1. Perkins Fiscal Training October 19,2009 Daniel Smith, Minnesota Department of Education JoAnn Simser, Minnesota State Colleges and Universities

2. Career and Technical Education We’ve Come a Long Way! Thanks to UW Stout and the STEM Equity Pipeline for pictures used in this introduction. Vocational Education

3. AGENDA 1.Welcome and introductions 2.The Carl D. Perkins Career and Technical Education Act of 2006 3.Governing Documents 4.Minnesota Perkins Funding for 2009-2010 5.Requirements to Receive Funds 6.Local Distribution of Funds 7.Uses of Funds 8.Accessing Funds 9.Suggestions and next steps JoAnn/Dan Dan Rekha/Pam JoAnn/Dan Dan/JoAnn Dan Rekha/Pam JoAnn/Dan

4. GOALS FOR THE DAY Review state and federal fiscal regulations and legislation, Board of Trustee policies and MDE regulations regarding Minnesota Career and Technical Education and Perkins fiscal procedures Review Minnesota state allocation and local consortium distribution of funds Review and discuss requirements to receive funds and requirements for uses of funds Utilize procedures for accessing funds through secondary and postsecondary systems Provide suggestions for Minnesota CTE fiscal policies and procedures and for next steps to provide support to fiscal operations

5. The Carl D. Perkins Career and Technical Education Act of 2006

6. Purpose: The purpose of this Act is to develop more fully the academic and career and technical skills of secondary education students and postsecondary education students who elect to enroll in career and technical education programs Carl D. Perkins Career and Technical Education Act of 2006, Section 2

7. Authorization vs. Appropriation: There is authorized to be appropriated to carry out this Act … such sums as may be necessary for each of the fiscal years 2007 through 2012. Carl D. Perkins Career and Technical Education Act of 2006, Section 9 Authorization

8. Authorization vs. Appropriation: President’s budget for Perkins – May 7, 2009 (in millions)2008 Actual 2009 Est. 2010 Est. State Grants1,1641,1621,161 National Programs10168 Tech Prep103 TOTAL1,2771,2811,272 Appropriation

9. Authorization vs. Appropriation: Minnesota’s allocation for 2009-2010 Basic Grant17,697,927 Tech Prep1,735,278 TOTAL19,433,205

10. Tydings and FIFO Federal fiscal year for Perkins is from October 1 through September 30. However, states may receive a portion of their funds beginning on July 1 prior to the beginning of the fiscal year and have 12 months beyond the fiscal year to expend funds. This extension is referred to as the Tydings Amendment.

11. FFY 2009 Perkins Funds (2009-2010) October 1, 2010October 1, 2009 July 1, 2009 FFY 2009 FY 2011 FFY 2010 FY 2010 FFY 2009 Tydings Forward Funding Reallocation FFY 2009 July 1, 2011July 1, 2010 October 1, 2011 FIFO STATE LOCAL Unexpended funds returned to state

12. Governing Documents

13. Minnesota Perkins Funding for 2009-2010

14. Perkins Funds Title I Allocation (Basic Grant) Title II Allocation (Tech Prep) Amount of Title II Consolidated with Title I Total Available under Title I 17,697,927 1,735,278 0 19,433,205

15. Perkins Funds Perkins State Administration (5%) Perkins State Leadership (10%) Perkins Basic Grant Distribution (85%) 971,660 1,943,321 16,518,224

16. Requirements to Receive Perkins Funds

17. To Receive Perkins Funds Secondary State-approved CTE Program(s) Utilizing appropriately licensed staff Postsecondary In a state community or technical college Identified as a CTE program by CIP code Meet faculty qualifications

18. To Receive Perkins Funds Participate in one of the state’s Perkins consortia Each consortium must have at least one eligible secondary recipient and at least one eligible postsecondary recipient No district nor college may belong to more than one consortium A charter school with a state-approved CTE program must be invited to participate in a consortium

19. To Receive Perkins Funds Consortia are encouraged to consider other potential partners who may participate but may not directly receive funds WorkForce Centers Adult Basic Education Programs 4-year Universities Non-public schools and institutions

20. To Receive Perkins Funds The consortium must develop a single regional plan The plan must address secondary basic grant programs, postsecondary basic grant programs, and tech prep activities The plan must address all required Perkins activities and any permissible Perkins activities organized around five broad goals The plan must be signed by each participating college president and each participating school superintendent

21. To Receive Perkins Funds The consortium must identify one secondary fiscal host and one postsecondary fiscal host to receive and manage Perkins funds Consortium funds may not be commingled, but may be used across secondary/postsecondary lines The signed local plan is the legal document governing use of the funds – no other joint powers agreement is required

22. To Receive Perkins Funds Expectations of the Perkins Coordinators 1 2

23. To Receive Perkins Funds Expectations of the Perkins Fiscal Hosts 1 2

24. Distribution of Perkins Funds to Local Consortia

25. Secondary/Postsecondary Split Minnesota Rule 3505.1700 states: ALLOTMENT AVAILABILITY OF FEDERAL FUNDS. A cooperative agreement between the commissioner of education and Minnesota State Colleges and Universities will annually provide for the distribution of federal funds between secondary and postsecondary career and technical programs. Distribution to local education agencies must be determined by state and federal law.

26. Secondary/Postsecondary Split Staff recommend the annual secondary/ postsecondary split using the following factors FYE student count (50%) Population of students with disabilities (10%) Population of economically disadvantaged students (15%) Population of limited English proficient students (10%) Count of nontraditional students (5%) Count of single parents/pregnant teens (10%)

27. Secondary/Postsecondary Split In recent years, the previous calculation recommended a split of 40% secondary and 60% postsecondary Expecting consortia to need approximately 1/5 of funds for consortium building and maintenance, the state recommended dividing 1/5 of the funds evenly The result promoted a recommended split of 42% secondary and 58% postsecondary

28. Secondary Distribution The Perkins Act specifies that once the split is determined, funds will be distributed to secondary recipients on the following basis: 30% will be distributed on the basis of individuals between the ages of 5 and 17 inclusive using the most recent US Census data available 70% will be distributed on the basis of individuals between the ages of 5 and 17 inclusive in households of poverty using the most recent US Census data available

29. Postsecondary Distribution The Perkins Act specifies that once the split is determined, funds will be distributed to postsecondary recipients on the following basis: 100% will be distributed on the basis of individuals in career and technical education programs receiving PELL assistance

30. Reserve Distribution The Perkins Act allows states to utilize an alternate method to distribute up to 10% of Perkins funds to address any of three factors: 1.rural areas; 2.areas with high percentages of career and technical education students; and 3.areas with high numbers of career and technical education students.

31. Reserve Distribution Minnesota opted to address the needs of rural areas and areas with high numbers of career and technical education students by utilizing an alternate formula for 10% of the distribution to local recipients

32. Reserve Distribution That formula distributed half of the funds on the basis of the number of CTE participants in secondary and postsecondary programs, weighted 3:1 toward secondary participation to reflect programming formerly conducted under tech prep half of the funds on the basis of the geographic area of the consortium

34. The postsecondary formula allocation is based on 688 Pell recipients out of a state total 26,747 Pell recipients times the postsecondary formula allocation = (688/26,747) x $8,622,513.00 =.0257… x $8,622,513.00 = $221,792.69

36. The secondary formula allocation is calculated for each district based 30% on its census population 5-17 and 70% on its census poverty population 5-17 against a state total census count of 906,108 and a state total poverty census county of 92,765. e.g. for District 1001 = (3,679/906,108) x.30 x $6,243,889.00 + (271/92,765) x.70 x $6,243,889.00 = $20,373.93

38. When this is done for all nine secondary districts the total is: District 1000 District 1001 District 1002 District 1003 District 1004 District 1005 District 1006 District 1007 District 1008 TOTAL 0.00 20,373.93 19,465.65 1,979.23 32,840.11 25,112.60 25,084.80 19,086.29 0.00 143,942.61

39. In this example, District 1000 is a charter school and District 1008 is an intermediate school district. As such, neither has a unique geographic area against which census data are applied, so the formula calculation for each of those districts is zero. The districts remain, however, members of the consortium and are entitled to participate in the development of the plan and the use of the funds.

40. Reserve funds are based half on weighted participation and half on geographic area. Using 6,185 secondary participants (including the cooperative and charter districts) and 4,534 postsecondary participants and a geographic area of 556.58 square miles: = (6,185/186,182) x ¾ x.5 x $1,651,822 + (4,534/129,476) x ¼ x.5 x $1,651,822 + (556.58 mi 2 /83,969.43 mi 2 ) x.5 x $1,651,822 = $33,282.59 These funds are divided 42% secondary and 58% postsecondary.

41. Secondary Reserve CalculationPostsecondary Reserve CalculationGeographic Area Reserve Calculation

42. So how much of the Perkins allocation belongs to District 1001? 0 Nada Zilch Nuttin’ Notapenny Perkins is not an entitlement! Naught Zip

43. Minnesota relies on the language from Section 131(f)(2) of the Perkins Act which states: "Funds allocated to a consortium... shall be used only for purposes and programs that are mutually beneficial to all members of the consortium.... Such funds may not be reallocated to individual members of the consortium for purposes or programs benefitting only 1 member of the consortium."

44. Uses of Perkins Funds

45. Accessing Perkins Funds

46. SERVS Financial

47. Suggestions and Next Steps

48. Questions?