HLS 15RS-1078 ENGROSSED
2015 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 18
BY REPRESENTATIVE CARTER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
EDUCATION/FINANCE: Provides for legislative approval of the MFP formula for the
2015-2016 fiscal year
1 A CONCURRENT RESOL UTION
2To provide for legislative approval of the formula developed by the State Board of
3 Elementary and Secondary Education pursuant to Article VIII, Section 13(B) of the
4 Constitution of Louisiana to determine the cost of a minimum foundation program
5 of education in all public elementary and secondary schools as well as to equitably
6 allocate the funds to parish and city school systems, and adopted by the board on
7 March 6, 2015.
8 WHEREAS, the minimum foundation program formula for Fiscal Year 2015-2016
9adopted by the State Board of Elementary and Secondary Education on March 6, 2015, and
10submitted to the legislature for approval on March 13, 2015, in accordance with applicable
11law reads as follows:
12 PROPOSED
13 FY 2015-16 MINIMUM FOUNDATION PROGRAM FORMULA
14 The FY 2015-16 Minimum Foundation Program (MFP) formula was adopted
15 by the State Board of Elementary and Secondary Education on March 6, 2015. The
16 formula determines allocations for city, parish, or other public school systems or
17 schools. The definition of city, parish, or local public school systems and schools
18 shall include city or parish school systems, Recovery School District including
19 operated and Type 5 charter schools, Louisiana School for Math, Science, and the
20 Arts (LSMSA), New Orleans Center for Creative Arts (NOCCA), New Type 2
21 Charter schools, Legacy Type 2 Charter schools, Office of Juvenile Justice (OJJ)
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1 schools, and Louisiana State University and Southern University Lab schools. The
2 formula is divided into four calculations as follows:
3 Level 1 determines the minimum cost of education based on the education
4 needs of each student. The cost includes funding for students enrolled in city and
5 parish school systems, Recovery School District operated and Type 5 Charter
6 schools, and New Type 2 Charter schools. The cost is then shared equitably between
7 the State and the city and parish school systems based on the ability of the systems
8 to support education in their communities through local sales and property tax
9 revenues.
10 Level 2 provides an incentive for city and parish school systems to support
11 education in their communities above the minimum level of financial support
12 required.
13 Level 3 provides specific legislative education funding to city and parish
14 school systems for continuing teacher and support worker pay raises, the Hold
15 Harmless provision, and mandated operating costs.
16 Level 4 provides additional funding including:
17 • Supplementary funding to meet specific needs at city, parish, or other
18 local school systems and schools including Foreign Associate
19 Teacher Salary and Stipends Allocation, Career Development
20 Allocation, High Cost Services Allocation, and Supplemental Course
21 Allocation.
22 • Allocations for State-Approved public school systems or schools
23 including Legacy Type 2 Charter schools, Louisiana State University
24 and Southern University Lab schools, New Orleans Center for
25 Creative Arts (NOCCA), Louisiana School for Math, Science, and
26 Arts (LSMSA), and Office of Juvenile Justice (OJJ) schools.
27 • Mid-Year Allocation Adjustments to account for mid-year increases
28 and decreases in students in all city, parish, or other local public
29 school systems or schools.
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1 State MFP funds shall only be expended for educational purposes.
2 Expenditures for educational purposes are those expenditures related to the
3 operational and instructional activities of city, parish, or other public school systems
4 or schools to include: instructional programs, pupil support programs, instructional
5 staff programs, school administration, general administration, business services,
6 operations and maintenance of plant services, student transportation services, food
7 services operations, enterprise operations, community services operations, facility
8 acquisition and construction services and debt services as defined by Louisiana
9 Accounting and Uniform Governmental Handbook, Bulletin 1929.
10 I. FORMULA CALCULATIONS
11 A. Level 1: Calculate State and Local Cost Allocation
12 1. Determine Educational Costs
13 Eligible students from the following school systems and schools will be
14 counted in both the Base and Weighted Student Memberships:
15 1. City and Parish school systems
16 2. State-Approved Public Schools - The student counts of the following
17 state-approved schools shall be included in the membership and
18 weighted student counts of the city or parish school system in which
19 the student resides:
20 a) New Type 2 Charter schools,
21 3. Recovery School District - The student membership and weighted
22 student counts of schools transferred to the Recovery School District,
23 both operated and Type 5 Charter schools, shall continue to be
24 included in the membership and weighted student counts of the city
25 or parish school system from which jurisdiction of the school was
26 transferred.
27 STEP ONE: Determine the Number of Eligible Students for the Base Count
28 The formula first counts each of the students enrolled on February 1 to determine
29 the cost of education services. The formula utilizes the February 1 Student
30 Membership Count to allocate funding beginning in July. The students eligible to
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1 be counted are identified in the Student Membership Definition adopted by the State
2 Board of Elementary and Secondary Education. These students are counted as one
3 (1.0) in the formula.
4 STEP TWO: Determine the Number of Students Eligible for the Weighted
5 Student Count
6 The formula recognizes that providing educational services to meet the needs of
7 particular students is more costly than regular educational services. Each special
8 characteristic or need is given a numerical value referred to as a weight. The special
9 needs of each student are taken into consideration by multiplying the student count
10 for each eligible child (1.0) by each of the weights. This calculation provides
11 additional students that are then added to the February 1 Student Membership Count
12 to equal the Total Weighted Student Membership Count. The students and units
13 eligible to be counted are identified in the Student Membership Definition adopted
14 by the State Board of Elementary and Secondary Education.
