1. The Student Centered Funding Formula
Chancellor’s Office
The Student Centered Funding Formula
CCIA 2019 Spring Conference
May 2 & 3, 2019
Sacramento

2. Felipe

3. Maritza

5. Vision Goals Commitments Increase credential obtainment by 20%
Focus on students’ goals
Design with the students’ experience in mind
High expectations and high support
Evidence-based decisions
Own student performance
Cross-system partnership
Thoughtful innovation and action
Increase credential obtainment by 20%
Increase transfer by 35% to UC and CSU
Decrease unit obtainment for a degree
Increase employment for CE students
Reduce and erase equity gaps
Reduce regional gaps

7. Student Centered Funding Formula
The new formula calculates apportionments generally using three allocations:
Base Allocation—Enrollments (FTES).
Supplemental Allocation—Counts of low-income students.
Student Success Allocation—Counts of outcomes related to the Vision for Success, with “premiums” for outcomes of low-income students.

9. 2. Supplemental Allocation
Category
Amount
Pell Grant Recipient
$919
Promise Grant Recipient
919
AB540

10. 3. Student Success Allocation
5/11/2019
3. Student Success Allocation
Student Success Allocation—Measures
All Students
Promise Grant
Premium
Pell Grant
1. Associate degrees for transfer granted
$1,760
$444
$666
2. Associate degrees granted (excluding ADTs)
1.320
333
500
3. Baccalaureate degree granted
1,320
4. Credit certificates (16 units or more) granted
880
222
5. Completion of transfer-level mathematics and English courses within first academic year of enrollment
6. Successful transfer to four-year university
660
167
250
7. Completion of nine or more CTE units
440
111
8. Attainment of regional living wage

11. Completion of Transfer-Level Math and English
How the Student-Centered Funding Formula Helps Low-Income Students
Transfer to the CSU System
Under the new funding formula, college districts
receive funds for students’ progress toward their goals.
An additional equity allocation is awarded for each low-income student who achieves these goals.
First Year
Completion of Transfer-Level Math and English
Second Year
Completion of ADT Degree
Transfer to the CSU System
Funding to Districts
$4,646
$1,213
$4,306
$3,642
$1,365
Base
$3,727
$3,387
Supplemental
$919
Student Success
$880
$2,640
$990
Student Success Equity
$333
$1,002
$375
Total Provided to College District: $15,172

12. Implementation

13. Apportionments
In general, the Chancellor’s Office calculates districts’ apportionments three times each year:
Advance P1 P2 R1

14. April Revision to the First Principal Apportionment
Adjustments:
The three-year average for credit full-time equivalent enrollment was recalculated to omit special admit students and students in correctional facilities from the calculation of the and funded FTES.
Additional offsetting revenues were reflected, including property tax collections and federal oil and mineral revenues.
Corrections to use most current data or round calculations consistently.

15. April Revision to the First Principal Apportionment
As previously described, the Chancellor’s Office intends to apportion to each district at least their TCR, adjusted by the COLA.
As of the April revision, the Chancellor’s Office estimates a $228 million funding shortfall. Specifically:
The costs of the total computational revenue statewide are $84 million higher than assumed when the Budget Act of 2018 was enacted.
Revenues are $144 million lower than estimated in the Budget Act of 2018.

16. April Revision to the First Principal Apportionment
To manage the apportionment within the available revenues, the Chancellor’s Office has revised apportionments for districts who would have received more than their revenues, adjusted by the COLA, as follows:
A district’s TCR was constrained to be no greater than 8.13 percent more than the TCR.
The difference between the “constrained TCR” and the TCR, adjusted by the COLA, was calculated.
The differences at each of the districts were totaled.
The amount calculated for the district was divided by the sum of all of the districts’ differences to generate a percentage of the total differences attributable to that district.
The district’s percentage was multiplied by the remaining available revenues ($35 million) to calculate the district’s proportionate share of those revenues.
The proportionate share was added to the district’s TCR, adjusted by the COLA, to determine the adjusted TCR at this point in time.

17. Next Steps
These measures were taken to manage within the resources that are currently available for the general apportionment.
The Chancellor’s Office will continue to work with the Governor and the Legislature to seek the necessary adjustments to the current-year appropriations to fund the full costs of the general apportionment.
With regard to the revenue shortfall, the Proposition 98 minimum guarantee is funded by state General Fund and local property taxes. In most years, when property taxes decline, General Fund is adjusted to fund that minimum guarantee.
Further, in recent years, Finance has proposed adjustments to backfill the general apportionment with General Fund when property taxes come in lower than budgeted.

18. Potential Policy Changes to the SCFF

19. Process
Since January, the Chancellor’s Office has worked to develop recommendations responsive to the Board of Governors’ and Chancellor’s priorities and the issues raised in the Governor’s Budget.
These efforts have involved:
Consultation through the Advisory Workgroup on Fiscal Affairs and the Consultation Council.
Consideration of recommendations made by the Academic Senate for California Community Colleges, the CEO Funding Formula Taskforce, and others.
Presentation before legislative budget committees and at several conferences.

