HLS 22RS-482 ORIGINAL 2022 Regular Session HOUSE CONCURRENT RESOL UTION NO. 23 BY REPRESENTATIVE HARRIS SCHOOLS/FINANCE-MFP: Provides for legislative approval of the MFP formula for FY 2022-2023 1 A CONCURRENT RESOL UTION 2To approve the formula that was developed by the State Board of Elementary and Secondary 3 Education pursuant to Article VIII, Section 13(B) of the Constitution of Louisiana 4 to determine the cost of a minimum foundation program of education in all public 5 elementary and secondary schools as well as to equitably allocate the funds to parish 6 and city school systems and that was adopted by the board on March 9, 2022. 7 WHEREAS, the minimum foundation program formula for the 2022-2023 Fiscal 8Year as adopted by the State Board of Elementary and Secondary Education on March 9, 92022, reads as follows: 10 PROPOSED 11 FY 2022-2023 MINIMUM FOUNDATION PROGRAM FORMULA 12The FY 2022-2023Minimum Foundation Program (MFP) formula was adopted by the State 13Board of Elementary and Secondary Education on March 9, 2022. The formula determines 14allocations for city, parish, or other public school systems or schools. The definition of city, 15parish, or local public school systems and schools shall include city or parish school systems, 16Recovery School District including direct operated and Type 5 charter schools, Louisiana 17School for Math, Science, and the Arts (LSMSA), New Orleans Center for Creative Arts 18(NOCCA), Thrive Academy, Special School District (SSD) New Type 2 Charter schools, 19Legacy Type 2 Charter schools, Type 3B Charter schools, Office of Juvenile Justice (OJJ) 20schools, and Louisiana State University, Southern University, and University of Louisiana 21at Lafayette Lab schools. Type 3B Charter schools are defined as charter schools not having Page 1 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1returned to the transferring school system pursuant to R.S. 17:10.7.1 and operating 2independently. The formula is divided into four calculations as follows: 3 Level 1 determines the minimum cost of education based on the education needs of 4 each student. The cost includes funding for students enrolled in city and parish 5 school systems, Recovery School District direct operated and Type 5 Charter 6 schools, New Type 2 Charter schools, and Type 3B Charter schools. The cost is then 7 shared equitably between the State and the city and parish school systems based on 8 the ability of the systems to support education in their communities through local 9 sales and property tax revenues. 10 Level 2 provides an incentive for city and parish school systems to support education 11 in their communities above the minimum level of financial support required. 12 Level 3 provides specific legislative education funding to city, parish, or other local 13 public school systems or schools for Continuation of Certificated and Support 14 Worker pay raises, the Historical Formula Allocation, and Mandated Operating 15 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 International Associate 19 Teacher Salary and Stipends Allocation, Career Development 20 Allocation, High Cost Services Allocation, Supplemental Course 21 Allocation, Certificated and Support Staff Pay Raise Allocations, and 22 Certificated Mentor Teacher Stipend Allocations. 23 • Allocations for State-approved public school systems or schools 24 including Legacy Type 2 Charter schools, Louisiana State University, 25 Southern University, and University of Louisiana at Lafayette Lab 26 schools, New Orleans Center for Creative Arts (NOCCA), Louisiana 27 School for Math, Science, and the Arts (LSMSA), Thrive Academy, 28 Special School District (SSD) and Office of Juvenile Justice (OJJ) 29 schools. Page 2 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 • Mid-Year Allocation Adjustments to account for mid-year increases 2 and decreases in students in all city, parish, or other local public 3 school systems or schools. 4 State MFP funds shall only be expended for educational purposes. Expenditures for 5 educational purposes are those expenditures related to the operational and 6 instructional activities of city, parish, or other public school systems or schools to 7 include: instructional programs, pupil support programs, instructional staff 8 programs, school administration, general administration, business services, 9 operations and maintenance of plant services, student transportation services, food 10 services operations, enterprise operations, community services operations, facility 11 acquisition, and construction services and debt services as defined by Louisiana 12 Accounting and Uniform Governmental Handbook, Bulletin 1929. 13 I. FORMULA CALCULATIONS 14 A. Level 1: Calculate State and Local Cost Allocation 15 1. Determine Educational Costs 16 Eligible students from the following school systems and schools will be 17 counted in both the Base and Weighted Student Memberships: 18 a. City and parish school systems. 19 b. State-Approved Public Schools - The student counts of New 20 Type 2 Charter Schools shall be included in the membership 21 and weighted student counts of the city or parish school 22 system in which the student resides. 23 c. Recovery School District - The student membership and 24 weighted student counts of schools transferred to the 25 Recovery School District, both direct operated and Type 5 26 Charter schools, shall continue to be included in the 27 membership and weighted student counts of the city or parish 28 school system from which jurisdiction of the school was 29 transferred. Page 3 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 STEP ONE: Determine the Number of Eligible Students for the Base Count 2 The formula first counts each of the students enrolled on February 1 to determine the 3 cost of education services. The formula utilizes the February 1 Student Membership 4 Count to allocate funding beginning in July. The students eligible to be counted are 5 identified in the Student Membership Definition adopted by the State Board of 6 Elementary and Secondary Education. These students are counted as one (1.0) in the 7 formula. 8 STEP TWO: Determine the Number of Students Eligible for the Weighted 9 Student Count 10 The formula recognizes that providing educational services to meet the needs of 11 particular students is more costly than regular educational services. Each special 12 characteristic or need is given a numerical value referred to as a weight. The special 13 needs of each student are taken into consideration by multiplying the student count 14 for each eligible child (1.0) by each of the weights. This calculation provides 15 additional students that are then added to the February 1 Student Membership Count 16 to equal the Total Weighted Student Membership Count. The students and units 17 eligible to be counted are identified in the Student Membership Definition adopted 18 by the State Board of Elementary and Secondary Education. The following are the 19 additional costs recognized by the formula: 20 Low Income and English Language Learner Weight - The formula recognizes 21 that students living in poverty or students with a native language other than English 22 are more likely to require additional educational services to be successful. To 23 recognize that these services require additional costs, students that qualify for free 24 or reduced price meals under the United States Department of Agriculture (USDA) 25 School Food Service Program guidelines, or an alternative count as defined in the 26 Student Membership Definition, and students identified as an English Language 27 Learner are provided a weight of 22%. 