Louisiana Department of Education

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MFP 101 Seven Easy Steps to Understanding the
Minimum Foundation Program Formula
LEADS Conference July 26, 2006
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MFP Purpose

• Determine the cost of a minimum foundation
  program of education in the State
• Equitably distribute State funds to local school
  systems

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Level 1 - How It Works

• Determines cost of education in every school
  district
• Cost Weighted Student Count times Weighted Per
  Pupil Amount
• At-Risk, Vocational Education, Special Education,
  and Gifted/Talented Students plus Small Districts
  weighted to provide extra funding

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Student Characteristics Weights
Oct. 1 Membership 1.00
Voc-ed Units .05
At-Risk Students .17
plus
plus
Special Education Gifted Talented .60
Special Education Other Exceptionalities 1.50
plus
plus
Economy of Scale Max .20
plus
TOTAL WEIGHTED MEMBERSHIP
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Total Level 1 Costs
Total Weighted Membership
times
Base Per Pupil Amount
TOTAL LEVEL 1 COSTS
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Level 1 - How It Works (contd)

• Determines proportion of total cost to be shared
  between State and local systems
• Local school district share based on local sales
  and property tax capacity
• On average, State provides 65 and local
  districts provide 35 of cost
• Actual percentage varies by district according to
  districts wealth

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Fiscal Capacity
Property and Sales Tax Revenues plus Other
Revenues
Total Fiscal Capacity
Divided by Students
Equals
Fiscal Capacity Per Pupil
Equals
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Local Wealth Factor
Fiscal Capacity Per Pupil
State Average Fiscal Capacity Per Pupil
Divided by
Local Wealth Factor
Equals
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Local Equalization Factor
Local Wealth Factor
Weighted Proportion of State Membership
Times
Local Equalization Factor
Equals
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Local Support of Level 1 Costs
Local Equalization Factor
Total Level 1 Costs
times
times
35
Local Support of Level 1 Costs
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State Support of Level 1 Costs
Total Level 1 Costs
less
Local Support of Level 1 Costs
State Support of Level 1 Costs
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Level 2 - How It Works

• Rewards local school systems that contribute a
  greater portion towards the cost of education
  through raising local tax revenues
• Approximately 40 cents on the dollar up to a
  maximum amount

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Determining the Level 2 Limit
Total Level 1 Costs
times
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Limit of State Level 2 Support
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Determining Local Revenue Eligible for Level 2
Funding
Total Local Revenue
less
Level 1 Local Revenue
Local Revenue above Level 1
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Level 2 Reward Funding
Eligible Revenue (lesser of Local Revenue Above
Level 1 or Local Revenue Limit)
40 of Equalized Local Wealth Factor 1-(1-.40)X
LWF)
times
equals
Level 2 Funding
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Level 3 - How It Works

• Includes continuation funding for items such as
  prior across the board teacher pay raise, prior
  support worker pay raise, salaries for foreign
  associate teachers, and hold harmless funding

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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
  are met

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Instructional Expenditure Requirement

• Districts must ensure 70 of general fund
  expenditures are on instructional activities
• Instruction includes classroom instruction,
  pupil support, instructional staff services, and
  school administration activities
• FY 06-07 formula adds school administration to
  capture principals and assistant principals

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Instructional Expenditure Requirement

• All expenditure categories directly touch the
  student
• Restricts educational school expenditures to
  school building level only (new to FY06-07
  formula)
• Central office expenditures will not be
  considered when measuring the 70 requirement

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FY 2006-2007 Certificated and Non-Certificated
Pay Raise

• Certificated Pay Raise of 1,500
• Plus 15.8 for the employer share of retirement
• Non-certificated/Support Worker Pay Raise of 500
• Plus 17.7 for the employer share of retirement

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FY 2006-2007 Certificated and Non-Certificated
Pay Raise

• Initial allocation based on Spring 2006 PEP Data
• Actual allocation will be based on October 2,
  2006 PEP Data collection
• Add to salary schedules by August 1, 2006 and
  begin paying out raises

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Certificated Pay Raise Requirement

• Provides that 50 of a districts increased funds
  provided in Levels 1 and 2 over the prior year
  (growth funds) shall be used only to supplement
  and enhance full-time certificated staff salaries
  and retirement benefits.
• Growth funds are adjusted for increases in
  student membership
• Exempts districts with teacher salaries above the
  SREB average (42,291) from the 50 pay raise
  requirement
• Applies to DeSoto, St. James, and West Feliciana

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Mid-year Supplemental Funding

• Mid-year Supplemental Funding
• Student Increases provided if increase in
  students 50 students or 1 of student
  population
• Provides for two mid-year adjustments
• May 1, 2006 compared to October 2, 2006
• (Increase times per pupil amount)
• October 2, 2006 compared to February 1, 2006
• (Increase times one-half of per pupil amount)

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Additions to FY2006-2007 MFP

• Provides for 80 per student for Mandated Costs
  (increased from 60 in FY05-06 revised budget
  letter)
• Provides for 15 cap in sales tax base for
  purposes of calculating the Local Wealth Factor
  (reduced from 20 cap)
• Adds students with Limited English Proficiency to
  the at-risk student count

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FY2006-2007 MFPProvisions for Storm Impacted
Districts

• Applicable to
• City of Bogalusa
• Cameron
• Jefferson
• Orleans
• Plaquemines
• St. Bernard

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FY2006-2007 MFPProvisions for Storm Impacted
Districts

• Uses a minimum percentage of October 1, 2004
  student count for funding
• Allows for greater budgetary stability
• Adjusts FY2004-2005 local revenues by the same
  percentage set for student minimums
• Provides stability to Local Wealth Factor

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Critical Dates - October

• SIS
• Count Date as of 10.2.06
• Close Date 10.31.06
• PEP
• Count Date as of 10.2.06
• Close Date 10.11.06
• Impacts funding for mid-year adjustment for
  student growth and allocations for certificated
  and non-certificated pay raises

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Critical Dates - October

• SER
• Close Date 10.31.06
• Data will be used for IDEA reporting
• Snapshot taken as of 10.31.06
• No impact to MFP payments

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Critical Dates - February

• SIS
• Count Date as of 2.1.06
• Close Date 2.28.06
• SER
• Snapshot taken on 2.28.06
• SIS impacts funding for second mid-year student
  growth adjustment
• SIS and SER become official count for FY07-08 MFP
  Formula funding!!!

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Critical Dates - LEADS

• LEADS
• Class schedule data as of 10.2.06
• Close Date 12.8.06
• LEAs may begin transmission of class schedule
  data during October 2 SIS and PEP submissions
• Becomes official voc ed count for FY07-08 MFP
  Formula funding!!!

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Contact Information

• Beth Scioneaux
• beth.scioneaux_at_la.gov
• 225-342-4989
• Charlotte Stevens
• charlotte.stevens_at_la.gov
• 225-342-3590

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Helpful Web Links

• MFP Webpage
• http//www.louisianaschools.net/lde/finance/673.ht
  ml
• MFP Payments
• http//www.louisianaschools.net/lde/appropriation/
  908.html
• Data Collection Systems
• http//www.louisianaschools.net/lde/pair/638.html

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