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Regular Session, 2014 ENROLLED
SENATE CONCURRENT RESOLUTI ON NO. 55
BY SENATOR APPEL
A CONCURRENT RESOLUTI ON
To provide for legislative approval of the formula developed by the State Board of
Elementary and Secondary Education pursuant to Article VIII, Section 13(B) of the
Constitution of Louisiana to determine the cost of a minimum foundation program
of education in all public elementary and secondary schools as well as to equitably
allocate the funds to parish and city school systems, adopted by the board on March
13, 2014, and amended by the board on May 12, 2014.
WHEREAS, the Minimum Foundation Program formula for the 2014-2015 Fiscal
Year was adopted by the State Board of Elementary and Secondary Education on March 13,
2014, and submitted to the legislature for approval on March 14, 2014, in accordance with
applicable law; and
WHEREAS, the Minimum Foundation Program formula for the 2014-2015 Fiscal
Year adopted by the State Board of Elementary and Secondary Education on March 13,
2014, was not approved by the legislature; and
WHEREAS, the Minimum Foundation Program formula for the 2014-2015 Fiscal
Year adopted by the State Board of Elementary and Secondary Education on March 13,
2014, was amended by the State Board of Elementary and Secondary Education on May 12,
2014, and was resubmitted to the legislature for approval on May 14, 2014, and reads as
follows:
PROPOSED
FY 2014-2015 MINIMUM FOUNDATION PROGRAM FORMULA SCR NO. 55 ENROLLED
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The FY 2014-15 Minimum Foundation Program (MFP) formula was adopted
by the State Board of Elementary and Secondary Education on March 13, 2014, and
amended May 12, 2014.
The formula determines allocations for city, parish, or other public school
systems or schools. The definition of city, parish, or local public school systems and
schools shall include city or parish school systems, Recovery School District
including operated and Type 5 charter schools, Louisiana School for Math, Science,
and the Arts (LSMSA), New Orleans Center for Creative Arts (NOCCA), New Type
2 Charter schools, Legacy Type 2 Charter schools, Office of Juvenile Justice (OJJ)
schools, and Louisiana State University and Southern University Lab schools. The
formula is divided into four calculations as follows:
Level 1 determines the minimum cost of education based on the education
needs of each student. The cost includes funding for students enrolled in city and
parish school systems, Recovery School District operated and Type 5 Charter
schools, and New Type 2 Charter schools. The cost is then shared equitably between
the State and the city and parish school systems based on the ability of the systems
to support education in their communities through local sales and property tax
revenues.
Level 2 provides an incentive for city and parish school systems to support
education in their communities above the minimum level of financial support
required.
Level 3 provides specific legislative education funding to city and parish
school systems for continuing teacher and support worker pay raises, the Hold
Harmless provision, and mandated operating costs.
Level 4 provides additional funding including:
C Supplementary funding to meet specific needs at city, parish, or other
local school systems and schools including Foreign Associate
Teacher Salary and Stipends Allocation, Career Development
Allocation, High Cost Services Allocation, and Supplemental Course
Allocation. SCR NO. 55 ENROLLED
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C Allocations for State-Approved public school systems or schools
including Legacy Type 2 Charter schools, Louisiana State University
and Southern University Lab schools, New Orleans Center for
Creative Arts (NOCCA), Louisiana School for Math, Science, and
Arts (LSMSA), and Office of Juvenile Justice (OJJ) schools.
C Mid-Year Allocation Adjustments to account for mid-year increases
and decreases in students in all city, parish, or other local public
school systems or schools.
State MFP funds shall only be expended for educational purposes.
Expenditures for educational purposes are those expenditures related to the
operational and instructional activities of city, parish, or other public school systems
or schools to include: instructional programs, pupil support programs, instructional
staff programs, school administration, general administration, business services,
operations and maintenance of plant services, student transportation services, food
services operations, enterprise operations, community services operations, facility
acquisition and construction services and debt services as defined by Louisiana
Accounting and Uniform Governmental Handbook, Bulletin 1929.
I. FORMULA CALCULATIONS
A. Level 1: Calculate State and Local Cost Allocation
1. Determine Educational Costs
Eligible students from the following school systems and schools will be
counted in both the Base and Weighted Student Memberships:
1. City and Parish school systems
2. State-Approved Public Schools - The student counts of the following
state-approved schools shall be included in the membership and
weighted student counts of the city or parish school system in which
the student resides:
a) New Type 2 Charter schools.
3. Recovery School District - The student membership and weighted
student counts of schools transferred to the Recovery School District, SCR NO. 55 ENROLLED
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both operated and Type 5 Charter schools, shall continue to be
included in the membership and weighted student counts of the city
or parish school system from which jurisdiction of the school was
transferred.
STEP ONE: Determine the Number of Eligible Students for the Base Count
The formula first counts each of the students enrolled on February 1 to
determine the cost of education services. The formula utilizes the February 1 Student
Membership Count to allocate funding beginning in July. The students eligible to
be counted are identified in the Student Membership Definition adopted by the State
Board of Elementary and Secondary Education. These students are counted as one
(1.0) in the formula.
