1. Overview of ABE Funding Summer Institute 2011

2. Trends in Funding FY 2009FY 2010FY 2011 FY 2012 State ABE Aid$ 42,291,786$ 43,125,585$ 44,864,723$ 45,628,787 Federal ABE Aid$ 5,887,863$ 5,299,077$ 4,918,864$ 5,022,396 Grant programs$ 836,841$ 866,787$ 982,196$ 1,018,670 TOTAL $$49,016,490$ 49,291,449$ 50,765,783 Enrollment73,38778,48074,847 Student Contact Hours 5,371,9025,827,8605,775,962 Avg. cost per student per year $668$647$678

3. Funding Sources All ABE programs in Minnesota receive funding from 2 sources: – State ABE Aid – Federal ABE Aid

4. FY 2011 ABE State Aid State ABE appropriation segmented into 4 components: 1. Base population aid 2. Contact hour rate = $5.14 per prior year contact hour 3. K-12 Limited English Proficient (LEP) rate = $44.35 per K- 12 LEP Unit 4. Over age 20 no diploma rate = $5.51 per district resident without a high school diploma To view your consortium’s state aid spreadsheet on the MDE website, go to: http://app.education.state.mn.us/MFRSystem/index.dohttp://app.education.state.mn.us/MFRSystem/index.do

5. Increase in State ABE Aid 2% 3% annual statutory base increase in State ABE Aid Subject to a corresponding statewide ten- year average growth in contact hours ABE base aid will increase every year by 2% if ABE contact hours grow by average 2% or more per year over the prior ten-year period

6. Federal ABE Aid Each state receives a percentage of the federal allocation based on census data. Each program in Minnesota receives a percentage of the state’s federal allocation based on the number of contact hours of learners who are not ASE. FY 2011 federal contact hour rate = $0.50

7. What does all this mean? You are an ABE teacher. You normally have 12 students come per day for a 2-hour ESL class. Using at this year’s contact hour rates: – how much state funding did your class generate last program year per class day? – how much federal funding did your class generate last program year per class day? – how much total funding did your class generate last program year per class day?

8. What does all this mean? Showing your work 12 students x 2 hours = 24 contact hours/day (last program year) 24 contact hours x $5.14 (state) = $123.36 24 contact hours x $0.50 (fed) = $12.00 Total = $123.36 + $12.00 = $135.36/day

9. What does all this mean? Program funding generated State funding =$123.36 Federal funding = $12.00 Total funding = $135.36/day

10. Contact Hour Growth Cap The amount a consortium receives in contact hour revenue may not increase over the previous year by more than 11% or $10,000 (whichever is greater).

11. Gross Revenue Per Contact Hour A consortium may not receive more than $22 per prior year contact hour in total state aid revenue

12. Other Sources of ABE Funding State & federal ABE grants (i.e. EL/civics) Other state & federal grants Foundation grants Contracts for service Private donations Other?

13. For more information… Contact Barry Shaffer, State ABE Director barry.shaffer@state.mn.usbarry.shaffer@state.mn.us or 651-582-8442