15 The following are the additional costs recognized by the formula:
16 Low Income and English Language Learner Weight - The formula recognizes
17 that students living in poverty or students with a native language other than English
18 are more likely to require additional educational services to be successful. To
19 recognize that these services require additional costs, students that qualify for free
20 or reduced price meals under the United States Department of Agriculture (USDA)
21 School Food Service Program guidelines, or an alternative count as defined in the
22 Student Membership Definition, and students identified as an English Language
23 Learner are provided a weight of 22%.
24 Career and Technical Education Weight - The formula recognizes that the cost
25 of providing materials and equipment, and teacher credentialing and training, for
26 Career and Technical Education courses is above and beyond the cost of traditional
27 academic education. Each secondary career and technical education course in which
28 a student is enrolled in both the fall and spring semesters is provided a weight of 6%.
29 Special Education Weight - The formula addresses the extra cost associated
30 with the delivery of services required in order to meet the needs of students with
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1 disabilities. Students with disabilities that have an Individualized Education Plan
2 (IEP) developed according to State Board of Elementary and Secondary Education
3 regulations are provided a weight of 150%.
4 Gifted and Talented Weight - The formula recognizes the cost of providing
5 educational services to Gifted and Talented students that have an Individualized
6 Education Plan (IEP) developed according to State Board of Elementary and
7 Secondary Education regulations and are provided a 60% weight.
8 Economy of Scale Weight - This weight is provided for city or parish school
9 systems to recognize a base amount of funding for fixed overhead costs that should
10 be provided when student populations equal 7,500 students or less. The Economy of
11 Scale Weight is calculated as a curvilinear weight of 20% at a student membership
12 count of zero down to 0% at a student membership count equal to or greater than
13 7,500. To calculate this weight, the February 1 Student Membership Count for each
14 city and parish school system is subtracted from 7,500 and divided by 37,500. The
15 result of this calculation is then multiplied by each system's February 1 Student
16 Membership Count to determine the weighted students.
17 STEP THREE: Determine Total Weighted Student Membership Count
18 Formula:
19 Total Weighted Student Membership Count
20 Equals
21 February 1 Student Membership Count (1.0)
22 Plus
23 Low Income and English Language Learner Weight
24 Career and Technical Education Weight
25 Special Education Weight
26 Gifted and Talented Weight
27 Economy of Scale Weight
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1 STEP FOUR: Identify the State and Local Base Cost Per Pupil
2 Formula:
3 The State and Local Base Cost Per Pupil shall equal $3,961 plus 1.375
4 percent times $3,961 for a total of $4,015.
5 STEP FIVE: Determine Total MFP Educational Costs
6 Formula:
7 Total MFP Educational Costs
8 Equals
9 Total Weighted Student Membership Count
10 Multiplied by
11 State and Local Base Cost Per Pupil
12 2. Determine State and Local Cost Allocation
13 The Total MFP Educational Costs are shared between the State and the city or
14 parish school systems. The ability of school systems to support the cost of education
15 in their communities is measured by the potential to raise local revenue. This
16 potential contribution is measured by the following three factors using the latest
17 available data as reported through the Annual Financial Report (AFR) as required by
18 R.S. 17:92:
19 1. Local Property Tax Revenue Contribution
20 2. Local Sales Tax Revenue Contribution
21 3. Other Local Revenue Contribution
22 STEP ONE - Determine the Local Property Tax Revenue Contribution
23 Formula:
24 Local Property Tax Revenue Contribution
25 Equals
26 State Computed Property Tax Millage (debt and non-debt)
27 Times
28 Net Assessed Property Value
29 Net Assessed Property Value Increase Cap - If a school system's Net Assessed
30 Property Value has increased equal to or greater than 10% over the prior year Net
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1 Assessed Property Value, then the growth in the Net Assessed Property Value is
2 capped at 10%. This cap is applied on a year-to-year basis comparing the current
3 year Net Assessed Property Value to the prior year uncapped Net Assessed Property
4 Value.
5 Computed Property Tax Millage - The Computed Property Tax Millage is
6 calculated annually at the rate necessary to maintain a state and local allocation ratio
7 of 65%/35%.
8 STEP TWO - Determine the Local Sales Tax Revenue Contribution
9 Formula:
10 Local Sales Tax Revenue Contribution
11 Equals
12 Computed Sales Tax Base (debt and non-debt) (including TIF areas)
13 Multiplied By
14 State Computed Sales Tax Rate
15 Mid-Year Rate Increases - If a local school system's sales tax goes into effect
16 during the fiscal year, the tax rate is prorated to an annual rate applicable for the total
17 revenue generated.
18 Sales Tax Increase Cap - If a system's Computed Sales Tax Base increased
19 equal to or greater than 15% over the Computed Sales Tax Base calculated in the
20 prior year formula, then the growth in the Computed Sales Tax Base will be capped
21 at 15% over the amount used in the prior year formula. This cap will be applied on
22 a year-to-year basis comparing the current year sales tax base to the prior year
23 uncapped sales tax base.
24 Computed Sales Tax Rate - The Computed Sales Tax Rate is calculated
25 annually at the rate necessary to maintain a state and local allocation ratio of
26 65%/35%.
27 STEP THREE - Determine Other Local Revenue Contribution
28 Formula:
29 Other Local Revenue Contribution
30 Equals
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1 State Revenue in lieu of taxes
2 Plus
3 Federal Revenue in lieu of taxes
4 Plus
5 50% of Earnings on Property
6 STEP FOUR - Determine Local Cost Allocation
7 Formula:
8 Local Cost Allocation
9 Equals
10 Property Tax Contribution
11 Plus
12 Sales Tax Contribution
13 Plus
14 Other Revenues Contribution
15 STEP FIVE - Determine State Cost Allocation
16 Formula:
17 State Cost Allocation
18 Equals
19 Total State and Local Cost
20 Minus
21 Local Cost Allocation
22 Minimum State Cost Allocation - In no event shall the State Cost Allocation
23 be less than 25% of Total Level 1 Cost for any city or parish school system.
