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Regular Session, 2013
SENATE CONCURRENT RESOLUTI ON NO. 23
BY SENATOR APPEL
BESE. Provides legislative approval of the MFP formula for FY 2013-2014 as adopted by
BESE on March 8, 2013.
A CONCURRENT RESOLUTI ON1
To provide for legislative approval of the formula developed by the State Board of2
Elementary and Secondary Education pursuant to Article VIII, Section 13(B) of the3
Constitution of Louisiana to determine the cost of a minimum foundation program4
of education in all public elementary and secondary schools as well as to equitably5
allocate the funds to parish and city school systems, and adopted by the board on6
March 8, 2013.7
WHEREAS, the Minimum Foundation Program formula for the 2013-2014 Fiscal8
Year adopted by the State Board of Elementary and Secondary Education on March 8, 2013,9
and submitted to the legislature for approval on March 15, 2013, in accordance with10
applicable law reads as follows:11
MINIMUM FOUNDATION PROGRAM FORMULA12
The FY 2013-14 Minimum Foundation Program (MFP) formula was adopted13
by the State Board of Elementary and Secondary Education on March 8, 2013. The14
Formula is as follows:15
I. FUNDING FOR CITY AND PARISH SCHOOL DISTRICTS16
The calculation to determine funding allocations for city and parish school17
systems is divided into four categories as follows:18 SCR NO. 23
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Level 1 determines the minimum cost of education in each city or parish1
school district based on the education needs of each student. The cost is then shared2
equitably between the State and the city and parish school districts based on the3
ability of the districts to support education in their communities through local sales4
and property tax revenues.5
Level 2 provides an incentive for city and parish school systems to support6
education in their communities above the minimum level of financial support7
required.8
Level 3 provides supplementary education funding to districts and schools9
for continuing teacher and support worker pay raises, Hold Harmless provision, and10
operating costs.11
Level 4 provides funding for programs which allocate funding to reward or12
meet needs at specific schools.13
State MFP funds shall only be expended for educational purposes.14
Expenditures for educational purposes are those expenditures related to the15
operational and instructional activities of a district to include: instructional programs,16
pupil support programs, instructional staff programs, school administration, general17
administration, business services, operations and maintenance of plant services,18
student transportation services, food services operations, enterprise operations,19
community services operations, facility acquisition and construction services and20
debt services as defined by Louisiana Accounting and Uniform Governmental21
Handbook, Bulletin 1929.22
A. Level 1: Calculation of Total MFP Educational Costs and the Proportion of23
the Costs Supported by the State and Local School Districts24
1. Total MFP Educational Costs25
STEP ONE: Determine the Total Number of Eligible Students26
The formula first counts each of the students enrolled across the state to27
determine the cost of regular educational services. The students eligible to be28
counted are identified in the Student Membership Definition approved by the State29
Board of Elementary and Secondary Education. The Student Membership includes30 SCR NO. 23
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students enrolled on February 1. The formula utilizes the February 1 Student1
Membership Count to allocate funding beginning in July. These students are2
counted as one (1.0) in the formula. Students counted are enrolled in the following3
school districts and schools: 4
• Parish and city school systems5
• Recovery School District Schools, both operated and Type 5 Charter6
schools7
• Type 2 Charter schools8
• LSU and Southern Lab Schools9
• Office of Juvenile Justice (OJJ) schools10
• New Orleans Center for Creative Arts (NOCCA)11
• Louisiana School for Math, Science, and the Arts (LSMSA)12
• Special School District (SSD)13
• Louisiana School for the Deaf and Visually Impaired (LSDVI) 14
In the FY2013-2014 MFP formula only, special assistance will be provided15
to the St. John the Baptist Parish School Board for its recovery efforts from the16
effects of Hurricane Isaac by maintaining the February 1 Student Membership Count17
for the school district only at the February 1, 2012 Student Membership Count.18
STEP TWO: Determine the Number of Students with Special Characteristics19
The formula recognizes that providing educational services to meet the needs20
of particular students is more costly than regular educational services. Each special21
characteristic or need is given a numerical value referred to as a weight. The special22
needs of each student are taken into consideration by multiplying the student count23
for each eligible child (1.0) by each of the weights. This calculation provides24
additional students that are then added to the February 1 Student Membership Count25
to equal the Total Weighted Student Membership Count.26
The following are the additional costs recognized by the formula:27
Low Income and English Language Learner Weight - The formula28
recognizes that students living in poverty or students with a native language other29
than English are more likely to require additional educational services to be30 SCR NO. 23
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successful. To recognize that these services require additional costs, students that1
qualify for free or reduced price meals under the United States Department of2
Agriculture (USDA) School Food Service Program guidelines, and students3
identified as an English Language Learner are provided a weight of 22%.4
Career and Technical Education Weight -The formula recognizes that the5
cost of providing materials and supplies for Career and Technical Education courses6
is beyond the cost of traditional academic education. Students enrolled in Career and7
Technical Education courses (or units) are provided a weight of 6% for each course8
in which they are enrolled.9
Special Education Weight - The formula addresses the extra cost associated10
with meeting the needs of students with disabilities. There are three distinct series11
of weights utilized to ensure the cost of providing special educational services is12
recognized.13
1. Needs of the Child - The needs of the child are recognized based on the14
relative cost of providing educational services for a specific disability. There are15
three categories of disabilities, each with a unique weight representing low, medium,16
and high costs. To determine the relative cost associated with providing services for17
each student with disabilities, the eligible February 1 Special Education Student18
Count (1.0) is multiplied by the assigned weight (40%, 55%, and 80% respectively).19
The categories are as follows:20
Category 1 Weight (40%) 21
• Speech Articulation, Fluency, and Voice Impairments22
Category 2 Weight (55%)23
• Speech Language Impairments 24
• Intellectual Disability (Mild)25
• Orthopedic Impairment26
• Other Health Impairment27
• Specific Learning Disability28
• Developmental Delay29
• Hearing Impairment (Hard of Hearing)30 SCR NO. 23
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• Visual Impairment (Partially Seeing)1
• Infants and Toddlers with Impairments2
Category 3 Weight (80%)3
• Intellectual Disability (Moderate)4
• Intellectual Disability (Severe)5
• Hearing Impairment-Deafness6
• Visual Impairment- Blindness 7
• Emotional Disturbance8
• Deaf-Blindness9
• Multiple Disabilities10
• Autism 11
• Traumatic Brain Injury12
2. How the Child is Educated - The individual plan for the child is13
recognized based on the relative cost of providing for the environment or placement.14
There are three categories of environment/placement, each with a unique weight15
representing low, medium, and high costs. To determine the relative cost for16
environment/placement associated with each student, the eligible February 1 Special17
Education Student Count (1.0) is multiplied by the assigned weight (35%, 55%, and18
70% respectively). The environment/placement categories are as follows: 19
Category 1 Weight (35%) 20
• In Regular Classroom less than 40% of day21
• In a Regular early childhood program less than 10 hours per22
week and majority of services received in other location23
Category 2 Weight (55%)24
• In Regular Classroom between 40% and 79% of day 25
• Home and receives majority of services at other location26
• In a Regular early childhood program at least 10 hours per27
week and majority services received in other location28
• In a Regular early childhood program less than10 hours per29
week and majority services received in regular class30 SCR NO. 23
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Category 3 Weight (70%)1
• In Regular Classroom 80% or greater of day 2
• Home and receives majority of services at home3
• Hospital/Homebound4
• Separate School5
• Correctional Facility6
• Separate Class7
• Residential Facility8
• In a Regular early childhood program at least 10 hours per9
week and majority services in regular class10
• Ages 0-2 not yet placed11
Note that the Environment/Placement Weight does not include Speech12
Articulation and Language students or students parentally placed in a Private School.13
3. How Well the Child is Educated -The third weight category recognizes14
how well the academic interest of students with disabilities is served. There are three15
ways in which the formula measures how well the child is educated and compensates16
for decisions made in the best interest of the child. Each of these measures has a17