STEP TWO: Determine the Number of Students Eligible for the Weighted
Student Count
The formula recognizes that providing educational services to meet the needs
of particular students is more costly than regular educational services. Each special
characteristic or need is given a numerical value referred to as a weight. The special
needs of each student are taken into consideration by multiplying the student count
for each eligible child (1.0) by each of the weights. This calculation provides
additional students that are then added to the February 1 Student Membership Count
to equal the Total Weighted Student Membership Count. The students and units
eligible to be counted are identified in the Student Membership Definition adopted
by the State Board of Elementary and Secondary Education.
The following are the additional costs recognized by the formula:
Low Income and English Language Learner Weight - The formula
recognizes that students living in poverty or students with a native language other
than English are more likely to require additional educational services to be
successful. To recognize that these services require additional costs, students that
qualify for free or reduced price meals under the United States Department of
Agriculture (USDA) School Food Service Program guidelines, or an alternative
count as defined in the Student Membership Definition, and students identified as an SCR NO. 55 ENROLLED
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English Language Learner are provided a weight of 22%.
Career and Technical Education Weight - The formula recognizes that the
cost of providing materials and equipment, and teacher credentialing and training,
for Career and Technical Education courses is above and beyond the cost of
traditional academic education. Each secondary career and technical education
course in which a student is enrolled in both the fall and spring semesters is provided
a weight of 6%.
Special Education Weight - The formula addresses the extra cost associated
with the delivery of services required in order to meet the needs of students with
disabilities. Students with disabilities that have an Individualized Education Plan
(IEP) developed according to State Board of Elementary and Secondary Education
regulations are provided a weight of 150%.
Gifted and Talented Weight -The formula recognizes the cost of providing
educational services to Gifted and Talented students that have an Individualized
Education Plan (IEP) developed according to State Board of Elementary and
Secondary Education regulations and are provided a 60% weight.
Economy of Scale Weight - This weight is provided for city or parish school
systems to recognize a base amount of funding for fixed overhead costs that should
be provided when student populations equal 7,500 students or less. The Economy of
Scale Weight is calculated as a curvilinear weight of 20% at a student membership
count of zero down to 0% at a student membership count equal to or greater than
7,500. To calculate this weight, the February 1 Student Membership Count for each
city and parish school system is subtracted from 7,500 and divided by 37,500. The
result of this calculation is then multiplied by each system's February 1 Student
Membership Count to determine the weighted students.
STEP THREE: Determine Total Weighted Student Membership Count
Formula:
Total Weighted Student Membership Count
Equals
February 1 Student Membership Count (1.0) SCR NO. 55 ENROLLED
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Plus
Low Income and English Language Learner Weight
Career and Technical Education Weight
Special Education Weight
Gifted and Talented Weight
Economy of Scale Weight
STEP FOUR: Identify the State and Local Base Cost Per Pupil
Formula:
The State and Local Base Cost Per Pupil shall equal $3,855 plus 2.75
percent times $3,855 for a total of $3,961.
STEP FIVE: Determine Total MFP Educational Costs
Formula:
Total MFP Educational Costs
Equals
Total Weighted Student Membership Count
Multiplied by
State and Local Base Cost Per Pupil
2. Determine State and Local Cost Allocation
The Total MFP Educational Costs are shared between the State and the city
or parish school systems. The ability of school systems to support the cost of
education in their communities is measured by the potential to raise local revenue.
This potential contribution is measured by the following three factors using the latest
available data as reported through the Annual Financial Report (AFR) as required by
R.S. 17:92:
1. Local Property Tax Revenue Contribution
2. Local Sales Tax Revenue Contribution
3. Other Local Revenue Contribution
STEP ONE - Determine the Local Property Tax Revenue Contribution
Formula:
Local Property Tax Revenue Contribution SCR NO. 55 ENROLLED
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Equals
State Computed Property Tax Millage (debt and non-debt)
Times
Net Assessed Property Value
Net Assessed Property Value Increase Cap - If a school system'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 is capped at 10%. This cap is applied on a year-to-year basis comparing the
current year Net Assessed Property Value to the prior year uncapped Net Assessed
Property Value.
Computed Property Tax Millage - The Computed Property Tax Millage is
calculated annually at the rate necessary to maintain a state and local allocation ratio
of 65%/35%.
STEP TWO - Determine the Local Sales Tax Revenue Contribution
Formula:
Local Sales Tax Revenue Contribution
Equals
Computed Sales Tax Base (debt and non-debt) (including TIF areas)
Multiplied By
State Computed Sales Tax Rate
Mid-Year Rate Increases - 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.
Sales Tax Increase Cap - If a system'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.
Computed Sales Tax Rate - The Computed Sales Tax Rate is calculated SCR NO. 55 ENROLLED
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annually at the rate necessary to maintain a state and local allocation ratio of
65%/35%.
