2012-13 Principal Apportionment Payment Estimator - Principal ...

2012-13 Principal Apportionment Payment Estimator spreadsheet and instructions.

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This tool is intended to help local educational agencies (LEA) estimate their Principal Apportionment payments for the 2012-13 fiscal year. This tool will also help LEAs prepare a comprehensive cash flow projection should they decide to request an exemption from the expected July, August, October, and March deferrals. It is not intended to be a budgeting tool.

General Assumptions:

In order to estimate future payments without the benefit of knowing the data that determines those payments, various assumptions must be made. When developing factors used within this tool, the California Department of Education (CDE) used the latest Principal Apportionment data available (2011-12 First Principal Apportionment (P-1)) and funding levels in the Governor?s May Revision.

All scenarios assume an on-time June budget, the intra-year deferrals added by Assembly Bill 103 (Chapter 13, Statutes of 2012), and the Department of Finance?s (DOF) estimate of revenue limit entitlements and property taxes for the 2012-13 fiscal year. Additionally, all scenarios assume that the DOF?s estimate of property taxes generated by liquidation of RDA cash assets will not result in a revenue limit offset until the Second Principal Apportionment (P-2) (requires legislation). A trigger reduction of $441 per average daily attendance is assumed under certain scenarios; however, proposed legislation has not been published that would provide details on how the reduction would be implemented.

Note: should the State Budget be delayed, the 2012-13 Advance Principal Apportionment will only include funding for the programs continuously appropriated (e.g. revenue limit and charter school general purpose funding) and will not include any funding reductions that are not codified in statute (e.g. deficit factor, on-going targeted reductions). Once a State Budget is passed, CDE will recertify the Advance Principal Apportionment and adjust payment amounts for future months. This cash flow tool does not account for this scenario.

You may not change LEAs once you have started because data input into cells will clear. You must start from a new version. Before starting a new worksheet you may want to save the previous LEAs version of the worksheet to your local drive for future reference.

Instructions:

Before accessing the Principal Apportionment Payment Estimator, save the workbook to your computer by right mouse clicking on the hyperlink and selecting ?save target as?.

• Macros must be enabled for this excel workbook to function correctly. If you cannot select an LEA in the INPUT PA Funding Estimates sheet, macros are not enabled.
• Open the ?INPUT PA Funding Estimates? worksheet by clicking the sheet tab at the bottom of the screen. Select your LEA from the drop down list. LEAs are listed in alphabetical order and County-District-School (CDS) codes are provided.
• From the Scenario drop down list select the scenario you want to model. See below for specific criteria about each scenario.
• Verify that the data populated in column C matches the data on the LEA?s 2011-12 P-1 Summary (XLS). [http://www.cde.ca.gov/fg/aa/pa/documents/pasummary2011p1.xls]??

The factors shown in the ?Settings? tab (Column L ? AF) are used to derive estimates for the 2012-13 Advance, P-1, and P-2 based on the scenarios listed below under Specific Assumptions. An LEA?s pre-loaded 2011-12 P-1 amount has been multiplied by the associated factors to calculate the Principal Apportionment total used to generate 2012-13 payment information.?

The 2011-12 P-1 data may be overridden by unprotecting the worksheet on the review tab. An LEA may choose to update these numbers with their estimates of 2011-12 P-2 but should note that all the factors from the settings tab are based off of 2011-12 P-1 statewide totals.

More specific assumptions used are noted below. Note that the formulas may be overwritten at any time should an LEA have better estimates of funding than the assumptions provided in the table. However, we caution against changing the assumptions for the 2012-13 Advance.

Limitations:

• The tool does not accommodate for district reorganizations (unifications, lapsations, mergers); LEAs should enter data for each district involved in the reorganization separately and sum the cash flow outputs to estimate the funding the new district will receive in 2012-13.
• Unless noted, the tool does not prevent an LEA from entering data in any field; however, some funding is based on the type of LEA (e.g. only county offices of education should enter data in Line A-1, school districts in Line A-2, charter school in Line A-3.). For a guide, use the data pre-populated in Column C from the LEA?s 2011-12 P-1 data.
• As detailed below, under scenarios D and E an LEA can enter trigger estimates. An excess tax county office of education or excess tax school district can use this feature but the reduction will not be automatically populated on Line A-1 or A-2. The trigger amount can be manual input on Line A-27, Recomputations and Adjustment to derive cash flow under these scenarios.
• Locally funded charter school payments should be calculated separately from school district data.
• This tool replicates the Principal Apportionment Summary; therefore, statewide benefit charters and all charter school districts funded under the Charter School Block Grant will need to calculate estimated funding separately for each site.
• The tool is calculating estimated monthly payments on the individual LEA level; however, in any month if the county subtotal (sum of all LEAs in the county) is negative, no cash will be paid to the county.

