MISSISSIPPI ADEQUATE EDUCATION PROGRAM FUNDING FORMULA (MAEP) AN OVERVIEW OF HOW THE FORMULA WORKS

MISSISSIPPI ADEQUATE EDUCATION PROGRAM

FUNDING FORMULA(MAEP)

AN OVERVIEW OF HOW THE FORMULA WORKS

The formula used to establish adequate current operation funding levels necessary for the programs of each school district to meet at least a “C” district on an accountability scale of A - F districts (Level III - Successful) as established by the State Board of Education regardless of the school district’s geographic location.

WHAT IS MAEP?

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PURPOSE

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Ensure that every Mississippi Child regardless of where he/she lives is afforded an adequate educational opportunity, as defined by the State Accountability System. In order to accomplish this the system must: Provide equity by recognizing differences in the ability to provide

resources locally (EQUITY).

Provide a level of resources necessary for an adequate education (ADEQUACY).

MAEP FUNDING FORMULA

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1. ADA x Base Student Cost + At-Risk Component - Local Contribution + 8% Guarantee = MAEP Formula Allocation.

2. MAEP Formula Allocation + Add-On Programs = Total MAEP District Funding.

MAEP FORMULA PIECES

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Base Student Cost

Local Contribution

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BASE STUDENT COST (BSC) CALCULATION

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DISTRICT SELECTION PROCESS

Districts determined to be successful and efficient in four areas of school operations are selected for determining the base student cost.

Successful – Defined by the State Board of Education using current statistically relevant state assessment data.

BSC CALCULATION

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DISTRICT SELECTION PROCESS

Efficient - In each of the following Efficiency Components the statistical mean for all school districts is determined. 1. Instruction – Teachers per 1,000 students2. Administration – Administrator/Staff ratio3. Maintenance and Operations

a) M&O spending per 100,000 square feet b) Maintenance staff per 100,000 square

feet4. Ancillary – Librarians and Counselors per 1,000

students

BSC CALCULATION

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DIST NAME

SUCCESSFUL

DISTRICT

INSTRUCTIONAL

COST EFF ANCILLARY COST EFF

PLANT AND

MAINTENANCE COST EFF

ADMINISTRATIVE

COST EFF

7XXX District 11 Y X X X X

7XXX District 12 Y X

7XXX District 13 N

7XXX District 14 Y X X

7XXX District 15 N

BSC CALCULATION

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Districts that are one standard deviation

above and two standard deviations below the mean (average) for each component are considered efficient.

Districts that are both successful and efficient are used to calculate the average cost for each component.

BSC CALCULATION

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Teachers per 1000 Students

DIST NAME ADA mo 1-9 ADA/1000

FTE Classroom Teachers

Teachers per 1000 students

7XXX District 11 2,539.88 2.54 198.06 77.98 X

7XXX District 12 562.33 0.56 45.30 80.56 X

7XXX District 13 663.57 0.66 58.89 88.74

7XXX District 14 1,609.39 1.61 115.60 71.83 X

7XXX District 15 2,348.55 2.35 149.22 63.54 X

TOTAL 453,867.74 453.87 32,312.29 74.02

Mean 74.02

Standard Dev 7.88

1 SD above 81.90

2 SD below 58.25

BSC CALCULATION

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The average cost for each component is calculated using expenditure data from the second preceding year.

For the FY15 calculation, FY13 expenditure data was used.

BSC CALCULATION

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MS Code 37-151-7 details what costs are included for each cost component.

Instructional Cost ComponentFor the instructional cost component, the Department of Education

shall select districts that have been identified as instructionally successful and have a ratio of a number of teachers per one thousand students that is between one standard deviation above the mean and two standard deviations below the mean of the statewide average of teachers per one thousand students. The instructional cost component shall be calculated by dividing latest available months 1-9 ADA into the instructional expenditures of these selected districts.

BSC CALCULATION

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MS Code 37-151-7:For the purpose of this calculation, the Department of education shall use the following funds, functions, and objects:

Instructional Cost Component FUND FUNCTION OBJECT 1120 1110-1199 100-999 1120 1210, 1220, 2150-2159 210 & 215 1130 ALL 210 & 215 2001 1110-1199 100-999 2070 1110-1199 100-999 2420 1110-1199 100-999 2711 ALL 210 & 215