STEP THREE - Determine Other Local Revenue Contribution
Formula:
Other Local Revenue Contribution
Equals
State Revenue in lieu of taxes
Plus
Federal Revenue in lieu of taxes
Plus
50% of Earnings on Property
STEP FOUR - Determine Local Cost Allocation
Formula:
Local Cost Allocation
Equals
Property Tax Contribution
Plus
Sales Tax Contribution
Plus
Other Revenues Contribution
STEP FIVE - Determine State Cost Allocation
Formula:
State Cost Allocation
Equals
Total State and Local Cost
Minus
Local Cost Allocation
Minimum State Cost Allocation - In no event shall the State Cost
Allocation be less than 25% of Total Level 1 Cost for any city or parish school
system. SCR NO. 55 ENROLLED
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B. Level 2: Incentive for Local Effort
Level 2 provides incentives for city and parish school systems that contribute
a greater proportion of local revenues towards the cost of education in their
communities by increasing local property and sales tax revenues. This effort is
measured using the latest available data for the following sources of revenue as
reported in the Annual Financial Report (AFR) as required in R. S. 17:92.
1. Total Sales Taxes
2. Total Property Taxes
3. State and Federal Revenue in Lieu of Taxes
4. 50% Earnings on Property Revenue
STEP ONE - Determine Eligible Local Revenue
Formula:
Eligible Local Revenue
Equals
Total Sales Tax Revenue
Plus
Total Property Tax Revenue
Plus
State and Federal Revenue in Lieu of Taxes
Plus
50% of Earnings on Property Revenue
STEP TWO - Determine Local Revenue Eligible for Incentive
Formula:
Local Revenue Eligible for Incentive
Equals
Eligible Local Revenue
Minus
Local Cost Allocation
STEP THREE - Determine the Limit on Revenue Eligible for Incentive
Formula: SCR NO. 55 ENROLLED
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Limit on Revenue Eligible for Incentive
Equals
Total State and Local Cost Allocation
Multiplied by
34%
STEP FOUR - Determine Local Support of Level 2 Incentive
Formula:
Local Support of Level 2 Incentive
Equals
Lesser of Local Revenue Eligible for Incentive or Limit on Local
Revenue Eligible for Incentive
Multiplied by
Local Cost Allocation Percentage (Level 1)
Multiplied by
Level 2 Incentive Factor
Level 2 Incentive Factor - The Level 2 Incentive Factor determines the
amount of local support required in Level 2. In FY 14-15, the Level 2 Incentive
Factor is established at 1.72.
STEP FIVE - Determine State Cost of Level 2 Incentive
Formula:
State Support of Level 2 Incentive
Equals
Lesser of Local Revenue Eligible for Incentive or Limit on Local
Revenue Eligible for Incentive
Minus
Local Support of Level 2 Incentive
C. Level 3: Legislative Allocations
Level 3 provides funding for three programs that address funding for school
systems and schools regarding teacher and support worker pay raises, Hold Harmless
funding, and mandated operating costs, and are in addition to allocations provided SCR NO. 55 ENROLLED
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in Level 1 and 2. These allocations are as follows:
Formula:
Total Level 3 Legislative Allocations
Equals
Continuation Pay Raises
Plus
Hold Harmless Enhancement
Plus
Mandated Costs in Health Insurance, Retirement, and Fuel
STEP ONE: Calculate Continuation Funding for Pay Raises
1. Certificated Personnel Pay Raises were implemented in four recent years to
assist in increasing Teacher and Principal pay to the Southern Regional
Average. These funds continue to be provided directly to systems and
schools to support these increased salaries.
a. Certificated Personnel Pay Raises provided in 2001-02, 2006-07,
2007-08, and 2008-09 will continue for each school system and
school based on the calculated per pupil amount times the February
1 Student Membership Count.
2. Noncertificated Support Worker Pay Raises were implemented in three
recent years to assist with increasing these salaries.
a. Noncertificated Support Worker Pay Raises provided in 2002-03,
2006-07, and 2007-08 will continue for each school system and
school based on the calculated per pupil amount times the February
1 Student Membership Count.
3. This provision applies to city and parish school systems, Recovery School
District, New Orleans Center for Creative Arts (NOCCA), Louisiana School
for Math, Science, and the Arts (LSMSA), Legacy Type 2 Charter Schools,
New Type 2 Charter Schools, Louisiana State University and Southern
University Lab schools, and Office of Juvenile Justice (OJJ).
STEP TWO: Calculate Hold Harmless Enhancement SCR NO. 55 ENROLLED
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Participating School Systems - The following school systems have a
remaining Hold Harmless or "overfunded" allocation: Concordia, East Baton Rouge,
Evangeline, Iberville, Jefferson, Plaquemines, St. Charles, St. James, and West
Feliciana.