unique weight. To determine the weighted students, the eligible February 1 Special18
Education Student Count (1.0) is multiplied by the assigned weight for each19
category. The categories are as follows:20
A. Student Performance - A weight is provided for student performance21
using the Value Added Model (VAM) and the LAA1 and LAA2 accountability data22
from the latest available data. The weight is provided under the following23
circumstances:24
i. Category 1 provides a 135% weight times the number of students whose25
score in English Language Arts (ELA) or Math "exceeded expected achievement"26
in the Value Added Model or whose LAA1 or LAA2 test results improved one27
achievement level or more, or28
ii. Category 2 provides a 175% weight times the number of students whose29
performance in English Language Arts or Math "significantly exceeded expected30 SCR NO. 23
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achievement" in the Value Added Model.1
B. Graduation Rate - A weight is provided for students with disabilities that2
graduate using the latest available data. The weight is provided at 150% times the3
number of students who graduated within four or five years of entering high school.4
C. Continued Services After Declassification - The formula utilizes this5
weight in order to recognize the cost to the district associated with students6
declassified from special education but still requiring academic support services.7
This weight sustains funding once a student is no longer identified with a disability.8
The number of students that are no longer identified as a student with a disability9
from the latest available data is multiplied by 150% to determine the weighted10
student count. This weight does not include students identified as Developmentally11
Delayed or Speech Articulation Impairment.12
D. Solutions Prior to Referral - The formula utilizes this weight in order to13
recognize the cost to a district associated with academic interventions prior to a14
student being referred for special education services, a cost that generated no revenue15
under previous formulas if a student was never classified. Using the latest available16
data, this weight is provided if a city or parish school district has a change in the17
referral rate from one year to the next that is less than, equal to, or slightly above, the18
state average referral rate:19
If the change in the referral rate is greater than or equal to -2.0 percent, the20
weight equals 12%.21
If the change in the referral rate is between -1.99 and 0 percent, the weight22
equals 6%.23
If the change in the referral rate is between .01 and 1.0 percent, the weight24
equals 3%.25
If the change in the referral rate is above 1.0 percent, then no weight is26
provided.27
The eligible February 1 Special Education Student Count is multiplied by28
each weight to generate the weighted student count.29
Gifted and Talented Weight - The formula recognizes the cost of providing30 SCR NO. 23
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educational services to Gifted and Talented students. Students in grades Preschool1
through 8 identified as Gifted and Talented are provided a 60% weight. Gifted and2
Talented students in grades 9 through 12 are provided a weight of 30%. To3
determine the Gifted and Talented weight, the eligible February 1 Gifted and4
Talented Student Count (1.0) is multiplied by 60% or 30% respectively.5
High Standards Weight - This weight is provided to recognize the cost of6
providing advanced course work. A 30% weight is provided for students in grades7
8 through 11 that meet the certain criteria on exams. To determine the High8
Standards Weight, the number of eligible students from the latest available data is9
multiplied by 30%. Students must meet the following criteria in order to be10
considered eligible:11
•12
Students who by the 8th grade score excellent on Algebra I End Of Course (EOC)13
tests 14
• Students who by the 9th grade score excellent on Geometry End Of15
Course (EOC) tests or score a 3 or higher on an Advanced Placement16
(AP) exam 17
• Students who by the 10th grade score 3 or higher on an Advanced18
Placement (AP) exam 19
• Students who by the 11th grade score a 3 or higher on an Advanced20
Placement (AP) exam or a 4 or higher on an International21
Baccalaureate (IB) Course22
Economy of Scale Weight - This weight is provided for city or parish school23
districts to recognize a base amount of funding for fixed overhead costs that should24
be provided when student populations equal 7,500 students or less. The Economy of25
Scale Weight is calculated as a curvilinear weight of 20% at a student membership26
count of zero down to 0% at a student membership count equal to or greater than27
7,500. To calculate this weight, the February 1 Student Membership Count for each28
district is subtracted from 7,500 and divided by 37,500. The result of this calculation29 SCR NO. 23
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is then multiplied by each district's February 1 Student Membership Count to1
determine the weighted students.2
STEP THREE: Determine Total Weighted Student Membership Count3
Formula:4
Total Weighted Student Membership Count5
Equals6
February 1 Student Membership Count (1.0)7
Plus8
Low Income and English Language Learner Weight 9
Career and Technical Education Weight10
Special Education Weights11
Gifted and Talented Weights12
High Standard Weight13
Economy of Scale Weight14
STEP FOUR: Determine Total MFP Educational Costs15
Formula: 16
Total MFP Educational Costs17
Equals18
Total Weighted Student Membership Count19
Multiplied by20
State and Local Base Cost Per Pupil21
In FY 2013-14, the State and Local Base Cost Per Pupil equals $3,855.22
The State Board of Elementary and Secondary Education shall reconsider the23
State and Local Base Cost Per Pupil on an annual basis.24
2. Determine Cost Allocation25
The Total State and Local Cost is shared between the State and the city or26
parish school systems. The ability of school districts to support the cost of education27
in their communities is measured by the potential to raise local revenue. This28
potential contribution is measured by the following three factors using the latest29
available data:30 SCR NO. 23
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1. Property Tax Revenue Contribution1
2. Sales Tax Revenue Contribution2
3. Other Revenue Contribution3
STEP ONE - Determine the Local Property Tax Revenue Contribution4
Formula:5
Local Property Tax Revenue Contribution 6
Equals7
State Computed Property Tax Millage (debt and non-debt) 8
Times 9
Net Assessed Property Value10
If a school district's Net Assessed Property Value has increased equal to or11
greater than 10% over the prior year Net Assessed Property Value, then the growth12
in the Net Assessed Property Value is capped at 10%. This cap is applied on a13
year-to-year basis comparing the current year Net Assessed Property Value to the14
prior year uncapped Net Assessed Property Value.15
The Computed Property Tax Millage is calculated annually at the rate16
necessary to maintain a state and local share of 65%/35%. 17
STEP TWO - Determine the Local Sales Tax Revenue Contribution18
Formula:19
Local Sales Tax Revenue Contribution 20
Equals21
Computed Sales Tax Base (debt and non-debt) (including TIF areas) 22
Times23
State Computed Sales Tax Rate24
If a local school district's sales tax goes into effect during the fiscal year, the25
tax rate is prorated to an annual rate applicable for the total revenue generated.26
If a district's Computed Sales Tax Base increased equal to or greater than27
15% over the Computed Sales Tax Base calculated in the prior year formula, then28
the growth in the Computed Sales Tax Base will be capped at 15% over the amount29
used in the prior year formula. This cap will be applied on a year-to-year basis30 SCR NO. 23
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comparing the current year sales tax base to the prior year uncapped sales tax base.1
The Computed Sales Tax Rate is calculated annually at the rate necessary to2
maintain a state and local share at 65%/35%. 3
STEP THREE - Determine Other Revenue Contribution4
Formula: 5
Other Revenue Contribution 6
Equals7
State Revenue in lieu of taxes 8
Plus9
Federal Revenue in lieu of taxes 10
Plus11
50% of Earnings on Property12
STEP FOUR - Determine Local Cost Allocation13
Formula:14
Local Cost Allocation 15
Equals 16
Property Tax Contribution 17
Plus 18
Sales Tax Contribution19
Plus20
Other Revenues Contribution21
STEP FIVE - Determine State Cost Allocation22
Formula:23
State Cost Allocation24
Equals 25
Total State and Local Cost 26
Minus27
Local Cost Allocation28
In no event shall the State Cost Allocation be less than 25% of Total Level29
1 Cost for any city or parish school district.30 SCR NO. 23
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B. Level 2: Incentive for Local Effort1
Level 2 provides rewards for city and parish school districts that contribute2
a greater proportion of local revenues towards the cost of education in their3
communities by increasing local property and sales tax revenues. 4
STEP ONE - Determine Eligible Local Revenue5
Formula:6
Eligible Local Revenue 7
Equals8
Prior year local revenues collected for educational purposes to include:9
Total Sales Tax10
Plus 11
Total Property Tax 12
Plus 13
State and Federal Revenue in Lieu of Taxes 14
Plus15
50% of Earnings on Property16
STEP TWO - Determine Local Revenue Eligible for Reward17
Formula:18
Local Revenue Eligible for Reward19
Equals20
Eligible Local Revenue21
Minus22
Local Share Cost of Allocation 23
STEP THREE - Determine the Limit on Revenue Eligible for Reward24
Formula:25
Limit on Revenue Eligible for Reward26
