustment to state funds, a mid-year adjustment to provide15
additional local per pupil funding shall also be made for each additional student based on the16
local per pupil amount of the district of prior jurisdiction times the increased number of17
students and provided in the monthly MFP payments. For current year February 1 increases,18
one-half the local per pupil will be provided in the monthly MFP payments.19
7. For the newly opened school districts or local education agencies, in the first year20
of operation, a special mid-year adjustment will be made to finalize their minimum21
foundation program formula allocations using October 1 data. This special mid-year22
adjustment will replace the October mid-year adjustment. The newly opened school districts23
or local education agencies will qualify for the February 1 mid-year adjustment.24
II. LEVEL 1 - COST DETERMINATION AND EQUITABLE 25
DISTRIBUTION OF STATE AND LOCAL FUNDS26
A. Base Foundation Level 1 State and Local Costs27
1. February 1 Membership (as defined by the State Board of Elementary and28
Secondary Education) including Recovery School District students.29
Plus30 SCR NO. 20
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2. Add-on Students/Units1
a. At-Risk Students weighted at 0.22.2
At-Risk students are defined for purposes of allocating funds as those students whose3
family income is at or below income eligibility guidelines or other guidelines as provided4
by the State Board of Elementary and Secondary Education and the number of students5
identified as English Language Learners that were not included based on income eligibility6
guidelines times the weighted factor of 0.22.7
The State Board of Elementary and Secondary Education shall seek to increase the8
at-risk weight over seven years by an appropriate amount annually until reaching a total9
at-risk weight of .40.10
b. Career and Technical Education course units weighted at .06.11
The number of combined fall and spring student units enrolled in secondary career12
and technical education courses times the weighted factor of 0.06.13
c. Special Education/Other Exceptionalities students weighted at 1.50.14
The number of students identified as having Other Exceptionalities as reported in the15
membership count as defined by the State Board of Elementary and Secondary Education16
times the weighted factor of 1.50.17
d. Special Education/Gifted and Talented students weighted at .60. The number of18
students identified as Gifted and Talented as reported in the membership count as defined19
by the State Board of Elementary and Secondary Education times the weighted factor of20
0.60.21
e. Economy of Scale calculated as a curvilinear weight of .20 at 0 student22
membership level down to zero at 7,500 student membership level. This weight will vary23
depending on the size of the school system. There will be no benefit to school systems with24
a membership of 7,500 or greater. The formula for this weight is:25
(1) for each district with less than 7,500 students, subtract its membership from26
7,500;27
(2) divide this difference by 37,500 to calculate each district's economy of scale28
weight; then29
(3) multiply each district's economy of scale weight times their membership count.30 SCR NO. 20
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Equals1
3. Total Weighted Membership and/or Units (Sum of I.A.1 and I.A.2.a. through e.)2
Times3
4. State and Local Base Per Pupil Amount of $3,961.4
In the event no provision for an annual increase has been provided and this5
Resolution remains in effect in the Fiscal Year 2011-12 or thereafter, the State Board of6
Elementary and Secondary Education shall annually adjust the state and local base per pupil7
amount with approval by the Joint Legislative Committee on the Budget. If the Joint8
Legislative Committee on the Budget does not approve the rate established by the State9
Board of Elementary and Secondary Education, then an annual growth adjustment of 2.75%10
shall automatically be applied to the state and local base per pupil amount beginning in the11
Fiscal Year 2011-12.12
Equals13
5. Total Base Foundation Level 1 State and Local Costs (I.A.3 times I.A.4.)14
B. Local School System Share Calculation15
1. Property Revenue Contribution is calculated by multiplying the state's computed16
property tax rate (including debt service) by each school system's Net Assessed Property17
Value for the latest available fiscal year including TIF areas. If a district's Net Assessed18
Property Value has increased equal to or greater than 10% over the prior year Net Assessed19
Property Value, then the growth in the Net Assessed Property Value will be capped at 10%.20
This cap will be applied on a year-to-year basis comparing the current year Net Assessed21
Property Value to the prior year uncapped Net Assessed Property Value. In FY 2007-08, this22
millage was set at a level appropriate to yield a state average share of 65% and a local23
average share of 35%. The millage set in FY 2007-08 will remain the same in FY 2008-0924
and beyond except that the State Board of Elementary and Secondary Education may revise25
the millage as deemed appropriate in order to reestablish the 65%/35% share.26
2. Sales Revenue Contribution is calculated by dividing the district's actual sales tax27
revenue collected (including debt service) in the latest available fiscal year by the district's28
sales tax rate that was applicable to create a sales tax base. If a local school system's sales29
tax goes into effect during the fiscal year, the tax rate is prorated to an annual rate applicable30 SCR NO. 20
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for the total revenue generated. If a district's Computed Sales Tax Base increased equal to1
or greater than 15% over the Computed Sales Tax Base calculated in the prior year formula,2
then the growth in the Computed Sales Tax Base will be capped at 15% over the amount3
used in the prior year formula. This cap will be applied on a year-to-year basis comparing4
the current year sales tax base to the prior year uncapped sales tax base. Each district's sales5
tax base is then multiplied by the state's projected yield of the sales tax rate. In FY 2007-08,6
this rate was set at a level appropriate to yield a state average share of 65% and a local7
average share of 35%. The rate set in FY 2007-08 will remain the same in FY 2008-09 and8
beyond except that the State Board of Elementary and Secondary Education may revise the9
rate as deemed appropriate in order to reestablish the 65%/35% share.10
3. Other Revenue Contribution is calculated by combining (1) State Revenue in lieu11
of taxes; (2) Federal Revenue in lieu of taxes; and (3) 50% of Earnings on Property.12
4. Local School System Share is the sum of adding Item 1- Property Tax13
Contribution, Item 2 - Sales Tax Contribution and Item 3 - Other Revenues Contribution.14
C. State Share Calculation15
The State Share is calculated by subtracting the Local Share from the Total Level 116
Costs. In no event shall the State Share of the Total Level 1 Costs be less than 25% for any17
district.18
III. LEVEL 2 - INCENTIVE FOR LOCAL EFFORT19
A. Level 2 Eligible Local Revenue20
1. Local Revenue.21
Prior year revenues collected for educational purposes from total Sales Tax, total22
Property Tax, State and Federal Revenue in Lieu of Taxes, and 50% of Earnings on Property23
Minus24
3. Local School System Share Contribution of Level 1 Costs25