24 B. Level 2: Incentive for Local Effort
25 Level 2 provides incentives for city and parish school systems that contribute a
26 greater proportion of local revenues towards the cost of education in their
27 communities by increasing local property and sales tax revenues. This effort is
28 measured using the latest available data for the following sources of revenue as
29 reported in the Annual Financial Report (AFR) as required in R. S. 17:92.
30 1. Total Sales Taxes
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1 2. Total Property Taxes
2 3. State and Federal Revenue in Lieu of Taxes
3 4. 50% Earnings on Property Revenue
4 STEP ONE - Determine Eligible Local Revenue
5 Formula:
6 Eligible Local Revenue
7 Equals
8 Total Sales Tax Revenue
9 Plus
10 Total Property Tax Revenue
11 Plus
12 State and Federal Revenue in Lieu of Taxes
13 Plus
14 50% of Earnings on Property Revenue
15 STEP TWO - Determine Local Revenue Eligible for Incentive
16 Formula:
17 Local Revenue Eligible for Incentive
18 Equals
19 Eligible Local Revenue
20 Minus
21 Local Cost Allocation
22 STEP THREE - Determine the Limit on Revenue Eligible for Incentive
23 Formula:
24 Limit on Revenue Eligible for Incentive
25 Equals
26 Total State and Local Cost Allocation
27 Multiplied by
28 34%
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1 STEP FOUR - Determine Local Support of Level 2 Incentive
2 Formula:
3 Local Support of Level 2 Incentive
4 Equals
5 Lesser of Local Revenue Eligible for Incentive or Limit on Local Revenue
6 Eligible for Incentive
7 Multiplied by
8 Local Cost Allocation Percentage (Level 1)
9 Multiplied by
10 Level 2 Incentive Factor
11 Level 2 Incentive Factor - The Level 2 Incentive Factor determines the amount
12 of local support required in Level 2. In FY 14-15, the Level 2 Incentive Factor is
13 established at 1.72.
14 STEP FIVE - Determine State Cost of Level 2 Incentive
15 Formula:
16 State Support of Level 2 Incentive
17 Equals
18 Lesser of Local Revenue Eligible for Incentive or Limit on Local Revenue
19 Eligible for Incentive
20 Minus
21 Local Support of Level 2 Incentive
22 C. Level 3: Legislative Allocations
23 Level 3 provides funding for three programs that address funding for school systems
24and schools regarding teacher and support worker pay raises, Hold Harmless funding, and
25mandated operating costs, and are in addition to allocations provided in Level 1 and 2.
26These allocations are as follows:
27 Formula:
28 Total Level 3 Legislative Allocations
29 Equals
30 Continuation Pay Raises
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1 Plus
2 Hold Harmless Enhancement
3 Plus
4 Mandated Costs in Health Insurance, Retirement, and Fuel
5 STEP ONE: Calculate Continuation Funding for Pay Raises
6 1.Certificated Personnel Pay Raises were implemented in four recent years to assist
7 in increasing Teacher and Principal pay to the Southern Regional Average.
8 These funds continue to be provided directly to systems and schools to support
9 these increased salaries.
10 a.Certificated Personnel Pay Raises provided in 2001-02, 2006-07, 2007-08,
11 and 2008-09 will continue for each school system and school based on the
12 calculated per pupil amount times the February 1 Student Membership
13 Count.
14 2.Noncertificated Support Worker Pay Raises were implemented in three recent
15 years to assist with increasing these salaries.
16 a.Noncertificated Support Worker Pay Raises provided in 2002-03, 2006-07,
17 and 2007-08 will continue for each school system and school based on the
18 calculated per pupil amount times the February 1 Student Membership
19 Count.
20 3.This provision applies to city and parish school systems, Recovery School
21 District, New Orleans Center for Creative Arts (NOCCA), Louisiana School for
22 Math, Science, and the Arts (LSMSA), Legacy Type 2 Charter Schools, New
23 Type 2 Charter Schools, Louisiana State University and Southern University Lab
24 schools, and Office of Juvenile Justice (OJJ).
25 STEP TWO: Calculate Hold Harmless Enhancement
26 Participating School Systems - The following school systems have a remaining
27 Hold Harmless or "overfunded" allocation: Concordia, East Baton Rouge,
28 Evangeline, Iberville, Jefferson, Plaquemines, St. Charles, St. James, and West
29 Feliciana.
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1 Allocation Adjustment - After subtracting amounts attributable to insurance
2 supplements and legislative pay raises provided between FY 1993-94 and FY
3 1998-99 from the FY 2006-07 Hold Harmless amount, a revised Hold Harmless
4 amount is calculated. Each of the remaining Hold Harmless school systems will
5 receive a reduction of 10% to their remaining Hold Harmless allocation. On an
6 annual basis, any Hold Harmless system may choose to reduce the remaining balance
7 by an amount greater than 10% through formal notification to the Louisiana
8 Department of Education. This request must take place no later than June 30th each
9 year.
10 Redistribution Allocation - The annual 10% reduction amount will be
11 redistributed in a per pupil amount to all non-hold harmless systems.
12 STEP THREE: Determine Allocation for Increasing Mandated Costs in Health
13 Insurance, Retirement, and Fuel
14 City and parish school systems shall receive a minimum of $100.00 for each
15 student in the prior year February 1 membership to offset these increasing
16 operational costs.
