ADM Used in Funding Calculations under AM SUB HB 1

The provisions of AM SUB HB 1 require that the calculation of the various funding components of the Evidence-based Model for FY10 and FY11 be based on a formula ADM whose calculation results from the use of either the previous year or the current year total ADM.

Specifically, the law requires that before incorporating any formula ADM in the funding calculations, a comparison of the current year October total ADM be made with the previous year October total ADM to see if the total ADM has increased by at least by 2 percent. If the October total ADM has not increased by at least 2 percent relative to the previous year, then the calculations will be based on the previous year October total ADM otherwise the calculations will be based on the current year October total ADM. Once the district has established the total ADM it should use, formula ADM and other components of ADM such as kindergarten ADM, JVS ADM, special education ADM categories, etc. will be extracted from that total ADM figure.

The formula ADM calculated based on the established total ADM is defined in the same way as before except that it includes 100 percent of the kindergarten ADM in FY10 and FY11. In fiscal years prior to FY10, formula ADM included only 50 percent of the kindergarten ADM. If a district’s formula ADM in FY10 is calculated based on the FY09 total ADM, this formula ADM should also include 100 percent of the kindergarten ADM.

Under the new law, school districts are obligated to annually take a headcount of their students only in the first full week of October.  In this process they only include their resident students in the count in exactly the same manner as they did in the past. It is important to note that although initially the Evidence-based Model funding approach, as was introduced by the Governor and later amended by the House, required counting students by district of education, the final version of the budget as it came out of the Conference Committee and signed into law by the Governor, reverted back to counting students by district of residence. This means that as far as counting students are concerned, no change has taken place from FY09 to FY10 except that districts are no longer required to take a second headcount in the first full week of February.

For the purposes of the FY10/11 funding simulations, total ADM figures for each year were projected based on our trend analysis model.  From the projected total ADM, all of the other components of ADM were projected/extracted based on the requirements of the new law in which special education categories 3, 4 and 5 are compiled differently from before. For your information a comparison of the 6 categories of special education ADM with their respective weights based on the provisions of the new and the previous laws is provided.

At the time the FY10 and FY11 simulations were run, no October ADM counts for any of these years were available and as a result the 2% tests were run against the actual FY09 and projected FY10 and FY11 data. Once the October counts for FY10 and FY11 become available the test will be based on the actual October data for payment purposes.

ADM Used in Funding Calculations under AM SUB HB 1 Documents

Last Modified: 5/17/2013 3:22:50 PM