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Regular Session, 2014
SENATE CONCURRENT RESOLUTI ON NO. 55
BY SENATOR APPEL
BESE. Provides for legislative approval of the minimum foundation program formula for
the 2014-2015 fiscal year. (8/1/14)
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 13, 2014.7
WHEREAS, the Minimum Foundation Program formula for the 2014-2015 Fiscal8
Year adopted by the State Board of Elementary and Secondary Education on March 13,9
2014, and submitted to the legislature for approval on March 14, 2014, in accordance with10
applicable law reads as follows:11
PROPOSED12
FY 2014-15 MINIMUM FOUNDATION PROGRAM FORMULA13
The FY 2014-15 Minimum Foundation Program (MFP) formula was adopted14
by the State Board of Elementary and Secondary Education on March 13, 2014. The15
formula determines allocations for city, parish, or other public school systems or16
schools. The definition of city, parish, or local public school systems and schools17
shall include city or parish school systems, Recovery School District including18 SCR NO. 55
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operated and Type 5 charter schools, Louisiana School for Math, Science, and the1
Arts (LSMSA), New Orleans Center for Creative Arts (NOCCA), Special School2
District (SSD), Louisiana School for the Deaf and Visually Impaired (LSDVI), New3
Type 2 Charter schools, Legacy Type 2 Charter schools, Office of Juvenile Justice4
(OJJ) schools, and Louisiana State University and Southern University Lab schools.5
The formula is divided into four calculations as follows:6
Level 1 determines the minimum cost of education based on the education7
needs of each student. The cost includes funding for students enrolled in city and8
parish school systems, Recovery School District operated and Type 5 Charter9
schools, New Type 2 Charter schools, New Orleans Center for Creative Arts10
(NOCCA), Louisiana School for Math, Science, and the Arts (LSMSA), Special11
School District (SSD), and Louisiana School for the Deaf and Visually Impaired12
(LSDVI). The cost is then shared equitably between the State and the city and parish13
school systems based on the ability of the systems to support education in their14
communities through local sales and property tax revenues.15
Level 2 provides an incentive for city and parish school systems to support16
education in their communities above the minimum level of financial support17
required.18
Level 3 provides specific legislative education funding to city and parish19
school systems for continuing teacher and support worker pay raises, the Hold20
Harmless provision, and mandated operating costs.21
Level 4 provides additional funding including: 22
C Supplementary funding to meet specific needs at city, parish, or other23
local school systems and schools including Foreign Associate24
Teacher Salary and Stipends Allocation, Career Development25
Allocation, High Cost Services Allocation, and Supplemental Course26
Allocation.27
C Allocations for State-Approved public school systems or schools28
including Legacy Type 2 Charter schools, Louisiana State University29
and Southern University Lab schools, and Office of Juvenile Justice30 SCR NO. 55
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(OJJ) schools.1
C Mid-Year Allocation Adjustments to account for mid-year increases2
and decreases in students in all city, parish, or other local public3
school systems or schools.4
State MFP funds shall only be expended for educational purposes.5
Expenditures for educational purposes are those expenditures related to the6
operational and instructional activities of city, parish, or other public school systems7
or schools to include: instructional programs, pupil support programs, instructional8
staff programs, school administration, general administration, business services,9
operations and maintenance of plant services, student transportation services, food10
services operations, enterprise operations, community services operations, facility11
acquisition and construction services and debt services as defined by Louisiana12
Accounting and Uniform Governmental Handbook, Bulletin 1929.13
I. FORMULA CALCULATIONS14
A. Level 1: Calculate State and Local Cost Allocation15
1. Determine Educational Costs16
Eligible students from the following school systems and schools will be17
counted in both the Base and Weighted Student Memberships:18
1. City and Parish school systems19
2. State-Approved Public Schools - The student counts of the following20
state-approved schools shall be included in the membership and21
weighted student counts of the city or parish school system in which22
the student resides:23
a) New Type 2 Charter schools,24
b) New Orleans Center for Creative Arts (NOCCA),25
c) Louisiana School for Math, Science, and the Arts (LSMSA),26
d) Special School District (SSD) and27
e) Louisiana School for the Deaf and Visually Impaired28
(LSDVI)29
3. Recovery School District - The student membership and weighted30 SCR NO. 55
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student counts of schools transferred to the Recovery School District,1
both operated and Type 5 Charter schools, shall continue to be2
included in the membership and weighted student counts of the city3
or parish school system from which jurisdiction of the school was4
transferred.5
STEP ONE: Determine the Number of Eligible Students for the Base Count6
The formula first counts each of the students enrolled on February 1 to7
determine the cost of education services. The formula utilizes the February 1 Student8
Membership Count to allocate funding beginning in July. The students eligible to9
be counted are identified in the Student Membership Definition adopted by the State10
Board of Elementary and Secondary Education. These students are counted as one11
(1.0) in the formula.12
STEP TWO: Determine the Number of Students Eligible for the Weighted13
Student Count14
The formula recognizes that providing educational services to meet the needs15
of particular students is more costly than regular educational services. Each special16
characteristic or need is given a numerical value referred to as a weight. The special17
needs of each student are taken into consideration by multiplying the student count18
for each eligible child (1.0) by each of the weights. This calculation provides19
additional students that are then added to the February 1 Student Membership Count20