Equals26
4. Local Revenue over Local School System Share Contribution of Level 1 Costs.27
This is the funding available for consideration in Level 2 incentive funding.28
5. Limit on Revenue Eligible for Level 2.29
The maximum local revenue eligible for incentive funding is equal to 34% of Total30 SCR NO. 20
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Base Foundation Level 1 State and Local Costs (I.A.5 times .34).1
6. Eligible Local Revenue collected for educational purposes. The Lesser of:2
a. Local Revenue Over Level 1 Local Share (II.A.4.),3
or4
b. Limit on Revenue Eligible for Level 2 Incentive Funding (II.A.5)5
B. State Support of Level 2 Local Effort6
1. State Support of Level 2 equals Eligible Revenue in Level 2 minus the Local7
Share of Level 2.8
2. Local Share of Level 2 revenue equals the district's Eligible Local Revenue in9
Level 2 times the district's local share percentage of Level 1 times a factor of 1.72 in FY10
2007-08. For FY 2008-09 and beyond, this factor will remain in effect. The State Board of11
Elementary and Secondary Education may calculate this factor on an annual basis.12
Equals13
3. State Support of Level 2 Incentive for Local Effort14
IV. MINIMUM FOUNDATION PROGRAM LEVEL 3 LEGISLATIVE15
ENHANCEMENTS16
A. Continuation Funding for Pay Raises17
1. 2001-02 Certificated Personnel Pay Raise Continuation Enhancement18
The supplemental funding provided for the 2001-02 certificated pay raise will continue for19
each district based on the prior year per pupil amount times their current year membership.20
2. 2006-07 Certificated Personnel Pay Raise Continuation Enhancement21
The supplemental funding provided for the 2006-07 certificated pay raise will continue for22
each district based on the prior year per pupil amount times their current year membership.23
3. 2002-03 Support Worker Pay Raise Continuation Enhancement24
The supplemental pay raise allocation for noncertificated support workers provided in FY25
2002-03 will continue for each district based on the prior year per pupil amount times the26
current year membership.27
4. 2006-07 Support Worker Pay Raise Continuation Enhancement28
The supplemental pay raise allocation for noncertificated support workers provided in FY29
2006-07 will continue for each district based on the prior year per pupil amount times the30 SCR NO. 20
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current year membership.1
5. 2007-08 Certificated Personnel Pay Raise Continuation Enhancement2
The supplemental funding provided for the 2007-08 certificated pay raise will continue for3
each district or school based on the prior year per pupil amount times their current year4
membership.5
6. 2007-08 Support Worker Pay Raise Continuation Enhancement6
The supplemental pay raise allocation for noncertificated support workers provided in FY7
2007-08 will continue for each district or school based on the prior year per pupil amount8
times the current year membership.9
7. 2008-09 Certificated Personnel Pay Raise Continuation Enhancement10
The supplemental funding provided for the 2008-09 certificated pay raise will continue for11
each district or school based on the prior year per pupil amount times their current year12
membership.13
B. Foreign Language Associate Enhancement14
Any local school system employing a Foreign Language Associate shall receive a15
supplemental allocation from BESE of $20,000 per teacher not to exceed a total of 30016
teachers in the program.17
C. Hold Harmless Enhancement18
The concept for the present formula was first enacted in Fiscal Year 1992-93. At that19
time, there were school systems that were "underfunded" by the state and those that were20
"overfunded" by the state. In Fiscal Year 1999-2000, this MFP formula concept was fully21
implemented for the first time with 52 systems funded at the appropriate state level,22
eliminating the "underfunded" situation. School systems identified as "overfunded" in FY23
2000-01 have since received their prior year per pupil Hold Harmless amount times their24
current year membership not to exceed the total Hold Harmless amount received in the prior25
year. Beginning in FY 2007-08, the Hold Harmless amount as identified in the FY 2006-0726
formula provided to these "overfunded" systems will be phased out. After subtracting27
amounts attributable to insurance supplements and legislative pay raises provided between28
FY 1993-94 and FY 1998-99 from the FY 2006-07 Hold Harmless amount, a revised Hold29
Harmless amount will be calculated. Each of the school districts identified as "overfunded"30 SCR NO. 20
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in FY 2006-07 will receive a reduction in FY 2007-08 equivalent to 10% of their total1
revised "overfunded" amount. The annual 10% reduction will continue each year for 102
years. On an annual basis, any hold harmless district may choose to reduce the remaining3
balance by an amount greater than 10% through formal notification to the department. This4
request must take place no later than June 30th each year. The annual 10% reduction amount5
will be redistributed in a per pupil amount to all non-hold harmless districts.6
D. Support for Increasing Mandated Costs in Health Insurance, Retirement,7
and Fuel8
City, parish, and other local public school systems shall receive a minimum of9
$100.00 for each student in the prior year February 1 membership.10
V. Funding for Recovery School District11
A. MFP State Share Per Student12
1. The student membership and weighted student counts of schools transferred to the13
Recovery School District shall continue to be included in the membership and weighted14
student counts of the city, parish, or other local public school board from which jurisdiction15
of the school was transferred.16
2. Once all final MFP calculations have been made, the MFP state share per prior17
year February 1 student membership from Levels 1, 2 and 3 of the MFP formula for the city,18
parish, or other local public school board which counted the Recovery School District19
students, shall be multiplied by the number of students in the Recovery School District and20
converted to a monthly amount. The monthly amount(s) shall be reduced from the city,21
parish, or other local public school board MFP monthly allocation and transferred to the22
Recovery School District.23
B. MFP Local Share Per Student24
1. In addition to the appropriation required in VA.2. of this section, the Recovery25
School District shall receive an applicable local revenue per student allocation.26
2. To begin the fiscal year July 1, the local revenue per student allocation is based27
on the local revenue estimates for the upcoming fiscal year from the city, parish, or other28
local public school board that had jurisdiction of the school prior to its transfer divided by29
the total MFP student membership in the Recovery School District and in the district of prior30 SCR NO. 20
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jurisdiction used in the MFP final allocation.1
3. For purposes of the Recovery School District calculation, local revenue is defined2
to include revenue from the following sources, excluding any portion which has been3
specifically dedicated by the legislature or by voter approval to capital outlay or debt service,4
or which was actually expended by the school board for facilities acquisition and5
construction per the definitions in the Annual Financial Report and the Louisiana6