The cash payment amounts generated by the calculator are estimates. Actual cash payments will not necessarily match.

Specific Assumptions:

Scenario A, Pass-EPA at P-2

This scenario assumes that the Governor?s tax initiative passes and that the CDE does not incorporate the Education Protection Account (EPA) as a reduction to revenue limit state aid and charter school general purpose block grant state aid until P-2. It assumes the following reductions to the cross-year deferrals: February to July -$1,468.3 million; March to August -$270.5 million; April to August -$502.9 million.

Note that the factor applied at P-2 to revenue limit state aid, in part, approximates the impact of the liquidation of RDA cash assets. As an alternative, an LEA could overwrite the automated number with its own estimate.?

Scenario B, Pass-EPA at P-1

This scenario assumes that the Governor?s tax initiative passes and that the CDE incorporates the EPA as a reduction to revenue limit state aid and charter school general purpose block grant state aid beginning with P-1. It assumes the following reductions to the cross-year deferrals: February to July -$1,468.3 million; March to August -$270.5 million; April to August -$502.9 million.

Note that the factor applied at P-1 and P-2 to revenue limit state aid and charter general purpose block grant state aid, in part, approximates the impact of the EPA. The P-2 factor also approximates the impact of the liquidation of RDA cash assets. As an alternative, an LEA could overwrite the automated number with its own estimate. That estimate should include a state aid reduction for EPA receipts, which is approximately 21 percent of deficited revenue limit or charter general purpose block grant.

Scenario C, Pass- EPA at Advance (requires legislation)

This scenario assumes that the Governor?s tax initiative passes and that the CDE incorporates the EPA as a reduction to revenue limit state aid and charter school general purpose block grant state aid beginning with the Advance Principal Apportionment. It assumes the following reductions to the cross-year deferrals: February to July -$1,468.3 million; March to August -$270.5 million; April to August -$502.9 million.

Note that the factor applied at P-1 and P-2 to revenue limit state aid and charter general purpose block grant state aid, in part, approximates the impact of the EPA. The P-2 factor also approximates the impact of the liquidation of RDA cash assets. As an alternative, an LEA could overwrite the automated number with its own estimate. That estimate should include a state aid reduction for EPA receipts, which is approximately 21 percent of deficited revenue limit or charter general purpose block grant.

Scenario D, No Pass-No EPA

This scenario assumes that the Governor?s tax initiative does not pass and that the CDE does not incorporate the EPA as a reduction to revenue limit state aid or charter school general purpose block grant state aid at any certification. It assumes a statewide trigger reduction to revenue limits at of $441 per ADA times the statewide ADA total beginning at P-1. It also assumes no reductions to the cross-year deferrals.

This scenario requires inputting ADA to approximate the trigger reduction. This can be done by selecting the ?Add Trigger? button, which is visible when selecting Scenario D or Scenario E.

Note that the factor applied at P-2 to revenue limit state aid, in part, approximates the impact of the liquidation of RDA cash assets. As an alternative, an LEA could overwrite the automated number with its own estimate.

Scenario E, No Pass-EPA at Advance (requires legislation)

This scenario assumes that the Governor?s tax initiative does not pass and that the CDE incorporates the EPA as a reduction to revenue limit state aid beginning with the Advance Principal Apportionment (reductions would begin to be restored at P-1). It assumes a statewide trigger reduction to revenue limits at of $441 per ADA times the statewide ADA total beginning at P-1. It also assumes no reductions to the cross-year deferrals.

This scenario requires inputting ADA to approximate the trigger reduction. This can be done by selecting the ?Add Trigger? button, which is visible when selecting Scenario D or Scenario E.

Note that the factor applied at P-2 to revenue limit state aid, in part, approximates the impact of the liquidation of RDA cash assets. As an alternative, an LEA could overwrite the automated number with its own estimate of revenue limit state aid.

2012-13 Payment Information:

The ?OUTPUT 2012-13 Payments? tab provides LEAs with the estimated monthly payments for the 2012-13 fiscal year funding based on the assumptions outlined above tables and data entered by the LEA. Amounts are automatically calculated and are based on one of the three payment schedules identified in Education Code (EC) Section 14041. Additional information about the monthly schedule is available on the Principal Apportionment Payment Schedule. [http://www.cde.ca.gov/fg/aa/pa/papayschedule.asp]

As noted in the General Assumptions earlier in this document, the tool incorporates the intra-year deferrals added by Assembly Bill 103 (Chapter 13, Statutes of 2012) as well as the reductions to the cross-year deferrals proposed at the May Revision. For additional information about the deferrals see the ?2012-13 Deferral? tab.

Questions: ?Office of Principal Apportionment and Special Education | 916-324-4541
Office of Charter Apportionments and District Reorganization | 916-324-4541

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