Equals27
Total State and Local Cost 28
Times29
34% 30 SCR NO. 23
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STEP FOUR - Determine Local Support of Level 2 Reward1
Formula:2
Local Support of Level 2 Reward3
Equals4
Local Revenue Eligible for Reward or Local Revenue Limit (whichever is less)5
Times6
Local Share Percentage (Level 1) 7
Times 8
Level 2 Reward Factor9
The Level 2 Reward Factor determines the amount of local support required10
in Level 2. In FY 13-14, the Level 2 Reward Factor is established at 1.72%. The11
State Board of Elementary and Secondary Education may reset the Level 2 Reward12
Factor on an annual basis. 13
STEP FIVE - Determine State Cost of Level 2 Incentive for Local Effort14
Formula:15
State Support of Level 2 Reward16
Equals17
Local Revenue Eligible for Reward or Local Revenue Limit (whichever is less)18
Minus19
Local Support of Level 2 Reward20
C. Level 3: Supplementary Funding21
Level 3 provides funding for three programs that address funding for school22
districts and schools regarding teacher and support worker pay raises, Hold Harmless23
funding, and specific operating costs.24
Formula:25
Total Level 3 Supplementary Funding 26
Equals27
Continuation Pay Raises28
Plus29 SCR NO. 23
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Hold Harmless Enhancement1
Plus2
Support for Increasing Mandated Costs in Health Insurance, Retirement, and3
Fuel4
STEP ONE: Calculate Continuation Funding for Pay Raises5
1. Certificated Personnel Pay Raises were implemented in four recent years6
to assist in increasing Teacher and Principal pay to the Southern Regional Average.7
These funds continue to be provided directly to districts and schools to support these8
increased salaries.9
a. Certificated Personnel Pay Raises provided in 2001-02, 2006-07,10
2007-08, and 2008-09 will continue for each school district and11
school based on the calculated per pupil amount times the February12
1 Student Membership Count.13
2. Noncertificated Support Worker Pay Raises were implemented in three14
recent years to assist with increasing these salaries.15
a. Noncertificated Support Worker Pay Raises provided in 2002-03, 2006-07,16
and 2007-08 will continue for each school district and school based on the calculated17
per pupil amount times the February 1 Student Membership Count.18
3. This provision applies to parish and city school systems, Recovery School19
District, LSU and Southern Lab Schools, Office of Juvenile Justice (OJJ), New20
Orleans Center for Creative Arts (NOCCA), Louisiana School for Math, Science,21
and the Arts (LSMSA), Type 2 Charter Schools, Special School District (SSD), and22
Louisiana School for the Deaf and Visually Impaired (LSDVI).23
STEP TWO: Hold Harmless Enhancement24
1. The concept for the current student-driven formula was first enacted in FY25
1992-93. When the calculations were made to convert the previous allocations to the26
current formula, there were a few school districts that were underfunded or27
overfunded. In FY 1999-00, the current formula was fully implemented eliminating28
the underfunded situation but continuing the overfunding for some districts. The29
State Board of Elementary and Secondary Education and the Legislature determined30 SCR NO. 23
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these school districts should retain this funding. From FY 2000-01 through 2006-07,1
these districts received an annual Hold Harmless allocation.2
2. In 2006-07, the following school districts had a remaining Hold Harmless3
or "overfunded" allocation: Concordia, East Baton Rouge, Evangeline, Iberville,4
Jefferson, Plaquemines, St. Bernard, St. James, and West Feliciana.5
3. The State Board of Elementary and Secondary Education and the6
Legislature first approved a plan in the 2007-08 formula to reduce the Hold Harmless7
allocation over time. Beginning in FY 2007-08 and continuing for ten years, each8
of the remaining Hold Harmless school districts were to receive a reduction of 10%9
to their remaining Hold Harmless allocation.10
4. This provision remains in effect within the formula for FY 2013-14.11
5. On an annual basis, any Hold Harmless district may choose to reduce the12
remaining balance by an amount greater than 10% through formal notification to the13
department. This request must take place no later than June 30th each year.14
STEP THREE: Support for Increasing Mandated Costs in Health Insurance,15
Retirement, and Fuel16
City and parish school districts shall receive a minimum of $100.00 for each17
student in the prior year February 1 membership to offset these increasing18
operational costs.19
D. Level 4: School Level Funding20
Level 4 provides funding for two programs which allocate funding on behalf21
of specific schools and are in addition to district level allocations from Levels 1, 2,22
and 3. These programs are as follows:23
Formula:24
Total Level 4 School Level Funding25
Equals26
Foreign Language Associate Program Salary and Stipends 27
Plus28
Top Gains Rewards29 SCR NO. 23
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STEP ONE: Calculate Foreign Language Associate Salary and Stipends1
1. Any city or parish school system, Recovery School District, LSU and2
Southern Lab Schools, Office of Juvenile Justice (OJJ), New Orleans Center for3
Creative Arts (NOCCA), Louisiana School for Math, Science, and the Arts4
(LSMSA), Type 2 Charter Schools, Special School District (SSD), and Louisiana5
School for the Deaf and Visually Impaired (LSDVI) employing a Foreign Language6
Associate or a graduate of the Escadrille Louisiane program shall receive a7
supplemental allocation from BESE of $20,000 per teacher. The state must maintain8
support of the Foreign Language Associate program at a maximum of 300 Foreign9
Language Associates employed in any given year.10
2. These teachers shall be paid by the employing city, parish, or other local11
public school system or school at least the state average classroom teacher salary12
(without PIP) by years of experience and degree beginning with year three. The13
$20,000 supplemental allocation must be allocated to the school where the teacher14
is employed and the funds used to support the total cost of the teacher salary.15
3. First year teachers will receive an installation incentive of an additional16
$6,000; second and third year teachers will receive a retention incentive of an17
additional $4,000. These amounts must be provided to each Foreign Associate18
Teacher by each school district or school in which they are employed.19
STEP TWO: Top Gains Schools20
To recognize schools that make significant growth from one year to the next,21
Louisiana designates schools that achieve their growth target as a Top Gains school22
if they are not in subgroup component failure and they are not identified as failing23
NCLB subgroup performance for more than one year. Top Gains schools are eligible24
for monetary rewards that can be used for any educational purpose within the school.25
The FY 2012-13 and FY 2013-14 annual 10% reduction to the remaining26
Hold Harmless amount will be utilized to support the monetary rewards to the Top27
Gains schools in FY 2013-14. Top Gains schools shall include High Performing28
schools, and schools achieving significant student progress, as defined annually by29
the State Board of Elementary and Secondary Education.30 SCR NO. 23
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E. Total MFP Allocation1
Formula:2
Total State Cost Allocation3
Equals4
Level 1 Cost Allocation5
Plus6
Level 2 Cost Allocation7
Plus8
Level 3 Cost Allocation9
Plus10
Level 4 Cost Allocation11
F. Pilot of FY 13-14 Formula Changes12
Revisions to the Special Education and Gifted and Talented Weights, and the13
addition of the High Standards Weight will be piloted in FY 2013-14. The financial14
impact of incorporating the revisions to the Special Education and Gifted and15
Talented Weights, and the addition of the High Standards weight will be determined16
by comparing the FY 2012-13 formula as originally adopted to the FY 2012-1317
formula with the revisions and the addition. Any increases or decreases experienced18
as a result of only these specific revisions will be implemented at a rate of 10% of19
these revisions' true impact and shall be applied to the final FY 2013-14 Total State20
Cost Allocation for each parish and city school system, Recovery School District,21
LSU and Southern Lab Schools, Office of Juvenile Justice (OJJ), New Orleans22
Center for Creative Arts (NOCCA), Louisiana School for Math, Science, and the23
Arts (LSMSA), Type 2 Charter Schools, Special School District (SSD), and24
Louisiana School for the Deaf and Visually Impaired (LSDVI).25
II.ALLOCATION PROCEDURES26
A. PRELIMINARY AND FINAL ALLOCATIONS27
1. The minimum foundation program formula for the upcoming fiscal year28
shall be adopted by the State Board of Elementary and Secondary Education, and29
submitted to the Joint Legislative Committee on the Budget and to the House and30 SCR NO. 23
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Senate Education Committees for consideration no later than March 15.1
2. A preliminary allocation schedule demonstrating the total cost of the2
proposed formula shall also be submitted. This preliminary allocation utilizes3
student and other input data available at that time. 4
3. After final adoption by the legislature of the minimum foundation5
program formula in effect for the upcoming fiscal year, final allocations will be6
determined no later than June 30.7
4. The final total allocation will be converted to monthly payments in effect8
from July through June each year.9
5. Final data will be utilized to calculate the final allocation except that10
student count estimates will be utilized for school districts or charter schools opening11