to equal the Total Weighted Student Membership Count. The students and units21
eligible to be counted are identified in the Student Membership Definition adopted22
by the State Board of Elementary and Secondary Education.23
The following are the additional costs recognized by the formula:24
Low Income and English Language Learner Weight - The formula25
recognizes that students living in poverty or students with a native language other26
than English are more likely to require additional educational services to be27
successful. To recognize that these services require additional costs, students that28
qualify for free or reduced price meals under the United States Department of29
Agriculture (USDA) School Food Service Program guidelines, or an alternative30 SCR NO. 55
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count as defined in the Student Membership Definition, and students identified as an1
English Language Learner are provided a weight of 22%.2
Career and Technical Education Weight - The formula recognizes that the3
cost of providing materials and equipment, and teacher credentialing and training,4
for Career and Technical Education courses is above and beyond the cost of5
traditional academic education. Each secondary career and technical education6
course in which a student is enrolled in both the fall and spring semesters is provided7
a weight of 6%.8
Special Education Weight - The formula addresses the extra cost associated9
with the delivery of services required in order to meet the needs of students with10
disabilities. Students with disabilities that have an Individualized Education Plan11
(IEP) developed according to State Board of Elementary and Secondary Education12
regulations are provided a weight of 150%.13
Gifted and Talented Weight -The formula recognizes the cost of providing14
educational services to Gifted and Talented students that have an Individualized15
Education Plan (IEP) developed according to State Board of Elementary and16
Secondary Education regulations and are provided a 60% weight.17
Economy of Scale Weight - This weight is provided for city or parish school18
systems to recognize a base amount of funding for fixed overhead costs that should19
be provided when student populations equal 7,500 students or less. The Economy of20
Scale Weight is calculated as a curvilinear weight of 20% at a student membership21
count of zero down to 0% at a student membership count equal to or greater than22
7,500. To calculate this weight, the February 1 Student Membership Count for each23
city and parish school system is subtracted from 7,500 and divided by 37,500. The24
result of this calculation is then multiplied by each system's February 1 Student25
Membership Count to determine the weighted students.26
STEP THREE: Determine Total Weighted Student Membership Count27
Formula:28
Total Weighted Student Membership Count29
Equals30 SCR NO. 55
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February 1 Student Membership Count (1.0)1
Plus2
Low Income and English Language Learner Weight 3
Career and Technical Education Weight4
Special Education Weight5
Gifted and Talented Weight6
Economy of Scale Weight7
STEP FOUR: Identify the State and Local Base Cost Per Pupil8
Formula:9
The State and Local Base Cost Per Pupil shall equal $3,855 plus 2.7510
percent times $3,855 times the whole number of school years since 2013-2014.11
STEP FIVE: Determine Total MFP Educational Costs12
Formula:13
Total MFP Educational Costs14
Equals15
Total Weighted Student Membership Count16
Multiplied by17
State and Local Base Cost Per Pupil 18
2. Determine State and Local Cost Allocation19
The Total MFP Educational Costs are shared between the State and the city20
or parish school systems. The ability of school systems to support the cost of21
education in their communities is measured by the potential to raise local revenue.22
This potential contribution is measured by the following three factors using the latest23
available data as reported through the Annual Financial Report (AFR) as required by24
R.S. 17:92:25
1. Local Property Tax Revenue Contribution26
2. Local Sales Tax Revenue Contribution27
3. Other Local Revenue Contribution28
STEP ONE - Determine the Local Property Tax Revenue Contribution29
Formula:30 SCR NO. 55
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Local Property Tax Revenue Contribution1
Equals2
State Computed Property Tax Millage (debt and non-debt)3
Times4
Net Assessed Property Value5
Net Assessed Property Value Increase Cap - If a school system's Net6
Assessed Property Value has increased equal to or greater than 10% over the prior7
year Net Assessed Property Value, then the growth in the Net Assessed Property8
Value is capped at 10%. This cap is applied on a year-to-year basis comparing the9
current year Net Assessed Property Value to the prior year uncapped Net Assessed10
Property Value.11
Computed Property Tax Millage - The Computed Property Tax Millage is12
calculated annually at the rate necessary to maintain a state and local allocation ratio13
of 65%/35%. 14
STEP TWO - Determine the Local Sales Tax Revenue Contribution15
Formula:16
Local Sales Tax Revenue Contribution 17
Equals18
Computed Sales Tax Base (debt and non-debt) (including TIF areas) 19
Multiplied By20
State Computed Sales Tax Rate21
Mid-Year Rate Increases - If a local school system's sales tax goes into22
effect during the fiscal year, the tax rate is prorated to an annual rate applicable for23
the total revenue generated.24
Sales Tax Increase Cap - If a system's Computed Sales Tax Base increased25
equal to or greater than 15% over the Computed Sales Tax Base calculated in the26
prior year formula, then the growth in the Computed Sales Tax Base will be capped27
at 15% over the amount used in the prior year formula. This cap will be applied on28
a year-to-year basis comparing the current year sales tax base to the prior year29
uncapped sales tax base.30 SCR NO. 55
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Computed Sales Tax Rate - The Computed Sales Tax Rate is calculated1
annually at the rate necessary to maintain a state and local allocation ratio of2
65%/35%. 3
STEP THREE - Determine Other Local Revenue Contribution4
Formula:5
Other Local Revenue Contribution6
Equals7
State Revenue in lieu of taxes8
Plus9
Federal Revenue in lieu of taxes10
Plus11
50% of Earnings on Property12