Allocation Adjustment - After subtracting amounts attributable to insurance
supplements and legislative pay raises provided between FY 1993-94 and FY
1998-99 from the FY 2006-07 Hold Harmless amount, a revised Hold Harmless
amount is calculated. Each of the remaining Hold Harmless school systems will
receive a reduction of 10% to their remaining Hold Harmless allocation. On an
annual basis, any Hold Harmless system may choose to reduce the remaining balance
by an amount greater than 10% through formal notification to the Louisiana
Department of Education. This request must take place no later than June 30th each
year.
Redistribution Allocation - The annual 10% reduction amount will be
redistributed in a per pupil amount to all non-hold harmless systems.
STEP THREE: Determine Allocation for Increasing Mandated Costs in Health
Insurance, Retirement, and Fuel
City and parish school systems shall receive a minimum of $100.00 for each
student in the prior year February 1 membership to offset these increasing
operational costs.
The following formula is applied to determine the Level 1, 2, and 3 State
Cost Allocation Per Pupil:
Formula:
Level 1, 2, and 3 State Cost Allocation Per Pupil
Equals
Level 1 State Cost Allocation Per Pupil
Plus
Level 2 State Cost Allocation Per Pupil
Plus
Level 3 State Cost Allocation Per Pupil SCR NO. 55 ENROLLED
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D. Level 4: Supplementary Allocations
1. Specific Needs Allocations provide funding for four allocations for
specific purposes and is in addition to system level allocations from Levels 1, 2, and
3. These allocations are as follows:
Formula:
Total Level 4 Supplementary Allocations
Equals
Foreign Language Associate Program Salary and Stipend Allocation
Plus
Career Development Allocation
Plus
High Cost Services Assistance Allocation
Plus
Supplemental Course Allocation
STEP ONE: Calculate Foreign Language Associate Salary and Stipend
Allocation
Salary Allocation - Any city, parish, or other public school system or school
employing a Foreign Language Associate or a graduate of the Escadrille Louisiane
program shall receive a supplemental allocation from State Board of Elementary and
Secondary Education of $21,000 per teacher. The state shall maintain support of the
Foreign Language Associate program at a maximum of 300 Foreign Language
Associates employed in any given year.
These teachers shall be paid by the employing city, parish, or other local
public school system or school at least the state average classroom teacher salary
(without PIP) by years of experience and degree beginning with year three. Of the
$21,000 allocation, $20,000 shall be allocated to the school where the teacher is
employed and the funds used to support the total cost of the teacher salary, and the
remaining amount shall be associated with costs of VISA sponsorship pursuant to
State Board of Elementary and Secondary Education regulations.
Stipend Allocation - First year teachers will receive an installation incentive SCR NO. 55 ENROLLED
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of an additional $6,000; second and third year teachers will receive a retention
incentive of an additional $4,000. These amounts must be provided to each Foreign
Associate Teacher or Escadrille Louisiane graduate by each school district or school
in which they are employed.
STEP TWO: Career Development Allocation
The cost of providing materials and equipment, and teacher credentialing and
training to attain a statewide industry-based credential is above and beyond the cost
typically required for high school courses. An allocation will be provided to support
the development of these technical courses required for statewide credentials in city
and parish school systems and other public schools.
The first step in the allocation is to calculate six percent (6%) of the MFP
State and Local Base Cost Per Pupil to determine the Career Development Per Pupil
Amount. The Career Development Per Pupil Amount will be provided for each
qualifying student course enrollment in grades 9 through 12.
If a city or parish school system receives less than $25,000 from the Career
Development Per Pupil Amount, then the city or parish school system will be
provided an economies of scale minimum allocation of $25,000. If other public
schools containing grades 9 through 12 receive less than $10,000 from the Per Pupil
Amount, then the other public schools containing grades 9 through 12 will be
provided an economies of scale minimum allocation of $10,000.
Formula:
Career Development Allocation Per Pupil
Equals
MFP State and Local Base Cost Per Pupil
Multiplied By
Six Percent (6%)
Formula:
Career Development Allocation
Equals
Career Development Allocation Per Pupil SCR NO. 55 ENROLLED
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Multiplied By
Number of Students Enrolled in Qualifying Courses in Grades 9 through
12
STEP THREE: Calculate High Cost Services Assistance
High cost services for students with disabilities generate a particular budget
challenge for city, parish, and other public school systems and schools.
In an effort to assist with these expenses, an allocation will be provided to
city, parish, and other public school systems and schools which submit
documentation as required by the Louisiana Department of Education substantiating
that the prior year cost of services for a specific student exceeds three times the most
recent state average total expenditure per pupil amount.
Once costs associated with providing services for a student with disabilities
have been verified, the city or parish school system or other public schools will be
eligible to receive an allocation to assist with these costs. The allocation will be
limited by the amount budgeted for the High Cost Services Assistance Allocation.
So as to be equitably distributed, the total allocation provided to city and parish
school systems versus other public schools shall be proportional to the share of total
qualifying applications submitted by city and parish school systems versus other
public schools.