for the first time in the fiscal year beginning July 1.12
B. PAYMENT ADJUSTMENTS13
1. If the city or parish school districts, Recovery School District, Type 214
Charter schools, Louisiana State University and Southern University Lab schools,15
Special School District (SSD), Louisiana School for the Deaf and Visually Impaired16
(LSDVI), Louisiana School for Math, Science and the Arts (LSMSA), and New17
Orleans Center for Creative Arts (NOCCA) have documented growth in students18
prior to the actual Mid-Year Student Counts in October and February, a temporary19
change to the final allocation may be requested. The State Superintendent is20
authorized to approve or deny this revision. Sufficient documentation will be21
requested to substantiate this requested allocation adjustment.22
2. The adjusted allocation will remain in effect until the actual October or23
February Mid-Year Student Count. Once the Mid-Year Student Count is final,24
reconciliation will be completed and payments adjusted accordingly.25
C. MID-YEAR ALLOCATION ADJUSTMENTS26
1. Student counts in October and February may result in mid-year allocation27
adjustments for the following:28
City and parish school districts, Recovery School District, Type 2 Charter29
schools, Louisiana State University and Southern University Lab schools,30 SCR NO. 23
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Special School District (SSD), Louisiana School for the Deaf and Visually1
Impaired (LSDVI), Louisiana School for Math, Science and the Arts2
(LSMSA), and New Orleans Center for Creative Arts (NOCCA).3
2. If the current year October 1 Mid-Year Student Count is more or less than4
the prior year February 1 student count, an adjustment to the current year allocation5
shall be made for each student gained or lost. The October adjustment equals the6
number of students gained or lost times the annual State Cost per pupil allocation7
amount for the district or school in which the change occurred. The February8
adjustment equals the number of students gained or lost times one-half of the State9
Cost per pupil allocation for the district or school in which the change occurred.10
3. Individual adjustments shall be made for increases or decreases in the11
October or February Mid-Year Student Counts for the Recovery School District, the12
district of prior jurisdiction, and Type 5 Charter schools.13
4. Mid-Year adjustments for the Recovery School District shall utilize the14
final State Cost per pupil allocation for the district of prior jurisdiction.15
5. If the Recovery School District qualifies for an October Mid-Year16
Adjustment to the State Cost per pupil allocation, a Mid-Year adjustment shall also17
be made to the Local Cost per pupil allocation for the district of prior jurisdiction.18
The October Local Cost per pupil allocation shall be recalculated based on updated19
revenue data for the district of prior jurisdiction. There shall be no recalculation of20
the Local Cost per pupil allocation in conjunction with the February 1 student count.21
6. School districts or charter schools in the first year of operation are not22
eligible for an October Mid-Year Adjustment. However, their allocation will be23
finalized using October 1 data. The newly opened school districts or charter schools24
will qualify for the February 1 mid-year adjustment.25
7. October and February Mid-Year Adjustments shall be combined and26
applied in the March through June payments.27
III. FUNDING GUIDELINES28
A. FUNDING FOR RECOVERY SCHOOL DISTRICT29
1. State Cost Allocation30 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 20 of 39
a. The student membership and weighted student counts of schools1
transferred to the Recovery School District shall continue to be included in the2
membership and weighted student counts of the city or parish school district from3
which jurisdiction of the school was transferred.4
b. Once all final calculations are made, the final State Cost Allocation Per5
Pupil Amount for the city or parish school district which counted the Recovery6
School District students will be multiplied by the February 1 Recovery School7
District Student Membership Count to equal the Recovery School District State Cost8
Allocation.9
c. The Recovery School District State Cost Allocation is converted to a10
monthly amount that will be reduced from the monthly allocation of the district of11
prior jurisdiction and transferred to the Recovery School District.12
2. MFP Local Cost Allocation13
a. In addition to the State Cost Allocation, the Recovery School District shall14
receive an applicable Local Cost Allocation.15
Formula:16
Local Cost Allocation Per Pupil17
Equals18
Projected Local Revenues from District of Prior Jurisdiction 19
Divided by20
Total School District Membership (Recovery School District Student21
Membership Count plus Student Membership Count for the district of prior22
jurisdiction)23
b. To begin the fiscal year, the Local Cost allocation is based on eligible24
projected local revenues for the most recent prior fiscal year from the city or parish25
school district that had jurisdiction of the school prior to its transfer.26
c. For purposes of the Recovery School District calculation, local revenue27
is defined to include revenue from the following sources, excluding any portion28
which has been specifically dedicated by the legislature or by voter approval to29
capital outlay or debt service, per the definitions in the Annual Financial Report and30 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 21 of 39
the Louisiana Accounting and Uniform Governmental Handbook (LAUGH) as1
reported to the Department of Education:2
1. Sales and use taxes, less any tax collection fee paid by the school district.3
2. Ad valorem taxes, less any tax collection fee paid by the school district.4
3. Earnings from sixteenth section lands owned by the school district.5
d. The exclusion of any portion of local revenues specifically dedicated by6
the legislature or by voter approval to capital outlay or debt service, shall be7
applicable only to a charter school housed in a facility or facilities provided by the8
district in which the charter school is located.9
e. The projected local revenues shall be divided by the Total School District10
Membership Count including the Recovery School District Student Membership11
Count, both operated and charter schools, plus the Student Membership Count of the12
district of prior jurisdiction. If any Type 2 Charter School(s) resides within the13
physical boundaries of the district of prior jurisdiction, this school(s) shares in the14
local revenues of the district of prior jurisdiction. As a result, the Type 2 Charter15
School Student Membership Count will be added to the Recovery School District16
and the district of prior jurisdiction Student Membership Count.17
f. The Local Cost Allocation for the Recovery School District is determined18
by multiplying the local revenue per pupil times the number of Recovery School19
District students used in the MFP final allocation.20
Formula: 21
Local Cost Allocation22
Equals23
Projected Local Revenues from District of Prior Jurisdiction Per Pupil24
Multiplied By25
Recovery School District Student Membership Count26
g. Once the local amount is determined, it is adjusted to a monthly amount27
that is transferred from the MFP monthly allocation of the city, parish, or other local28
public school board of prior jurisdiction to the Recovery School District.29 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 22 of 39
h. Based on the October 1 Student Membership Count, the local revenue1
allocation per student will be recalculated and there will be a corresponding2
adjustment in the local revenue allocation. No recalculation of the local revenues per3
student will occur as a result of the February 1 Student Count adjustment.4
i. During the third quarter of the fiscal year, the local revenue allocation per5
student shall be adjusted to reflect actual prior year local revenue data. 6
j. A final reconciliation will occur based upon the receipt of the annual7
audited financial statements of the district of prior jurisdiction. If an increase or8
decrease in local revenue collection exists, the state superintendent may establish a9
payment schedule. In the event that the fiscal status of the district of prior10
jurisdiction or the Recovery School District changes during the fiscal year or on or11
before the final reconciliation, the state superintendent may adjust the local revenue12
based on the revenues identified.13
3. Monies appropriated to the Recovery School District, except for14
administrative costs, that are attributable to the transfer of a school from a prior15
school system and monies allocated or transferred from the prior system to the16
Recovery School District shall be expended solely on the operation of schools17
transferred from the prior system to the jurisdiction of the Recovery School District.18
B. FUNDING FOR LOUISIANA STATE UNIVERSITY AND SOUTHERN19
UNIVERSITY LABORATORY SCHOOLS20
1. Each student in the prior year February 1 Student Membership count at21
the Louisiana State University and Southern University Lab Schools shall be funded22
at the Average State Cost Allocation Per Pupil.23
2. Funds appropriated for these schools shall be allocated to the institution24
of higher education operating such a school. Each such institution of higher25
education shall ensure the equitable expenditure of such funds to operate such26
schools.27
C. FUNDING FOR TYPE 2 CHARTER SCHOOLS28
1. Any school authorized as a Type 2 Charter School approved by the State29
Board of Elementary and Secondary Education shall annually be appropriated funds30 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 23 of 39
