MFP 101: Seven Easy Steps to Understanding

the Minimum Foundation Program Formula

LEADS Conference July 26, 2006

MFP Purpose

Determine the cost of a minimum foundation program of education in the State

Equitably distribute State funds to local school systems

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

Special EducationOther

Exceptionalities1.50

Special EducationOther

Exceptionalities1.50

Special EducationGifted & Talented

.60

Special EducationGifted & Talented

.60

Voc-ed Units

.05

Voc-ed Units

.05

Oct. 1 Membership1.00

Oct. 1 Membership1.00

At-Risk Students

.17

At-Risk Students

.17

Economy of Scale

Max .20

Economy of Scale

Max .20

= TOTAL WEIGHTED MEMBERSHIP

Student Characteristics & Weights

plusplus

plusplus

plusplus

plusplus

plusplus

time

stim

e

sBase Per Pupil

Amount

Base Per Pupil Amount

TOTAL LEVEL 1 COSTS

TOTAL LEVEL 1 COSTS

Total Weighted Membership

Total Weighted Membership

Total Level 1 Costs

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

Property and Sales Tax Revenues plus Other

Revenues

Total Fiscal Capacity

Fiscal Capacity Per

Pupil

Divided by

StudentsEquals

Equals

Fiscal Capacity

Fiscal Capacity Per Pupil

State Average

Fiscal Capacity Per

PupilLocal Wealth Factor

Local Wealth Factor

Divided by

Equal

s

Local Wealth Factor

Weighted Proportion

of State Membership

Local Equalization

Factor

Local Equalization Factor

Equal

sEqual

s

Time

sTime

s

Local Equalization

Factor Total Level 1

Costs

35%

Local Support of Level 1 Costs

times

times

Local Support of Level 1 Costs

Total Level 1 Costs

Total Level 1 Costs

Local Support of Level 1 Costs

State Support of Level 1 Costs

lessless

State Support of Level 1 Costs

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

Total Level 1 Costs

33%

Limit of State Level 2 Support

timetimess

Determining the Level 2 Limit

Total Local Revenue

Level 1 Local Revenue

Local Revenue above Level 1

lessless

Determining Local Revenue Eligible for Level

2 Funding

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

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

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

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

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

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

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

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

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)

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

FY2006-2007 MFPProvisions for Storm Impacted

Districts

Applicable to:•City of Bogalusa

•Cameron

•Jefferson

•Orleans

•Plaquemines

•St. Bernard

FY2006-2007 MFPProvisions 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

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

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

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!!!

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!!!

Contact Information Beth Scioneaux

•beth.scioneaux@la.gov

•225-342-4989

Charlotte Stevens•charlotte.stevens@la.gov

•225-342-3590

Helpful Web Links

MFP Webpage:• http://www.louisianaschools.net/lde/finance/

673.html

MFP Payments:• http://www.louisianaschools.net/lde/appropriatio

n/908.html

Data Collection Systems:• http://www.louisianaschools.net/lde/pair/638.

html