17 The following formula is applied to determine the Level 1, 2, and 3 State Cost
18 Allocation Per Pupil:
19 Formula:
20 Level 1, 2, and 3 State Cost Allocation Per Pupil
21 Equals
22 Level 1 State Cost Allocation Per Pupil
23 Plus
24 Level 2 State Cost Allocation Per Pupil
25 Plus
26 Level 3 State Cost Allocation Per Pupil
27 D. Level 4: Supplementary Allocations
28 1. Specific Needs Allocations provide funding for four allocations for specific
29 purposes and is in addition to system level allocations from Levels 1, 2, and 3. These
30 allocations are as follows:
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1 Formula:
2 Total Level 4 Supplementary Allocations
3 Equals
4 Foreign Language Associate Program Salary and Stipend Allocation
5 Plus
6 Career Development Allocation
7 Plus
8 High Cost Services Assistance Allocation
9 Plus
10 Supplemental Course Allocation
11 STEP ONE: Calculate Foreign Language Associate Salary and Stipend
12 Allocation
13 Salary Allocation - Any city, parish, or other public school system or school
14 employing a Foreign Language Associate or a graduate of the Escadrille Louisiane
15 program shall receive a supplemental allocation from State Board of Elementary and
16 Secondary Education of $21,000 per teacher. The state shall maintain support of the
17 Foreign Language Associate program at a maximum of 300 Foreign Language
18 Associates employed in any given year.
19 These teachers shall be paid by the employing city, parish, or other local public
20 school system or school at least the state average classroom teacher salary (without
21 PIP) by years of experience and degree beginning with year three. Of the $21,000
22 allocation, $20,000 shall be allocated to the school where the teacher is employed
23 and the funds used to support the total cost of the teacher salary, and the remaining
24 amount shall be associated with costs of VISA sponsorship pursuant to State Board
25 of Elementary and Secondary Education regulations.
26 Stipend Allocation - First year teachers will receive an installation incentive of
27 an additional $6,000; second and third year teachers will receive a retention incentive
28 of an additional $4,000. These amounts must be provided to each Foreign Associate
29 Teacher or Escadrille Louisiane graduate by each school district or school in which
30 they are employed.
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1 STEP TWO: Career Development Allocation
2 The cost of providing materials and equipment, and teacher credentialing and
3 training to attain a statewide industry-based credential is above and beyond the cost
4 typically required for high school courses. An allocation will be provided to support
5 the development of these technical courses required for statewide credentials in city
6 and parish school systems and other public schools.
7 The first step in the allocation is to calculate six percent (6%) of the MFP State
8 and Local Base Cost Per Pupil to determine the Career Development Per Pupil
9 Amount. The Career Development Per Pupil Amount will be provided for each
10 qualifying student course enrollment in grades 9 through 12.
11 If a city and parish school system receives less than $25,000 from the Career
12 Development Per Pupil Amount, then the city or parish school system will be
13 provided an economies of scale minimum allocation of $25,000. If local public
14 school systems and schools containing grades 9-12 receive less than $10,000 from
15 the Per Pupil allocation, then the other public schools containing grades 9-12 will be
16 provided an economies of scale minimum allocation of $10,000.
17 Formula:
18 Career Development Allocation Per Pupil
19 Equals
20 MFP State and Local Base Cost Per Pupil
21 Multiplied By
22 Six Percent (6%)
23 Formula:
24 Career Development Allocation
25 Equals
26 Career Development Allocation Per Pupil
27 Multiplied By
28 Number of Student Enrollments in Qualifying Courses in Grades 9 through
29 12
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1 STEP THREE: Calculate High Cost Services Assistance
2 High cost services for students with disabilities generate a particular budget
3 challenge for city, parish, and other public school systems and schools.
4 In an effort to assist with these expenses, an allocation will be provided to city,
5 parish, and other public school systems and schools which submit documentation as
6 required by the Louisiana Department of Education substantiating that the current
7 cost of services for a specific student including estimated costs for new services, or
8 new students, exceeds three times the most recent state average total expenditure per
9 pupil amount.
10 Once costs associated with providing services for a student with disabilities have
11 been verified, the city or parish school system or other public schools will be eligible
12 to receive an allocation to assist with these costs. The allocation will be limited by
13 the amount budgeted for the High Cost Services Assistance Allocation. So as to be
14 equitably distributed, the total allocation provided to city and parish school systems
15 versus other public schools shall be proportional to the share of total qualifying
16 applications submitted by city and parish school systems versus other public schools.
17 Based on the $9.4 million available, all entities within each group, city and parish
18 school systems and other public school systems, shall receive the same percent of the
19 requested allocation. The High Cost Services requested for reimbursement will be
20 reduced by the MFP state and local amount allocated on behalf of each student from
21 Levels 1, 2, and 3.
22 STEP FOUR: Calculate Supplemental Course Allocation
23 Pursuant to R.S. 17:4002.1 through 4002.6, the Supplemental Course Allocation
24 shall provide for the cost of secondary courses specifically approved by the State
25 Board of Elementary and Secondary Education. For each city and parish school
26 system and other public school, the allocation shall equal the number of students
27 enrolled in grades 7 through 12 as of February 1 each year multiplied by $35 per
28 pupil.
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1 Formula:
2 Supplemental Course Allocation for School Systems or Other Public Schools
3 Equals
4 Supplemental Course Allocation Per Pupil
5 Multiplied By
6 Number of Students in Grades 7 through 12
7 If the entire allocation is not committed by the city or parish public school
8 system or other public school by a date set forth by the Louisiana Department of
9 Education, the original allocation will be reduced by the uncommitted amount. The
10 total uncommitted amount from each city or parish public school system or other
11 public school will be reallocated to those city or parish public school systems or
12 other public schools that obligated one hundred percent of their original allocation
13 based on criteria set forth by the Louisiana Department of Education.
14 2. Allocations for Other Public Schools
15 STEP ONE: Louisiana State University and Southern University Laboratory
16 Schools
17 1.State Cost Allocation
18 a. The February 1 Student Membership count at the Louisiana State
19 University and Southern University Lab Schools shall be multiplied
20 by the Average State Cost Allocation Per Pupil to equal the Louisiana
21 State University and Southern University Lab Schools State Cost
22 Allocation.
23 b. Funds appropriated for these schools shall be allocated to the
24 institution of higher education operating such a school. Each such
25 institution of higher education shall ensure the equitable expenditure
26 of such funds to operate such schools.
27 STEP TWO: Legacy Type 2 Charter Schools
28 A Legacy Type 2 Charter school is a Type 2 Charter school approved before July 1,
29 2008 by the State Board of Elementary and Secondary Education.
30 1.State Cost Allocation
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1 a. Any Legacy Type 2 Charter school shall annually be allocated funds
2 as determined by applying the formula contained in R. S. 17:3995.
3 b. The State Cost Allocation equals the number of students multiplied
4 by the State Per Pupil for the system where the school is located.
5 2.Local Cost Allocation
6 a. Any Legacy Type 2 Charter school shall annually be allocated funds
7 as determined by applying the formula contained in R. S. 17:3995.
8 b. The Local Cost Allocation equals the number of students multiplied
9 by the Local Per Pupil for the system where the school is located.
10 c. For any student enrolled in a Legacy Type 2 Charter school, the
11 Local Cost Allocation shall be funded by the State.
12 3.The exclusion of any portion of local revenues specifically dedicated by the
13 legislature or by voter approval to capital outlay or debt service shall be
14 applicable only to a charter school housed in a facility or facilities provided
15 by the district in which the charter school is located.
16 STEP THREE: Office of Juvenile Justice (OJJ) Schools
17 1. Eligible Schools - Any elementary and secondary school operated by the
18 Office of Juvenile Justice (OJJ) in a secure care facility shall be considered a public
19 elementary or secondary school and, as such, the Office of Juvenile Justice (OJJ)
20 shall be annually appropriated funds for these students.
21 2. Eligible Students - Each student counted in the prior year average daily
22 membership, as defined by the State Board of Elementary and Secondary Education
23 in the Student Membership Definition, is calculated by dividing the number of days
24 the student is under the guidance and direction of teachers by the total instructional
25 days during the specified school year.
26 3. Allocation - The Office of Juvenile Justice (OJJ) shall annually be allocated
27 funds for the eligible students. For each student enrolled in these schools, both a
28 State Cost Allocation and a Local Cost Allocation shall be provided.
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1 4. State Cost Allocation
2 a. The State Cost Allocation is equal to the State Cost Allocation Per
3 Pupil for the system where each student resided prior to adjudication multiplied by
4 the prior year average daily membership of the Office of Juvenile Justice schools.
5 b. The State Cost Allocation Per Pupil allocation shall be adjusted based
6 on a factor determined by the Louisiana Department of Education to provide for the
7 differential in the number of educational days provided to the students in the custody
8 of the Office of Juvenile Justice (OJJ).
9 c. Additionally, the State Cost Allocation Per Pupil shall be adjusted based
10 on a factor determined by the Louisiana Department of Education to recognize the
11 increased number of special education students in the Office of Juvenile Justice (OJJ)
12 schools relative to the state average special education student population.
13 d. The average daily membership will be reconciled on an annual basis using
14 the latest available data.
15 5. Local Cost Allocation
16 a. Each student counted in the prior year average daily membership, as
17 defined by the State Board of Elementary and Secondary Education, shall be
18 provided for and funded from the minimum foundation program a Local Cost
19 Allocation Per Pupil equal to the Local Per Pupil for the district where the student
20 resided prior to adjudication.
21 b. The Local Cost Allocation is equal to the Local Cost Allocation Per Pupil
22 for the system were each student resided prior to adjudication multiplied by the prior
23 year average daily membership of the Office of Juvenile Justice schools.
24 c. For the purpose of the Local Cost Allocation Per Pupil, the average daily
25 membership of the Office of Juvenile Justice (OJJ) shall be included in the
26 membership counts of the city, parish, or other local public school board in which
27 the student resided prior to adjudication to the Office of Juvenile Justice.
28 d. For a district(s) that shares local revenue, the allocation for the Office of
29 Juvenile Justice will be completed before the calculation of local revenues.
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1 e. The Local Cost Allocation Per Pupil shall be funded with a transfer of the
2 MFP monthly amount representing the Local Cost Allocation Per Pupil from the city,
3 parish, or other local public school board in which the attending students resided
4 prior to adjudication to the Office of Juvenile Justice (OJJ).
5 f. The average daily membership will be reconciled on an annual basis using
6 the latest available data.
7 3. Mid-Year Student Allocations
8 1. Student counts in October and February may result in mid-year allocation
9 adjustments for the following:
10 City and parish school systems, Recovery School District, New Type 2
11 Charter schools, Legacy Type 2 Charter schools, Louisiana State University
12 and Southern University Lab schools, Louisiana School for Math, Science
13 and the Arts (LSMSA), and New Orleans Center for Creative Arts
14 (NOCCA).
