HOW ARE LOUISIANA’S PULI SHOOLS FUNDED?

[Pages:2]HOW ARE LOUISIANA'S PUBLIC SCHOOLS FUNDED?

THE MINIMUM FOUNDATION PROGRAM (MFP)

The MFP is the process used by Louisiana to determine how local and state monies are distributed across local school districts. The MFP is approved yearly by Louisiana's Board of Elementary and Secondary Education

(BESE) and the Louisiana legislature.

The MFP determines the minimum district funding requirements, or the cost of education, in all public schools. This cost is calculated by adding together the base per pupil amount, which is deter-

mined by legislation, and special allocations for at-risk students, special education students, and others.

BASE Per Pupil

(2011-2012)

$3,855

+

% of Additional Funds Per Pupil

(2011-2012)

At-risk students: 20%

Special Education students: 150% Other students

(rural students, Gifted and Talented students, technical education students)

= Minimum District Funding Requirement

The MFP helps to equitably distribute funds to all school systems, including local school districts and the RSD. The state contributes the difference between the local contribution to the MFP and the

minimum district funding requirement.

Minimum District Funding Requirement

-

Local Contribution to MFP Local Property Taxes (Millages)

Local Sales Taxes Other local taxes or contributions

= State Contribution

The MFP provides incentives for local support. The state provides extra funds to local districts that ex-

ceed their required contribution approximately 35%. Thus, districts with a greater local contribution can receive extra money from the state. This is in addition to the minimum district funding requirement.

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UNDERSTANDING LOCAL SCHOOL FUNDING

The state provides more money to districts that provide a greater percentage of their minimum district funding requirement. Thus, the amount of local funding is important because it contributes

directly to the district's funding AND indirectly by encouraging additional state-level funding.

Property values can change over time:

2010

Property Value: $100,000

2011

Property Value: $120,000

INCREASING REVENUE

$20,000 property value increase

(1) Increase the number of mills levied on the new property values. This must be approved through a local election.

(2) Maintain the same number of mills levied on property values, but use updated property values. This is called "rolling forward" the millage and must be approved by the Orleans Parish School Board.

MAINTAINING OR DECREASING REVENUE

(1) Maintain the same number of mils levied on property value, but use previous cycle's property values. This is called "rolling back" the millage and must be approved by the Orleans Parish School Board.

(2) Decrease revenue by reducing the number of mills levied on property values.

EXAMPLE

Property Value (2010)

Increase mills levied $100,000

Roll forward

$100,000

Roll back

$100,000

Decrease mills levied $100,000

Property Value (2011)

$120,000 $120,000 $120,000 $120,000

School Millage (Example)

2010: 20 2011: 30 2010: 20 2011: 20 2010: 20 2011: 20 2010: 20 2011: 10

Revenue per Property for Schools $1200 revenue increase $400 revenue increase $0 revenue increase $ 800 revenue decrease

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