Economic Impact Aid Cheryl Di Grazia Lisa Diamond

Economic Impact Aide What is it? EIA is a state categorical program for kindergarten through grade twelve to support programs and activities designed to assist English learners achieve proficiency in the English language and to support programs and activities designed to improve the academic achievement of educationally and economically disadvantaged pupils. Of 60 categorical programs in California, EIA is one of 20 left intact. Another 40 state categorical programs were made discretionary through 2012–13. Limited English Proficient (LEP) categorical funds were rolled into EIA.

3 Why is EIA important to California? California’s K-12 System: A brief overview The students California is by far the largest state and educates one in eight public school students in the United States. 50% of California students are Latino; 33% are white. California’s students: 50% from low-income families; 25% are identified as English learners The system The state contributes about $6 out of every $10 that goes to public education, and state leaders largely control how much funding each school district in California receives. The state has nearly 1,000 school districts that range in size from a few students to about 700,000. Each district has an elected school board that determines how to spend the money allocated by the state, but the board does so within the constraints of state and federal law and (with very few exceptions) collective bargaining commitments. In 2008–09, California had 750 charter schools, serving 4.6% of the state’s K–12 student population. The resources available California’s expenditures per pupil began losing ground compared with the national average in the late 1970s and have remained below the national average since More than 80% of school expenditures are for salaries and benefits for certificated staff—including teachers, administrators, and other professionals—and classified staff, such as bus drivers, clerks, and cafeteria workers. California public schools have only about three-quarters as many staff members as do schools on average in the United States.

4 Who is eligible? - K-12 students - Educationally disadvantaged students - EL learners

5 Are there other eligibility considerations? -Yes. The only local education agencies eligible for this program are public school districts and counties operating juvenile court schools. Other County Offices, Direct Funded Charters, and Locally Funded Charters are excluded. -ELAP funds are rolled into EIA

(1) additional programs and services for English learners (limited-English, proficient LEP) (2) State Compensatory Education (SCE) services for educationally disadvantaged students as determined by the LEA (3) Must adhere to the Single Plan for Student Achievement (SPSA), which calls for the content of the SPSA be aligned with school goals for improving pupil achievement. (EC (f)) The SPSA shall, at a minimum, address how funds provided to the school through any of the sources identified in Section will be used to improve the academic performance of all pupils to the level of the performance goals, as established by the Academic Performance Index. The SPSA shall be reviewed annually and updated, including proposed expenditures of funds allocated to the school through the consolidated application, by the school site council… (EC (g)) Eligibility

7 Categorical Funding State & Federal : State & Federal Funding What is it? Some allocations, such as instructional materials, come automatically to school districts. Others, such as for class size reduction, require the district to apply for the money. Still others are based on the characteristics of the children or families in a school district, such as low- income, English learners, and migrant students. Other programs are for specific activities or expenses, such as transportation or professional development. *Most of the federal funds flow through the California Department of Education.

8 EIA Funding How is it allocated? There is a formula! District per pupil rate times the sum of: 1) Prior year English Learner count, 2) Current year Title I Formula child count, and 3) Weighted Concentration Factor. County juvenile court schools: a) use their (adjusted) Free Meal eligible count instead of Title I Formula Children, and b) the statewide average per pupil rate (currently $318.76) is used as their per pupil rate.

9 What can EIA be used for? - Purchase of supplemental materials -Expenses that support paraprofessionals, supplemental resource teachers, and the operation of EL advisory committees Note: EIA Funds shall supplement and not supplant existing resources at the school site

EIA 10-11: About a Billion Dollars Economic Impact Aid* $942,000,000 Policymakers merged the $51 million English Language Acquisition Program (ELAP) with Economic Impact Aid (EIA), but also reduced total funding for EIA due to lower counts of eligible students.