Accounting and Uniform Governmental Handbook (LAUGH) as reported to the Department7
of Education:8
a. Sales and use taxes, less any tax collection fee paid by the school district.9
b. Ad valorem taxes, less any tax collection fee paid by the school district.10
c. Earnings from sixteenth section lands owned by the school district.11
4. The total local revenue allocation for the Recovery District is determined by12
multiplying the local revenue per student times the number of Recovery School District13
students used in the MFP final allocation.14
5. Once the local amount is determined, it is adjusted to a monthly amount that is15
transferred from the MFP monthly allocation of the city, parish, or other local public school16
board of prior jurisdiction to the Recovery School District.17
6. Based on the October 1 student count, the local revenue allocation per student will18
be recalculated and there will be a corresponding adjustment in the local revenue allocation19
per student. No recalculation of the local revenue per student will occur at the February 120
student count adjustment.21
7. During the third quarter of the fiscal year, in order to verify the estimated local22
revenues used in the local revenue allocation per student in the final MFP allocation, local23
revenues paid to date to the district of prior jurisdiction will be obtained from the most24
timely and reliable sources available to the Department. The estimate will be reconciled to25
the local revenues paid to date minus any portion dedicated to capital outlay or debt service,26
or which was actually expended by the school board for facilities acquisition and27
construction. If a difference exists, there will be a corresponding adjustment in the local28
revenue allocation per student based on the number of students in the Recovery School29
District on October 1. These funds shall be provided to the Recovery School District over30 SCR NO. 20
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the remaining monthly MFP payments.1
8. Near the end of the fiscal year, in order for the district of prior jurisdiction and the2
Recovery School District to record an accounting estimate in the respective financial3
statements, an updated local revenue estimate will be obtained from the district of prior4
jurisdiction. The latest estimate will be reconciled to the estimate described in Item 7 above.5
No adjustments to payments will occur at this time.6
9. A final reconciliation will occur based upon the receipt of the annual audited7
financial statements of the district of prior jurisdiction. If an increase or decrease in local8
revenue collection exists, the state superintendent may establish a payment schedule. In the9
event that the fiscal status of the district of prior jurisdiction or the Recovery School District10
changes during the fiscal year or on or before the final reconciliation, the state11
superintendent may adjust the local revenue based on the revenues identifies.12
C. Except for administrative costs, monies appropriated to the Recovery School13
District that are attributable to the transfer of a school from a prior school system and monies14
allocated or transferred from the prior system to the Recovery School District shall be15
expended solely on the operation of schools transferred from the prior system to the16
jurisdiction of the Recovery School District.17
VI. Funding for Louisiana State University and Southern University18
Laboratory Schools19
A. Any elementary or secondary school operated by Louisiana State University and20
Agricultural and Mechanical College or by Southern University and Agricultural and21
Mechanical College shall be considered a public elementary or secondary school and, as22
such, shall be annually appropriated funds as determined by applying the formula contained23
in Subsection B of this Section.24
B. Each student in membership, as defined by the State Board of Elementary and25
Secondary Education, at the schools provided for in Subsection A of this Section shall be26
provided for and funded from the minimum foundation program an amount per student equal27
to the amount allocated per student for the state share of the minimum foundation program.28
C. The funds appropriated for the schools provided for in this Section shall be29
allocated to the institution of higher education operating such a school. Each such institution30 SCR NO. 20
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Page 14 of 27
of higher education shall ensure the equitable expenditure of such funds to operate such1
schools.2
D. Fifty percent of increased funds provided are to be directed to certificated staff3
pay raises as defined in Section IX. A. Provisions specified in Section VIII through X of this4
Resolution shall apply to these schools.5
VII.Funding for Type 2 Charter Schools6
Any school authorized as a Type 2 Charter School by the State Board of Elementary7
and Secondary Education on or after July 1, 2008, shall annually be appropriated funds as8
determined by applying the formula contained in R.S. 17:3995, except that the local share9
allocation will be funded with a transfer of the MFP monthly amount representing the local10
share allocation from the city, parish, or local public school board in which the attending11
students reside. Where student attendance is from multiple school districts, the Department12
of Education shall determine the local share based on students reported by the schools. The13
student membership count of the Type 2 charter schools shall be included in the membership14
count of the city, parish, or other local public school board in which the school is located to15
determine the local share.16
VIII. Funding for the Office of Juvenile Justice Schools and Students17
A. Any elementary and secondary school operated by the Office of Juvenile Justice18
in a secure care facility shall be considered a public elementary or secondary school and, as19
such, the Office of Juvenile Justice shall be annually appropriated funds for these students20
as determined by applying the formula contained in Subsections B and C of this Section.21
B. Each student counted in the prior year average daily membership, as defined by22
the State Board of Elementary and Secondary Education, shall be provided for and funded23
from the minimum foundation program a state share per pupil equal to the amount allocated24
per student for the state share of the district where the student resided prior to adjudication.25
1. The state share per pupil allocation shall be adjusted based on a factor determined26
by the Louisiana Department of Education to provide for the differential in the number of27
educational days provided to the students in the custody of the Office of Juvenile Justice.28
2. Additionally, the state share per pupil allocation shall be adjusted based on a29
factor determined by the Louisiana Department of Education to recognize the increased30 SCR NO. 20
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number of special education students in the Office of Juvenile Justice schools relative to the1
state average special education student population.2
C. Each student counted in the prior year average daily membership, as defined by3
the State Board of Elementary and Secondary Education, shall be provided for and funded4
from the minimum foundation program a local share per pupil equal to the amount allocated5
