Minimum Proportionality Percentage & the LCFF

Calculation

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Local Control Funding Formula (LCFF)Target Entitlement

*Unduplicated Pupil Percentage (UPP) must be above 55%

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Necessary

Small SchoolBase Grant

(by grade span)

Grade Span AdjustmentK-3 9-12

Supplemental Grant

Concentration Grant*

Targeted Instructional Improvement Block Grant

Home-to-School Transportation

Adjusted Base Grant

Add-ons12-13 Award Level

Unduplicated CountEnglish Learners

Low IncomeFoster Youth

ADA

Local Control Funding Formula (LCFF)

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There are multiple calculations during Transition…. Target Calculation – the funding goal, where we should beEconomic Recovery Target (ERT): Provides additional funding for those LEAs that would have received more under undeficited revenue limits (RL) & categorical programs, when compared to LCFF. Calculated one-time as part of 2013-14 calculation and funded over 8 years (additional 1/8 each year). Transition-only Calculations -

Floor: where we were before LCFFRemaining Need & Gap: the difference between the Target and Floor & the funded portion of the differenceMinimum State Aid (MSA)*: the protection from the change in funding methodology from RL to LCFF

*Only exists until statewide full implementation as currently written in statute.

Minimum State Aid (MSA) Guarantee

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The level of funding to ensure that LEAs receive at least the same amount in state aid as they received in 2012-13, adjusted for changes in ADA and property taxes.10.18% of LEAs received Additional State Aid in 2013-14Primarily occurs for:

Basic Aid districts because categorical funding was not previously being offset by local property taxes.Necessary Small School districts because of loss of eligibility under new eligibility rules.It may occur under other infrequent/unusual situations.

Exists only during transition as legislation is currently written.

Minimum Proportionality PercentageMPP is the lowest level of increased or improved services for unduplicated students

A minimum, not a maximumServices funded with LCFF

Not federal or other restrictedServices are above those provided for all students (base program)

Not above services in prior year Not a maintenance of effort calculation

In the LCAP yearNot the current yearCan calculate additional years for transition planning

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Minimum Proportionality PercentageAt full LCFF implementation

The MPP calculation is:

*Less TIIG and Transportation

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Supplemental &

ConcentrationGrants

All OtherLCFF Funding*

MPP

$ $ %

Example 1 - At full LCFF implementation

$ 14,000,000-------------- = 14.00% 100,000,000

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MPP

Components Amount

Base / NSS $ 96,000,000

Grade Span Adj. 3,000,000

Supplemental 12,000,000Concentration 2,000,000

TIIG & Transportation 1,000,000

ERT 1,000,000

Total LCFF $ 115,000,000

S&C

Total LCFF $ 115,000,000- TIIG/Transp. -

1,000,000- S & C -

14,000,000--------------- --------------All other LCFF $ 100,000,000

Minimum Proportionality PercentageDuring LCFF Transition

Part of the LCFF Transition total is attributed to Supplemental and Concentration for purposes of the MPP calculation

Compare prior year spending for increased or improved services to unduplicated pupils to the Target S & C amount

If spending more than Target S & C= Target S & C

If spending less than Target S & C= PY spending

+ part of difference (Gap %) between PY spending and Target S & C

Do the math during transition, even when Floor is above Target

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$$Increased or improved services

EXAMPLE 2 – LEA Floor below TargetDuring LCFF Transition

LCFF components are:

TARGET PY spent on Base + GSA $9,000,000 unduplicated pupils $600,000Supplemental 1,000,000Concentration 100,000 CY Gap % 20%TIIG & Transp. 400,000TOTAL $10,500,000

FLOOR 8,500,000

TRANSITIONFLOOR $8,500,000CY Gap funding 400,000ERT 100,000Add’l St.Aid-MSA 500,000TOTAL $9,500,000

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What is the S&C and

MPP?

Example 2 – LEA Floor below TargetDuring LCFF Transition

1. Target S & C2. Est. PY expenditures for

unduplicated pupils3. Balance to target (step 1 – step 2)4. Portion of balance (step 3 x Gap %)

5. Est. S & C

(step 2 + step 4)

6. All other LCFF (no TIIG/Transp)LCFF total 9,500,000

- TIIG/Transp. - 400,000- Est. S&C - 700,000All other LCFF 8,400,000

7. MPP (step 5 ÷ step 6)

$1,100,000 600,000 ------------ 500,000

x 20.00% 100,000 ------------- 700,000 ÷ 8,400,000

= 8.3%

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• Estimate Prior year spending

• Balance x Gap %

Plus portion of balance to Target

S&C

S&C

MPP

EXAMPLE 3 – LEA Floor above TargetDuring LCFF Transition

LCFF components are:

TARGET PY spent on Base + GSA $9,000,000 unduplicated pupils $600,000Supplemental 1,000,000Concentration 100,000 CY Gap % 20%TIIG & Transp. 400,000TOTAL $10,500,000

FLOOR 12,500,000

TRANSITIONTARGET $10,500,000ERT 100,000Add’l St.Aid-MSA 500,000TOTAL $11,100,000

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What is the S&C and

MPP?

Example 3 – LEA Floor above TargetDuring LCFF Transition

1. Target S & C2. Est. PY expenditures for

unduplicated pupils3. Balance to target (step 1 – step 2) 4. Portion of balance (step 3 x Gap %) 5. Est. S & C (step 2 + step 4)

6. All other LCFF (no TIIG/Transp)LCFF total 11,100,000

- TIIG/Transp. - 400,000- Est. S&C - 700,000All other LCFF 10,000,000

7. MPP (step 5 ÷ step 6)

$1,100,000 600,000 ------------ 500,000

x 20.00% 100,000 ------------- 700,000 ÷ 10,000,000 = 7.0%

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• Estimate Prior year spending

• Balance x Gap %

Plus portion of balance to Target

S&C

S&C

MPP

2013-14 2014-15 2015-16** 2016-17**1. LCFF Target Supplemental & Concentration Grant

Fundingfrom Calculator tab 810,869 785,040 767,827

2. Prior Year (estimated) Expenditures for Unduplicated Pupils above what was spent on services for all pupils 150,000 300,000 450,000

Prior Year EIA expenditures 103,681 2014-15 py exp (2013-14 exp) must >= 2012-13 EIA exp TRUE

3. Difference [1] less [2] 660,869 485,040 317,827

4. Estimated Additional Supplemental & Concentration Grant Funding [3] * GAP funding rate 195,353 100,306 80,982

GAP funding rate 29.56% 20.68% 25.48%

5. Estimated Supplemental and Concentration Grant Funding [2] plus [4] (unless [3]<0 then [1])LCAP Section 3, Part C 345,353 400,306 530,982

6. Base FundingLCFF Phase-In Entitlement less [5], excludes Targeted Instructional Improvement & Transportation 7,923,642 7,831,342 7,787,624

LCFF Phase-In Entitlement 8,841,665 8,804,318 8,891,276

7/8. Minimum Proportionality Percentage* [5] / [6]LCAP Section 3, Part D

4.36% 5.11% 6.82%

Minimum Proportionality Percentage (MPP):Summary Supplemental & Concentration Grant

Use LCFF Calculator to Help

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Enter PY spending estimates. Please pause

for thought..

Step 5 is S & C

Step 7 is MPP

Annual UpdateLEAs must complete an Annual Update table for each of the LEA’s goals for the current year…

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Reporting Expenditures and Estimated Costs

Why track?Need to list estimates in LCAP Annual Update

Budgeted ExpendituresEstimated Actual Annual Expenditures

Need estimates for Minimum Proportionality Percentage (MPP) calculationsTo prepare for your audit

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