15 2. If the current year October 1 Mid-Year Student Count is more or less than
16 the prior year February 1 student count, an adjustment to the current year
17 allocation shall be made for each student gained or lost. The October
18 adjustment equals the number of students gained or lost times the annual
19 State Cost per pupil allocation amount for the system or school in which the
20 change occurred. The February adjustment equals the number of students
21 gained or lost times one-half of the State Cost per pupil allocation for the
22 system or school in which the change occurred.
23 3. Individual adjustments shall be made for increases or decreases in the
24 October or February Mid-Year Student Counts for the Recovery School
25 District, the system of prior jurisdiction, and Type 5 Charter schools.
26 4. Mid-Year adjustments for the Recovery School District shall utilize the
27 final State Cost per pupil allocation for the system of prior jurisdiction.
28 5. If the Recovery School District qualifies for an October Mid-Year
29 Adjustment to the State Cost per pupil allocation, a Mid-Year adjustment
30 shall also be made to the Local Cost per pupil allocation for the system of
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1 prior jurisdiction. The October Local Cost per pupil allocation shall be
2 recalculated based on updated revenue data for the system of prior
3 jurisdiction. There shall be no recalculation of the Local Cost per pupil
4 allocation in conjunction with the February 1 student count.
5 6. City, parish or other public school systems or schools in the first year of
6 operation are not eligible for an October Mid-Year Adjustment. However,
7 their allocation will be finalized using October 1 data. The newly opened
8 city, parish or other public school systems or schools will qualify for the
9 February 1 mid-year adjustment.
10 7. October and February Mid-Year Adjustments shall be combined and
11 applied in the March through June payments.
12 Total MFP State Cost Allocation
13 Formula:
14 Total MFP State Cost Allocation
15 Equals
16 Level 1 State Cost Allocation
17 Plus
18 Level 2 State Cost Allocation
19 Plus
20 Level 3 State Cost Allocation
21 Plus
22 Level 4 State Cost Allocation
23 II. FORMULA CALCULATIONS FOR STATE-APPROVED PUBLIC
24 SCHOOLS
25 A. RECOVERY SCHOOL DISTRICT
26 1. State Cost Allocation
27 a. Once all final calculations are made, the final State Cost Allocation
28 Per Pupil Amount for the city or parish school system which counted
29 the Recovery School District students will be multiplied by the
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1 February 1 Recovery School District Student Membership Count to
2 equal the Recovery School District State Cost Allocation.
3 b. In a system with one or more Type 3B charter schools, if the Type 3B
4 charter is not its own LEA, the local school system shall distribute
5 minimum foundation program formula funds to each Type 3B charter
6 school in the system pursuant to calculations determined by the
7 Louisiana Department of Education. If the Type 3B charter is its
8 own LEA, such payments shall be made to the Type 3B charter
9 school by the Louisiana Department of Education. Such calculations
10 shall include differentiated funding weights for certain students,
11 including students identified as being eligible for special education
12 services. The calculations shall ensure equity so that each Type 3B
13 charter school in the system receives a per-pupil amount equal to the
14 amount a Type 5 charter school located in the same parish or school
15 system boundary would have received from the Recovery School
16 District (RSD).
17 2. Local Cost Allocation
18 a. In addition to the State Cost Allocation, the Recovery School District shall
19 receive an applicable Local Cost Allocation.
20 Formula:
21 Local Cost Allocation Per Pupil
22 Equals
23 Projected Local Revenues from District of Prior Jurisdiction
24 Divided by
25 Total School District Membership (Recovery School District Student
26 Membership Count plus Student Membership Count for the system of prior
27 jurisdiction plus New Type 2 Charter school students residing in the
28 jurisdiction)
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1 b. To begin the fiscal year, the Local Cost allocation is based on eligible
2 projected local revenues for the most recent prior fiscal year from the city or parish
3 school district that had jurisdiction of the school prior to its transfer.
4 c. For purposes of the Recovery School District calculation, local revenue
5 is defined to include revenue from the following sources, excluding any portion
6 which has been specifically dedicated by the legislature or by voter approval to
7 capital outlay or debt service, per the definitions in the Annual Financial Report
8 (AFR) and the Louisiana Accounting and Uniform Governmental Handbook as
9 reported to the Department of Education:
10 1. Sales and use taxes, less any tax collection fee paid by the school
11 system
12 2. Ad valorem taxes, less any tax collection fee paid by the school
13 system
14 3. Earnings from sixteenth section lands owned by the school system
15 d. The exclusion of any portion of local revenues specifically dedicated by
16 the legislature or by voter approval to capital outlay or debt service shall be
17 applicable only to a charter school housed in a facility or facilities provided by the
18 system in which the charter school is located.
19 e. The projected local revenues shall be divided by the Total School District
20 Membership Count including the Recovery School District Student Membership
21 Count, both operated and charter schools, plus the Student Membership Count of the
22 system of prior jurisdiction. If any New Type 2 Charter School student resides
23 within the physical boundaries of the system of prior jurisdiction, this school the
24 student attends shares in the local revenues of the system of prior jurisdiction. As
25 a result, the New Type 2 Charter School Student Membership Count of the students
26 residing in the jurisdiction will be added to the Recovery School District and the
27 system of prior jurisdiction Student Membership Count.
28 f. The Local Cost Allocation for the Recovery School District is determined
29 by multiplying the local revenue per pupil times the number of Recovery School
30 District students used in the MFP final allocation.
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1 Formula:
2 Local Cost Allocation
3 Equals
4 Projected Local Revenues from District of Prior Jurisdiction Per Pupil
5 Multiplied By
6 Recovery School District Student Membership Count
7 g. Once the local amount is determined, it is adjusted to a monthly amount
8 that is transferred from the MFP monthly allocation of the city, parish, or other local
9 public school board of prior jurisdiction to the Recovery School District.