28 Career and Technical Education Weight - The formula recognizes that the cost of 29 providing materials and equipment, and teacher credentialing and training, for Career 30 and Technical Education courses is above and beyond the cost of traditional Page 4 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 academic education. Each secondary career and technical education course in which 2 a student is enrolled in both the fall and spring semesters is provided a weight of 6%. 3 Special Education Weight - The formula addresses the extra cost associated with 4 the delivery of services required in order to meet the needs of students with 5 disabilities. Students with disabilities that have an Individualized Education 6 Program (IEP) plan developed according to State Board of Elementary and 7 Secondary Education regulations are provided a weight of 150%. 8 Gifted and Talented Weight - The formula recognizes the cost of providing 9 educational services to Gifted and Talented students that have an Individualized 10 Education Program (IEP) Plan developed according to State Board of Elementary 11 and Secondary Education regulations and are provided a 60% weight. 12 Economy of Scale Weight - This weight is provided for city or parish school 13 systems to recognize a base amount of funding for fixed overhead costs that should 14 be provided when student populations equal 7,500 students or less. The Economy 15 of Scale Weight is calculated as a curvilinear weight of 20% at a student membership 16 count of zero down to 0% at a student membership count equal to or greater than 17 7,500. To calculate this weight, the February 1 Student Membership Count for each 18 city and parish school system is subtracted from 7,500 and divided by 37,500. The 19 result of this calculation is then multiplied by each system's February 1 Student 20 Membership Count to determine the weighted students. 21 STEP THREE: Determine Total Weighted Student Membership Count 22 Formula: 23 Total Weighted Student Membership Count 24 Equals 25 February 1 Student Membership Count (1.0) 26 Plus 27 Low Income and English Language Learner Weight 28 Career and Technical Education Weight 29 Special Education Weight 30 Gifted and Talented Weight Page 5 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Economy of Scale Weight 2 STEP FOUR: Identify the State and Local Base Cost Per Pupil 3 Formula: 4 The State and Local Base Cost Per Pupil shall equal $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 parish 14 school systems. The ability of school systems to support the cost of education in 15 their communities is measured by the potential to raise local revenue. This potential 16 contribution is measured by the following three factors using the latest available data 17 as reported through the Annual Financial Report (AFR) as required by R.S. 17:92. 18 1. Local Property Tax Revenue Contribution 19 2. Local Sales Tax Revenue Contribution 20 3. Other Local Revenue Contribution 21 STEP ONE: Determine the Local Property Tax Revenue Contribution 22 Formula: 23 Local Property Tax Revenue Contribution 24 Equals 25 State Computed Property Tax Millage (debt and non-debt) 26 Times 27 Net Assessed Property Value 28 Net Assessed Property Value Increase Cap - If a school system's Net Assessed 29 Property Value has increased equal to or greater than 10% over the prior year Net 30 Assessed Property Value, then the growth in the Net Assessed Property Value is Page 6 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 capped at 10%. This cap is applied on a year-to-year basis comparing the current 2 year Net Assessed Property Value to the prior year uncapped Net Assessed Property 3 Value. 4 Computed Property Tax Millage - The Computed Property Tax Millage is calculated 5 annually at the rate necessary to maintain a state and local allocation ratio of 6 65%/35%. 7 STEP TWO: Determine the Local Sales Tax Revenue Contribution 8 Formula: 9 Local Sales Tax Revenue Contribution 10 Equals 11 Computed Sales Tax Base (debt and non-debt) (including TIF areas) 12 Multiplied By 13 State Computed Sales Tax Rate 14 Mid-Year Rate Increases - If a local school system's sales tax goes into effect 15 during the fiscal year, the tax rate is prorated to an annual rate applicable for the total 16 revenue generated. 17 Sales Tax Increase Cap - If a system's Computed Sales Tax Base increased equal 18 to or greater than 15% over the Computed Sales Tax Base calculated in the prior year 19 formula, then the growth in the Computed Sales Tax Base will be capped at 15% 20 over the amount used in the prior year formula. This cap will be applied on a 21 year-to-year basis comparing the current year sales tax base to the prior year 22 uncapped sales tax base. 23 Computed Sales Tax Rate - The Computed Sales Tax Rate is calculated annually 24 at the rate necessary to maintain a state and local allocation ratio of 65%/35%. 25 STEP THREE: Determine Other Local Revenue Contribution 26 Formula: 27 Other Local Revenue Contribution 28 Equals 29 State Revenue in lieu of taxes 30 Plus Page 7 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Federal Revenue in lieu of taxes 2 Plus 3 50% of Earnings on Property 4 STEP FOUR: Determine Local Cost Allocation 5 Formula: 6 Local Cost Allocation 7 Equals 8 Property Tax Contribution 9 Plus 10 Sales Tax Contribution 11 Plus 12 Other Revenues Contribution 13 STEP FIVE: Determine State Cost Allocation 14 Formula: 15 State Cost Allocation 16 Equals 17 Total State and Local Cost 18 Minus 19 Local Cost Allocation 20 Minimum State Cost Allocation - In no event shall the State Cost 21 Allocation be less than 25% of Total Level 1 Cost for any city or parish 22 school system. 23 B. Level 2: Incentive for Local Effort 24 Level 2 provides incentives for city and parish school systems that contribute 25 a greater proportion of local revenues towards the cost of education in their 26 communities by increasing local property and sales tax revenues. This effort 27 is measured using the latest available data for the following sources of 28 revenue as reported in the Annual Financial Report (AFR) as required in R.S. 29 17:92. 30 1. Total Sales Taxes Page 8 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 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 Multiplied by 34% 27 STEP FOUR: Determine Local Support of Level 2 Incentive 28 Formula: 29 Local Support of Level 2 Incentive 30 Equals Page 9 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Lesser of Local Revenue Eligible for Incentive or Limit on Local 2 Revenue Eligible for Incentive 3 Multiplied by 4 Local Cost Allocation Percentage (Level 1) 5 Multiplied by 6 Level 2 Incentive Factor 7 Level 2 Incentive Factor - The Level 2 Incentive Factor determines the 8 amount of local support required in Level 2. In FY 2014-2015, the Level 2 9 Incentive Factor is established at 1.72. 