STEP FOUR - Determine Local Cost Allocation13
Formula:14
Local Cost Allocation15
Equals16
Property Tax Contribution17
Plus18
Sales Tax Contribution19
Plus20
Other Revenues Contribution21
STEP FIVE - Determine State Cost Allocation22
Formula:23
State Cost Allocation24
Equals25
Total State and Local Cost26
Minus27
Local Cost Allocation28
Minimum State Cost Allocation - In no event shall the State Cost29
Allocation be less than 25% of Total Level 1 Cost for any city or parish school30 SCR NO. 55
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system.1
B. Level 2: Incentive for Local Effort2
Level 2 provides incentives for city and parish school systems that contribute a3
greater proportion of local revenues towards the cost of education in their4
communities by increasing local property and sales tax revenues. This effort is5
measured using the latest available data for the following sources of revenue as6
reported in the Annual Financial Report (AFR) as required in R. S. 17:92.7
1. Total Sales Taxes8
2. Total Property Taxes9
3. State and Federal Revenue in Lieu of Taxes10
4. 50% Earnings on Property Revenue 11
STEP ONE - Determine Eligible Local Revenue12
Formula:13
Eligible Local Revenue14
Equals15
Total Sales Tax Revenue16
Plus17
Total Property Tax Revenue18
Plus19
State and Federal Revenue in Lieu of Taxes20
Plus21
50% of Earnings on Property Revenue22
STEP TWO - Determine Local Revenue Eligible for Incentive23
Formula:24
Local Revenue Eligible for Incentive25
Equals26
Eligible Local Revenue27
Minus28
Local Cost Allocation 29
STEP THREE - Determine the Limit on Revenue Eligible for Incentive30 SCR NO. 55
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Formula:1
Limit on Revenue Eligible for Incentive2
Equals3
Total State and Local Cost Allocation4
Multiplied by5
34%6
STEP FOUR - Determine Local Support of Level 2 Incentive7
Formula:8
Local Support of Level 2 Incentive9
Equals10
Lesser of Local Revenue Eligible for Incentive or Limit on Local11
Revenue Eligible for Incentive12
Multiplied by13
Local Cost Allocation Percentage (Level 1)14
Multiplied by15
Level 2 Incentive Factor16
Level 2 Incentive Factor - The Level 2 Incentive Factor determines the17
amount of local support required in Level 2. In FY 14-15, the Level 2 Incentive18
Factor is established at 1.72. The State Board of Elementary and Secondary19
Education may reset the Level 2 Incentive Factor on an annual basis.20
STEP FIVE - Determine State Cost of Level 2 Incentive21
Formula:22
State Support of Level 2 Incentive23
Equals24
Lesser of Local Revenue Eligible for Incentive or Limit on Local25
Revenue Eligible for Incentive26
Minus27
Local Support of Level 2 Incentive28
C. Level 3: Legislative Allocations29
Level 3 provides funding for three programs that address funding for school systems30 SCR NO. 55
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and schools regarding teacher and support worker pay raises, Hold Harmless1
funding, and mandated operating costs, and are in addition to allocations provided2
in Level 1 and 2. These allocations are as follows:3
Formula:4
Total Level 3 Legislative Allocations5
Equals6
Continuation Pay Raises7
Plus8
Hold Harmless Enhancement9
Plus10
Mandated Costs in Health Insurance, Retirement, and Fuel11
STEP ONE: Calculate Continuation Funding for Pay Raises12
1. Certificated Personnel Pay Raises were implemented in four recent years to13
assist in increasing Teacher and Principal pay to the Southern Regional14
Average. These funds continue to be provided directly to systems and15
schools to support these increased salaries.16
a. Certificated Personnel Pay Raises provided in 2001-02, 2006-07,17
2007-08, and 2008-09 will continue for each school system and18
school based on the calculated per pupil amount times the February19
1 Student Membership Count.20
2. Noncertificated Support Worker Pay Raises were implemented in three21
recent years to assist with increasing these salaries.22
a. Noncertificated Support Worker Pay Raises provided in 2002-03,23
2006-07, and 2007-08 will continue for each school system and24
school based on the calculated per pupil amount times the February25
1 Student Membership Count.26
3. This provision applies to city and parish school systems, Recovery School27
District, New Orleans Center for Creative Arts (NOCCA), Louisiana School28
for Math, Science, and the Arts (LSMSA), Legacy Type 2 Charter Schools,29
New Type 2 Charter Schools, Special School District (SSD), Louisiana30 SCR NO. 55
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School for the Deaf and Visually Impaired (LSDVI), Louisiana State1
University and Southern University Lab schools, and Office of Juvenile2
Justice (OJJ).3
STEP TWO: Calculate Hold Harmless Enhancement4
Participating School Systems - The following school systems have a5
remaining Hold Harmless or "overfunded" allocation: Concordia, East Baton Rouge,6
Evangeline, Iberville, Jefferson, Plaquemines, St. Charles, St. James, and West7
Feliciana.8
Allocation Adjustment - After subtracting amounts attributable to insurance9
supplements and legislative pay raises provided between FY 1993-94 and FY10
1998-99 from the FY 2006-07 Hold Harmless amount, a revised Hold Harmless11
amount is calculated. Each of the remaining Hold Harmless school systems will12
receive a reduction of 10% to their remaining Hold Harmless allocation. On an13
annual basis, any Hold Harmless system may choose to reduce the remaining balance14
by an amount greater than 10% through formal notification to the Louisiana15
Department of Education. This request must take place no later than June 30th each16
year.17
Redistribution Allocation - The annual 10% reduction amount will be18
redistributed in a per pupil amount to all non-hold harmless systems.19
STEP THREE: Determine Allocation for Increasing Mandated Costs in Health20
Insurance, Retirement, and Fuel21
City and parish school systems shall receive a minimum of $100.00 for each22
student in the prior year February 1 membership to offset these increasing23
operational costs.24
The following formula is applied to determine the Level 1, 2, and 3 State25
Cost Allocation Per Pupil: 26
Formula:27
Level 1, 2, and 3 State Cost Allocation Per Pupil28
Equals29
Level 1 State Cost Allocation Per Pupil30 SCR NO. 55
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Plus1
Level 2 State Cost Allocation Per Pupil2
Plus3
Level 3 State Cost Allocation Per Pupil4
D. Level 4: Supplementary Allocations5