 LEA SCHOOL: EIA/LEPSCHOOL: EIA/SCE PURPOSE EIA is a state categorical program for kindergarten through grade twelve to support:  (1) additional programs and services for Limited English Proficient (LEP) students and,  (2) State Compensatory Education (SCE) services for educationally disadvantaged youth (EDY) as determined by the LEA. To provide supplemental support programs, services, and activities to assure that LEP students achieve proficiency in the English language as rapidly as practicable and to support programs and activities to improve the academic achievement of English learners. A school shall use EIA/SCE funds to support programs and activities designed to assist educationally disadvantaged youth (EDY) achieve state standard proficiency levels. ELIGIBILITY EIA funding is open to all public school districts that request participation using Part I of the annual Consolidated Application for funds.  Charter schools receive “in lieu” EIA funds through their Block grant, not the ConApp.  County offices of education operating juvenile court schools are eligible for EIA as of EIA/LEP must be allocated to every site enrolling identified LEP students. These funds may not be allocated to sites reporting zero LEP students.  All EDY inclusive of LEP students  School is eligible for SCE if: 25% low income, or 25% LEP, or 50% EDY FUNDING PRINCIPLES Maintenance of effort – Districts maintaining programs under this chapter shall assure that the sums of local and state apportionment resources utilized in programs for participating students have not been reduced. Nothing contained in Section of the CA ED Code, shall be interpreted to authorize school districts to reduce per pupil expenditures from local, state, or federal sources for the education of pupils of limited English proficiency. Funding should be directed to schools with highest concentrations of EDY. Where the EDY includes children who speak English as a second language, programs should include early English language instruction & the use of teachers, aides, or volunteers who are proficient in the child’s primary language. ALLOWABLE EXPENDITURES  Funds received by school districts for EIA shall supplement, not supplant, existing resources at the school site.  85 percent of LEA entitlement must be apportioned to school sites, via the ConApp, and used to provide direct services to eligible pupils.  Supplemental teaching materials  Paraprofessionals  Supplemental LEP professional development for teachers and paraprofessionals  Parent involvement  Resource teachers  Other “reasonable” district expenses  Reduction ratios of pupils to teachers  Special efforts in reading instruction  Preschool programs  After-school tutoring programs  Remedial and corrective programs See EC 54422/23 for full description.

EIA Entitlements DistrictEligiblePer PupilTotalELAP Increase % Change Pajaro14,523$292.28$4,524,850$280, % Soquel519$285.26$159,880$10, % Scotts Valley 206$259.65$55,789$ % Santa Cruz 1110$303.69$347,349$10, % Salinas6528$311.21$2,160,785$129, % Eastside7631$338.50$2,583,094$0-2.55%

Something to consider…… Site leader financial training appears to be lacking in many districts *The survey asked a number of questions that explored the relationship between the district office and school sites as it pertains to financial management and resource allocation. *There appears to be some disconnect between districts’ expectations of site leaders and the training provided to them. The vast majority of CBO’s report that their district clearly communicates to principals the scope of their financial authority, and three- quarters say principals are held accountable for sound financial management. However, only 58.6% say that principals receive training on financial management and budgeting to either a good or great extent, and just 38.5% say the same is true for site-level budget and policy groups (such as school site councils) in regard to their responsibilities.

14 Glossary of Terms Economic Impact Aid (EIA) State categorical funds for districts with concentrations of children who are transient, from low-income families, or need to learn English. English Language Acquisition Program (ELAP) A state program, along with the English Language and Intensive Literacy Program (ELILP), that funds selected schools to provide supplemental instruction, purchase special materials, and offer other services for English learners to improve their English language proficiency and literacy. English Learner (EL) Students whose home language is not English and who qualify for extra help. EL students were formerly known as "Limited English Proficient" (LEP). (EL replaces ELL, English Language Learner and LEP, Limited English Proficiency) Single Plan for Student Achievement (SPSA) A required plan for schools that participate in any state or federal program included in the state's consolidated application. The plan, which is developed by the school site council, must describe how the school will spend the funds received through the consolidated application to improve student achievement. The school district governing board must review and approve the plan. This replaced the disparate plans required for some state and federal programs.