The first step in the allocation will be to calculate the impact of these costs
on the budget of the school system or school using the latest available state and local
revenue data. The High Cost Services requested for reimbursement will be reduced
by the MFP state and local amount allocated on behalf of each student from Levels
1, 2, and 3. The next step will rank the Percent (%) Impact from highest to lowest
percent, with two separate rank listings for school systems and other public schools.
Formula:
Percent (%) Impact on Budget
Equals
Cost of Services
Divided By SCR NO. 55 ENROLLED
Page 16 of 29
Total State and Local Revenue
The two rank listings will be divided into four tiers and allocations will be
provided based on a percentage from one hundred percent reimbursement in the
highest funded tier with smaller percentages reimbursed in the lower tiers based on
where the school system or school falls within the tiers on one of the two lists.
STEP FOUR: Calculate Supplemental Course Allocation
Pursuant to R.S. 17:4002.1 through 4002.6, the Supplemental Course
Allocation shall provide for the cost of secondary course choices specifically
approved by the State Board of Elementary and Secondary Education. For each city
and parish school system and other public school, the allocation shall equal the
number of students enrolled in grades 7 through 12 as of February 1 each year
multiplied by $26 per pupil.
Formula:
Supplemental Course Allocation for School Systems or Public Schools
Equals
Supplemental Course Allocation Per Pupil
Multiplied By
Number of Students in Grades 7 through 12
If the entire allocation is not committed by the city or parish public school
systems or other public school by a date set forth by the Louisiana Department of
Education, the original allocation will be reduced by the uncommitted amount. The
total uncommitted amount from each city or parish public school systems or other
public school will be reallocated to those city or parish public school systems or
other public schools that obligated one hundred percent of their original allocation
based on criteria set forth by the Louisiana Department of Education.
2. Allocations for Other Public Schools
STEP ONE: Louisiana State University and Southern University Laboratory
Schools
1. State Cost Allocation
a. The February 1 Student Membership count at the Louisiana State SCR NO. 55 ENROLLED
Page 17 of 29
University and Southern University Lab Schools shall be multiplied by the
Average State Cost Allocation Per Pupil to equal the Louisiana State
University and Southern University Lab Schools State Cost Allocation.
b. Funds appropriated for these schools shall be allocated to the
institution of higher education operating such a school. Each such institution
of higher education shall ensure the equitable expenditure of such funds to
operate such schools.
STEP TWO: Legacy Type 2 Charter Schools
A Legacy Type 2 Charter school is a Type 2 Charter school approved before
July 1, 2008 by the State Board of Elementary and Secondary Education.
1. State Cost Allocation
a. Any Legacy Type 2 Charter school shall annually be
allocated funds as determined by applying the formula
contained in R. S. 17:3995.
b. The State Cost Allocation equals the number of students
multiplied by the average State Per Pupil for the system
where the school is located.
2. Local Cost Allocation
a. Any Legacy Type 2 Charter school shall annually be
allocated funds as determined by applying the formula
contained in R. S. 17:3995.
b. The Local Cost Allocation equals the number of students
multiplied by the average Local Per Pupil for the system
where the school is located.
c. For any student enrolled in a Legacy Type 2 Charter school,
the Local Cost Allocation shall be funded by the State.
3. The exclusion of any portion of local revenues specifically dedicated
by the legislature or by voter approval to capital outlay or debt
service shall be applicable only to a charter school housed in a
facility or facilities provided by the district in which the charter SCR NO. 55 ENROLLED
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school is located.
STEP THREE: Office of Juvenile Justice (OJJ) Schools
1. Eligible Schools - Any elementary and secondary school operated by the
Office of Juvenile Justice (OJJ) in a secure care facility shall be considered a public
elementary or secondary school and, as such, the Office of Juvenile Justice (OJJ)
shall be annually appropriated funds for these students.
2. Eligible Students - Each student counted in the prior year average daily
membership, as defined by the State Board of Elementary and Secondary Education
in the Student Membership Definition, is calculated by dividing the number of days
the student is under the guidance and direction of teachers by the total instructional
days during the specified school year.
3. Allocation - The Office of Juvenile Justice (OJJ) shall annually be
allocated funds for the eligible students. For each student enrolled in these schools,
both a State Cost Allocation and a Local Cost Allocation shall be provided.
4. State Cost Allocation
a. The State Cost Allocation is equal to the State Cost Allocation Per
Pupil for the system where each student resided prior to adjudication
multiplied by the prior year average daily membership of the Office of
Juvenile Justice schools.
b. The State Cost Allocation Per Pupil allocation shall be adjusted
based on a factor determined by the Louisiana Department of Education to
provide for the differential in the number of educational days provided to the
students in the custody of the Office of Juvenile Justice (OJJ).
c. Additionally, the State Cost Allocation Per Pupil shall be adjusted
based on a factor determined by the Louisiana Department of Education to
recognize the increased number of special education students in the Office
of Juvenile Justice (OJJ) schools relative to the state average special
education student population.