as determined by applying the formula contained in R.S. 17:3995, except that the1
local share allocation will be funded with a transfer of the MFP monthly amount2
representing the Local Cost Allocation from the city or parish school board in which3
the attending students reside. The city or parish that has local taxing authority shall4
provide the local support for the students.5
2. Virtual Charter schools may receive, as approved by the State Board of6
Elementary and Secondary Education, a lesser percentage of the state and local7
amount calculated in R.S. 17:3995.8
3. For any student that resides on a military base, the local share allocation9
shall be funded by the State.10
4. Where student attendance is from multiple school districts, the Department11
of Education shall determine the local cost allocation based on students reported by12
the schools. The student membership count of the Type 2 charter schools shall be13
included in the membership count of the city or parish school board in which the14
student resides to determine the Local Cost Allocation.15
5. The student membership and weighted student counts of any Type 216
Charter School authorized by the State Board of Elementary and Secondary17
Education shall be included in the membership and weighted student counts of the18
city or parish school board in which the student resides using the actual prior year19
February 1 enrollment data of the Type 2 Charter School. This shall not apply in the20
first year of operation where estimated data only is available.21
D. FUNDING FOR THE OFFICE OF JUVENILE JUSTICE SCHOOLS AND22
STUDENTS23
1. Any elementary and secondary school operated by the Office of Juvenile24
Justice (OJJ) in a secure care facility shall be considered a public elementary or25
secondary school and, as such, the Office of Juvenile Justice (OJJ) shall be annually26
appropriated funds for these students as determined by applying the formula27
contained in Subsections B and C of this Section.28
2. Each student counted in the prior year average daily membership, as29
defined by the State Board of Elementary and Secondary Education, is calculated by30 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 24 of 39
dividing the number of days the student is under the guidance and direction of1
teachers by the total instructional days during the specified school year, and shall be2
funded from the minimum foundation program a State Cost Allocation Per Pupil3
equal to the amount allocated per student for the State Cost Allocation of the district4
where the student resided prior to adjudication.5
a. The State Cost Allocation Per Pupil allocation shall be adjusted based on6
a factor determined by the Louisiana Department of Education to provide for the7
differential in the number of educational days provided to the students in the custody8
of the Office of Juvenile Justice (OJJ).9
b. Additionally, the State Cost Allocation Per Pupil shall be adjusted based10
on a factor determined by the Louisiana Department of Education to recognize the11
increased number of special education students in the Office of Juvenile Justice (OJJ)12
schools relative to the state average special education student population.13
3. Each student counted in the prior year average daily membership, as14
defined by the State Board of Elementary and Secondary Education, shall be15
provided for and funded from the minimum foundation program a Local Cost16
Allocation Per Pupil equal to the Local Cost Allocation Per Pupil for the district17
where the student resided prior to adjudication.18
a. For the purpose of the Local Cost Allocation Per Pupil, the average daily19
membership of the Office of Juvenile Justice (OJJ) shall be included in the20
membership counts of the city, parish, or other local public school board in which21
the student resided prior to adjudication to the Office of Juvenile Justice.22
b. For a district(s) that shares local revenue, the allocation for the Office of23
Juvenile Justice will be completed before the calculation of local revenues.24
c. The Local Cost Allocation Per Pupil shall be funded with a transfer of the25
MFP monthly amount representing the Local Cost Allocation Per Pupil from the city,26
parish, or other local public school board in which the attending students resided27
prior to adjudication to the Office of Juvenile Justice (OJJ).28
d. The average daily membership will be reconciled on an annual basis using29
the latest available data.30 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 25 of 39
E. FUNDING FOR SPECIAL SCHOOL DISTRICT (SSD), LOUISIANA1
SCHOOL FOR THE DEAF AND VISUALLY IMPAIRED (LSDVI),2
LOUISIANA SCHOOL FOR MATH, SCIENCE AND THE ARTS (LSMSA)3
AND NEW ORLEANS CENTER FOR CREATIVE ARTS (NOCCA).4
1. Special School District (SSD), the Louisiana School for the Deaf and5
Visually Impaired (LSDVI), the Louisiana School for Math, Science and the Arts6
(LSMSA) and New Orleans Center for Creative Arts (NOCCA) shall be allocated7
funds based on the State and Local Cost Allocation for the city or parish school8
board where the attending students reside. The Local Cost Allocation will be funded9
with a transfer of the MFP monthly amount representing the Local Cost Allocation10
Per Pupil from the city or parish school board in which the attending students reside.11
Where student attendance is from multiple school districts, the Department of12
Education shall determine the Local Cost Allocation based on students reported by13
the schools.14
2. For a district(s) that shares local revenue, the allocation for SSD, LSDVI,15
LSMSA and NOCCA will be completed before the calculation of local revenues.16
3. The student membership and weighted student counts of SSD, LSDVI,17
LSMSA and NOCCA authorized by the State Board of Elementary and Secondary18
Education shall be included in the membership and weighted student counts of the19
city, parish, or other local public school board in which the student resides using the20
February 1 Student Membership Count of SSD, LSDVI, LSMSA and NOCCA.21
F. CHOICE SYSTEM22
All children regardless of cultural and economic background should have the23
ability to choose and have access to a quality education. The ultimate goal of the24
Choice System is to improve student outcomes by providing opportunities for25
parental choice regarding the delivery of educational services to students. The26
following opportunities are provided for parental choice:27
1. Course Choice Program28
Authorized educational service providers are those entities approved by the29
State to provide approved educational courses to students statewide. This program30 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 26 of 39
shall be administered by applicable laws.1
2. Student Scholarships for Educational Excellence Program (SSEEP)2
Another opportunity for parents to exercise parental choice is the Student3
Scholarships for Educational Excellence Program. This program provides parental4
choice for certain public school students enrolled in low performing public schools5
and provides an opportunity for these students to attend eligible nonpublic and public6
schools. This program shall be administered by applicable laws.7
a. For purposes of the Scholarship program, BESE will adopt an annual8
maximum tuition rate increase for participating nonpublic schools by establishing9
a percentage of the MFP per pupil in the district where the nonpublic school is10
located. Such nonpublic school may not increase its annual tuition for scholarship11
students by an amount to exceed that percentage.12
b. BESE shall measure the rate at which all schools serving scholarship13
students admit and serve students with special education needs. BESE may establish14
a lower rate of funding for those schools not meeting a minimum threshold of special15
education enrollment established by BESE.16
3. In the event that the 19th Judicial District Court judgment in LFT vs.17
State, et al (consolidated with LSBA, et al v State, et al, Docket Number 612,733,18
613,142; and 613,320) is not reversed by the Louisiana Supreme Court, the funding19
for the Student Scholarships for Educational Excellence Program (SSEEP) and20
Course Choice Program included the FY 2013-14 Minimum Foundation Program21
(MFP) formula will not be in contradiction to the District Court judgment.22
IV.ADJUSTMENTS FOR AUDIT FINDINGS AND DATA REVISIONS23
Review and/or audit of the districts' or schools' data used in determining their24
Minimum Foundation Program allocation may result in changes in final statistical25
information. The Minimum Foundation Program allocation adjustments necessary26
as a result of these audit findings will be made in the following school year. These27
adjustments are applicable to the following: city or parish school districts, Recovery28
School District, Type 2 Charter schools, Louisiana State University and Southern29
University Lab schools, Office of Juvenile Justice (OJJ) schools, Special School30 SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 27 of 39
District (SSD), Louisiana School for the Deaf and Visually Impaired (LSDVI),1
Louisiana School for Math, Science and the Arts (LSMSA), and New Orleans Center2
for Creative Arts (NOCCA).3
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby4
approve the formula developed by the State Board of Elementary and Secondary Education,5
pursuant to Article VIII, Section 13(B) of the Constitution of Louisiana, to determine the6
cost of a minimum foundation program of education in all public elementary and secondary7
schools as well as to equitably allocate the funds to parish and city school systems, and8
adopted by the board on March 8, 2013.9
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jeanne C. Johnston.