per student for the district where the student resided prior to adjudication.6
1. For the purpose of the local share allocation per pupil amount, the average daily7
membership of the Office of Juvenile Justice shall be included in the membership counts of8
the city, parish, or other local public school board in which the student resided prior to9
adjudication to the Office of Juvenile Justice.10
2. For a district(s) that has schools transferred to the Recovery School District and11
shares local revenue, the allocation for the Office of Juvenile Justice will be completed12
before the calculation of local revenues as identified in Section VB.13
3. The local share allocation shall be funded with a transfer of the MFP monthly14
amount representing the local share allocation from the city, parish, or other local public15
school board in which the attending students resided prior to adjudication to the Office of16
Juvenile Justice.17
IX.Adjustments for Audit Findings and Data Revisions18
Review and/or audit of the districts' data used in determining their Minimum19
Foundation Program allocation may result in changes in final statistical information. The20
Minimum Foundation Program allocation adjustments necessary as a result of these audit21
findings will be made in the following school year.22
X. Required Expenditure Amounts23
A. Required Pay Raise for Certificated Personnel24
Fifty percent of a district's increased funds provided in Levels 1 and 2 over the prior25
year after adjusting for increases in student membership shall be used only to supplement26
and enhance full-time certificated staff salaries and retirement benefits for city, parish, or27
other local school systems, Recovery School District, and LSU and Southern Lab schools28
with an average teacher salary below the latest published SREB average teacher salary.29
For purposes of determining the use of these funds, certificated personnel are defined30 SCR NO. 20
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Page 16 of 27
per state Department of Education Bulletin 1929 and are to include: teachers (all function1
codes 1000-2200, object code 112); therapists/specialists/counselors (function codes 1000-2
2200, object code 113); school site-based principals, assistant principals, and other school3
administrators (function code 1000-2200 and 2400, object code 111); central office4
certificated administrators (function code 1000-2300 & 2831 (excluding 2321), object code5
111); school nurses (function code 2134, object code 118); and employees on sabbatical in6
function code 1000-2200, 2134, and 2400.7
B. 70% Local General Fund Required Instructional Expenditure at the School8
Building Level9
To provide for appropriate accountability of state funds while providing local school10
board flexibility in determining specific expenditures, local school boards must ensure that11
70% of the local school system general fund expenditures are in the areas of instruction and12
school administration at the school building level as derived by the Department of13
Education.14
1. The definition of instruction shall provide for:15
a. The activities dealing directly with the interaction between teachers and students16
to include such items as: teacher and teacher aide salaries, employee benefits, purchased17
professional and technical services, textbooks and instructional materials and supplies, and18
instructional equipment;19
b. Student support activities designed to assess and improve the well-being of20
students and to supplement the teaching process, including attendance and social work,21
guidance, health and psychological activities; and22
c. Instructional support activities associated with assisting the instructional staff with23
the content and process of providing learning experiences for students including activities24
of improvement of instruction, instruction and curriculum development, instructional staff25
training, library/media, and instructional related technology.26
2. School administration shall include the activities performed by the principal,27
assistant principals, and other assistants while they supervise all operations of the school,28
evaluate the staff members of the school, assign duties to staff members, supervise and29
maintain the records of the school, and coordinate school instructional activities with those30 SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 17 of 27
of the school district. These activities also include the work of clerical staff in support of the1
teaching and administrative duties.2
3. For city, parish, and other local public school districts that fail this requirement,3
but perform at or above the state average in the District Performance Score (DPS), a waiver4
for this noncompliance should be provided.5
4. For city, parish, and other local public school districts that fail this requirement,6
and also perform below the state average in the District Performance Score (DPS), the7
following consequences should be applied:8
a. Require that city, parish, and other local public school districts assess expenditures9
in non-instructional areas including a self-assessment and/or hiring an independent firm to10
determine operational activities that could be streamlined through outsourcing, privatization,11
or consolidation and provide a report to BESE on the implementation plan to redirect any12
savings from these actions to instructional activities according to timelines set by the13
Department of Education.14
b. Require the city, parish, and other local public school districts to examine the15
manner in which state and federal funds are utilized, make revisions to incorporate new16
spending patterns, and provide a report to BESE on the implementation of these actions17
according to timelines set by the Department of Education.18
c. Require the city, parish, and other local public school districts involved in19
desegregation litigation to examine the manner in which state and federal funds are utilized,20
make revisions to incorporate new spending patterns, and provide a report to BESE on the21
implementation of these actions according to timelines set by the Department of Education.22
C. Expenditure Requirement for Foreign Language Associate Program23
The state must maintain support of the Foreign Language Associate program at a24
maximum of 300 Foreign Language Associates employed in any given year. These teachers25
shall be paid by the employing city, parish, or other local public school system or school the26
state average classroom teacher salary (without PIP) by years of experience and degree27
beginning with year three. First year teachers will receive an installation incentive of an28
additional $6,000; second and third year teachers will receive a retention incentive of an29
additional $4,000. These amounts must be provided to each Foreign Associate Teacher by30 SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 18 of 27
each school district or school in which they are employed.1
D. Expenditure Requirement for Educational Purposes2
State MFP funds shall only be expended for educational purposes. Expenditures for3
educational purposes are those expenditures related to the operational and instructional4
activities of a district to include: instructional programs, pupil support programs,5
instructional staff programs, school administration, general administration, business services,6
operations and maintenance of plant services, student transportation services, food services7