d. The average daily membership will be reconciled on an annual
basis using the latest available data. SCR NO. 55 ENROLLED
Page 19 of 29
5. Local Cost Allocation
a. Each student counted in the prior year average daily membership,
as defined by the State Board of Elementary and Secondary Education, shall
be provided for and funded from the minimum foundation program a Local
Cost Allocation Per Pupil equal to the Local Cost Allocation Per Pupil for the
district where the student resided prior to adjudication.
b. The Local Cost Allocation is equal to the Local Cost Allocation
Per Pupil for the system were each student resided prior to adjudication
multiplied by the prior year average daily membership of the Office of
Juvenile Justice schools.
c. For the purpose of the Local Cost Allocation Per Pupil, the
average daily membership of the Office of Juvenile Justice (OJJ) shall be
included in the membership counts of the city, parish, or other local public
school board in which the student resided prior to adjudication to the Office
of Juvenile Justice.
d. For a district(s) that shares local revenue, the allocation for the
Office of Juvenile Justice will be completed before the calculation of local
revenues.
e. 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 city, parish, or other local public school board in which
the attending students resided prior to adjudication to the Office of Juvenile
Justice (OJJ).
f. The average daily membership will be reconciled on an annual
basis using the latest available data.
3. Mid-Year Student Allocations
1. Student counts in October and February may result in mid-year allocation
adjustments for the following:
City and parish school systems, Recovery School District, Type 2 Charter
schools, Louisiana State University and Southern University Lab schools, SCR NO. 55 ENROLLED
Page 20 of 29
Louisiana School for Math, Science and the Arts (LSMSA), and New
Orleans Center for Creative Arts (NOCCA).
2. If the current year October 1 Mid-Year Student Count is more or less than
the prior year February 1 student count, an adjustment to the current year allocation
shall be made for each student gained or lost. The October adjustment equals the
number of students gained or lost times the annual State Cost per pupil allocation
amount for the system or school in which the change occurred. The February
adjustment equals the number of students gained or lost times one-half of the State
Cost per pupil allocation for the system or school in which the change occurred.
3. Individual adjustments shall be made for increases or decreases in the
October or February Mid-Year Student Counts for the Recovery School District, the
system of prior jurisdiction, and Type 5 Charter schools.
4. Mid-Year adjustments for the Recovery School District shall utilize the
final State Cost per pupil allocation for the system of prior jurisdiction.
5. If the Recovery School District qualifies for an October Mid-Year
Adjustment to the State Cost per pupil allocation, a Mid-Year adjustment shall also
be made to the Local Cost per pupil allocation for the system of prior jurisdiction.
The October Local Cost per pupil allocation shall be recalculated based on updated
revenue data for the system of prior jurisdiction. There shall be no recalculation of
the Local Cost per pupil allocation in conjunction with the February 1 student count.
6. School systems or charter schools in the first year of operation are not
eligible for an October Mid-Year Adjustment. However, their allocation will be
finalized using October 1 data. The newly opened school systems or charter schools
will qualify for the February 1 mid-year adjustment.
7. October and February Mid-Year Adjustments shall be combined and
applied in the March through June payments.
Total MFP State Cost Allocation
Formula:
Total MFP State Cost Allocation
Equals SCR NO. 55 ENROLLED
Page 21 of 29
Level 1 State Cost Allocation
Plus
Level 2 State Cost Allocation
Plus
Level 3 State Cost Allocation
Plus
Level 4 State Cost Allocation
II.FORMULA CALCULATIONS FOR STATE-APPROVED PUBLIC
SCHOOLS
A. RECOVERY SCHOOL DISTRICT
1. State Cost Allocation
a. Once all final calculations are made, the final State Cost
Allocation Per Pupil Amount for the city or parish school
system which counted the Recovery School District students
will be multiplied by the February 1 Recovery School District
Student Membership Count to equal the Recovery School
District State Cost Allocation.
b. In a system with one or more Type 3B charter schools, if the
Type 3B charter is not its own LEA, the local school system
shall distribute minimum foundation program formula funds
to each Type 3B charter school in the system pursuant to
calculations determined by the Louisiana Department of
Education. If the Type 3B charter is its own LEA, such
payments shall be made to the Type 3B charter school by the
Louisiana Department of Education. Such calculations shall
include differentiated funding weights for certain students,
including students identified as being eligible for special
education services. The calculations shall ensure equity so
that each Type 3B charter school in the system receives a
per-pupil amount equal to the amount a Type 5 charter school SCR NO. 55 ENROLLED
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located in the same parish or school system boundary would
have received from the Recovery School District (RSD).
2. Local Cost Allocation
a. In addition to the State Cost Allocation, the Recovery School District shall
receive an applicable Local Cost Allocation.