DIGEST
Appel SCR No. 23
Provides for legislative approval of the formula for FY 2013-14 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 public school systems (including
the Recovery School District, the LSU and SU laboratory schools, the Office of Juvenile
Justice schools, the La. School for Math, Science, and the Arts, the New Orleans Center for
Creative Arts, Type 2 Charter schools, the Special School District, and the La. School for
the Deaf and Visually Impaired) as developed by the State Board of Elementary and
Secondary Education (BESE) and adopted by the board on March 8, 2013.
I. FUNDING FOR CITY AND PARISH SCHOOL DISTRICTS
Present formula utilizes three levels to determine MFP funding allocations for city and
parish school systems, as follows:
• Level 1 - Cost Determination and Equitable Distribution of State and Local
Funds
• Level 2 - Incentive for Local Effort
• Level 3 - Legislative Enhancements
Proposed formula utilizes four levels to determine MFP funding allocations, as follows:
• Level 1 - Calculation of Total MFP Educational Costs and the Proportion of
the Costs Supported by the State and Local School Districts.
• Level 2 - Incentive for Local Effort
• Level 3 - Supplemental Funding
• Level 4 - School Level Funding
A. Level 1 - Calculation of Total MFP Educational Costs and the Proportion of the
Costs Supported by the State and Local School Districts.
Compared to present formula, Level 1 of proposed formula determines total MFP
educational costs, as follows:
(1)Maintains use of Feb. 1 membership as defined by BESE and provides that each
student is counted as 1.0 in the formula. SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 28 of 39
(2)Provides that students counted are enrolled in the following school districts and
schools:
• Parish and city school systems
• Recovery School District Schools, both operated and Type 5 Charter
schools
• Type 2 Charter schools
• LSU and Southern Lab Schools
• Office of Juvenile Justice (OJJ) schools
• New Orleans Center for Creative Arts (NOCCA)
• Louisiana School for Math, Science, and the Arts (LSMSA)
• Special School District (SSD)
• Louisiana School for the Deaf and Visually Impaired (LSDVI)
(3)Provides, for the FY2013-2014 MFP formula only, special assistance to the St. John
the Baptist Parish School Board for its recovery efforts from the effects of Hurricane
Isaac by maintaining the February 1 Student Membership Count for the school
district only at the February 1, 2012 Student Membership Count.
(4)Maintains the existing weight of 22% for add-on student units for at-risk and English
language learner students and re-designates this the "Low Income and English
Language Learner Weight". Deletes the directive that BESE seek to increase the at-
risk weight to 0.40 over a seven year period.
(5)Maintains the existing weight of 6% for Career and Technical Education course
units.
(6)Revises the existing weight of 150% for all Special Education/Other Exceptionalities
students and instead provides for differentiated special education weights utilizing
three categories of disabilities, as follows:
(a)Needs of the Child - based on relative cost of providing services to student.
Category 1 Weight - 40%
• Speech Articulation, Fluency, and Voice Impairments
Category 2 Weight - 55%
• Speech Language Impairments
• Intellectual Disability (Mild)
• Orthopedic Impairment
• Other Health Impairment
• Specific Learning Disability
• Developmental Delay
• Hearing Impairment (Hard of Hearing)
• Visual Impairment (Partially Seeing)
• Infants and Toddlers with Impairments
Category 3 Weight - 80%
• Intellectual Disability (Moderate)
• Intellectual Disability (Severe)
• Hearing Impairment-Deafness
• Visual Impairment- Blindness
• Emotional Disturbance
• Deaf-Blindness
• Multiple Disabilities
• Autism
• Traumatic Brain Injury
(b)How the Child is Educated - based on relative cost of environment or
placement. (Does not include speech articulation and language students or
students parentally placed in a private school.) SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 29 of 39
Category 1 Weight - 35%
• In Regular Classroom less than 40% of day
• In a Regular early childhood program less than 10 hours per week
and majority of services received in other location
Category 2 Weight - 55%
• In Regular Classroom between 40% and 79% of day
• Home and receives majority of services at other location
• In a Regular early childhood program at least 10 hours per week and
majority services received in other location
• In a Regular early childhood program less than10 hours per week and
majority services received in regular class
Category 3 Weight - 70%
• In Regular Classroom 80% or greater of day
• Home and receives majority of services at home
• Hospital/Homebound
• Separate School
• Correctional Facility
• Separate Class
• Residential Facility
• In a Regular early childhood program at least 10 hours per week and
majority services in regular class
• Ages 0-2 not yet placed
(c)How Well the Child is Educated - recognizes how well the academic interest
of students with disabilities is served.
Student Performance
• Category 1 Weight - 135% for students with disabilities whose score
in English/Language Arts or math in the Value Added Model
"exceeded expected achievement" or whose Louisiana Alternative
Assessment 1 (LAA1) or Louisiana Alternative Assessment 2
(LAA2) test results improved one or more achievement levels.
• Category 2 Weight - 175% for students with disabilities whose score
in English/Language Arts or math in the Value Added Model
"significantly exceeded expected achievement".
Graduation Rate
• Weight of 150% for students with disabilities who graduate within
four or five years of entering high school.
Continued Services After Declassification
• Weight of 150% to recognize the costs to school districts associated
with students declassified from special education but still requiring
special education services. (Does not include students identified as
developmentally delayed or speech articulation impairment.)
Solutions Prior to Referral - recognizes district academic interventions prior
to student referral for special education services.
• Weight of 12% if the change in the special education referral rate is
greater than or equal to -2.0 percent.
• Weight of 6% if the change in the special education referral rate is
between -1.99 and 0 percent.
• Weight of 3% if the change in the special education referral rate is
between .01 and 1.0 percent.
• No weight is provided if the change in the special education referral
rate is above 1.0 percent. SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 30 of 39
(7)Revises the existing weight of 60% for Special Education/Gifted and Talented
students and provides instead for two levels of gifted and talented weights, as
follows:
• Weight of 60% for students in grades Preschool through eight
identified as Gifted and Talented.
• Weight of 30% for students in grades 9 - 12 identified as Gifted and
Talented.
(8)Establishes a new "High Standards Weight" of 30%, based upon student
performance, to recognize the cost of providing advanced course work, as follows:
• Students who by the 8th grade score excellent on Algebra I End Of
Course (EOC) tests.
• Students who by the 9th grade score excellent on Geometry End Of
Course (EOC) tests or score a 3 or higher on an Advanced Placement
(AP) exam.
• Students who by the 10th grade score 3 or higher on an Advanced
Placement (AP) exam.
• Students who by the 11th grade score a 3 or higher on an Advanced
Placement (AP) exam or a 4 or higher on an International
Baccalaureate (IB) Course.
Proposed formula provides that the revisions to the Special Education and Gifted and
Talented weights and the addition of the High Standards Weight will be piloted in FY 2013-
14, as follows:
• The financial impact of incorporating these weights will be
determined by comparing the FY 2012-13 formula as originally
adopted to the same formula utilizing the revised weights.
• Increases or decreases experienced as a result of these weights will
be implemented at a rate of 10% of the true impact and will be
applied to the final FY 2013-14 total state cost allocation for each
school or school system included in the MFP formula.
(9)Maintains the Economy of Scale curvilinear weight of 20% for school systems with
a student membership of less than 7,500.
(10)Retains base per pupil funding amount of $3,855.
Proposed formula provides that Total MFP Educational Cost is equal to the Total Weighted
Membership Count multiplied by the State and Local Base Cost Per Pupil.
Present formula provides that if no annual increase is provided in the formula and the
formula previously adopted remains in effect, BESE must annually adjust the state and local
per pupil amount, with approval from the Joint Legislative Committee on the Budget
(JLCB). Further provides that if the JLCB does not approve the rate established by BESE,
then an annual growth adjustment of 2.75% shall be automatically applied to the state and
local base per pupil amount.