1. Specific Needs Allocations provide funding for four allocations for specific6
purposes and is in addition to system level allocations from Levels 1, 2, and 3.7
These allocations are as follows:8
Formula:9
Total Level 4 Supplementary Allocations10
Equals11
Foreign Language Associate Program Salary and Stipend Allocation12
Plus13
Career Development Allocation14
Plus15
High Cost Services Assistance Allocation16
Plus17
Supplemental Course Allocation18
STEP ONE: Calculate Foreign Language Associate Salary and Stipend19
Allocation20
Salary Allocation - Any city, parish, or other public school system or school21
employing a Foreign Language Associate or a graduate of the Escadrille Louisiane22
program shall receive a supplemental allocation from State Board of Elementary and23
Secondary Education of $21,000 per teacher. The state shall maintain support of the24
Foreign Language Associate program at a maximum of 300 Foreign Language25
Associates employed in any given year.26
These teachers shall be paid by the employing city, parish, or other local27
public school system or school at least the state average classroom teacher salary28
(without PIP) by years of experience and degree beginning with year three. Of the29
$21,000 allocation, $20,000 shall be allocated to the school where the teacher is30 SCR NO. 55
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employed and the funds used to support the total cost of the teacher salary, and the1
remaining amount shall be associated with costs of VISA sponsorship pursuant to2
State Board of Elementary and Secondary Education regulations.3
Stipend Allocation - First year teachers will receive an installation incentive4
of an additional $6,000; second and third year teachers will receive a retention5
incentive of an additional $4,000. These amounts must be provided to each Foreign6
Associate Teacher or Escadrille Louisiane graduate by each school district or school7
in which they are employed.8
STEP TWO: Career Development Allocation9
The cost of providing materials and equipment, and teacher credentialing and10
training to attain a statewide industry-based credential is above and beyond the cost11
typically required for high school courses. An allocation will be provided to support12
the development of these technical courses required for statewide credentials in city13
and parish school systems and other public schools.14
The first step in the allocation is to calculate six percent (6%) of the MFP15
State and Local Base Cost Per Pupil. This Per Pupil amount will be provided for16
each qualifying course enrollment. A minimum amount of $25,000 will be provided17
for each city and parish school system and a minimum amount of $10,000 will be18
provided for each other public school with students enrolled in grades 9 through 12.19
Formula:20
Career Development Allocation Per Pupil21
Equals22
MFP State and Local Base Cost Per Pupil23
Multiplied By24
Six Percent (6%)25
Formula:26
Career Development Allocation27
Equals28
Career Development Allocation Per Pupil29
Multiplied By30 SCR NO. 55
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Number of Students Enrolled in Qualifying Courses in Grades 9 through1
122
STEP THREE: Calculate High Cost Services Assistance3
High cost services for students with disabilities generate a particular budget4
challenge for city, parish, and other public school systems and schools.5
In an effort to assist with these expenses, an allocation will be provided to6
city, parish, and other public school systems and schools which submit7
documentation as required by the Louisiana Department of Education substantiating8
that the prior year cost of services for a specific student exceeds three times the most9
recent state average total expenditure per pupil amount.10
Once costs associated with providing services for a student with disabilities11
have been verified, the city or parish school system or other public schools will be12
eligible to receive an allocation to assist with these costs. The allocation will be13
limited by the amount budgeted for the High Cost Services Assistance Allocation.14
The first step in the allocation will be to calculate the impact of these costs15
on the budget of the school system or school using the latest available state and local16
revenue data. The High Cost Services requested for reimbursement will be reduced17
by the MFP state and local amount allocated on behalf of each student from Levels18
1, 2, and 3. The next step will rank the Percent (%) Impact from highest to lowest19
percent, with two separate rank listings for school systems and other public schools.20
Formula:21
Percent (%) Impact on Budget22
Equals23
Cost of Services24
Divided By25
Total State and Local Revenue26
The two rank listings will be divided into four tiers and allocations will be27
provided based on a percentage from one hundred percent reimbursement in the28
highest funded tier with smaller percentages reimbursed in the lower tiers based on29
where the school system or school falls within the tiers on one of the two lists.30 SCR NO. 55
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STEP FOUR: Calculate Supplemental Course Allocation1
As Louisiana's economy is creating jobs that require technical and academic2
education beyond that provided for in every school's curriculum, schedule,3
geographic region, and facility, a minimum foundation of education includes access4
to coursework not provided for within a secondary school's traditional program or5
school building, individualized to students' postsecondary interests and needs. Such6
high school credit courses shall include career and technical preparation; academic7
work required to achieve TOPS but not available due to limited resources; advanced8
coursework not available due to limited resources; dual enrollment courses providing9
advanced standing upon college admission; and intensive remediation for students10
struggling to stay on pace or graduate.11
To ensure equitable access to such individualized courses for students across12
the state, the formula shall provide any participating public school system or public13
school a Supplemental Course Allocation (SCA) based on the student count of the14
school system or school in grades 7 through 12, provided the courses, course costs,15
approved educators offering courses, and student enrollments are recognized by the16