Formula:
Local Cost Allocation Per Pupil
Equals
Projected Local Revenues from District of Prior Jurisdiction
Divided by
Total School District Membership (Recovery School District Student
Membership Count plus Student Membership Count for the system of prior
jurisdiction plus New Type 2 Charter school students residing in the
jurisdiction)
b. To begin the fiscal year, the Local Cost allocation is based on eligible
projected local revenues for the most recent prior fiscal year from the city or parish
school district that had jurisdiction of the school prior to its transfer.
c. For purposes of the Recovery School District calculation, local revenue is
defined to include revenue from the following sources, excluding any portion which
has been specifically dedicated by the legislature or by voter approval to capital
outlay or debt service, per the definitions in the Annual Financial Report (AFR) and
the Louisiana Accounting and Uniform Governmental Handbook as reported to the
Department of Education:
1. Sales and use taxes, less any tax collection fee paid by the
school system
2. Ad valorem taxes, less any tax collection fee paid by the
school system
3. Earnings from sixteenth section lands owned by the school
system
d. The exclusion of any portion of local revenues specifically dedicated by SCR NO. 55 ENROLLED
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the legislature or by voter approval to capital outlay or debt service shall be
applicable only to a charter school housed in a facility or facilities provided by the
system in which the charter school is located.
e. The projected local revenues shall be divided by the Total School District
Membership Count including the Recovery School District Student Membership
Count, both operated and charter schools, plus the Student Membership Count of the
system of prior jurisdiction. If any New Type 2 Charter School student resides
within the physical boundaries of the system of prior jurisdiction, this school the
student attends shares in the local revenues of the system of prior jurisdiction. As
a result, the New Type 2 Charter School Student Membership Count of the students
residing in the jurisdiction will be added to the Recovery School District and the
system of prior jurisdiction Student Membership Count.
f. The Local Cost Allocation for the Recovery School District is determined
by multiplying the local revenue per pupil times the number of Recovery School
District students used in the MFP final allocation.
Formula:
Local Cost Allocation
Equals
Projected Local Revenues from District of Prior Jurisdiction Per Pupil
Multiplied By
Recovery School District Student Membership Count
g. Once the local amount is determined, it is adjusted to a monthly amount
that is transferred from the MFP monthly allocation of the city, parish, or other local
public school board of prior jurisdiction to the Recovery School District.
h. Based on the October 1 Student Membership Count, the local revenue
allocation per student will be recalculated and there will be a corresponding
adjustment in the local revenue allocation. No recalculation of the local revenues per
student will occur as a result of the February 1 Student Count adjustment.
i. During the third quarter of the fiscal year, the local revenue allocation per
student shall be adjusted to reflect actual prior year local revenue data. SCR NO. 55 ENROLLED
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j. A final reconciliation will occur based upon the receipt of the annual
audited financial statements of the system of prior jurisdiction. If an increase or
decrease in local revenue collections exists, the state superintendent may establish
a payment schedule. In the event that the fiscal status of the system of prior
jurisdiction or the Recovery School District changes during the fiscal year or on or
before the final reconciliation, the state superintendent may adjust the local revenue
based on the revenues identified.
3. Monies appropriated to the Recovery School District, except for
administrative costs, that are attributable to the transfer of a school from a prior
school system and monies allocated or transferred from the prior system to the
Recovery School District shall be expended solely on the operation of schools
transferred from the prior system to the jurisdiction of the Recovery School District.
B. NEW TYPE 2 CHARTER SCHOOLS
A New Type 2 Charter school is a Type 2 Charter school approved after July
1, 2008 by the State Board of Elementary and Secondary Education.
1. State Cost Allocation
a. Any New Type 2 Charter School shall annually be provided a State Cost
Allocation as determined by applying the formula contained in R.S. 17:3995.
b. The State Cost Allocation equals the number of students multiplied by the
average State Cost Allocation Per Pupil for the system in which the student resides.
c. Mid-Year Adjustments shall adhere to the guidelines established in this
document.
2. Local Cost Allocation
a. Any New Type 2 Charter school shall annually be provided a Local Cost
Allocation by applying the formula contained in R. S. 17:3995.
b. The Local Cost Allocation equals the number of students multiplied by the
Local Cost Allocation Per Pupil for the system in which the student resides.
c. One exception to R. S. 17:3995 is that the Local Cost allocation will be
funded with a transfer of the MFP monthly amount representing the Local Cost
Allocation from the city or parish school system in which the attending students SCR NO. 55 ENROLLED
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reside.
d. The city or parish where students attending the New Type 2 Charter
school reside is the local taxing authority and shall provide the local support for the
students.
e. Mid-Year Adjustments will adhere to the guidelines established in this
document.
3. Virtual Charter schools may receive, as approved by the State Board of
Elementary and Secondary Education, a lesser percentage of the state and local
amount calculated in R.S. 17:3995.
4. Where student attendance is from multiple school systems, the Department
of Education shall determine the Local Cost Allocation based on students reported
by the schools. The student membership count of the New Type 2 charter schools
shall be included in the membership count of the city or parish school board in which
the student resides to determine the Local Cost Allocation.
5. In the first year of operation, a New Type 2 Charter school shall be
allocated funding based on an estimated student count since a February 1 student
count does not exist. The allocation will be finalized based on the October 1 student
count.