10 STEP FIVE: Determine State Cost of Level 2 Incentive 11 Formula: 12 State Support of Level 2 Incentive 13 Equals 14 Lesser of Local Revenue Eligible for Incentive or Limit on Local 15 Revenue Eligible for Incentive 16 Minus 17 Local Support of Level 2 Incentive 18 C. Level 3: Legislative Allocations 19 Level 3 provides funding for three programs that address funding for school 20 systems and schools regarding teacher and support worker pay raises, 21 historical formula allocations, and mandated operating costs, and are in 22 addition to allocations provided in Level 1 and 2. These allocations are as 23 follows: 24 Formula: 25 Total Level 3 Legislative Allocations 26 Equals 27 Continuation Pay Raises 28 Plus 29 Historical Formula Allocation 30 Plus Page 10 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Mandated Costs in Health Insurance, Retirement, and Fuel 2 STEP ONE: Calculate Continuation Funding for Pay Raises 3 1. Certificated Personnel Pay Raises were implemented in four recent years to 4 assist in increasing Teacher and School Leader pay to the Southern Regional 5 Average. These funds continue to be provided directly to systems and schools to 6 support these increased salaries. 7 a. Certificated Personnel Pay Raises provided in 2001-2002, 2006-2007, 8 2007-2008, and 2008-2009 will continue for each school system and school 9 based on the calculated per pupil amount times the February 1 Student 10 Membership Count. 11 2. Non-certificated Support Worker Pay Raises were implemented in three 12 recent years to assist with increasing these salaries. 13 a. Non-certificated Support Worker Pay Raises provided in 2002-2003, 14 2006-2007, and 2007-2008 will continue for each school system and school 15 based on the calculated per pupil amount times the February 1 Student 16 Membership Count. 17 3. This provision applies to city and parish school systems, Recovery School 18 District, New Orleans Center for Creative Arts (NOCCA), Louisiana School for 19 Math, Science, and the Arts (LSMSA), Thrive Academy, Special School District 20 (SSD), Legacy Type 2 Charter Schools, New Type 2 Charter Schools, Type 3B 21 Charter Schools, Louisiana State University, Southern University, and University of 22 Louisiana at Lafayette Lab schools, and Office of Juvenile Justice (OJJ). 23 STEP TWO: Calculate Historical Formula Allocations 24 Allocations for Insurance and Pay Raises - The following school systems 25 are being provided continuing funding for the 1994 insurance supplement 26 and employee pay raises provided by the Legislature beginning in 1997 27 through 1999: East Baton Rouge, Iberville, Jefferson, Lafayette, 28 Plaquemines, Pointe Coupee, St. Charles, St. James, and West Feliciana. 29 Redistribution Allocation - After setting aside the insurance and pay raise 30 funding, the balance of the "Hold Harmless" funding was removed from Page 11 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 these school districts over ten years from 2006-2007 to 2016-2017: 2 Concordia, East Baton Rouge, Evangeline, Iberville, Jefferson, Plaquemines, 3 St. Charles, St. James, and West Feliciana. 4 The amount of funding removed from the districts listed above is reserved 5 and redistributed to the remaining city, parish or other local public school 6 systems or schools. The total amount is divided by the total number of 7 students within these same city, parish or other local public school systems 8 or schools to calculate a per pupil amount. The allocation is determined 9 using the per pupil amount multiplied by the current year student count. 10 STEP THREE: Determine Allocation for Increasing Mandated Costs in Health 11 Insurance, Retirement, and Fuel 12 City, parish or other local public school systems or schools shall receive a 13 minimum of $100.00 for each student in the prior year February 1 14 membership to offset these increasing operational costs. 15 The following formula is applied to determine the Level 1, 2, and 3 State Cost 16 Allocation Per Pupil: 17 Formula: 18 Level 1, 2, and 3 State Cost Allocation Per Pupil 19 Equals 20 Level 1 State Cost Allocation Per Pupil 21 Plus 22 Level 2 State Cost Allocation Per Pupil 23 Plus 24 Level 3 State Cost Allocation Per Pupil 25 D. Level 4: Supplementary Allocations 26 1. Specific Needs Allocations 27 Specific Needs Allocations provide funding for four allocations for specific 28 purposes and is in addition to system level allocations from Levels 1, 2, and 29 3. These allocations are as follows: Page 12 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Formula: 2 Total Level 4 Supplementary Allocations 3 Equals 4 International Language Associate Program Salary and Stipend 5 Allocation 6 Plus 7 Career Development Allocation 8 Plus 9 High Cost Services Assistance Allocation 10 Plus 11 Supplemental Course Allocation 12 Plus 13 2019-20 Certificated and Non-Certificated Pay Raises 14 Plus 15 2021-22 Certificated and Non-Certificated Pay Raises 16 Plus 17 2022-23 Certificated and Non-Certificated Pay Raises 18 Plus 19 Certificated Mentor Teacher Stipend 20 STEP ONE: Calculate International Language Associate Salary and Stipend 21 Allocation 22 Salary Allocation - Any city, parish, or other public school system or school 23 employing an International Language Associate or a graduate of the Escadrille 24 Louisiane program shall receive a supplemental allocation from State Board of 25 Elementary and Secondary Education of $21,000 per teacher. The state shall 26 maintain support of the International Language Associate program at a maximum of 27 300 International Language Associates employed in any given year. 28 These teachers shall be paid by the employing city, parish, or other local 29 public school system or school at least the state average classroom teacher salary 30 (without PIP) by years of experience and degree beginning with year three. Of the Page 13 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 $21,000 allocation, $20,000 shall be allocated to the school where the teacher is 2 employed and the funds used to support the total cost of the teacher salary, and the 3 remaining amount shall be associated with costs of VISA sponsorship pursuant to 4 State Board of Elementary and Secondary Education regulations. 5 Stipend Allocation - First year teachers will receive an installation incentive 6 of an additional $6,000; second and third year teachers will receive a retention 7 incentive of an additional $4,000. These amounts must be provided to each 8 International Associate Teacher or Escadrille Louisiane graduate by each school 9 district or school in which they are employed. 10 STEP TWO: Career Development Allocation 11 The cost of providing materials and equipment, course tuition, and teacher 12 credentialing and training to attain a statewide industry-based credential is above and 13 beyond the cost typically required for high school courses. An allocation will be 14 provided to support the development of these technical courses required for 15 statewide credentials in city and parish school systems and other public schools. 16 The first step in the allocation is to calculate six percent (6%) of the MFP 17 State and Local Base Cost Per Pupil to determine the Career Development Per Pupil 18 Amount. The Career Development Per Pupil Amount will be provided for each 19 qualifying student course enrollment in grades 9 through 12. 20 If a city or parish school system receives less than $25,000 from the Career 21 Development Per Pupil Amount, then the city or parish school system will be 22 provided an economies of scale minimum allocation of $25,000. If other public 23 school systems and schools containing grades 9 through 12 receive less than $10,000 24 from the Per Pupil Amount, then the other public school systems and schools 25 containing grades 9 through 12 will be provided an economies of scale minimum 26 allocation of $10,000. 