State Board of Elementary and Secondary Education.17
Public school systems, public schools, and the Louisiana Department of18
Education shall recommend courses and educators providing these courses to the19
State Board of Elementary and Secondary Education. The State Board of Elementary20
and Secondary Education shall review and declare courses, educators, and public21
school systems or public schools eligible.22
Public school systems or public schools may choose to participate by offering23
the list of eligible courses available to their students, but they are not required to24
participate.25
All public school students in grades 7 through 12 enrolled in an eligible26
public school system or public school on February 1 shall be eligible to enroll in27
courses provided the public school system or public school has approved the28
student's enrollment.29
Public school systems or public schools may use the Supplemental Course30 SCR NO. 55
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Allocation to purchase approved courses for all eligible students.1
The allocation for each public school system or public school shall equal the2
number of students enrolled in grades 7 through 12 in each school system or school3
as of February 1 each year multiplied by $26 per pupil.4
Formula:5
Supplemental Course Allocation for School Systems and Schools6
Equals7
Supplemental Course Allocation Per Pupil8
Multiplied By9
Number of Students in Grades 7 through 12 for School Systems and10
Schools11
If the entire allocation is not committed by the public school systems or12
public school by a date set forth by the Louisiana Department of Education, the13
original allocation will be reduced by the uncommitted amount. The total14
uncommitted amount from school systems and schools will be reallocated to those15
school systems or schools that obligated one hundred percent of their original16
allocation based on criteria set forth by the Louisiana Department of Education. All17
allocated funds must be spent by the end of the fiscal year via course enrollments18
using the online registration system.19
2. Allocations for Other Public Schools20
STEP ONE: Louisiana State University and Southern University Laboratory21
Schools22
1. State Cost Allocation23
a. The February 1 Student Membership count at the Louisiana State24
University and Southern University Lab Schools shall be multiplied by the25
Average State Cost Allocation Per Pupil to equal the Louisiana State26
University and Southern University Lab Schools State Cost Allocation.27
b. Funds appropriated for these schools shall be allocated to the28
institution of higher education operating such a school. Each such institution29
of higher education shall ensure the equitable expenditure of such funds to30 SCR NO. 55
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operate such schools.1
STEP TWO: Legacy Type 2 Charter Schools2
A Legacy Type 2 Charter school is a Type 2 Charter school approved before July 1,3
2008 by the State Board of Elementary and Secondary Education.4
1. State Cost Allocation5
a. Any Legacy Type 2 Charter school shall annually be6
allocated funds as determined by applying the formula7
contained in R. S. 17:3995.8
b. The State Cost Allocation equals the number of students9
multiplied by the average State Per Pupil for the system10
where the school is located.11
2. Local Cost Allocation12
a. Any Legacy Type 2 Charter school shall annually be13
allocated funds as determined by applying the formula14
contained in R. S. 17:3995.15
b. The Local Cost Allocation equals the number of students16
multiplied by the average Local Per Pupil for the system17
where the school is located.18
c. For any student enrolled in a Legacy Type 2 Charter school,19
the Local Cost Allocation shall be funded by the State.20
3. The exclusion of any portion of local revenues specifically dedicated21
by the legislature or by voter approval to capital outlay or debt22
service shall be applicable only to a charter school housed in a23
facility or facilities provided by the district in which the charter24
school is located.25
STEP THREE: Office of Juvenile Justice (OJJ) Schools26
1. Eligible Schools - Any elementary and secondary school operated by the27
Office of Juvenile Justice (OJJ) in a secure care facility shall be considered a public28
elementary or secondary school and, as such, the Office of Juvenile Justice (OJJ)29
shall be annually appropriated funds for these students.30 SCR NO. 55
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2. Eligible Students - Each student counted in the prior year average daily1
membership, as defined by the State Board of Elementary and Secondary Education2
in the Student Membership Definition, is calculated by dividing the number of days3
the student is under the guidance and direction of teachers by the total instructional4
days during the specified school year.5
3. Allocation - The Office of Juvenile Justice (OJJ) shall annually be6
allocated funds for the eligible students. For each student enrolled in these schools,7
both a State Cost Allocation and a Local Cost Allocation shall be provided.8
4. State Cost Allocation9
a. The State Cost Allocation is equal to the State Cost Allocation Per10
Pupil for the system where each student resided prior to adjudication11
multiplied by the prior year average daily membership of the Office of12
Juvenile Justice schools.13
b. The State Cost Allocation Per Pupil allocation shall be adjusted14
based on a factor determined by the Louisiana Department of Education to15
provide for the differential in the number of educational days provided to the16
students in the custody of the Office of Juvenile Justice (OJJ).17
c. Additionally, the State Cost Allocation Per Pupil shall be adjusted18
based on a factor determined by the Louisiana Department of Education to19
recognize the increased number of special education students in the Office20
of Juvenile Justice (OJJ) schools relative to the state average special21
education student population.22
d. The average daily membership will be reconciled on an annual23
basis using the latest available data.24
5. Local Cost Allocation25
a. Each student counted in the prior year average daily membership,26
as defined by the State Board of Elementary and Secondary Education, shall27
be provided for and funded from the minimum foundation program a Local28
Cost Allocation Per Pupil equal to the Local Cost Allocation Per Pupil for the29