operations, enterprise operations, community services operations, facility acquisition and8
construction services and debt services as defined by Louisiana Accounting and Uniform9
Governmental Handbook, Bulletin 1929.10
XI. Accountability Provisions11
A. Accountability for School Performance12
Each school recognized by the Louisiana Department of Education will be included13
in a MFP Accountability report submitted to the House and Senate committees on education14
by June 30 of each year. Specific information to be included in the report is as follows:15
a. School Data - School name, city, and district; Type of school; October 116
elementary/secondary enrollment; and grade span.17
b. Accountability Data - scores and labels.18
c. Fiscal Data - expenditures per elementary/secondary enrollment for classroom19
instruction (less adult education) and pupil/instructional support.20
d. Student Demographic Data - percent of students eligible for free and/or reduced21
lunch ("at-risk"), students with exceptionalities (special ed), gifted/talented, and Minority;22
Advanced Placement data; student attendance rates; and pupil-teacher ratios.23
e. Teacher Data - Average FTE teacher salaries (object 112, function 1000 series);24
percent of teachers certified; average years of experience; percent master's degree and above;25
percent turnover; percent Minority; and teachers' days absent. All teacher data (excluding26
salaries) reported for certified teachers.27
f. Staffing Data - number per 1000 pupils for certified teachers, uncertified teachers,28
and instructional aides.29
B. Accountability for Weighted Student Funds30 SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 19 of 27
1. In FY 2010-11, according to R.S. 17:7(2)(f)(I), city, parish, and other local public1
school districts, Recovery School District schools, and LSU and Southern Lab schools will2
be required to expend funds generated by applying the weighted factors contained in the3
formula for At-Risk students, Career and Technical Education course units, Special4
Education Other Exceptionalities students, and Special Education Gifted and Talented5
students on the following: (a) personnel, (b) professional services, (c) instructional materials,6
(d) equipment, and (e) supplies that serve the unique needs of students who generate such7
funds.8
2. The expenditure of these weighted funds must be submitted annually in a report9
as directed by the Louisiana Department of Education including the details on the types of10
activities for which these funds were expended to serve the needs of the weighted students11
at all schools that serve such students. The information contained in such annual report shall12
be published on the Department of Education website in an easily understandable format.13
XII. Study of Funding for Public Education14
The State Board of Elementary and Secondary Education directs the Louisiana15
Department of Education to establish a task force to study funding for public education to16
include the following issues: Review the effectiveness of the wealth factors in the MFP17
formula; evaluate a potential increase of the 70% instructional requirement to 80%; and18
continue the study of student-based budgeting including the impact of desegregation19
litigation on its implementation.20
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jeanne C. Johnston.
DIGEST
Nevers SCR No.
Provides for legislative approval of the formula for FY 10-11 to determine the cost of a
minimum foundation program (MFP) of education in all public elementary and secondary
schools as well as to equitably allocate the funds to local school systems (including the
Recovery School District (RSD), two university laboratory schools, and Office of Juvenile
Justice schools) as developed by the State Board of Elementary and Secondary Education
(BESE) and adopted by the board on March 11, 2010.
Preliminary and Final Allocations
Proposed formula retains provisions of present formula relative to the computation of
preliminary and final allocations, and additionally includes Office of Juvenile Justice (OJJ)
schools in all relevant MFP computations, as follows: SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 20 of 27
1. BESE determines no later than March 15 each year for the upcoming fiscal year
preliminary allocations of the MFP formula for city, parish, and other local public
school systems (including the RSD, LSU and SU laboratory schools, and OJJ
schools) using the latest available data. Upon adoption by BESE of such preliminary
allocations for the ensuing fiscal year, the superintendent submits the MFP funding
requirements to the Joint Legislative Committee on the Budget and to the House and
Senate Committees on Education.
2. Upon legislative approval of the MFP formula resolution for the upcoming fiscal
year, BESE determines final allocations for local school systems (including the RSD,
LSU and SU laboratory schools, and OJJ schools), using latest available data, no
later than June 30 for the fiscal year beginning July 1.
3. Latest available student count estimates will be used for newly opened school
districts or local education agencies in the final allocations of the MFP formula no
later than June 30 for the fiscal year beginning July 1.
Mid-Year Adjustments
Proposed formula includes OJJ schools in mid-year adjustment computations.
Present formula provides that if the current Oct. 1 student count for a local school system,
the RSD, or lab school exceeds the previous year's Feb. 1 membership by either 50 students
or 1%, a mid-year adjustment to provide additional per pupil funding will be made for each
additional student based on the final MFP allocation per pupil amount. Districts and schools
may request the state superintendent to make estimated monthly payments based on
documented mid-year growth prior to the Oct. 1 count.
Proposed formula deletes provisions in present formula providing for additional funding for
increased student membership and instead provides that if a school/school district's current
year Oct. 1 student count is more or less than the previous year's Feb. 1 membership, a mid-
year adjustment to per pupil funding shall be made for each student gained or lost based on
the final MFP allocation. Retains provisions in present formula allowing districts and
schools to request the state superintendent to make estimated payments.
Present formula provides that if the current Feb. 1 membership for a local school system, the
RSD, or lab school exceeds the current year Oct. 1 membership by either 50 students or 1%,
a second mid-year adjustment to provide additional per pupil funding is made for each
additional student based on one-half of the final MFP allocation per pupil amount for that
local school system. Districts may request that the state superintendent make estimated
monthly payments based on documented mid-year growth prior to the Feb. 1 count.
Proposed formula deletes provisions in present formula providing for additional funding for
increased student membership and instead provides that if a school/school district's current
Feb. 1 student count is more or less than the current year's Oct. 1 membership, a mid-year
adjustment to per pupil funding shall be made for each student gained or lost based on one-
half the final MFP allocation. Retains provisions in present formula allowing districts and
schools to request the state superintendent to make estimated payments.