Proposed formula deletes these provisions and instead provides that BESE shall reconsider
the state and local base cost per pupil on an annual basis.
Compared to present formula, Level 1 of proposed formula determines the proportion
of the costs supported by the state and local school districts, as follows:
(1)Retains provisions that the calculation of the local school system share of the total
MFP cost includes a property tax revenue contribution, a sales tax revenue
contribution, and an other revenue contribution, as follows:
(a)Local Property Revenue Contribution is calculated by multiplying the State
Computed Property Tax Millage (debt and non-debt) by each school system's
Net Assessed Property Value for the latest available fiscal year including Tax SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 31 of 39
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. The computed property tax millage is calculated
annually at the rate necessary to maintain the 65% to 35% state to local
share.
(b)Local Sales Tax Revenue Contribution is calculated by dividing the district's
actual sales tax revenue collected (including debt service) by the district's
sales tax rate that was applicable to create a sales tax 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. The computed sales tax rate is calculated
annually at the rate necessary to maintain the 65% to 35% state to local
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.
(d)Retains provisions specifying that the Local Cost Allocation equals the sum
of adding the property tax contribution, the sales tax contribution, and the
other revenue contribution.
(2)Retains provisions specifying that the State Cost Allocation is calculated by
subtracting the Local Cost Allocation from the total state and local cost as
determined in Level 1.
(3)Retains provisions specifying that in no event shall the state share of the total Level
1 costs be less than 25% for any district.
B. Level 2 - Incentive for Local Effort
(1)Retains present formula provisions to provide rewards to school districts that
contribute a greater proportion of local revenue towards the cost of education by
increasing local property and sales tax revenues; as follows:
(2)Eligible Local Revenue is equal to prior year local revenues collected for educational
purposes - total sales tax, plus total property tax, plus state and federal revenue in
lieu of taxes, plus 50% of earnings on property.
(3)Local Revenue Eligible for Reward is equal to eligible local revenue minus local
share cost of allocation.
(4)Limit on Revenue Eligible for Reward is equal to the total state and local cost
multiplied by 34%.
(5)Continues provision that the Level 2 Reward Factor determines the amount of local
support required in Level 2. Establishes the Level 1 Reward Factor at 1.72% and
provides that BESE may reset this factor on an annual basis. SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 32 of 39
C. Level 3 - Supplementary Funding
Present formula designates Level 3 as Legislative Enhancements and included continuing
pay raises for certificated and non-certificated support workers, funding for foreign language
associate teachers, hold harmless funding for certain school districts, and funding for
increasing mandated costs in health insurance, retirement, and fuel. Proposed formula moves
funding for foreign language associate teachers to the new Level 4 created in the formula,
but retains all other Level 3 components included in present formula.
Continuation of Funding for Pay Raises:
(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 non-certificated support workers initiated in
2002-03, 2006-07, and 2007-08 as a per pupil amount.
Hold Harmless Enhancement
(1)Continues the 10-year phase-out of hold harmless funding for Concordia, East Baton
Rouge, Evangeline, Iberville, Jefferson, Plaquemines, St. Bernard, St. James, and
West Feliciana parishes, beginning with a 10% reduction of the revised "over
funded" amount in FY 07-08. Additionally provides that this provision remains in
effect within the formula for FY 2013-14.
(2)Retains provision that a Hold Harmless district may choose to reduce the remaining
balance by an amount greater than 10%, provided such request is made by June 30
th
each year.
(3)Present formula provides that the annual 10% reduction amount will be repurposed
and utilized as rewards for student progress. Further provides that reward schools
shall include high performing schools and schools achieving significant student
progress, as defined by BESE.
Proposed formula deletes these provisions and instead provides for these funds to be
used for monetary rewards to Top Gains schools in Level 4 of proposed formula.
Support for Increasing Mandated Costs in Health Insurance, Retirement, and Fuel
Proposed formula continues present formula provision that local school systems shall receive
a per pupil funding amount of $100 to support increasing mandated costs involving health
insurance, retirement, and fuel.
Proposed formula provides that Total Level 3 Supplementary Funding is equal to
continuation pay raises, plus hold harmless enhancement, plus support for increasing
mandated costs in health insurance, retirement, and fuel.
D. Level 4 - School Level Funding
Proposed formula creates a new Level 4, as follows:
Foreign Language Associate Enhancement
(Present formula includes funding for foreign language associate teachers in Level 3.)
Compared to present formula, proposed formula provides as follows with regard to foreign
language associate teachers:
(1)Continues the supplemental allocation of $20,000 per teacher from BESE to local
school systems that employ a Foreign Language Associate or a graduate of the SCR NO. 23
SLS 13RS-483 ORIGINAL
Page 33 of 39
Escadrille Louisiane program , not to exceed a total of 300 teachers.
(2)Retains requirement that such teachers be paid by the employing school board at
least the state average classroom teacher salary (without PIP) by years of experience
and degree beginning with year three. Proposed formula additionally provides that
the $20,000 supplemental allocation must be allocated to the school where the
teacher is employed and the funds used to support the total cost of the teacher's
salary.
(3)Retains requirement that first year teachers be paid an installment incentive of an
additional $6,000 and that second and third year teachers shall receive a retention
incentive of an additional $4,000. Specifies that these amounts will be provided by
the employing school district.
Top Gains Schools
Present formula provides for rewards for student progress. Proposed formula places this
program in Level 4 to provide monetary rewards to Top Gains schools, as follows:
(1)Provides that the state designates schools that achieve their growth target as a Top
Gains school if they are not in subgroup component failure and are not identified as
failing No Child Left Behind (NCLB) subgroup performance for more than one year.
(2)Provides that Tops Gains schools are eligible for monetary rewards that can be used
for any educational purpose within the school.
(3)Provides that the annual 10% reduction to the remaining Hold Harmless amount for
FY 2012-13 and FY 2013-14 will be utilized to support monetary rewards to Top
Gains schools in FY 2013-14.
(4)Provides that Top Gains schools shall include high performing schools and schools
achieving significant progress as defined annually by BESE.
Proposed formula provides that Total Level 4 School Level Funding is equal to the Foreign
Language Associate Program salary and stipends plus Tops Gains school rewards.
TOTAL MFP ALLOCATION
Proposed formula provides that Total MFP Allocation is equal to the combined cost
allocations in Levels 1, 2, 3, and 4 of the proposed formula.
II. ALLOCATION PROCEDURES
A. Preliminary and Final Allocations
Proposed formula retains provisions of present formula relative to the computation of
preliminary and final MFP allocations, as follows:
(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, the RSD, LSU and SU laboratory schools, OJJ , LSMSA, NOCCA,
Type 2 charter schools, SSD, and LSDVI 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, OJJ schools, LSMSA, NOCCA, Type 2 charter
schools, SSD, and LSDVI), using latest available data, no later than June 30. SCR NO. 23
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B. Payment Adjustments
Proposed formula retains present formula provisions that allow city, parish, and other local
public school systems, the RSD, LSU and SU laboratory schools, OJJ , LSMSA, NOCCA,
Type 2 charter schools, SSD, and LSDVI with documented student growth prior to actual
mid-year student counts in October and February to request a temporary change to the final
MFP allocation. If granted by the state superintendent of education, the adjusted allocation
will remain in effect until the actual October or February mid-year student count. After the
actual counts, the amounts will be reconciled and payments adjusted accordingly.
C. Mid-Year Allocation Adjustments
Proposed formula retains present formula provisions, as follows:
(1)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.
(2)If a school/school district's current Feb. 1 student count is more or less than the
current year's Oct. 1 membership, a second mid-year adjustment to per pupil funding
shall be made for each student gained or lost based on one-half the final MFP
allocation.
(3)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
and prior to the Feb 1 count.
(4)If the RSD, the district of prior jurisdiction, and local education agencies have an
increase or decrease 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 or below the membership number used in the final MFP allocation.
(5)If the RSD Oct. 1 membership count qualifies for a mid-year adjustment to state
funds, a mid-year adjustment to local per pupil funding also shall be made for each
additional student gained or lost 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.