27 Formula: 28 Career Development Allocation Per Pupil 29 Equals 30 MFP State and Local Base Cost Per Pupil Page 14 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Multiplied By 2 Six Percent (6%) 3 Formula: 4 Career Development Allocation 5 Equals 6 Career Development Allocation Per Pupil 7 Multiplied By 8 Qualifying Student Course Enrollments 9 in Grades 9 through 12 10 STEP THREE: Calculate High Cost Services Assistance 11 High cost services for students with disabilities generate a particular budget 12 challenge for city, parish, and other public school systems and schools. 13 In an effort to assist with these expenses, an allocation will be provided to 14 city, parish, and other public school systems and schools which submit 15 documentation as required by the Louisiana Department of Education substantiating 16 that the prior year cost of services for a specific student exceeds three times the most 17 recent state average total expenditure per pupil amount. 18 Once costs associated with providing services for a student with a disability 19 or disabilities have been verified, the city or parish school system or other public 20 school will be eligible to receive an allocation to assist with these costs. The 21 allocation will be limited by the amount budgeted for the High Cost Services 22 Assistance Allocation. So as to be equitably distributed, the total allocation provided 23 to city and parish school systems versus other public schools shall be proportional 24 to the share of total qualifying applications submitted by city and parish school 25 systems versus other public schools. 26 The first step in the allocation will be to calculate the impact of these costs 27 on the budget of the school system or school using the latest available state and local 28 revenue data. The High Cost Services requested for reimbursement will be reduced 29 by the MFP state and local amount allocated on behalf of each student from Levels Page 15 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 1, 2, and 3. The next step will rank the Percent (%) Impact from highest to lowest 2 percent, with two separate rank listings for school systems and other public schools. 3 Formula: 4 Percent (%) Impact on Budget 5 Equals 6 Cost of Services 7 Divided By 8 Total State and Local Revenue 9 The two ranked listings will be divided into four tiers and allocations will be 10 provided based on a percentage from one hundred percent reimbursement in the 11 highest funded tier with smaller percentages reimbursed in the lower tiers based on 12 where the school system or school falls within the tiers on one of the two lists. 13 STEP FOUR: Calculate Supplemental Course Allocation 14 Pursuant to R.S. 17:4002.1 through 4002.6, the Supplemental Course 15 Allocation shall provide for the cost of secondary course choices specifically 16 approved by the State Board of Elementary and Secondary Education. For each city 17 and parish school system and other public school, the allocation shall equal the 18 number of students enrolled in grades 7 through 12 as of February 1 each year 19 multiplied by $70 per pupil. 20 Formula: 21 Supplemental Course Allocation for School Systems or Other Public 22 Schools 23 Equals 24 Supplemental Course Allocation Per Pupil 25 Multiplied By 26 Number of Students in Grades 7 through 12 27 If the entire allocation is not committed by the city or parish public school 28 systems or other public school by a date set forth by the Louisiana Department of 29 Education, the original allocation will be reduced by the uncommitted amount. The 30 total uncommitted amount from each city or parish public school systems or other Page 16 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 public school will be reallocated to those city or parish public school systems or 2 other public schools that obligated one hundred percent of their original allocation 3 based on criteria set forth by the Louisiana Department of Education. 4 STEP FIVE: Calculate 2019-20 Certificated and Non-Certificated Pay Raises 5 1. Certificated Personnel Pay Raise 6 Each city, parish, or other public school district or school shall receive 7 $1,000 plus the current year annual retirement contribution rate as 8 established for the Teachers' Retirement System of Louisiana in the actuarial 9 valuation approved by the Public Retirement Systems' Actuarial Committee 10 based on the staffing data submitted to the official department personnel data 11 reporting system as of October 1 to provide an across the board $1,000 pay 12 raise and any associated retirement for K-12 classroom educators and other 13 certificated K-12 personnel defined per Louisiana Department of Education 14 Bulletin 1929 to include: 15 Teachers (all function codes 1000-2200s, object code 112); 16 Therapists/Specialists/Counselors (function codes 1000-2200s, object 17 code 113); School Site-based Principals, Assistant Principals, and 18 Other School Administrators (function code 2400s, object code 111); 19 Central Office Certificated Administrators (functioncodes1000-2200 20 & 2324, 2831, and 2832 (excluding 2130s), object code 111); School 21 Nurses (function code 2134, object code 118); and Sabbaticals 22 (function codes 1000-2200s, 2134, and 2400s, object code 140). 23 2. Non-Certificated Personnel Pay Raise 24 Each city, parish, or other public school district or school shall receive $500 25 plus the current year annual retirement contribution rate as established for the 26 Louisiana School Employees' Retirement System in the actuarial valuation 27 approved by the Public Retirement Systems' Actuarial Committee based on 28 the staffing data submitted to the official department personnel data reporting 29 system as of October 1 to provide an across the board $500 pay raise and Page 17 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 associated retirement for non-certificated K-12 personnel defined per 2 Louisiana Department of Education Bulletin 1929 to include: 3 Aides (function codes 1000-4900s, object code 115); Support 4 Supervisors (function codes 2130s, 2300s (excluding 2311, 2321, 5 2324, 2831 and 2832) and 2500-4900s, object code 111); 6 Clerical/Secretarial (function codes 1000-4900s, object code 114); 7 Service Workers (function codes 1000-4900s, object code 116); 8 Skilled Craftsmen (function codes 1000-4900s, object code 117); 9 Degreed Professionals (function codes 1000-4900s, (excluding 10 2134s) object code 118); and Other Personnel (function codes 11 1000-4900s, object codes 100, 110 and 119). 