Proposed formula retains present formula provisions that if the RSD, the district of prior
jurisdiction, and local education agencies have an increase in current year Oct. 1
membership above the prior year Feb. 1 number included in the final MFP allocation
individually, such entities shall receive a mid-year adjustment of MFP funding based upon
the number of students identified above the membership number used in the final MFP
allocation.
Proposed formula retains present formula provision that if the RSD Oct. 1 membership count
qualifies for a mid-year adjustment to state funds, a mid-year adjustment to provide SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 21 of 27
additional local per pupil funding shall also be made for each additional student based on the
local per pupil amount of the district of prior jurisdiction times the increased number of
students. For Feb. 1 increases, one-half of the local per pupil amount will be transferred.
Proposed formula retains present formula provision that for newly opened school districts
or local education agencies, in the first year of operation, a special mid-year adjustment will
be made to finalize their MFP formula allocations using Oct. 1 data. This special mid-year
adjustment will replace the Oct. mid-year adjustment. The newly opened school districts or
local education agencies will qualify for the Feb. 1 mid-year adjustment.
Level 1–Cost Determination and Equitable Distribution of State and Local Funds:
Compared to present formula, proposed formula provides as follows:
1. Maintains use of Feb. 1 membership as defined by BESE.
2. Maintains the existing weight for add-on student units for at-risk students at 0.22.
Increases the time period for BESE to seek to achieve the goal of an at-risk weight
of 0.40 from a four year period to a seven year period.
3. Maintains the existing weight for Career and Technical Education course units at
0.06.
4. Maintains the existing weight for Special Education/Other Exceptionalities students
at 1.5.
5. Maintains the existing weight for Special Education/Gifted and Talented students at
0.60.
6. Maintains the Economy of Scale curvilinear weight of 0.20 for school systems with
a student membership of less than 7,500.
7. Increases base per pupil funding amount from $3,855 to $3,961.
Retains provisions that if no annual increase is provided and the resolution remains
in effect for ensuing fiscal years, subsequent annual adjustments may be made in the
per pupil amount as determined by BESE with approval of the Jt. Legislative
Committee on the Budget. Provides for automatic 2.75% growth adjustment in base
per pupil amount if JLCB fails to approve the BESE recommended amount for FY
2011-12.
8.Relative to the local school system share calculation, provides as follows:
(a)Calculates property revenue contribution by multiplying the state's computed
property tax rate (including debt service) by each school system's net
assessed property value for the latest available fiscal year including Tax
Increment Financing (TIF) areas. If a district's net assessed property value
has increased equal to or greater than 10% over the prior year net assessed
property value, then the growth in the net assessed property value will be
capped at 10%. This cap will be applied on a year-to-year basis comparing
the current year net assessed property value to the prior year uncapped net
assessed property value. In FY 07-08, this millage was set at a level
appropriate to yield a state average share of 65% and a local average share
of 35%. The millage set in FY 07-08 will remain the same in FY 08-09 and
beyond. BESE may revise the millage as deemed appropriate in order to
reestablish the 65% to 35% share.
(b)Calculates sales revenue contribution by dividing the district's actual sales
tax revenue collected (including debt service) in the latest available fiscal
year by the district's sales tax rate that was applicable to create a sales tax SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 22 of 27
base. If a local school system's sales tax goes into effect during the fiscal
year, the tax rate is prorated to an annual rate applicable for the total revenue
generated. If a district's computed sales tax base increased equal to or greater
than 15% over the computed sales tax base calculated in the prior year
formula, then the growth in the computed sales tax base will be capped at
15% over the amount used in the prior year formula. This cap will be applied
on a year-to-year basis comparing the current year sales tax base to the prior
year uncapped sales tax base. Each district's sales tax base is then multiplied
by the state's projected yield of the sales tax rate. In FY 07-08, this rate was
set at a level appropriate to yield a state average share of 65% and a local
average share of 35%. The rate set in FY 07-08 will remain the same in FY
08-09 and beyond. BESE may revise the rate as deemed appropriate in order
to reestablish the 65% to 35% share.
(c)Other revenue contribution is calculated by combining state revenue in lieu
of taxes, federal revenue in lieu of taxes, and 50% of earnings on property.
9. Provides that the state share is calculated by subtracting the local share from the total
level 1 costs.
10.Provides that in no event shall the state share of the total level 1 costs be less than
25% for any district.
Level 2 - Incentive For Local Effort
1. Continues provision that the local share of Level 2 revenue equals the district's
eligible local revenue as calculated in Level 2 times the district's local share
percentage of Level 1 times a factor of 1.72.
2. Continues provision that the state support of Level 2 incentive funding equals
eligible revenue in Level 2 minus the local share of Level 2.
3. Continues provision that the maximum local revenue eligible for incentive funding
in Level 2 is 34% of Total Base Foundation Level 1 State and Local costs.
Level 3–Legislative Enhancements
1. Continues supplemental pay raises for certificated personnel initiated in 2001-02,
2006-07, 2007-08, and 2008-09 as a per pupil amount.
2. Continues supplemental pay raises for noncertificated support workers initiated in
2002-03, 2006-07, and 2007-08 as a per pupil amount.
3. Continues the supplemental allocation of $20,000 per teacher from BESE to local
school systems that employ a Foreign Language Associate, not to exceed a total of
300 teachers.
4. Deletes incentive funding for local school systems that enroll a student who transfers
from an academically unacceptable school in an amount equal to the current year
MFP state-average local share per pupil, for a maximum of 3 years.
5. Continues the 10-year phase-out of hold harmless funding beginning with a 10%
reduction of the revised "over funded" amount in FY 07-08. The annual 10%
reduction amount will be redistributed in a per pupil amount to all non-hold harmless
districts.
6. Continues providing local school systems with a per pupil funding amount of $100
for increasing mandated costs involving health insurance, retirement, and fuel. SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 23 of 27
7. Deletes emergency funding assistance for FY 2009-10 to the parishes of Morehouse
($1.6 million) and Union ($1 million).