(6)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.
Proposed formula provides that October and February mid-year adjustments will be
combined and applied in the March through June payments.
III. FUNDING GUIDELINES
A. FUNDING FOR THE RECOVERY SCHOOL DISTRICT
Continues RSD local revenue calculations contained in present formula as follows:
State Cost Allocation:
(1)The student membership and weighted student counts of schools transferred to the
RSD shall be included in the membership and weighted counts of the jurisdiction
from which the school was transferred. SCR NO. 23
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(2)Once all final calculations have been made, the final state cost allocation per pupil
amount for the city or parish school district which counted the RSD students will be
multiplied by the February 1, RSD student membership count to equal the RSD state
cost allocation.
(3)The RSD state cost allocation is converted to a monthly amount that will be reduced
from the monthly MFP allocation of the district of prior jurisdiction and transferred
to the RSD.
Local Cost Allocation:
(1)The RSD also receives an applicable local revenue per student allocation determined
by dividing the projected local revenues from the district of prior jurisdiction by
total RSD student membership count for the district of prior jurisdiction.
(2)Local revenue is defined to include revenue from the following sources, excluding
any portion specifically dedicated by the legislature or voter approval to capital
outlay or debt service:
a. Sales and use taxes, less collection fees.
b. Ad valorem taxes, less collection fees.
c. Earnings from 16
th
Section lands.
(3)Provides that exclusion of any portion of local revenues specifically dedicated by the
legislature or by voter approval to capital outlay or debt service, are applicable only
to a charter school housed in a facility or facilities owned by the district in which the
charter school is located.
(4)Projected local revenue is divided by the total school district membership count,
including RSD membership count plus the student membership count of the district
of prior jurisdiction. Type 2 charters within the district of prior jurisdiction share in
the local revenues. Type 2 charter school student membership counts will be added
to the RSD and the district of prior jurisdiction student membership counts.
(5)Once the local amount is determined it is adjusted to a monthly amount that is
transferred from the MFP monthly allocation of the local school board of prior
jurisdiction to the RSD.
(6)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.
(7)Except for administrative costs, monies appropriated to the RSD attributable to
transfer of a school from a local school board shall be expended solely on the
operation of the transferred schools.
B. FUNDING FOR LSU AND SU LAB SCHOOLS
Present formula provides that 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.
Proposed formula provides that each student in the prior year February 1 student
membership count at the LSU and SU Lab Schools shall be funded at the average state cost
allocation per pupil.
Proposed formula retains present formula requirement that MFP funds appropriated to LSU SCR NO. 23
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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.
C. FUNDING FOR TYPE 2 CHARTER SCHOOLS
Retains present formula provisions regarding the funding for Type 2 charter schools, as
follows:
(1)Type 2 charter schools 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. Specifies that the local school board that has local taxing
authority shall provide the local support for the students.
(2)Virtual charter schools may receive a lesser percentage of the state and local amount
calculated pursuant to R.S. 17:3995, as approved by BESE.
(3)The local share allocation for any student that resides on a military base shall be
funded by the state.
(4)Where student attendance is from multiple school districts, the Dept. of Education
shall determine the local share based on students reported by the schools.
(5)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.
D. FUNDING FOR THE OFFICE OF JUVENILE JUSTICE (OJJ) SCHOOLS AND
STUDENTS
Continues present formula provisions relative to funding for 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 state cost allocation per pupil amount equal to the
amount allocated per student for the state cost allocation of the district where the
student resided prior to adjudication.
a. The state cost allocation per pupil 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 cost allocation per pupil 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 cost allocation 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 cost 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. The local cost allocation per pupil shall be funded with a transfer of the MFP
monthly amount representing the local cost allocation per pupil from the SCR NO. 23
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local school board in which the attending students resided prior to
adjudication to OJJ.
E. FUNDING FOR SPECIAL SCHOOL DISTRICT (SSD), LOUISIANA SCHOOL
FOR THE DEAF AND VISUALLY IMPAIRED (LSDVI), LOUISIANA SCHOOL
FOR MATH, SCIENCE, AND THE ARTS (LSMSA), AND NEW ORLEANS
CENTER FOR CREATIVE ARTS (NOCCA)
Continues present formula provisions relative to funding for SSD, LSDVI, LSMSA AND
NOCCA as follows:
(1)Funds shall be allocated based on the state and local cost allocation for the city or
parish school board where the attending students reside.
(2)The local cost allocation will be funded with a transfer of the MFP monthly amount
representing the local cost allocation for the school district in which the student
resides. Further 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.
(3)Specifies that requirements in the formula relative to using 50% of increased funds
for pay raises for certificated personnel also apply to these schools.
(4)For districts that share local revenue, allocations will be completed before the
calculation of local revenues.
(5)Student membership and weighted student counts shall be included in the
membership and weighted counts of the local school board where the student resides
using actual prior year Feb. 1 enrollment data.
CHOICE SYSTEM
Course Choice Program
Proposed formula deletes all present formula provisions relative to eligible educational
service providers and the course choice program, including student eligibility, the cost of
courses, and allocation of MFP funding.
Proposed formula instead provides that authorized educational service providers are those
entities approved by the state to provide educational courses to students statewide. Specifies
that this program shall be administered by applicable laws.
Student Scholarships for Educational Excellence Program (SSEEP)
Proposed law retains present formula provisions as follows:
(1)BESE will adopt an annual maximum tuition rate increase for participating
nonpublic schools by establishing a percentage of the MFP per pupil in the school
district where the nonpublic school is located and such school may not increase its
annual tuition for scholarship students by an amount that exceeds that percentage.
(2)Requires BESE to measure the rate at which all schools serving scholarship students
admit and serve students with special education needs.
(3)Allows BESE to establish a lower rate of funding for schools not meeting a
minimum threshold of special education enrollment as established by BESE.
Proposed formula specifies that this program shall be administered by applicable laws. SCR NO. 23
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Proposed formula deletes all other present formula provisions relative to SSEEP, including
student eligibility, scholarship amounts, criteria for participating public schools, and MFP
allocations.
Proposed formula provides that in the event that the 19th Judicial District Court judgment
in LFT vs. State, et al (consolidated with LSBA, et al v State, et al, Docket Number 612,733,
613,142; and 613,320) is not reversed by the Louisiana Supreme Court, the funding for the
Student Scholarships for Educational Excellence Program (SSEEP) and Course Choice
Program included the FY 2013-14 Minimum Foundation Program (MFP) formula will not
be in contradiction to the District Court judgment.
Proposed formula deletes present formula provisions relative to the Early High School
Graduation Program.
IV. ADJUSTMENTS FOR AUDIT FINDINGS AND DATA REVISIONS
Continues present formula provisions as follows:
Provides 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.
REQUIRED EXPENDITURE AMOUNTS
Proposed formula deletes present formula provisions relative to required expenditures, as
follows:
(1)Required Pay Raise for Certificated Personnel
Deletes requirement that 50% of increased funds over the prior year shall only be used to
supplement full-time certificated salaries and retirement benefits for school systems, the
RSD, LSU/SU lab schools, OJJ, SSD, LSMSA, NOCCA, and Type 2 charter schools with
an average teacher salary below the SREB average teacher salary.
(2)70% Local General Fund Required Instructional Expenditure at the School
Building Level
Deletes 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 and
additionally provides as follows for a local school district that fails to meet the 70%
instructional expenditure requirement and that specifies consequences for districts that fail
to meet this requirement.
ACCOUNTABILITY PROVISIONS
Deletes the following present formula provisions relative to accountability as follows:
(1)Each school recognized by DOE will be included in a MFP Accountability Report
containing specific data and submitted to the House and Senate education
committees by June 30 of each year.
(2)Accountability for all weight factors: at-risk, career and technical education, special
education other exceptionalities, and special education gifted and talented.
(3)Annual report to DOE detailing the types of activities for which these funds were
expended to serve the needs of the weighted students.
STUDY OF FUNDING FOR PUBLIC EDUCATION
Proposed formula deletes present formula provisions directing BESE to encourage school
districts to explore utilizing student-based budgeting as a tool to improve student SCR NO. 23
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achievement.