BSC CALCULATION

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DIST NAME

SUCCESS DISTRICT

INSTRUC COST EFF

SUCCESS & EFFECIENT ADA INSTRUC COST

7XXX District 11 Y X Y 2,539.88 $11,667,398.00

7XXX District 12 Y X Y 562.33 $7,936,963.09

7XXX District 13 N $0.00

7XXX District 14 Y X Y 1,609.39 $5,128,662.13

7XXX District 15 N $0.00

TOTAL 90,000.00 $270,000,000.00

For BSC: $3,000.00

Instructional Cost Component

BSC CALCULATION

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THE AVERAGE COST OF THE FOUR COMPONENTS ARE ADDED TOGETHER TO OBTAIN THE BASE STUDENT COST

INSTRUCTION $ 3,007.22

ADMINISTRATION 1,003.34

OPERATION & MAINTENANCE OF PLANT

778.77

ANCILLARY SUPPORT 301.18

ADJUSTMENTS FOR PAY RAISE, INSURANCE &

RETIREMENT INCREASES0.00

FY ’11 BASE STUDENT COST $ 5,140.07

FY15 BASE STUDENT COST-REVISED ESTIMATE

BSC CALCULATION

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To provide stability for appropriation and budgeting purposes, the base student cost will be calculated every four years rather than each year. (In FY11 and FY15)

An inflation component of 40% of the base student cost times the current CPI is added to the previous year’s Base Student Cost to arrive at the new Base Student Cost during years between a complete recalculation.

BSC CALCULATION

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Example – FY 2014 MAEP Base Student Cost was calculated as follows:

FY 13 BSC X 40% X CPI = FY 13 Inflation Component

$5,017.94 X .40 X .0217 = $43.56

FY 14 Base Student Cost is:

$5,017.94 + $43.56 + $42.49(PERS) = $5,103.99

$5,103.99 + $51.20(more PERS) = $5,155.19

MAEP FORMULA ALLOCATION PROCESS

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Allocation of MAEP formula dollars to local school districts is determined as follows:

ADA (months 2 and 3 of school year prior to fiscal year appropriation) x Base Student Cost + At-risk Component - Local Contribution + 8 % Guarantee = MAEP District Allocation.


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AVERAGE DAILY ATTENDANCE

Grades K-12 Months 2 and 3 Of Preceding Year.

Excludes self-contained Special Education ADA.


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High Growth Component - For any district that has positive growth in ADA each year over the 3-year period prior to the appropriation, the average percent of growth in ADA over those 3 years is multiplied times the most recent months 2 and 3 ADA and the result is added back to the ADA for that district.


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High Growth Example from FY14

FY10 ADA (mo 2&3)

FY11 ADA (mo 2&3)

FY12 ADA (mo 2&3)

FY13 ADA (mo 2&3)

1,971.76 2,024.23 2,137.35 2,242.71

% increase % increase % increase Average increase

2.6609% 5.5883% 4.9295% 4.3929%

Average increase FY13 ADA (mo 2&3)

Additional ADAFor High Growth

FY13 ADATo use in calc

4.3929% 2,242.71 98.52 2,341.23


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AT-RISK COMPONENT

5% of the base student cost multiplied by the number of free lunch participants on November 30 of preceding year.

The resulting dollar amount is added to MAEP formula allocation prior to the calculation of local contribution.


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LOCAL CONTRIBUTION

Uses 2nd Preceding Year’s DataYield From 28 Mills + Ad Valorem In Lieu

PaymentsCapped at 27% of the MAEP Formula Cost

Including the At-Risk Component


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50,000,000 Gross Assessed Value

3,000,000 Exempt Value Over 65

200,000 Homestead Exemption Credit Under 65

150,000 Homestead Exemption Reimbursement

500,000 In Lieu Revenue

= (50,000,000 - 3,000,000) * .028 - 200,000 + 150,000 + 500,000

= $1,766,000 Value of 28 mills

1,000 ADA

$ 5,000 BSC

950 # Free Lunch

= (1,000 * 5,000) + (5,000 * .05 * 950)

= 5,237,500 Formula amount including At-Risk

= $1,414,125 27% of formula amount including At-Risk

= $1,414,125 Lesser of 28 Mills or 27%


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8% GUARANTEE

Incorporated to ensure that a district receives a formula allocation equal to at least what they received in FY2002 for funding programs replaced by MAEP (Minimum Program, Equity Funding, Uniform Millage Assistance) plus 8%.

ADD-ON PROGRAM FUNDING

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ADD-ON PROGRAMS CONSIST OF:

1. Special Education

2. Gifted Education

3. Vocational Education

4. Alternative Education

5. Transportation

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Questions?

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MISSISSIPPI ADEQUATE EDUCATION PROGRAM FUNDING FORMULA (MAEP) AN OVERVIEW OF HOW THE FORMULA WORKS