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 7 Original 2017 Regular Session Nancy Landry
Provides for legislative approval of the minimum foundation program (MFP) formula for FY 2017-
18 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 8, 2017.
Proposed formula (as compared to SCR 55 from the 2014 Reg. Session which is the formula in
effect) uses 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.
(2)Provides that students counted are enrolled in the following school districts and schools:
• City and parish school systems
• Recovery School District Schools, both operated and Type 5 charter schools
• State-approved public schools, including New Type 2 charter schools
• Additionally includes THRIVE Academy as provided in present law (R.S. 17:1976)
(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 6% for Career and Technical Education course units.
(5)Maintains the existing weight of 150% for Special Education Students with disabilities.
(6)Maintains the 60% existing weight for Gifted and Talented Students.
(7)Maintains the Economy of Scale curvilinear weight of 20% for school systems with a student
membership of less than 7,500.
Retains State and Local Base Cost Per Pupil amount of $3,961.
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 state and local school system share of the total
MFP cost includes a property tax revenue contribution, a sales tax revenue contribution, and
other local revenue contributions. Maintains a state and local allocation ratio of 65%/35%.
(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
(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)Continues to limit the revenue eligible for reward 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. Maintains 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.
(3)Adds THRIVE Academy and Type 3B charter schools to the list of schools eligible for
continuation of funding for pay raises.
Hold Harmless Enhancement
(1)Continues the 10-year phase-out of Hold Harmless funding for Concordia, East Baton Rouge,
Evangeline, Iberville, Jefferson, Plaquemines, St. Charles, 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
(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 $1,000 of the amount
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 or 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 Allocation
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. The
allocation is limited by the amount budgeted for the High Cost Services Assistance
Allocation.
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 school and increases from $26 to
$59 the per student enrolled in grades seven through 12.
Allocations for Other Public Schools
Provides for state cost allocation for LSU and SU Laboratory Schools and provides that the
funds for these schools shall be allocated to the institution of higher education that operates
the school.
Provides for state and local cost allocations for Legacy Type 2 charter schools.
Requires the state and local cost allocation to be based on the actual state per pupil for the
system where the student resides instead of the average per pupil amount for the system
where the school is located.
Provides for funding of Office of Juvenile Justice Schools.
Mid-Year Student Allocations
Provides for adjustments to the allocations based on mid-year student counts. Adds
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70% Local General Fund Required Instructional Expenditure at the School Building Level
Retains the requirement that 70% of the city, parish, or other local public school system or
other public school general fund expenditures must be in the areas of instruction and school
administration at the school building level.
Pay Raise Requirement Eliminates the pay raise requirement which required a city, parish, or local public school
system or other public school with a net increase from 2013-2014 to 2014-2015 in its per
student Level 1 and 2 State Cost Allocation to sustain the certificated classroom teacher pay
raises provided by appropriation in 2013-2014.