10 h. Based on the October 1 Student Membership Count, the local revenue
11 allocation per student will be recalculated and there will be a corresponding
12 adjustment in the local revenue allocation. No recalculation of the local revenues per
13 student will occur as a result of the February 1 Student Count adjustment.
14 i. During the third quarter of the fiscal year, the local revenue allocation per
15 student shall be adjusted to reflect actual prior year local revenue data.
16 j. A final reconciliation will occur based upon the receipt of the annual
17 audited financial statements of the system of prior jurisdiction. If an increase or
18 decrease in local revenue collections exists, the state superintendent may establish
19 a payment schedule. In the event that the fiscal status of the system of prior
20 jurisdiction or the Recovery School District changes during the fiscal year or on or
21 before the final reconciliation, the state superintendent may adjust the local revenue
22 based on the revenues identified.
23 3. Monies appropriated to the Recovery School District, except for administrative
24costs, that are attributable to the transfer of a school from a prior school system and monies
25allocated or transferred from the prior system to the Recovery School District shall be
26expended solely on the operation of schools transferred from the prior system to the
27jurisdiction of the Recovery School District.
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HCR NO. 18
1 B. NEW TYPE 2 CHARTER SCHOOLS
2 A New Type 2 Charter school is a Type 2 Charter school approved after July 1,
3 2008 by the State Board of Elementary and Secondary Education.
4 1. State Cost Allocation
5 a. Any New Type 2 Charter School shall annually be provided a State Cost
6 Allocation as determined by applying the formula contained in R.S. 17:3995.
7 b. The State Cost Allocation equals the number of students multiplied by the
8 State Cost Allocation Per Pupil for the system in which the student resides.
9 c. Mid-Year Adjustments shall adhere to the guidelines established in this
10 document.
11 2. Local Cost Allocation
12 a. Any New Type 2 Charter school shall annually be provided a Local Cost
13 Allocation by applying the funding formula contained in R. S. 17:3995.
14 b. The Local Cost Allocation equals the number of students multiplied by the
15 Local Per Pupil for the system in which the student resides.
16 c. One exception to R. S. 17:3995 is that the Local Cost allocation will be
17 funded with a transfer of the MFP monthly amount representing the Local Per Pupil
18 from the city or parish school system in which the attending students reside.
19 d. The city or parish where students attending the New Type 2 Charter
20 school reside is the local taxing authority and shall provide the local support for the
21 students.
22 e. Mid-Year Adjustments will adhere to the guidelines established in this
23 document.
24 3. Virtual Charter schools may receive, as approved by the State Board of
25 Elementary and Secondary Education, a lesser percentage of the state and local
26 amount calculated in R.S. 17:3995.
27 4. Where student attendance is from multiple school systems, the Department
28 of Education shall determine the Local Cost Allocation based on students reported
29 by the schools. The student membership count of the New Type 2 charter schools
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HCR NO. 18
1 shall be included in the membership count of the city or parish school board in which
2 the student resides to determine the Local Cost Allocation.
3 5. In the first year of operation, a New Type 2 Charter school shall be allocated
4 funding based on an estimated student count since a February 1 student count does
5 not exist. The allocation will be finalized based on the October 1 student count.
6 6. The exclusion of any portion of local revenues specifically dedicated by the
7 legislature or by voter approval to capital outlay or debt service shall be applicable
8 only to a charter school housed in a facility or facilities provided by the district in
9 which the charter school is located.
10 C. LOUISIANA SCHOOL FOR MATH, SCIENCE AND THE ARTS
11 (LSMSA) AND NEW ORLEANS CENTER FOR CREATIVE ARTS (NOCCA).
12 1. The Louisiana School for Math, Science and the Arts (LSMSA) and New
13 Orleans Center for Creative Arts (NOCCA) shall be provided both a State and Local
14 allocation.
15 2. State Cost Allocation
16 a. The State Cost Allocation shall be based on the State Cost Allocation
17 Per Pupil for the city or parish school system where the attending
18 students reside.
19 3. Local Cost Allocation
20 a. The Local Cost Allocation will be based on the Local Cost Allocation
21 Per Pupil for the city or parish school system where the attending
22 students reside.
23 b. For any student enrolled in LSMSA or NOCCA, the Local Cost
24 Allocation shall be funded by the State. Where student attendance is
25 from multiple school systems, the Department of Education shall
26 determine the Local Cost Allocation based on students reported by
27 the schools.
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HCR NO. 18
1 III. FORMULA PROCEDURES
2 A. Preliminary Allocation
3 1. The minimum foundation program formula for the upcoming fiscal
4 year adopted by the State Board of Elementary and Secondary
5 Education, along with a preliminary allocation schedule representing
6 the estimated cost of the proposed formula, shall be submitted to the
7 Joint Legislative Committee on the Budget and to the House and
8 Senate Education Committees for consideration no later than March
9 15.
10 2. This preliminary allocation shall utilize student and other input data
11 available at the time.
12 B. Final Allocation
13 Final allocations for the fiscal year in which the formula takes effect will be
14 determined no later than June 30 of the preceding fiscal year. The latest
15 available data will be utilized to calculate the final allocation except that
16 student count estimates will be utilized for school systems or charter schools
17 opening for the first time in the fiscal year beginning July 1. For first-year
18 city, parish or other public school systems or schools, the final allocation will
19 be based on the October 1 count, once available.
20 IV. FORMULA PAYMENTS
21 A.PAYMENT PROCEDURES
22 1. The Total MFP State Cost Allocation for city, parish, and other school
23 systems and schools will be converted to monthly payments from July
24 through June each year except payments will be made on Level 4 allocations
25 as data becomes available.