12 STEP SIX: Calculate 2021-22 Certificated and Non-Certificated Pay Raises 13 1. Certificated Personnel Pay Raise 14 Each city, parish, or other public school district or school shall receive $800 15 plus the current year annual retirement contribution rate as established for the 16 Teachers' Retirement System of Louisiana in the actuarial valuation approved 17 by the Public Retirement Systems' Actuarial Committee based on the staffing 18 data submitted to the official department personnel data reporting system as 19 of October 1 to provide an across the board $800 pay raise and any 20 associated retirement for K-12 classroom educators and other certificated 21 K-12 personnel defined per Louisiana Department of Education Bulletin 22 1929 to include: 23 Teachers (all function codes 1000-2200s, object code 112); 24 Therapists/Specialists/Counselors (function codes 1000-2200s, object 25 code 113); School Site-based Principals, Assistant Principals, and 26 Other School Administrators (function code 2400s, object code 111); 27 Central Office Certificated Administrators (function codes 1000-2200 28 & 2324, 2831, and 2832 (excluding 2130s), object code 111); School 29 Nurses (function code 2134, object code 118); and Sabbaticals 30 (function codes 1000-2200s, 2134, and 2400s, object code 140). Page 18 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 2. Non-Certificated Personnel Pay Raise 2 Each city, parish, or other public school district or school shall receive $400 3 plus the current year annual retirement contribution rate as established for the 4 Louisiana School Employees' Retirement System in the actuarial valuation 5 approved by the Public Retirement Systems' Actuarial Committee based on 6 the staffing data submitted to the official department personnel data reporting 7 system as of October 1 to provide an across the board $400 pay raise and 8 associated retirement for non-certificated K-12 personnel defined per 9 Louisiana Department of Education Bulletin 1929 to include: 10 Aides (function codes 1000-4900s, object code 115); Support 11 Supervisors (function codes 2130s, 2300s (excluding 2311, 2321, 12 2324, 2831 and 2832) and 2500-4900s, object code 111); 13 Clerical/Secretarial (function codes 1000-4900s, object code 114); 14 Service Workers (function codes 1000-4900s, object code 116); 15 Skilled Craftsmen (function codes 1000-4900s, object code 117); 16 Degreed Professionals (function codes 1000-4900s, (excluding 17 2134s) object code 118); and Other Personnel (function codes 18 1000-4900s, object codes 100, 110 and 119). 19 STEP SEVEN: Calculate 2022-23 Certificated and Non-Certificated Pay Raises 20 1. Certificated Personnel Pay Raise 21 Each city, parish, or other public school district or school shall receive 22 $1,500 plus the current year annual retirement contribution rate as 23 established for the Teachers' Retirement System of Louisiana in the actuarial 24 valuation approved by the Public Retirement Systems' Actuarial Committee 25 based on the staffing data submitted to the official department personnel data 26 reporting system as of October 1 to provide an across the board $1,500 pay 27 raise and any associated retirement for K-12 classroom educators and other 28 certificated K-12 personnel defined per Louisiana Department of Education 29 Bulletin 1929 to include: Page 19 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Teachers (all function codes 1000-2200s, object code 112); 2 Therapists/Specialists/Counselors (function codes 1000-2200s, object 3 code 113); School Site-based Principals, Assistant Principals, and 4 Other School Administrators (function code 2400s, object code 111); 5 Central Office Certificated Administrators (function codes 1000-2200 6 & 2324, 2831, and 2832 (excluding 2130s), object code 111); School 7 Nurses (function code 2134, object code 118); and Sabbaticals 8 (function codes 1000-2200s, 2134, and 2400s, object code 140). 9 2. Non-Certificated Personnel Pay Raise 10 Each city, parish, or other public school district or school shall receive $750 11 plus the current year annual retirement contribution rate as established for the 12 Louisiana School Employees' Retirement System in the actuarial valuation 13 approved by the Public Retirement Systems' Actuarial Committee based on 14 the staffing data submitted to the official department personnel data reporting 15 system as of October 1 to provide an across the board $750 pay raise and 16 associated retirement for non-certificated K-12 personnel defined per 17 Louisiana Department of Education Bulletin 1929 to include: 18 Aides (function codes 1000-4900s, object code 115); Support 19 Supervisors (function codes 2130s, 2300s (excluding 2311, 2321, 20 2324, 2831 and 2832) and 2500-4900s, object code 111); 21 Clerical/Secretarial (function codes 1000-4900s, object code 114); 22 Service Workers (function codes 1000-4900s, object code 116); 23 Skilled Craftsmen (function codes 1000-4900s, object code 117); 24 Degreed Professionals (function codes 1000-4900s, (excluding 25 2134s) object code 118); and Other Personnel (function codes 26 1000-4900s, object codes 100, 110 and 119). 27 STEP EIGHT: Calculate Certificated Mentor Teacher Stipend Allocation 28 The Louisiana teacher preparation model includes mentor teachers to support 29 undergraduate year-long residents and post-baccalaureate certification residents. 30 These mentor teachers are professionally trained, credentialed teachers with skills Page 20 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 to support aspiring and new teachers. A $2,000 stipend will be provided to city, 2 parish, or other public school systems or schools for each employed certificated 3 mentor teacher or teacher serving as the assigned mentor or record responsible for 4 supporting undergraduate and post baccalaureate resident teachers. Each city, parish, 5 or other public school system or school shall receive an allocation equal to $2,000 6 multiplied by each certificated mentor teacher employed to support undergraduate 7 or post baccalaureate residents as reported in the staffing data submitted to the 8 official department personnel data reporting system as of October 1. School systems 9 or schools receiving this funding allocation must provide the $2,000 stipend to the 10 qualifying mentor teacher(s). 11 2. Allocations for Other Public Schools 12 STEP ONE: Louisiana State University, Southern University, and University 13 of Louisiana at Lafayette Laboratory Schools 14 1. State Cost Allocation 15 a. The February 1 Student Membership count at the Louisiana 16 State University, Southern University, and University of 17 Louisiana at Lafayette Lab Schools shall be multiplied by the 18 Average State Cost Allocation Per Pupil to equal the 19 Louisiana State University, Southern University, and 20 University of Louisiana at Lafayette Lab Schools State Cost 21 Allocation. 22 b. Funds appropriated for these schools shall be allocated to the 23 institution of higher education operating such a school. Each 24 such institution of higher education shall ensure the equitable 25 expenditure of such funds to operate such schools. 26 STEP TWO: Legacy Type 2 Charter Schools 27 A Legacy Type 2 Charter school is a Type 2 Charter school approved by the State 28 Board of Elementary and Secondary Education before July 1, 2008. 29 1. State Cost Allocation Page 21 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 a. Any Legacy Type 2 Charter school shall annually be allocated 2 funds as determined by applying the formula contained in R.S. 3 17:3995. 4 b. The State Cost Allocation equals the number of students 5 multiplied by the State Per Pupil for the system where the student 6 resides. 7 2. Local Cost Allocation 8 a. Any Legacy Type 2 Charter school shall annually be allocated 9 funds as determined by applying the formula contained in R.S. 10 17:3995. 11 b. The Local Cost Allocation equals the number of students 12 multiplied by the Local Per Pupil for the system where the student 13 resides. 