district where the student resided prior to adjudication.30 SCR NO. 55
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b. The Local Cost Allocation is equal to the Local Cost Allocation1
Per Pupil for the system were each student resided prior to adjudication2
multiplied by the prior year average daily membership of the Office of3
Juvenile Justice schools.4
c. For the purpose of the Local Cost Allocation Per Pupil, the average5
daily membership of the Office of Juvenile Justice (OJJ) shall be included in6
the membership counts of the city, parish, or other local public school board7
in which the student resided prior to adjudication to the Office of Juvenile8
Justice.9
d. For a district(s) that shares local revenue, the allocation for the10
Office of Juvenile Justice will be completed before the calculation of local11
revenues.12
e. The Local Cost Allocation Per Pupil shall be funded with a transfer13
of the MFP monthly amount representing the Local Cost Allocation Per Pupil14
from the city, parish, or other local public school board in which the15
attending students resided prior to adjudication to the Office of Juvenile16
Justice (OJJ).17
f. The average daily membership will be reconciled on an annual18
basis using the latest available data. 19
3. Mid-Year Student Allocations20
1. Student counts in October and February may result in mid-year allocation21
adjustments for the following:22
City and parish school systems, Recovery School District, Type 2 Charter23
schools, Louisiana State University and Southern University Lab schools,24
Special School District (SSD), Louisiana School for the Deaf and Visually25
Impaired (LSDVI), Louisiana School for Math, Science and the Arts26
(LSMSA), and New Orleans Center for Creative Arts (NOCCA).27
2. If the current year October 1 Mid-Year Student Count is more or less than28
the prior year February 1 student count, an adjustment to the current year29
allocation shall be made for each student gained or lost. The October30 SCR NO. 55
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adjustment equals the number of students gained or lost times the annual1
State Cost per pupil allocation amount for the system or school in which the2
change occurred. The February adjustment equals the number of students3
gained or lost times one-half of the State Cost per pupil allocation for the4
system or school in which the change occurred.5
3. Individual adjustments shall be made for increases or decreases in the6
October or February Mid-Year Student Counts for the Recovery School7
District, the system of prior jurisdiction, and Type 5 Charter schools.8
4. Mid-Year adjustments for the Recovery School District shall utilize the9
final State Cost per pupil allocation for the system of prior jurisdiction.10
5. If the Recovery School District qualifies for an October Mid-Year11
Adjustment to the State Cost per pupil allocation, a Mid-Year adjustment12
shall also be made to the Local Cost per pupil allocation for the system of13
prior jurisdiction. The October Local Cost per pupil allocation shall be14
recalculated based on updated revenue data for the system of prior15
jurisdiction. There shall be no recalculation of the Local Cost per pupil16
allocation in conjunction with the February 1 student count.17
6. School systems or charter schools in the first year of operation are not18
eligible for an October Mid-Year Adjustment. However, their allocation will19
be finalized using October 1 data. The newly opened school systems or20
charter schools will qualify for the February 1 mid-year adjustment.21
7. October and February Mid-Year Adjustments shall be combined and22
applied in the March through June payments.23
Total MFP State Cost Allocation24
Formula:25
Total MFP State Cost Allocation26
Equals27
Level 1 State Cost Allocation28
Plus29
Level 2 State Cost Allocation30 SCR NO. 55
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Page 22 of 30
Plus1
Level 3 State Cost Allocation2
Plus3
Level 4 State Cost Allocation4
II. FORMULA CALCULATIONS FOR STATE-APPROVED PUBLIC5
SCHOOLS6
A. RECOVERY SCHOOL DISTRICT7
1. State Cost Allocation8
a. Once all final calculations are made, the final State Cost9
Allocation Per Pupil Amount for the city or parish school10
system which counted the Recovery School District students11
will be multiplied by the February 1 Recovery School District12
Student Membership Count to equal the Recovery School13
District State Cost Allocation.14
b. In a system with one or more Type 3B charter schools, if the15
Type 3B charter is not its own LEA, the local school system16
shall distribute minimum foundation program formula funds17
to each Type 3B charter school in the system pursuant to18
calculations determined by the Louisiana Department of19
Education. If the Type 3B charter is its own LEA, such20
payments shall be made to the Type 3B charter school by the21
Louisiana Department of Education. Such calculations shall22
include differentiated funding weights for certain students,23
including students identified as being eligible for special24
education services. The calculations shall ensure equity so25
that each Type 3B charter school in the system receives a26
per-pupil amount equal to the amount a Type 5 charter school27
located in the same parish or school system boundary would28
have received from the Recovery School District (RSD).29
2. Local Cost Allocation30 SCR NO. 55
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a. In addition to the State Cost Allocation, the Recovery School District shall1
receive an applicable Local Cost Allocation.2
Formula:3
Local Cost Allocation Per Pupil4
Equals5
Projected Local Revenues from District of Prior Jurisdiction6
Divided by7
Total School District Membership (Recovery School District Student8
Membership Count plus Student Membership Count for the system of prior9
jurisdiction plus New Type 2 Charter school students residing in the10
jurisdiction)11
b. To begin the fiscal year, the Local Cost allocation is based on eligible12
projected local revenues for the most recent prior fiscal year from the city or parish13
school district that had jurisdiction of the school prior to its transfer.14
c. For purposes of the Recovery School District calculation, local revenue is15
defined to include revenue from the following sources, excluding any portion which16
has been specifically dedicated by the legislature or by voter approval to capital17
