How is the Local Control Funding Formula (LCFF) different from what was in place under revenue limits?
The goal of the LCFF is to significantly simplify how state funding is provided to local educational agencies (LEAs). Under the new funding system, revenue limits and most state categorical programs are eliminated. LEAs will receive funding based on the demographic profile of the students they serve and gain greater flexibility to use these funds to improve outcomes of students. The LCFF creates funding targets based on these student characteristics. For school districts and charter schools, the LCFF funding targets consist of grade span-specific base grants plus supplemental and concentration grants that reflect student demographic factors. For county offices of education (COEs), the LCFF funding targets consist of an amount for COE operations plus grants for instructional programs.
When will the LCFF be implemented?
Implementation of the LCFF begins in 2013–14. The state Department of Finance estimates that achieving full funding levels under the LCFF will take eight years based on its current Proposition 98 growth projections. During the intervening years, some LCFF provisions will be phased in (e.g., funding levels and K–3 class size). Regulations and templates to support local implementation will be adopted by the State Board of Education (SBE) in early 2014 for use during the 2014–15 program and budget planning process.
How are LCFF target levels calculated for school districts and charter schools?
Funding targets under the LCFF consist of:
- Grade span-specific base grants that reflect adjustments for grades K–3 class sizes and grades 9–12 career technical education;
- Supplemental grants equal to 20 percent of the adjusted base grants multiplied by the LEA’s unduplicated percentage of English learners, free and reduced-price meal eligible, and foster youth students;
- Concentration grants equal to 50 percent of the adjusted base grants multiplied by an LEA’s percentage of unduplicated pupils above 55 percent;
- A necessary small school allowance for any qualifying school; and
- Two add-ons equal to the amounts LEAs received in 2012–13 for the Targeted Instructional Improvement Block Grant and Home-to-School Transportation programs.
Commencing in the 2013–14 fiscal year, the base, supplemental, and concentration grants, as well as necessary small school allowances, will receive cost-of-living adjustments.
How are funding levels calculated in 2013–14 and during phase-in for school districts and charter schools?
The calculation of LCFF funding in 2013–14 and throughout the phase-in is based on an LEA’s prior year funding (funding floor) as well as its LCFF target amount.
In most cases, an LEA’s funding floor consists of 2012–13 deficited revenue limit including basic aid fair share reductions and charter general purpose funding (including the charter school categorical block grant) divided by average daily attendance (ADA), multiplied by current year ADA, plus the sum of any applicable categorical program funding.
Actual funding in 2013–14 and subsequent years is based on the difference between the LEA’s funding floor and its LCFF target (the LCFF gap). For the 2013–14 fiscal year, LEAs will receive their funding floor amount plus a portion of their LCFF gap. Each fiscal year thereafter, an LEA's funding amount will be based on recalculation of its LCFF target and its funding floor including any prior year transition funding converted to a per-ADA value and then adjusted for current year ADA. The state Department of Finance estimates that the portion of the gap that will be funded will be 11.78 percent in 2013–14, 16.49 percent in 2014–15, and 18.69 percent in 2015–16.
Some LEAs may also be eligible to receive an Economic Recovery Target (ERT) payment. This payment is based on the difference between the amount an LEA would have received under the old funding system and the amount a district would receive under the LCFF in 2020–21. To determine this difference, assumptions for the old funding system include:
- 2012–13 undeficited revenue limits, or block grant funding for charter schools, with cost-of-living adjustments of 1.57 percent in 2013–14 and 1.94 percent each year from 2014 –15 through 2020–21; and
- Categorical program funding levels restored to the 2007–08 level.
LCFF calculations assume the same cost-of-living adjustments.
Only school districts and charter schools that are at, or below, the 90th percentile of per-pupil funding rates of school districts under the old funding system are eligible for ERT payments. An LEA eligible to receive ERT payments will receive one-eighth of its payment in 2013–14, two-eighths of its payment in 2014–15, and so on, following this pattern until it has reached its full amount in 2020–21, at which time the ERT payment will become a permanent add-on to the LEA’s LCFF formula funding.
LEAs may also continue to receive funding from categorical programs that were not eliminated as a part of the LCFF including, but not limited to, Child Nutrition, Mandates Block Grant, State Preschool, and Special Education.
LEAs should consult with their COEs, or authorizers, for assistance in calculating their unique funding levels under the LCFF.
How do 2013–14 LCFF funding levels compare to 2012–13 funding levels?
The 2013 Budget Act provides $2.067 billion in new funding for school districts and charter schools and $32 million for COEs to support the first-year implementation of the LCFF. In 2013–14, LEAs will receive roughly the same amount of funding they received in 2012–13 plus an additional amount each year to bridge the gap between 2012–13 funding levels and the 2013–14 LCFF target levels. In future years, additional funding will be provided to eventually enable each LEA to achieve its unique LCFF target funding level. Some school districts and charter schools will also receive economic recovery target payments if their undeficited 2012–13 funding levels are greater than their 2013–14 LCFF targets.
How will funds be apportioned under LCFF?
LCFF funding will be distributed using the existing Principal Apportionment system. The California Department of Education (CDE) anticipates completing the necessary system changes required to implement the new formula in time for the Second Principal Apportionment for 2013–14, which will be released in July 2014. This apportionment will be based on data collected in fall 2013 (enrollment-related data from CALPADS) and spring 2014 (attendance and tax data from the Principal Apportionment Revenue and Attendance Data Collection Software) and will reflect the total amount allocated to each LEA under the LCFF for 2013–14. The Second Principal Apportionment will “true up” the amounts provided in the Advance Apportionment (July 2013) and First Principal Apportionment (February 2014), which will not be fully based on the LCFF formula. (Please review the “Local Control Funding Formula Fact Sheet”)
Are there any changes to calculation of ADA?
School districts will continue to be funded based on the greater of prior year or current ADA, with exceptions as provided in previously existing law. Charter schools will continue to be funded based on current-year ADA.
What is the Local Control and Accountability Plan (LCAP)?
The LCAP is an important component of the LCFF. Under the LCFF all LEAs are required to prepare an LCAP, which describes how they intend to meet annual goals for all pupils, with specific activities to address state and local priorities identified pursuant to EC Section 52060(d).
When will LCAPs be required?
The governing board of each LEA shall adopt an LCAP on or before July 1, 2014. The law requires the SBE to adopt the LCAP template for LEA use before March 31, 2014.
Does the LCAP replace Local Educational Agency Plans (LEAPs) required under the federal Elementary and Secondary Education Act (ESEA)?
The LCAP does not replace the federal requirements related to LEA Plans in Section 1112 of the ESEA. However, the LCAP template will be developed by the SBE in a manner that meets both the LCAP requirements and the federal requirements, and the SBE will take steps to minimize duplication of effort at the local level to the greatest extent possible (EC Section 52064).
What are the planning requirements for LEAs identified for program improvement pursuant to ESEA?
LEAs identified for program improvement must continue to meet current LEA Plan requirements pursuant to ESEA Section 1116(c)(7).
How does the LCAP affect site plans (i.e., Single Plan for Student Achievement)?
According to EC Section 52062, specific actions included in the LCAP, or the annual update of the LCAP, must be consistent with the strategies included in the school plans submitted pursuant to EC Section 64001.