14 c. For any student enrolled in a Legacy Type 2 Charter school, 15 the Local Cost Allocation shall be funded by the State. 16 3. The exclusion of any portion of local revenues specifically dedicated 17 by the legislature or by voter approval to capital outlay or debt 18 service shall be applicable only to a charter school housed in a 19 facility or facilities provided by the district in which the charter 20 school is located. 21 STEP THREE: Office of Juvenile Justice (OJJ) Schools 22 1. Eligible Schools - Any elementary and secondary school operated by 23 the Office of Juvenile Justice (OJJ) in a secure care facility shall be 24 considered a public elementary or secondary school and, as such, the 25 Office of Juvenile Justice (OJJ) shall be annually appropriated funds 26 for these students. 27 2. Eligible Students - Each student counted in the prior year average 28 daily membership, as defined by the State Board of Elementary and 29 Secondary Education in the Student Membership Definition, is 30 calculated by dividing the number of days the student is under the Page 22 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 guidance and direction of teachers by the total instructional days 2 during the specified school year. 3 3. Allocation - The Office of Juvenile Justice (OJJ) shall annually be 4 allocated funds for the eligible students. For each student enrolled in 5 these schools, both a State Cost Allocation and a Local Cost 6 Allocation shall be provided. 7 4. State Cost Allocation 8 a. The State Cost Allocation is equal to the State Cost Allocation 9 Per Pupil for the system where each student resided prior to 10 adjudication multiplied by the prior year average daily membership 11 of the Office of Juvenile Justice schools. 12 b. The State Cost Allocation Per Pupil allocation shall be 13 adjusted based on a factor determined by the Louisiana Department 14 of Education to provide for the differential in the number of 15 educational days provided to the students in the custody of the Office 16 of Juvenile Justice (OJJ). 17 c. Additionally, the State Cost Allocation Per Pupil shall be 18 adjusted based on a factor determined by the Louisiana Department 19 of Education to recognize the increased number of special education 20 students in the Office of Juvenile Justice (OJJ) schools relative to the 21 state average special education student population. 22 d. The average daily membership will be reconciled on an 23 annual basis using the latest available data. 24 5. Local Cost Allocation 25 a. Each student counted in the prior year average daily 26 membership, as defined by the State Board of Elementary and 27 Secondary Education, shall be provided for and funded from the 28 minimum foundation program a Local Cost Allocation Per Pupil 29 equal to the Local Cost Allocation Per Pupil for the district where the 30 student resided prior to adjudication. Page 23 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 b. The Local Cost Allocation is equal to the Local Cost 2 Allocation Per Pupil for the system where each student resided prior 3 to adjudication multiplied by the prior year average daily 4 membership of the Office of Juvenile Justice schools. 5 c. For the purpose of the Local Cost Allocation Per Pupil, the 6 average daily membership of the Office of Juvenile Justice (OJJ) 7 shall be included in the membership counts of the city, parish, or 8 other local public school board in which the student resided prior to 9 adjudication to the Office of Juvenile Justice. 10 d. For a district(s) that shares local revenue, the allocation for 11 the Office of Juvenile Justice will be completed before the 12 calculation of local revenues. 13 e. The Local Cost Allocation Per Pupil shall be funded with a 14 transfer of the MFP monthly amount representing the Local Cost 15 Allocation Per Pupil from the city, parish, or other local public school 16 board in which the attending students resided prior to adjudication to 17 the Office of Juvenile Justice (OJJ). 18 f. The average daily membership will be reconciled on an 19 annual basis using the latest available data. 20 3. Mid-Year Student Allocations 21 a. Student counts in October and February may result in 22 mid-year allocation adjustments for the following: city and parish 23 school systems, Recovery School District, New Type 2 Charter 24 schools, Legacy Type 2 Charter schools, Type 3B Charter schools, 25 Louisiana State University, Southern University, and University of 26 Louisiana at Lafayette Lab schools, Louisiana School for Math, 27 Science and the Arts (LSMSA), New Orleans Center for Creative 28 Arts (NOCCA), Thrive Academy, and Special School District (SSD). 29 b. If the current year October 1 Mid-Year Student Count is more 30 or less than the prior year February 1 student count, an adjustment to Page 24 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 the current year allocation shall be made for each student gained or 2 lost. The October adjustment equals the number of students gained 3 or lost times the annual State Cost per pupil allocation amount for the 4 system or school in which the change occurred. The February 5 adjustment equals the number of students gained or lost times 6 one-half of the State Cost per pupil allocation for the system or 7 school in which the change occurred. 8 c. Individual adjustments shall be made for increases or 9 decreases in the October or February Mid-Year Student Counts for 10 the Recovery School District, the system of prior jurisdiction, and 11 Type 5 Charter schools. 12 d. Mid-Year adjustments for the Recovery School District shall 13 utilize the final State Cost per pupil allocation for the system of prior 14 jurisdiction. 15 e. If the Recovery School District qualifies for an October 16 Mid-Year Adjustment to the State Cost per pupil allocation, a 17 Mid-Year adjustment shall also be made to the Local Cost per pupil 18 allocation for the system of prior jurisdiction. The October Local 19 Cost per pupil allocation shall be recalculated based on updated 20 revenue data for the system of prior jurisdiction. There shall be no 21 recalculation of the Local Cost per pupil allocation in conjunction 22 with the February 1 student count. 23 f. City, Parish, or Local public school systems or schools in the 24 first year of operation are not eligible for an October Mid-Year 25 Adjustment. However, their allocation will be finalized using 26 October 1 data. The newly opened city, parish, or local public school 27 systems or schools will qualify for the February1 mid-year 28 adjustment. 29 g. October and February Mid-Year Adjustments shall be 30 combined and applied in the March through June payments. Page 25 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Total MFP State Cost Allocation 2 Formula: 3 Total MFP State Cost Allocation 4 Equals 5 Level 1 State Cost Allocation 6 Plus 7 Level 2 State Cost Allocation 8 Plus 9 Level 3 State Cost Allocation 10 Plus 11 Level 4 State Cost Allocation 12 II.FORMULA CALCULATIONS FOR STATE-APPROVED PUBLIC 13 SCHOOLS 14 A. Recovery School District 15 1. State Cost Allocation 16 a. Once all final calculations are made, the final State Cost 17 Allocation Per Pupil Amount for the city or parish school system 18 which counted the Recovery School District students will be 19 multiplied by the February 1 Recovery School District Student 20 Membership Count to equal the Recovery School District State Cost 21 Allocation. 22 b. In a system with one or more Type 3B charter schools, if the 23 Type 3B charter is not its own LEA, the local school system shall 24 distribute minimum foundation program formula funds to each Type 25 3B charter school in the system pursuant to calculations determined 26 by the Louisiana Department of Education. If the Type 3B charter is 27 its own LEA, such payments shall be made to the Type 3B charter 28 school by the Louisiana Department of Education. Such calculations 29 shall include differentiated funding weights for certain students, 30 including students identified as being eligible for special education Page 26 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 services. The calculations shall ensure equity so that each Type 3B 2 charter school in the system receives a per-pupil amount equal to the 3 amount a Type 5 charter school located in the same parish or school 4 system boundary would have received from the Recovery School 5 District (RSD). 6 2. Local Cost Allocation 7 a. In addition to the State Cost Allocation, the Recovery School 8 District shall receive an applicable Local Cost Allocation. 9 Formula: 10 Local Cost Allocation Per Pupil 11 Equals 12 Projected Local Revenues from District of Prior Jurisdiction 13 Divided by 14 Total School District Membership (Recovery School District Student 15 Membership Count plus Student Membership Count for the system of 16 prior jurisdiction plus New Type 2 Charter school students residing in 17 the jurisdiction) 18 b. To begin the fiscal year, the Local Cost allocation is based on 19 eligible projected local revenues for the most recent prior fiscal year 20 from the city or parish school district that had jurisdiction of the 21 school prior to its transfer. 22 c. For purposes of the Recovery School District calculation, 23 local revenue is defined to include revenue from the following 24 sources, excluding any portion which has been specifically dedicated 25 by the legislature or by voter approval to capital outlay or debt 26 service, per the definitions in the Annual Financial Report (AFR) and 27 the Louisiana Accounting and Uniform Governmental Handbook as 28 reported to the Louisiana Department of Education: 29 1. Sales and use taxes, less any tax collection fee paid by the 30 school system Page 27 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 2. Ad valorem taxes, less any tax collection fee paid by the 2 school system 3 3. Earnings from sixteenth section lands owned by the school 4 system 5 d. The exclusion of any portion of local revenues specifically 6 dedicated by the legislature or by voter approval to capital outlay or 7 debt service shall be applicable only to a charter school housed in a 8 facility or facilities provided by the system in which the charter 9 school is located. 10 e. The projected local revenues shall be divided by the Total 11 School District Membership Count including the Recovery School 12 District Student Membership Count, both operated and charter 13 schools, plus the Student Membership Count of the system of prior 14 jurisdiction. If any New Type 2 Charter School student resides 15 within the physical boundaries of the system of prior jurisdiction, this 16 school the student attends shares in the local revenues of the system 17 of prior jurisdiction. As a result, the New Type 2 Charter School 18 Student Membership Count of the students residing in the jurisdiction 19 will be added to the Recovery School District and the system of prior 20 jurisdiction Student Membership Count. 21 f. The Local Cost Allocation for the Recovery School District 22 is determined by multiplying the local revenue per pupil times the 23 number of Recovery School District students used in the MFP final 24 allocation. 25 Formula: 26 Local Cost Allocation 27 Equals 28 Projected Local Revenues from District of Prior Jurisdiction Per Pupil 29 Multiplied By 30 Recovery School District Student Membership Count Page 28 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 g. Once the local amount is determined, it is adjusted to a 2 monthly amount that is transferred from the MFP monthly allocation 3 of the city, parish, or other local public school board of prior 4 jurisdiction to the Recovery School District. 5 h. Based on the October 1 Student Membership Count, the local 6 revenue allocation per student will be recalculated and there will be 7 a corresponding adjustment in the local revenue allocation. No 8 recalculation of the local revenues per student will occur as a result 9 of the February 1 Student Count adjustment. 10 i. During the third quarter of the fiscal year, the local revenue 11 allocation per student shall be adjusted to reflect actual prior year 12 local revenue data. 13 j. A final reconciliation will occur based upon the receipt of the 14 annual audited financial statements of the system of prior 15 jurisdiction. If an increase or decrease in local revenue collections 16 exists, the state superintendent may establish a payment schedule. In 17 the event that the fiscal status of the system of prior jurisdiction or 18 the Recovery School District changes during the fiscal year or on or 19 before the final reconciliation, the state superintendent may adjust the 20 local revenue based on the revenues identified. 21 3. Monies appropriated to the Recovery School District, except for 22 administrative costs, that are attributable to the transfer of a school from a 23 prior school system and monies allocated or transferred from the prior system 24 to the Recovery School District shall be expended solely on the operation of 25 schools transferred from the prior system to the jurisdiction of the Recovery 26 School District. 27 B. New Type 2 Charter Schools 28 A New Type 2 Charter school is a Type 2 Charter school approved after July 1, 29 2008, by the State Board of Elementary and Secondary Education. 30 1. State Cost Allocation Page 29 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 a. Any New Type 2 Charter School shall annually be provided 2 a State Cost Allocation as determined by applying the formula 3 contained in R.S. 17:3995. 4 b. The State Cost Allocation equals the number of students 5 multiplied by the State Cost Allocation Per Pupil for the system in 6 which the student resides. 7 c. Mid-Year Adjustments shall adhere to the guidelines 8 established in this document. 9 2. Local Cost Allocation 10 a. Any New Type 2 Charter school shall annually be provided 11 a Local Cost Allocation by applying the formula contained in R.S. 12 17:3995. 13 b. The Local Cost Allocation equals the number of students 14 multiplied by the Local Cost Allocation Per Pupil for the system in 15 which the student resides. 16 c. One exception to R.S. 17:3995 is that the Local Cost 17 allocation will be funded with a transfer of the MFP monthly amount 18 representing the Local Cost Allocation from the city or parish school 19 system in which the attending students reside. 20 d. The city or parish where students attending the New Type 2 21 Charter school reside is the local taxing authority and shall provide 22 the local support for the students. 23 e. Mid-Year Adjustments will adhere to the guidelines 24 established in this document. 25 3. Virtual Charter schools may receive, as approved by the State Board of 26 Elementary and Secondary Education, a lesser percentage of the state and 27 local amount calculated in R.S. 17:3995. 28 4. Where student attendance is from multiple school systems, the 29 Department of Education shall determine the Local Cost Allocation based on 30 students reported by the schools. The student membership count of the New Page 30 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 Type 2 charter schools shall be included in the membership count of the city 2 or parish school board in which the student resides to determine the Local 3 Cost Allocation. 4 5. In the first year of operation, a New Type 2 Charter school shall be 5 allocated funding based on an estimated student count since a February 1 6 student count does not exist. The allocation will be finalized based on the 7 October 1 student count. 8 6. The exclusion of any portion of local revenues specifically dedicated by 9 the legislature or by voter approval to capital outlay or debt service shall be 10 applicable only to a charter school housed in a facility or facilities provided 11 by the district in which the charter school is located. 12 C. Louisiana School for Math, Science, and the Arts (LSMSA), New 13 Orleans Center for Creative Arts (NOCCA), Thrive Academy, and 14 Special School District (SSD). 15 1. The Louisiana School for Math, Science and the Arts (LSMSA), 16 New Orleans Center for Creative Arts (NOCCA), Thrive Academy, 17 and Special School District (SSD) shall be provided both a State and 18 Local Cost allocation. 19 2. State Cost Allocation 20 a. The State Cost Allocation shall be based on the State Cost 21 Allocation Per Pupil for the city or parish school system 22 where the attending students reside. 23 3. Local Cost Allocation 24 a. The Local Cost Allocation will be based on the Local Cost 25 Allocation for the city or parish school system where the 26 attending students reside. 27 b. For any student enrolled in LSMSA, NOCCA, Thrive 28 Academy, or SSD, the Local Cost Allocation Per Pupil shall 29 be funded by the State. Page 31 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 c. Where student attendance is from multiple school systems, 2 the Department of Education shall determine the Local Cost 3 Allocation based on students reported by the schools. 4 III.FORMULA PROCEDURES 5 A. Preliminary Allocation 6 1. The Minimum Foundation Program formula for the upcoming 7 fiscal year adopted by the State Board of Elementary and Secondary 8 Education, along with a preliminary allocation schedule representing 9 the estimated cost of the proposed formula, shall be submitted to the 10 Joint Legislative Committee on the Budget and to the House and 11 Senate Education Committees for consideration no later than 12 March 15. 13 2. This preliminary allocation shall utilize student and other 14 input data available at the time. 15 B. Final Allocation 16 Final allocations for the fiscal year in which the formula takes effect will be 17 determined no later than June 30 of the preceding fiscal year. The latest 18 available data will be utilized to calculate the final allocation except that 19 student count estimates will be utilized for school systems or charter schools 20 opening for the first time in the fiscal year beginning July 1. For first-year 21 city, parish, or other public school systems or schools, the final allocation 22 will be based on the October 1 count, once available. 23 IV.FORMULA PAYMENTS 24 A. Payment Procedures 25 The Total MFP State Cost Allocation for city, parish, and other school 26 systems and schools will be converted to monthly payments from July 27 through June each year except payments will be made on Level 4 allocations 28 as data becomes available. Page 32 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 B. Requested Payment Adjustments 2 If the city, parish, or other school systems and schools have documented 3 growth in students prior to the actual Mid-Year Student Counts in October 4 and February, a temporary change to the final allocation may be requested. 5 The State Superintendent is authorized to approve or deny this revision. 6 1. Sufficient documentation will be requested to substantiate this 7 requested allocation adjustment. 8 2. The adjusted allocation will remain in effect until the actual 9 October or February Mid-Year Student Count. Once the Mid-Year 10 Student Count is final, reconciliation will be completed and payments 11 adjusted accordingly. 12 C. Payment Adjustments for Audit Findings 13 Review and/or audit of the systems' or schools' data used in determining their 14 Minimum Foundation Program allocation may result in changes in final 15 statistical information. The Minimum Foundation Program allocation 16 adjustments necessary as a result of these audit findings will be made in the 17 following school year. These adjustments are applicable to the following: 18 city or parish school systems, Recovery School District, Type 2 Charter 19 schools, Type 3B Charter schools, Louisiana State University, Southern 20 University, and University of Louisiana at Lafayette Lab schools, Office of 21 Juvenile Justice (OJJ) schools, Louisiana School for Math, Science and the 22 Arts (LSMSA), New Orleans Center for Creative Arts (NOCCA), Thrive 23 Academy, and Special School District (SSD). 24 V. 70% EXPENDITURE REQUIREMENT 25 To provide for appropriate accountability of state funds while providing city, 26 parish, or local public school systems or other public schools flexibility in 27 determining specific expenditures, city, parish, or local public school systems 28 or other public schools must ensure that at least 70% of the city, parish, or 29 local public school system or other public school general fund expenditures 30 are in the areas of instruction and school administration at the school Page 33 of 34 HLS 22RS-482 ORIGINAL HCR NO. 23 1 building level as developed by the Louisiana Department of Education and 2 defined by the State Board of Elementary and Secondary Education 3 regulations. 4 VII. SEVERABILITY PROVISION 5 If any provision of this minimum foundation formula or the application 6 thereof is held invalid, such invalidity shall not affect other provisions or 7 applications of this minimum foundation formula which can be given effect 8 without the invalid provisions or applications, and to this end the provisions 9 of this minimum foundation formula are hereby declared severable. The 10 severability provision hereof shall be broadly construed so as to give effect 11 to each and every possible provision or application of this minimum 12 foundation formula which is not specifically held invalid, unlawful, or 13 unconstitutional. 14 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby 15approve the formula that was developed by the State Board of Elementary and Secondary 16Education pursuant to Article VIII, Section 13(B) of the Constitution of Louisiana to 17determine the cost of a minimum foundation program of education in all public elementary 18and secondary schools as well as to equitably allocate the funds to parish and city school 19systems and that was adopted by the board on March 9, 2022. 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 23 Original 2022 Regular Session Harris Approves the minimum foundation program (MFP) formula for FY 2022-2023 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 BESE on March 9, 2022. Page 34 of 34