1 MFP 101 Understanding the Minimum Foundation Program Formula FY

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

3 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, set forth by BESE, are met

4 Level 1 - How It Works  Step 1 - Determines cost of education in every school district  Two components: Students: Base Membership Count (as defined by SBESE) Weighted Student Count Base Per Pupil Amount

5 Special Education Other Exceptionalities 1.50 (OPSB: 3,253) +4,880 Special Education Other Exceptionalities 1.50 (OPSB: 3,253) +4,880 Special Education Gifted & Talented.60 (OPSB: 2,382) +1,429 Special Education Gifted & Talented.60 (OPSB: 2,382) +1,429 Career & Tech-Ed Units.06 (OPSB: 8,014) +481 Career & Tech-Ed Units.06 (OPSB: 8,014) +481 Base Student Membership (February 1) 1.00 (OPSB: 33, 693) Base Student Membership (February 1) 1.00 (OPSB: 33, 693) At-Risk Students.22 (OPSB: 28,880) +6,354 At-Risk Students.22 (OPSB: 28,880) +6,354 Economy of Scale ( Max.20) (Not Applicable for OPSB) Economy of Scale ( Max.20) (Not Applicable for OPSB) = TOTAL WEIGHTED MEMBERSHIP Student Characteristics & Weights plus plus plus plus plus (OPSB : 33, , , ,429 = 46,837 )

6 times Base Per Pupil Amount FY =$3,855 TOTAL LEVEL 1 COSTS Shared State and Locally Total Weighted Membership Total Level 1 Costs

7 Level 1 Costs Shared  Step 2 – Determine proportion of education cost to be shared between State and Local School Systems State/Local share historically set at 65%/35% Actual percentage varies by district according to a district’s capacity to raise sales and property tax revenue  Local Deduction Method determines local contribution for each school system

8 Level 2 - How It Works  Rewards local school systems that contribute a greater portion towards the cost of education through raising local tax revenues  Calculates the Level 2 Reward using a factor applied to the Level 1 Local Share Contribution Rate

9 Level 3 - How It Works  Includes continuation funding for items such as Prior across the board teacher pay raises Prior support worker pay raises Salaries for foreign associate teachers Mandated costs - $100 per pupil for soaring costs of retirement, health insurance, and fuel Hold Harmless redistribution

10 Instructional Expenditure Requirement  70% of general fund expenditures must be on instructional activities at the school building level Instructional activities include: classroom instruction, pupil support, instructional staff services, and school administration activities Restricts educational school expenditures to school building level only Central office expenditures are not considered when measuring the 70% requirement

11 Mid-year Supplemental Funding  Mid-year Supplemental Funding Student Increases: provided if increase in students equals 50 students or 1% of student population FY09-10 Provides for two mid-year adjustments February 2, 2009 compared to October 1, 2009 (Increase in students times per pupil amount) October 1, 2009 compared to February 1, 2010 (Increase in students times one-half of per pupil amount )

12 Charter School Funding Per Pupil Funding Calculation

13 Charter School Funding  Per Charter School Law (R.S. 17: ), Type 1, 3 and 4 Charter Schools shall: Receive a per pupil amount from the state based on the latest approved MFP formula Receive a per pupil amount from the local district based on local revenues (excluding debt service and capital outlay funds) received by the school district during the prior year from the following sources: Sales and use taxes Ad valorem taxes Earnings from 16 th section lands

14 Charter School Funding  However…  Charter School Law also provides: In no case shall the total state and local per pupil amount (as calculated per charter school law) be less than the combined state and local per pupil allocation as defined by the most recent legislatively approved MFP resolution, including all levels.

15 Charter School Funding  For OPSB in Fiscal Year 2009/10: The Initial Per Pupil Amount calculated per the Charter School Law calculation is $7,318 ($3,254 State + $4,064 Local Calculation) The Per Pupil Amount per the FY2009/10 MFP Budget Letter is $7,837 ($3,254 State + $4,583 Local) Type 1, 3 and 4 Charters receive the greater of the two calculations, and therefore receive $7,837 per pupil.

16 Charter School Funding  The July 2009 Initial Per Pupil Calculation is based on FY07/08 local revenues.  The Final Per Pupil Amount is calculated when FY08/09 local revenue data is available (February 2010) If local revenues have increased and the total per pupil amount exceeds $7,837 per pupil, then charters will receive an increased per pupil amount If local revenues have not increased, the per pupil amount remains at $7,837 per the FY2009/10 MFP Resolution

17 Charter School Funding  Charter Per Pupil Amounts: Type 1, 2, 3 and 4 Charter Schools receive the same per pupil amount Orleans Parish is required to pay the Type 1, 3 and 4 charter schools the state and local per pupil amount calculated per charter school law The State pays the state and the local per pupil amount to the Type 2 charter schools approved prior to July 1, 2008 Orleans Parish will be required to pay the local share per pupil amount for Type 2 charter schools approved on or after July 1, 2008

18 Charter School Funding  Charter Per Pupil Amounts (continued): Type 5 Charter Schools receive a per pupil amount calculated per charter school law that also deducts funds spent on facilities acquisition and construction In FY2009/10, Type 5 Charter schools receive $7,000 per pupil (based on projected FY08/09 local revenue) The Type 5 Charter school per pupil amount is calculated without the comparison guarantee that funding will be an amount at least equal to the state and local per pupil amount per the latest MFP Calculation The local share included in the $7,000 per pupil will be recalculated based on actual FY09/10 local revenues

19 Questions? Division of Education Finance Contact information: Paula Matherne Karen McCarvy