26 B.REQUESTED PAYMENT ADJUSTMENTS
27 1. If the city, parish, or other school systems and schools have documented
28 growth in students prior to the actual Mid-Year Student Counts in October
29 and February, a temporary change to the final allocation may be requested.
30 The State Superintendent is authorized to approve or deny this revision.
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HCR NO. 18
1 a. Sufficient documentation will be requested to substantiate this requested
2 allocation adjustment.
3 b. The adjusted allocation will remain in effect until the actual October or
4 February Mid-Year Student Count. Once the Mid-Year Student Count is
5 final, reconciliation will be completed and payments adjusted accordingly.
6 C. PAYMENT ADJUSTMENTS F OR AUDIT FINDINGS
7 1. Review and/or audit of the systems' or schools' data used in determining
8 their Minimum Foundation Program allocation may result in changes in final
9 statistical information. The Minimum Foundation Program allocation
10 adjustments necessary as a result of these audit findings will be made in the
11 following school year. These adjustments are applicable to the following:
12 city or parish school systems, Recovery School District, Type 2 Charter
13 schools, Louisiana State University and Southern University Lab schools,
14 Office of Juvenile Justice (OJJ) schools, Louisiana School for Math, Science
15 and the Arts (LSMSA), and New Orleans Center for Creative Arts
16 (NOCCA).
17 V. 70% EXPENDITURE REQUIREMENT
18 To provide for appropriate accountability of state funds while providing city, parish,
19 or local public school systems or schools flexibility in determining specific
20 expenditures, city, parish, or local public school systems or other public schools must
21 ensure that 70% of the city, parish, or local public school system or other public
22 school general fund expenditures are in the areas of instruction and school
23 administration at the school building level as developed by the Department of
24 Education and defined by the State Board of Elementary and Secondary Education
25 regulations.
26 VI. PAY RAISE REQUIREMENT
27 If a city, parish, or local public school system or school has a net increase from
28 2014-2015 to 2015-2016 in its per student Level 1 and 2 State Cost Allocation, the
29 city, parish, or local public school system or school shall be required to sustain the
30 certificated classroom teacher pay raises provided by appropriation in 2013-2014.
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HCR NO. 18
1 If the city, parish, or local public school system or school has established plans to
2 sustain or increase the teacher pay raises provided for by the 2013-2014
3 appropriation prior to the development of this formula, then this provision shall not
4 apply.
5 VII. SEVERABILITY PROVISION
6 If any provision of this minimum foundation formula or the application thereof is
7 held invalid, such invalidity shall not affect other provisions or applications of this
8 minimum foundation formula which can be given effect without the invalid
9 provisions or applications, and to this end the provisions of this minimum foundation
10 formula are hereby declared severable. The severability provision hereof shall be
11 broadly construed so as to give effect to each and every possible provision or
12 application of this minimum foundation formula which is not specifically held
13 invalid, unlawful, or unconstitutional.
14 THEREFORE BE IT RESOLVED that the Legislature of Louisiana does hereby
15approve the formula developed by the State Board of Elementary and Secondary Education
16pursuant to Article VIII, Section 13(B) of the Constitution of Louisiana to determine the cost
17of a minimum foundation program of education in all public elementary and secondary
18schools as well as to equitably allocate the funds to parish and city school systems, and
19adopted by the board on March 6, 2015.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HCR 18 Engrossed 2015 Regular Session Carter
Provides for legislative approval of the minimum foundation program (MFP) formula for
FY 2015-2016 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 local
public school systems as developed by the State Board of Elementary and Secondary
Education (BESE) and adopted by the board on March 6, 2015.
Proposed formula utilizes four levels to determine MFP funding allocations for city, parish,
or other local public school systems or schools as follows:
Level 1 - Calculate State and Local Cost Allocation
(1)Maintains use of Feb. 1 membership as defined by BESE and provides that each
student is counted as 1.0 in the formula.
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HCR NO. 18
(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.
(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 - Proposed formula provides for a base per pupil funding amount of
$4,015, which represents a 1.375% increase.
Level 1 continues to determine 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 - Continues as follows:
(1)Retains 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
Retains Level 3 as "Legislative Allocations" as follows:
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.
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HCR NO. 18
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 30th
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
Continues 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
Foreign Language Associate Enhancement
Retains as follows with regard to foreign language associate teachers:
(1)Retains the supplemental allocation of $21,000 for each Foreign Language Associate
or a graduate of the Escadrille Louisiane program employed. Retains provision that
the number of these teachers is not to exceed a total of 300 teachers. Specifies that
the additional $1,000 is to be used toward the costs of VISA sponsorship.
(2)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.
(3)Retains requirement that first year teachers be paid an installment incentive of an
additional $6,000 and that second and third year teachers shall receive a retention
incentive of an additional $4,000. Specifies that these amounts will be provided by
the employing school district.
Career Development Allocation
Supports technical courses required for statewide credentials. Retains that allocation is equal
to 6% of the base per pupil amount for each 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.
High Cost Services Assistance
Provides additional funds for students with disabilities. Retains 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.
Proposed formula increases maximum allocation to $9.4 million and revises the allocation
methodology so that all entities within each group, city and parish school systems and other
public school systems, shall receive the same percent of the requested allocation.
Page 30 of 31 HLS 15RS-1078 ENGROSSED
HCR NO. 18
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. Proposed formula retains the
allocation for each public school system and other public schools and increases from $26 to
$35 per student enrolled in grades 7 - 12.
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
Proposed formula provides 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.
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