outlay or debt service, per the definitions in the Annual Financial Report (AFR) and18
the Louisiana Accounting and Uniform Governmental Handbook as reported to the19
Department of Education:20
1. Sales and use taxes, less any tax collection fee paid by the school21
system22
2. Ad valorem taxes, less any tax collection fee paid by the school23
system24
3. Earnings from sixteenth section lands owned by the school system25
d. The exclusion of any portion of local revenues specifically dedicated by26
the legislature or by voter approval to capital outlay or debt service shall be27
applicable only to a charter school housed in a facility or facilities provided by the28
system in which the charter school is located.29
e. The projected local revenues shall be divided by the Total School District30 SCR NO. 55
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Page 24 of 30
Membership Count including the Recovery School District Student Membership1
Count, both operated and charter schools, plus the Student Membership Count of the2
system of prior jurisdiction. If any New Type 2 Charter School student resides3
within the physical boundaries of the system of prior jurisdiction, this school the4
student attends shares in the local revenues of the system of prior jurisdiction. As a5
result, the New Type 2 Charter School Student Membership Count of the students6
residing in the jurisdiction will be added to the Recovery School District and the7
system of prior jurisdiction Student Membership Count.8
f. The Local Cost Allocation for the Recovery School District is determined9
by multiplying the local revenue per pupil times the number of Recovery School10
District students used in the MFP final allocation.11
Formula: 12
Local Cost Allocation13
Equals14
Projected Local Revenues from District of Prior Jurisdiction Per Pupil15
Multiplied By16
Recovery School District Student Membership Count17
g. Once the local amount is determined, it is adjusted to a monthly amount18
that is transferred from the MFP monthly allocation of the city, parish, or other local19
public school board of prior jurisdiction to the Recovery School District.20
h. Based on the October 1 Student Membership Count, the local revenue21
allocation per student will be recalculated and there will be a corresponding22
adjustment in the local revenue allocation. No recalculation of the local revenues per23
student will occur as a result of the February 1 Student Count adjustment.24
i. During the third quarter of the fiscal year, the local revenue allocation per25
student shall be adjusted to reflect actual prior year local revenue data. 26
j. A final reconciliation will occur based upon the receipt of the annual27
audited financial statements of the system of prior jurisdiction. If an increase or28
decrease in local revenue collections exists, the state superintendent may establish29
a payment schedule. In the event that the fiscal status of the system of prior30 SCR NO. 55
SLS 14RS-56 ORIGINAL
Page 25 of 30
jurisdiction or the Recovery School District changes during the fiscal year or on or1
before the final reconciliation, the state superintendent may adjust the local revenue2
based on the revenues identified.3
3. Monies appropriated to the Recovery School District, except for4
administrative costs, that are attributable to the transfer of a school from a prior5
school system and monies allocated or transferred from the prior system to the6
Recovery School District shall be expended solely on the operation of schools7
transferred from the prior system to the jurisdiction of the Recovery School District.8
B. NEW TYPE 2 CHARTER SCHOOLS9
A New Type 2 Charter school is a Type 2 Charter school approved after July10
1, 2008, by the State Board of Elementary and Secondary Education.11
1. State Cost Allocation12
a. Any New Type 2 Charter School shall annually be provided a State Cost13
Allocation as determined by applying the formula contained in R.S. 17:3995.14
b. The State Cost Allocation equals the number of students multiplied by the15
average State Cost Allocation Per Pupil for the system in which the student resides.16
c. Mid-Year Adjustments shall adhere to the guidelines established in this17
document.18
2. Local Cost Allocation19
a. Any New Type 2 Charter school shall annually be provided a Local Cost20
Allocation by applying the formula contained in R. S. 17:3995.21
b. The Local Cost Allocation equals the number of students multiplied by the22
Local Cost Allocation Per Pupil for the system in which the student resides.23
c. One exception to R. S. 17:3995 is that the Local Cost allocation will be24
funded with a transfer of the MFP monthly amount representing the Local Cost25
Allocation from the city or parish school system in which the attending students26
reside.27
d. The city or parish where students attending the New Type 2 Charter school28
reside is the local taxing authority and shall provide the local support for the29
students.30 SCR NO. 55
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Page 26 of 30
e. Mid-Year Adjustments will adhere to the guidelines established in this1
document.2
3. Virtual Charter schools may receive, as approved by the State Board of3
Elementary and Secondary Education, a lesser percentage of the state and local4
amount calculated in R.S. 17:3995.5
4. Where student attendance is from multiple school systems, the Department6
of Education shall determine the Local Cost Allocation based on students reported7
by the schools. The student membership count of the New Type 2 charter schools8
shall be included in the membership count of the city or parish school board in which9
the student resides to determine the Local Cost Allocation.10
5. In the first year of operation, a New Type 2 Charter school shall be11
allocated funding based on an estimated student count since a February 1 student12
count does not exist. The allocation will be finalized based on the October 1 student13
count.14
6. The exclusion of any portion of local revenues specifically dedicated by15
the legislature or by voter approval to capital outlay or debt service shall be16
applicable only to a charter school housed in a facility or facilities provided by the17
district in which the charter school is located.18
C. SPECIAL SCHOOL DISTRICT (SSD), LOUISIANA SCHOOL FOR THE19
DEAF AND VISUALLY IMPAIRED (LSDVI), LOUISIANA SCHOOL FOR20
MATH, SCIENCE AND THE ARTS (LSMSA) AND NEW ORLEANS21