6. The exclusion of any portion of local revenues specifically dedicated by
the legislature or by voter approval to capital outlay or debt service shall be
applicable only to a charter school housed in a facility or facilities provided by the
district in which the charter school is located.
C. LOUISIANA SCHOOL FOR MATH, SCIENCE AND THE
ARTS (LSMSA) AND NEW ORLEANS CENTER FOR
CREATIVE ARTS (NOCCA).
1. The Louisiana School for Math, Science and the Arts (LSMSA) and
New Orleans Center for Creative Arts (NOCCA) shall be provided both a State and
Local allocation.
2. State Cost Allocation
a. The State Cost Allocation shall be based on the State Cost SCR NO. 55 ENROLLED
Page 26 of 29
Allocation Per Pupil for the city or parish school system
where the attending students reside.
3. Local Cost Allocation
a. The Local Cost Allocation will be based on the Local Cost
Allocation for the city or parish school system where the
attending students reside.
b. For any student enrolled in LSMSA or NOCCA, the Local
Cost Allocation shall be funded by the State.
c. Where student attendance is from multiple school systems,
the Department of Education shall determine the Local Cost
Allocation based on students reported by the schools.
III.FORMULA PROCEDURES
A. Preliminary Allocation
1. The minimum foundation program formula for the upcoming
fiscal year adopted by the State Board of Elementary and
Secondary Education, along with a preliminary allocation
schedule representing the estimated cost of the proposed
formula, shall be submitted to the Joint Legislative
Committee on the Budget and to the House and Senate
Education Committees for consideration no later than March
15.
2. This preliminary allocation shall utilize student and other
input data available at the time.
B. Final Allocation
Final allocations for the fiscal year in which the formula takes effect
will be determined no later than June 30 of the preceding fiscal year.
The latest available data will be utilized to calculate the final
allocation except that student count estimates will be utilized for
school systems or charter schools opening for the first time in the
fiscal year beginning July 1. SCR NO. 55 ENROLLED
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IV.FORMULA PAYMENTS
A. PAYMENT PROCEDURES
1. The Total MFP State Cost Allocation for city, parish, and other
school systems and schools will be converted to monthly payments
from July through June each year except payments will be made on
Level 4 allocations as data becomes available.
B. REQUESTED PAYMENT ADJUSTMENTS
1. If the city, parish, or other school systems and schools have
documented growth in students prior to the actual Mid-Year Student
Counts in October and February, a temporary change to the final
allocation may be requested. The State Superintendent is authorized
to approve or deny this revision.
a. Sufficient documentation will be requested to
substantiate this requested allocation adjustment.
b. The adjusted allocation will remain in effect until the
actual October or February Mid-Year Student Count.
Once the Mid-Year Student Count is final,
reconciliation will be completed and payments
adjusted accordingly.
C. PAYMENT ADJUSTMENTS FOR AUDIT FINDINGS
1. Review and/or audit of the systems' or schools' data used in
determining their Minimum Foundation Program allocation may
result in changes in final statistical information. The Minimum
Foundation Program allocation adjustments necessary as a result of
these audit findings will be made in the following school year. These
adjustments are applicable to the following: city or parish school
systems, Recovery School District, Type 2 Charter schools,
Louisiana State University and Southern University Lab schools,
Office of Juvenile Justice (OJJ) schools, Louisiana School for Math,
Science and the Arts (LSMSA), and New Orleans Center for Creative SCR NO. 55 ENROLLED
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Arts (NOCCA).
V. 70% EXPENDITURE REQUIREMENT
To provide for appropriate accountability of state funds while providing city,
parish, or local public school systems or other public schools flexibility in
determining specific expenditures, city, parish, or local public school systems or
other public schools must ensure that 70% of the city, parish, or local public school
system or other public school general fund expenditures are in the areas of
instruction and school administration at the school building level as developed by the
Department of Education and defined by the State Board of Elementary and
Secondary Education regulations.
VI.PAY RAISE REQUIREMENT
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. 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 this
formula, then this provision shall not apply.
VII.SEVERABILITY PROVISION
If any provision of this minimum foundation formula or the application
thereof is held invalid, such invalidity shall not affect other provisions or
applications of this minimum foundation formula which can be given effect without
the invalid provisions or applications, and to this end the provisions of this minimum
foundation formula are hereby declared severable. The severability provision hereof
shall be broadly construed so as to give effect to each and every possible provision
or application of this minimum foundation formula which is not specifically held
invalid, unlawful, or unconstitutional.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
approve the formula developed by the State Board of Elementary and Secondary Education, SCR NO. 55 ENROLLED
Page 29 of 29
pursuant to Article VIII, Section 13(B) of the Constitution of Louisiana, to determine the
cost of a minimum foundation program of education in all public elementary and secondary
schools as well as to equitably allocate the funds to parish and city school systems, and
adopted by the board on March 13, 2014, and amended by the board on May 12, 2014.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES