Appel SCR No. 55
Provides for legislative approval of the Minimum Foundation Program formula for FY 2014-
15 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 as developed by the State Board of Elementary and Secondary Education
(BESE), adopted by the board on March 13, 2014, and amended by the board on May 12,
2014.
The MFP formula currently in effect is the formula adopted by the board and approved by
the legislature for the 2011-2012 Fiscal Year.
Proposed formula has a cost of $3.595 Billion.
Proposed formula expands the traditionally used term "city, parish, or other local public
school systems" to "city, parish, or other local public school systems or schools".
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 for city, parish,
or other local public school systems or schools.
• Level 1 - Calculation State and Local Cost Allocation.
• Level 2 - Incentive for Local Effort
• Level 3 - Legislative Allocations
• Level 4 - Supplementary Allocations
Level 1 - Calculate State and Local Cost Allocation - Compared to present formula,
proposed formula:
(1)Maintains use of Feb. 1 membership as defined by BESE and provides that each
student is counted as 1.0 in the formula.
(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
(3)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 language prohibiting double counting of these
students.
(4)Maintains the existing weight of 150% for Special Education Students with
disabilities.
(5)Maintains the 60% existing weight for Gifted and Talented Students.
(6)Maintains the existing weight of 6% for Career and Technical Education course
units.
(7)Maintains the Economy of Scale curvilinear weight of 20% for school systems with
a student membership of less than 7,500. BASE PER PUPIL AMOUNT
Present formula provides a base per pupil funding amount of $3,855.
Proposed formula provides for a base per pupil funding amount of $3,961, which represents
a 2.75% increase.
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.
Compared to present formula, Level 1 of proposed formula determines the proportion
of the costs supported by the state and local school systems 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:
(2)Retains provisions specifying that in no event shall the state share of the total Level
1 costs be less than 25% for any district.
Level 2 - Incentive for Local Effort - Compared to present formula, proposed formula
provides as follows:
(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.
(2)Limit on Revenue Eligible for Reward is equal to the total state and local cost
multiplied by 34%.
(3)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%.
Level 3 - Legislative Allocations
Present formula designates Level 3 as "Legislative Enhancements" and includes 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 redesignates Level 3 as "Legislative Allocations". 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 as provided 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. (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)Retains provision that the annual 10% reduction amount will be redistributed to all
non-hold harmless districts on a per pupil basis.
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.
Level 4 - Supplementary Allocations
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:
• Increases the supplemental allocation from BESE to local school systems that employ
a Foreign Language Associate or a graduate of the Escadrille Louisiane program from
$20,000 to $21,000 per teacher. Retains provision that the number of these teachers
not to exceed a total of 300 teachers. Specifies that the additional $1,000 is to be used
toward the costs of VISA sponsorship.
• Retains requirement that these 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 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.
• 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.
Proposed formula provides for three new allocations in Level 4 as follows:
(1)Career Development Allocation - Supports technical courses required for statewide
credentials. Allocation is to be equal to 6% of the $3,961 base per pupil amount or
$238 per qualifying course enrollment. Each school system is to receive a minimum
amount of $25,000 and other state-approved public schools with students enrolled
in grades 9 - 12 will receive a minimum of $10,000 per school. Projected cost is $4
million.
(2)High Cost Services Assistance - Provides additional funds for students with
disabilities. Provides that the total allocation for public school systems versus other
public schools shall be proportional to the share of total qualifying applications
submitted by public school systems versus other public schools. Projected cost is $4
million.
(3)Supplemental Course Allocation - Pursuant to present law relative to the Course
Choice Program, provides for the cost of secondary course choices specifically
approved by BESE. The allocation for each public school system and other public
school is $26 per student enrolled in grades 7 - 12. Projected cost to MFP is $7.6
million.
70% Local General Fund Required Instructional Expenditure at the School Building
Level Proposed formula retains the requirement that 70% of general fund expenditures must be in
the areas of instruction and school administration at the school building level.
Pay Raise Requirement
Present formula requires that 50% of increased funds over the prior year shall be used to
supplement full-time certificated salaries and retirement benefits teachers in schools and
school systems with an average teacher salary below the SREB average teacher salary.
Proposed formula deletes this requirement and provides instead that if a city, parish, or local
public school system or other public school has a net increase from 2013-2014 to 2014-2015
in its per student Level 1 and 2 State Cost Allocation, the city, parish, or local public school
system or other public school shall be required to sustain the certificated classroom teacher
pay raises provided by appropriation in 2013-2014. Further provides that if the city, parish,
or local public school system or other public school has established plans to sustain or
increase the teacher pay raises provided for by the 2013-2014 appropriation prior to the
development of proposed formula, then this provision shall not apply.
Deleted Provisions:
Accountability Provisions
(1)Deletes requirement that the Department of Education annually prepare and submit
a MFP Accountability Report to the House and Senate education committees.
(2)Deletes requirement that school systems demonstrate that the funds generated
through the various weight factors be expended for the specified purpose.