Funding for the Recovery School District
Proposed formula retains present formula provision that school districts shall include the
student membership and weighted student counts of schools transferred to the RSD and that
the state and local shares shall be transferred to the RSD.
Present formula provides that the basis of the local revenue per student allocation for RSD
funding is the latest available date of the local school board of prior jurisdiction divided by
total MFP student membership in the RSD and in prior district used in the MFP final
allocation.
Proposed formula changes the basis of the local revenue per student allocation for RSD
funding from "the latest available date" to "estimates for the upcoming year" for such prior
school districts.
Present formula, for purposes of RSD funding, defines local revenue as including revenue
from sales and use taxes and ad valorem taxes (less tax collection fees) and earnings from
16
th
section lands, excluding any portion specifically dedicated by the legislature or voter
approval to capital outlay or debt service or which was actually expended by the school
board for facilities acquisition and construction as reported to DOE.
Proposed formula retains these provisions but specifies that expenditures by the school board
for facilities acquisition and construction must conform to the definitions in the Annual
Financial Report and the La. Accounting and Uniform Governmental Handbook (LAUGH).
Present formula provides that the total local revenue allocation for the RSD is determined
by multiplying the local revenue per student times the number of students in the RSD.
Proposed formula provides that the total local revenue allocation for the RSD shall be
determined by multiplying the local revenue per student times the number of RSD students
used in the MFP final allocation.
Present formula provides that the local revenues per student will be recalculated to include
any increases in students recognized for the Oct. 1 count and that an increase in the Oct. 1
mid-year adjustment will result in a corresponding decrease in the local revenue per student.
Also provides that there will be no recalculation of the local revenue per student at the Feb.
1 adjustment.
Proposed formula instead provides that based on the Oct. 1 student count, the local revenue
allocation per student will be recalculated and there will be a corresponding adjustment in
the local revenue allocation per student. Retains provisions relative to no recalculation at the
Feb. 1 student count adjustment.
Present formula provides:
1. On each March 1, certifications from the local tax collection agent will be obtained
to identify local revenues paid to the school district of prior jurisdiction to date
minus any portion dedicated to capital outlay or debt service.
2. A certification will be obtained from the prior district for the amount of current year
expenditures made to date for facilities acquisition and construction. Provides that
such expenditures will be subtracted from revenues and a comparison made.
3. If there is an increase in local revenue collections then the district of prior
jurisdiction is required to pay the RSD its proportional share of the increased
revenues. SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 24 of 27
4. A final reconciliation is to be performed at the end of the fiscal year.
5. If the fiscal status of the district of prior jurisdiction changes during the fiscal year,
the state superintendent may determine a reduced local revenue allocation.
Proposed formula deletes these provisions and instead provides:
1. To verify the estimated local revenues used in the local revenue allocation per
student in the final MFP allocation, in the 3
rd
quarter of the fiscal year local revenues
paid to date to the district of prior jurisdiction will be obtained from the most timely
and reliable sources available to the Dept. of Education.
2. The estimate will be reconciled to the local revenues paid to date minus any portion
dedicated to capital outlay or debt service or was actually expended for facilities
acquisition and construction.
3. If a difference exists, there will be a corresponding adjustment in the local revenue
allocation per student based on the number of students in the RSD on Oct. 1 and such
funds shall be provided to the RSD.
4. In order for the district of prior jurisdiction and the RSD to record an accounting
estimate in their respective financial statements, near the end of the fiscal year an
updated local revenue estimate will be reconciled to the prior estimate; however, no
adjustments to payments will occur.
5. A final reconciliation will occur based upon the receipt of the annual audited
financial statements of the district of prior jurisdiction. If an increase or decrease in
local revenue collections exists, the state superintendent may establish a payment
schedule.
6. If the fiscal status of the district of prior jurisdiction or the RSD changes during the
fiscal year on or before the final reconciliation, the state superintendent may adjust
the local revenue allocation based upon the revenues identified.
Proposed formula retains present formula provision that except for administrative costs,
monies appropriated to the RSD attributable to the transfer of a school and monies allocated
or transferred from the prior school system to the RSD shall be expended solely on the
operation of schools transferred from the prior system to the RSD.
Funding for LSU and SU Laboratory Schools
Proposed formula retains present formula provisions relative to university laboratory schools
as follows:
1. Any elementary or secondary school operated by LSU or SU shall be considered a
public school and annually appropriated funds as determined in the MFP formula.
2. Each student enrolled at LSU or SU lab schools shall be provided for and funded
from the MFP a per pupil amount equal to the amount allocated per student for the
state share of the MFP.
3. MFP funds appropriated to LSU and SU lab schools shall be allocated to the
institution of higher education operating such schools which shall ensure the
equitable expenditure of such funds to operate the schools.
4. Specifies that requirements in the formula relative to using 50% of increased funds
for pay raises for certificated personnel also apply to the lab schools. SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 25 of 27
Funding for Type 2 Charter Schools
Proposed formula continues funding levels for Type 2 charter schools contained in present
formula. Provides that any school authorized as a Type 2 charter school by BESE on or after
July 1, 2008, shall annually be appropriated funds as determined by applying the formula
contained in R.S. 17:3995, except that the local share allocation will be funded with a
transfer of the MFP monthly amount representing the local share allocation from the city,
parish, or local public school board in which the attending students reside. Provides that
where student attendance is from multiple school districts, the Dept. of Education shall
determine the local share based on students reported by the schools.
Proposed formula additionally specifies that the student membership count of Type 2 charter
schools shall be included in the membership count of the local school board in which the
school is located to determine the local share.
Funding for Office of Juvenile Justice Schools and Students
Proposed formula provides with respect to OJJ schools as follows:
1. Any elementary or secondary school operated by OJJ shall be considered a public
school and annually appropriated funds as determined in the MFP formula.