20. SCFF Structure (5) # Issue Existing Law Recommendation 1
Appropriations for SCFF Costs
The state determines General Fund appropriations when the annual budget is enacted, based on estimated SCFF costs and offsetting revenues.
Enact statutes to authorize the state to adjust General Fund appropriations for the SCFF to account for revised estimates of costs and offsetting revenues. 2
Minimum Levels of Revenues
Existing law specifies that a district would receive at least the TCR adjusted by the cost-of-living adjustments (COLA) in , , and
Extend this provision through This length of time is consistent with the length of the transition to the Local Control Funding Formula.

21. SCFF Structure # Issue Existing Law Recommendation 3
Adjustments to Various SCFF Rates
Existing law specifies rates for each of the factors included in the base allocation, supplemental allocation, and student success allocation.
Consistent with Governor’s proposal, adjust the per-factor SCFF rates, such that the split across the three allocations would be approximately in 4
Use of Simple Average for Factors
Existing law uses prior-year counts for each of the factors in the supplemental allocation and student success allocation.
For the supplemental allocation and for the student success allocation, use a simple average of the factors for the prior year and the prior prior year.

22. SCFF Structure # Issue Existing Law Recommendation 5
Instructional Service Agreements
Existing law directs the SCFF Oversight Committee to review funding for courses offered through instructional service agreements and make recommendations no later than June 30, 2021.
Direct the oversight committee to make recommendations related to instructional service agreements no later than January 1, 2020.

23. Student Success Allocation#
Issue
Existing Law
Recommendation 1
Counts of Student Success Allocation Factors
Existing law counts all outcomes, regardless of whether the same student attained more than one of the outcomes.
Count only the highest in a single year: (1) associate degree for transfer, (2) associate degree, (3) baccalaureate degree, (4) credit certificate, (5) completion of transfer-level mathematics and English courses, and (6) completion of nine or more career- technical education (CTE) units. 2
Definition of Completion of Nine or More CTE Units
Existing law counts the number of students who completed nine or more CTE units in the same year.
Count this outcome only if the student completes the units within the same two-digit TOP code.

24. Student Success Allocation#
Issue
Existing Law
Recommendation 3
Definition of Successful Transfer to Four-Year University
Existing law counts the number of students who successfully transferred, as long as the student completed at least 12 units systemwide, with outcome credited to each district in which student enrolled in prior year.
Count this outcome at each district where the student completed 12 or more units in any year prior to transfer and enrolled in the district in the prior year. 4
Definition of Outcomes Related to Awards
Existing law counts all awards in a given year.
Count this outcome only if the student had enrollment in the academic year the award is made.

25. Clarifications # Issue Existing Law Recommendation 1
Clarification that Apportionment is Made to Residents Students Through SCFF
Existing law apportions funds through the base allocation based on FTES only of students classified as resident students for purposes of the enrollment fee.
Include a student in the supplemental allocation counts only if the student is classified as a resident student and in the success allocation counts only if the student is classified as a resident student in at least one term.
This recommendation does not change any provisions related to AB 540 students.

26. Clarifications # Issue Existing Law Recommendation 2
Clarification that Special Admit Students and Students in Correctional Facilities Are Funded through Base Allocation
Existing law specifies, as part of the base allocation, higher per-FTES rates for credit FTES of special admit students and students in correctional facilities compared to all other credit FTES.
Clarify statute consistent with the intent that funding be provided for special admit students and students in correctional facilities through the base allocation by making explicit that counts of students whose enrollment has been exclusively in one of those categories are not included.

27. Next Steps
The Chancellor’s Office will transmit these recommendations to the Department of Finance and Legislature for consideration as part of the enactment of the budget.
Earlier this year, the Chancellor’s Office also requested that the Fiscal Crisis and Management Assistance Team conduct a review of SCFF data. Join the webinar on Monday, May 6, for more detail about that report.

28. Tools and Resources

29. Upcoming SCFF Webinar
May 6, 2019 from 9:30-11:00 AM: Update on SCFF-Related Policy Changes
Go to to register and view previously recorded webinars.

30. Vision Resource Center
Features
Extension of face-to-face support
Platform for all stakeholders
System/Local portal
Download/Upload capacity

31. FCMAT Calculator
In partnership with the Fiscal Crisis and Management Assistance Team (FCMAT), the SCFF Calculator will be updated shortly to reflect the April version of the first principal apportionment.
Districts can use this tool for multi-year budgeting projections. To support that work, a help desk is available to provide committed support to calculator users.

32. More Information Website Address:
ies/StudentCenteredFundingFormula.aspx
Address: