1

MFP 101Understanding the

Minimum Foundation Program Formula

FY 2009-10

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 EducationOther Exceptionalities

1.50 (OPSB: 3,253)

+4,880

Special EducationOther Exceptionalities

1.50 (OPSB: 3,253)

+4,880

Special EducationGifted & Talented .60 (OPSB: 2,382)

+1,429

Special EducationGifted & 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

plusplus

plusplus

plusplus

plusplus

plusplus

(OPSB : 33,693 + 6,354 + 481 + 4,880 + 1,429 = 46,837(OPSB : 33,693 + 6,354 + 481 + 4,880 + 1,429 = 46,837)) (OPSB : 33,693 + 6,354 + 481 + 4,880 + 1,429 = 46,837(OPSB : 33,693 + 6,354 + 481 + 4,880 + 1,429 = 46,837))

6

time

stim

e

sBase Per Pupil

Amount

FY 09-10 =$3,855

Base Per Pupil Amount

FY 09-10 =$3,855

TOTAL LEVEL 1 COSTS

Shared State and Locally

TOTAL LEVEL 1 COSTS

Shared State and Locally

Total Weighted Membership

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. 17:3971-4001),

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 16th 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 MathernePaula.matherne@la.gov225-342-3590

Karen McCarvyKaren.mccarvy@la.gov225-342-3776