2. MFP 101: Seven Easy Steps to Understanding the Minimum Foundation Program Formula LEADS Conference July 26, 2006

3. MFP Purpose  Determine the cost of a minimum foundation program of education in the State  Equitably distribute State funds to local school systems

4. Level 1 - How It Works  Determines cost of education in every school district  Cost = Weighted Student Count times Weighted Per Pupil Amount  At-Risk, Vocational Education, Special Education, and Gifted/Talented Students plus Small Districts weighted to provide extra funding

5. Special Education Other Exceptionalities 1.50 Special Education Other Exceptionalities 1.50 Special Education Gifted & Talented.60 Special Education Gifted & Talented.60 Voc-ed Units.05 Voc-ed Units.05 Oct. 1 Membership 1.00 Oct. 1 Membership 1.00 At-Risk Students.17 At-Risk Students.17 Economy of Scale Max.20 Economy of Scale Max.20 = TOTAL WEIGHTED MEMBERSHIP Student Characteristics & Weights plus plus plus plus plus

6. times Base Per Pupil Amount TOTAL LEVEL 1 COSTS Total Weighted Membership Total Level 1 Costs

7. Level 1 - How It Works (cont’d)  Determines proportion of total cost to be shared between State and local systems  Local school district share based on local sales and property tax capacity  On average, State provides 65% and local districts provide 35% of cost  Actual percentage varies by district according to district’s wealth

8. Property and Sales Tax Revenues plus Other Revenues Total Fiscal Capacity Fiscal Capacity Per Pupil Divided by Students Equals Fiscal Capacity

9. Fiscal Capacity Per Pupil State Average Fiscal Capacity Per Pupil Local Wealth Factor Divided by Equals

10. Local Wealth Factor Weighted Proportion of State Membership Local Equalization Factor Equals Times

11. Local Equalization Factor Total Level 1 Costs 35% Local Support of Level 1 Costs times Local Support of Level 1 Costs

12. Total Level 1 Costs Local Support of Level 1 Costs State Support of Level 1 Costs less

13. Level 2 - How It Works  Rewards local school systems that contribute a greater portion towards the cost of education through raising local tax revenues  Approximately 40 cents on the dollar up to a maximum amount

14. Total Level 1 Costs 33% Limit of State Level 2 Support times Determining the Level 2 Limit

15. Total Local Revenue Level 1 Local Revenue Local Revenue above Level 1 less Determining Local Revenue Eligible for Level 2 Funding

16. 40% of Equalized Local Wealth Factor 1-[(1-.40)X LWF)] Eligible Revenue (lesser of Local Revenue Above Level 1 or Local Revenue Limit) times Level 2 Funding equals Level 2 – Reward Funding

17. Level 3 - How It Works  Includes continuation funding for items such as prior across the board teacher pay raise, prior support worker pay raise, salaries for foreign associate teachers, and hold harmless funding

18. MFP – Use of Funds  MFP is a block grant from the State to local school districts  Funds not earmarked for specific purposes  Provides flexibility to school districts in spending funds as long as program requirements are met

19. Instructional Expenditure Requirement  Districts must ensure 70% of general fund expenditures are on instructional activities  Instruction includes: classroom instruction, pupil support, instructional staff services, and school administration activities FY 06-07 formula adds school administration to capture principals and assistant principals

20. Instructional Expenditure Requirement  All expenditure categories directly touch the student  Restricts educational school expenditures to school building level only (new to FY06-07 formula)  Central office expenditures will not be considered when measuring the 70% requirement

21. FY 2006-2007 Certificated and Non-Certificated Pay Raise  Certificated Pay Raise of $1,500 Plus 15.8% for the employer share of retirement  Non-certificated/Support Worker Pay Raise of $500 Plus 17.7% for the employer share of retirement

22. FY 2006-2007 Certificated and Non-Certificated Pay Raise  Initial allocation based on Spring 2006 PEP Data  Actual allocation will be based on October 2, 2006 PEP Data collection  Add to salary schedules by August 1, 2006 and begin paying out raises

23. Certificated Pay Raise Requirement  Provides that 50% of a district’s increased funds provided in Levels 1 and 2 over the prior year (“growth funds”) shall be used only to supplement and enhance full-time certificated staff salaries and retirement benefits. “Growth funds” are adjusted for increases in student membership Exempts districts with teacher salaries above the SREB average ($42,291) from the 50% pay raise requirement Applies to DeSoto, St. James, and West Feliciana

24. Mid-year Supplemental Funding  Mid-year Supplemental Funding Student Increases: provided if increase in students = 50 students or 1% of student population Provides for two mid-year adjustments May 1, 2006 compared to October 2, 2006 (Increase times per pupil amount) October 2, 2006 compared to February 1, 2006 (Increase times one-half of per pupil amount)

25. Additions to FY2006-2007 MFP  Provides for $80 per student for Mandated Costs (increased from $60 in FY05-06 revised budget letter)  Provides for 15% cap in sales tax base for purposes of calculating the Local Wealth Factor (reduced from 20% cap)  Adds students with Limited English Proficiency to the at-risk student count

26. FY2006-2007 MFP Provisions for Storm Impacted Districts  Applicable to: City of Bogalusa Cameron Jefferson Orleans Plaquemines St. Bernard

27. FY2006-2007 MFP Provisions for Storm Impacted Districts  Uses a minimum percentage of October 1, 2004 student count for funding Allows for greater budgetary stability  Adjusts FY2004-2005 local revenues by the same percentage set for student minimums Provides stability to Local Wealth Factor

28. Critical Dates - October  SIS Count Date = as of 10.2.06 Close Date = 10.31.06  PEP Count Date = as of 10.2.06 Close Date = 10.11.06 Impacts funding for mid-year adjustment for student growth and allocations for certificated and non-certificated pay raises

29. Critical Dates - October  SER Close Date = 10.31.06 Data will be used for IDEA reporting Snapshot taken as of 10.31.06 No impact to MFP payments

30. Critical Dates - February  SIS Count Date = as of 2.1.06 Close Date = 2.28.06  SER Snapshot taken on 2.28.06 SIS impacts funding for second mid-year student growth adjustment SIS and SER become official count for FY07-08 MFP Formula funding!!!

31. Critical Dates - LEADS  LEADS Class schedule data = as of 10.2.06 Close Date = 12.8.06 LEAs may begin transmission of class schedule data during October 2 SIS and PEP submissions Becomes official voc ed count for FY07-08 MFP Formula funding!!!

32. Contact Information  Beth Scioneaux beth.scioneaux@la.gov 225-342-4989  Charlotte Stevens charlotte.stevens@la.gov 225-342-3590

33. Helpful Web Links  MFP Webpage: http://www.louisianaschools.net/lde/finance/673.ht ml http://www.louisianaschools.net/lde/finance/673.ht ml  MFP Payments: http://www.louisianaschools.net/lde/appropriation/908.h tml http://www.louisianaschools.net/lde/appropriation/908.h tml  Data Collection Systems: http://www.louisianaschools.net/lde/pair/638.html