2. Each student counted in the prior year average daily membership shall be provided
for and funded from the MFP a per pupil amount equal to the amount allocated per
student for the state share of the district where the student resided prior to
adjudication.
a. The state share per pupil allocation shall be adjusted based on a factor
determined by DOE to provide for the differential in the number of
educational days provided to students in OJJ custody.
b. The state share per pupil allocation shall also be adjusted to recognize the
increased number of special education students in OJJ schools relative to the
state average special education student population.
3. Each student counted in the prior year average daily membership shall be provided
for and funded from the MFP a local share per pupil amount equal to the amount
allocated per student for the district where the student resided prior to adjudication.
a. For purposes of the local share allocation per pupil amount, the average daily
membership of the OJJ shall be included in the membership counts of the
local school board in which the student resided prior to adjudication to OJJ.
b. For a district that has schools transferred to the RSD and shares local
revenue, the allocation for OJJ will be completed before the calculation of
revenues for purposes of RSD funding.
c. The local share allocation shall be funded with a transfer of the MFP monthly
amount representing the local share allocation from the local school board in
which the attending students resided prior to adjudication to OJJ.
Adjustments for Audit Findings and Data Revisions
Present formula retains present formula provisions that review and/or audit of a district's data
may cause changes in final statistical information and that any necessary adjustments in a
district's MFP allocation resulting from such audit findings will be made in the following
school year. SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 26 of 27
Required Pay Raise for Certificated Personnel
Proposed formula continues present formula requirement that 50% of a district's increased
funds provided in Levels 1 and 2 over the prior year shall only be used to supplement full-
time certificated salaries and retirement benefits for school systems, the RSD, and LSU/SU
lab schools with an average teacher salary below the SREB average teacher salary.
70% Local General Fund Required Instructional Expenditure at the School Building
Level
Proposed formula retains present formula requirement that 70% of local school system
general fund expenditures must be in the areas of instruction and school administration at
the school building level.
Proposed formula additionally provides as follows for a local school district that fails to
meet the 70% instructional expenditure requirement:
1. A school district that fails to meet the 70% instructional expenditure requirement but
has a District Performance Score (DPS) at or above the state average should be
provided a waiver for noncompliance.
2. A school district that fails to meet the 70% instructional expenditure requirement and
has a DPS below the state average should face the following consequences:
a. Be required to assess expenditures in non-instructional areas to determine
operational activities that could be streamlined through outsourcing,
privatization, or consolidation and report to BESE on the implementation
plan to redirect any savings from these actions to instructional activities in
accordance with DOE timelines.
b. Be required to examine the manner in which state and federal funds are
utilized, revise spending patterns, and report to BESE on implementation of
these actions according to DOE timelines.
c. If involved in desegregation litigation, be required to examine the manner in
which state and federal funds are utilized, revise spending patterns, and
report to BESE on implementation of these actions according to DOE
timelines.
Expenditure Requirement for Foreign Language Associate Program
Proposed formula retains present formula requirement that the state must maintain support
of the Foreign Language Associate Program at a maximum of 300 Foreign Language
Associates employed in any given year. Provides that these teachers shall be paid by the
employing school system or school the state average classroom teacher salary (without PIP)
by years of experience and degree beginning with year three. Specifies that first-year
teachers will receive an installation incentive of an additional $6,000 and second- and third-
year teachers will receive a retention incentive of an additional $4,000. Provides that these
amounts must be provided to each Foreign Associate Teacher by each school district or
school in which the teacher is employed.
Expenditure Requirement for Educational Purposes
Proposed formula retains present formula requirement that state MFP funds shall only be
expended for educational purposes.
Accountability Provisions
Present formula provides that each school district with a school that has a School SCR NO. 20
SLS 10RS-868 ORIGINAL
Page 27 of 27
Performance Score (SPS) below 60 and growth of less than 2 points in the SPS will be
included in an annual MFP Accountability Report submitted to the Senate and House
Committees on Education by June 1 of each year.
Proposed formula deletes these provisions and instead provides that each school recognized
by DOE will be included in a MFP Accountability Report submitted to the Senate and House
Committees on Education by June 30 of each year.
Present formula provides that students attending an academically unacceptable school in
School Improvement 4 (SI4) that does not have a BESE approved reconstitution plan or an
academically unacceptable school in School Improvement 5 (SI5) that does not have a BESE
approved and implemented reconstitution plan shall not be considered in the MFP formula
calculations. Further provides that staff assigned to a SI4 school without a BESE approved
reconstitution or a SI5 school without a BESE approved and implemented reconstitution plan
shall not be considered in the MFP for any purposes.
Proposed formula deletes these provisions.
Present formula provides for accountability measures for the funding generated by the At-
Risk and Career and Technical Weights as follows:
1. Requires local school systems to assure that 85% of the incremental increase in the
at-risk weight generated in FY 08-09 continue and report to DOE on the utilization
of such funds.
2. Requires local school systems to assure that funding generated by the incremental
increase in the at-risk weight generated in FY 08-09 continue and report to DOE on
the utilization of such funds.
Proposed formula deletes these provisions and instead provides for accountability from local
school districts, the RSD, and the LSU/SU lab schools for all weight factors: at-risk, career
and technical education, special education other exceptionalities, and special education
gifted and talented on the following:
1. Personnel.
2. Professional Services.
3. Instructional Materials.
4. Equipment.
5. Supplies that serve the unique needs of the students generating such funds.
Requires an annual report to DOE detailing the types of activities for which these funds were
expended to serve the needs of the weighted students. Further requires that such report be
published on the DOE website in an easily understandable format.
Study of Funding for Public Education
Proposed formula directs DOE to establish a task force to study funding for public education
to include the following issues:
1. Review the effectiveness of the wealth factors in the MFP formula.
2. Evaluate a potential increase of the 70% instructional requirement to 80%.
3. Continue the study of student-based budgeting, including the impact of
desegregation on its implementation.