CENTER FOR CREATIVE ARTS (NOCCA).22
1. Special School District (SSD), the Louisiana School for the Deaf and23
Visually Impaired (LSDVI), the Louisiana School for Math, Science and the Arts24
(LSMSA) and New Orleans Center for Creative Arts (NOCCA) shall be provided25
both a State and Local allocation.26
2. State Cost Allocation27
a. The State Cost Allocation shall be based on the State Cost28
Allocation Per Pupil for the city or parish school system29
where the attending students reside.30 SCR NO. 55
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Page 27 of 30
3. Local Cost Allocation1
a. The Local Cost Allocation will be based on the Local Cost2
Allocation for the city or parish school system where the3
attending students reside.4
b. The Local Cost Allocation will be funded with a transfer of5
the MFP monthly amount representing the Local Cost6
Allocation Per Pupil from the city or parish school board7
where the attending students reside.8
c. Where student attendance is from multiple school systems,9
the Department of Education shall determine the Local Cost10
Allocation based on students reported by the schools.11
4. For a system(s) that shares local revenue, the allocation for SSD,12
LSDVI, LSMSA, and NOCCA will be completed before the13
calculation of local revenues.14
5. The student membership and weighted student counts of SSD,15
LSDVI, LSMSA, and NOCCA authorized by the State Board of16
Elementary and Secondary Education shall be included in the17
membership and weighted student counts of the city, parish, or other18
public school system in which the student resides using the February19
1 Student Membership Count of SSD, LSDVI, LSMSA and NOCCA.20
III.FORMULA PROCEDURES21
A. Preliminary Allocation22
1. The minimum foundation program formula for the upcoming23
fiscal year adopted by the State Board of Elementary and24
Secondary Education, along with a preliminary allocation25
schedule representing the estimated cost of the proposed26
formula, shall be submitted to the Joint Legislative27
Committee on the Budget and to the House and Senate28
Education Committees for consideration no later than March29
15.30 SCR NO. 55
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Page 28 of 30
2. This preliminary allocation shall utilize student and other1
input data available at the time. 2
B. Final Allocation3
Final allocations for the fiscal year in which the formula takes effect4
will be determined no later than June 30 of the preceding fiscal year.5
The latest available data will be utilized to calculate the final6
allocation except that student count estimates will be utilized for7
school systems or charter schools opening for the first time in the8
fiscal year beginning July 1.9
IV.FORMULA PAYMENTS10
A. PAYMENT PROCEDURES11
1. The Total MFP State Cost Allocation for city, parish, and other12
school systems and schools will be converted to monthly payments13
from July through June each year except payments will be made on14
Level 4 allocations as data becomes available.15
B. REQUESTED PAYMENT ADJUSTMENTS16
1. If the city, parish, or other school systems and schools have17
documented growth in students prior to the actual Mid-Year Student18
Counts in October and February, a temporary change to the final19
allocation may be requested. The State Superintendent is authorized20
to approve or deny this revision. 21
a. Sufficient documentation will be requested to22
substantiate this requested allocation adjustment.23
b. The adjusted allocation will remain in effect until the24
actual October or February Mid-Year Student Count.25
Once the Mid-Year Student Count is final,26
reconciliation will be completed and payments27
adjusted accordingly.28
C. PAYMENT ADJUSTMENTS FOR AUDIT FINDINGS29
1. Review and/or audit of the systems' or schools' data used in30 SCR NO. 55
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Page 29 of 30
determining their Minimum Foundation Program allocation may result in1
changes in final statistical information. The Minimum Foundation Program2
allocation adjustments necessary as a result of these audit findings will be3
made in the following school year. These adjustments are applicable to the4
following: city or parish school systems, Recovery School District, Type 25
Charter schools, Louisiana State University and Southern University Lab6
schools, Office of Juvenile Justice (OJJ) schools, Special School District7
(SSD), Louisiana School for the Deaf and Visually Impaired (LSDVI),8
Louisiana School for Math, Science and the Arts (LSMSA), and New9
Orleans Center for Creative Arts (NOCCA).10
V. 70% EXPENDITURE REQUIREMENT11
To provide for appropriate accountability of state funds while providing local school12
system flexibility in determining specific expenditures, local school systems must13
ensure that 70% of the local school system general fund expenditures are in the areas14
of instruction and school administration at the school building level as developed by15
the Department of Education and defined by the State Board of Elementary and16
Secondary Education regulations.17
VI. SEVERABILITY PROVISION18
If any provision of this minimum foundation formula or the application19
thereof is held invalid, such invalidity shall not affect other provisions or20
applications of this minimum foundation formula which can be given effect without21
the invalid provisions or applications, and to this end the provisions of this minimum22
foundation formula are hereby declared severable. The severability provision hereof23
shall be broadly construed so as to give effect to each and every possible provision24
or application of this minimum foundation formula which is not specifically held25
invalid, unlawful, or unconstitutional.26
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby27
approve the formula developed by the State Board of Elementary and Secondary Education,28
pursuant to Article VIII, Section 13(B) of the Constitution of Louisiana, to determine the29
cost of a minimum foundation program of education in all public elementary and secondary30 SCR NO. 55
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Page 30 of 30
schools as well as to equitably allocate the funds to parish and city school systems, and1
adopted by the board on March 13, 2014.2
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. 55
Provides for approval of the 2014-2015 Minimum Foundation Program formula.