Transcript Impact Aid PowerPoint Presentation

Impact Aid
An Overview for PTA Membership
As of Jan 25, 2014
Rodney M. Davis, Colonel, U.S. Army Retired, Military Family Support Committee, NPTA
Agenda
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Purpose
Scope
Acknowledgements
Organization Roles
Department of Education Impact Aid Program
Department of Defense Impact Aid Program
Points of Contact for Assistance
Purpose: To provide information necessary for
a general understanding of Impact Aid.
Scope: This presentation addresses various
aspects of the Impact Aid Program. However,
its primary focus is on the information
necessary for a basic understanding of Impact
Aid related to military children.
Acknowledgements
The following organizations provided content and
technical advice instrumental in the development of
this presentation:
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National Association of Federally Impacted Schools
Military Impacted Schools Association
Texas Association of Federally Impacted Schools
Department of Defense Education Activity
Department of Education
Organization Roles
• The Department of Education is the primary agency for the
administration of the Impact Aid Program.
• The Department of Defense Education Activity supplements
the Department of Education program with an Impact Aid for
school districts heavily impacted by the military. It
coordinates directly with the Department of Education.
• The National Association of Federally Impacted Schools is a
nonprofit of school districts with federally connected
children. It is organized primarily to educate Congress on
the importance of Impact Aid.
• The Military Impacted Schools Association is a nonprofit that
serves school districts with a heavy concentration of military
children.
Department of Education Impact Aid
Why Impact Aid
Many local school districts across the United
States include within their boundaries parcels
of land that are owned by the Federal
Government, or that have been removed from
the local tax rolls by the Federal Government,
including Indian lands.
Why Impact Aid Cont’d
These school districts face special challenges.
They must provide a quality education to the
children living on the Indian and other Federal
lands and meet the requirements of the No
Child Left Behind Act, while sometimes
operating with less local revenue than is
available to other school districts, because the
Federal property is exempt from local property
taxes.
Why Impact Aid Cont’d
Impact Aid was designed to assist local school
districts that have lost property tax revenue
due to the presence of tax-exempt Federal
property, or that have experienced increased
expenditures due to the enrollment of
federally connected children, including
children living on Indian lands.
Impact Aid History
• Need for program identified in 1821
• First passed as law (signed by Harry Truman)
in 1950.
• Since 1950, Congress has provided financial
assistance to local school districts through the
Impact Aid Program.
• 2d oldest federal elementary-secondary
education program currently in law.
Impact Aid Overview
The Impact Aid law (now Title VIII of the
Elementary and Secondary Education Act of 1965
(ESEA)) provides assistance to local school
districts with concentrations of children residing
on Indian lands, military bases, low-rent housing
properties, or other Federal properties and, to a
lesser extent, concentrations of children who
have parents in the uniformed services or
employed on eligible Federal properties who do
not live on Federal property.
Impact Aid Overview Cont’d
• Program is supported by discretionary funding. It is not forward
funded and not permanent
• Program must be approved by House and Senate and signed by the
President.
• Applies to public…not Department of Defense Educational Activity
(DoDEA), or private schools.
• Payments based on a complicated two-tiered formula only because
the program is not fully funded.
• Payments are reduced and distributed on a “needs based”
formula…not a simple proration.
• Schools that are more dependent on the funds receive more than
others that are not as financially dependent on the payment.
• Revenue does not follow the student.
Impact Aid Overview Cont’d
• Funds are distributed by wire transfer directly into the bank
accounts of school districts for general operating fund to pay for
operating expenses – teachers, text books, computers, utilities,
computers, and other equipment; after-school programs and
remedial tutoring; advanced placement classes; special enrichment
programs, etc.
• Other than funds specifically for children with disabilities, funds may
be used for any legal obligation of the district.
• Normally, no administrative costs at the state level.
• It is the most efficient of all education programs.
• 1,400 school districts impacted.
• Over half a million children of military personnel served.
• Currently funded at only less than 60% of need (2013).
Four Areas of Impaction (Land)
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Indian Trust or Treaty Land
Federal Low Rent Housing Projects
Military Installations
Other Federal Land (National parks, Federal
Prisons, VA Hospitals, National Forests, Lakes,
Post Office Buildings, IRS, Buildings, etc.)
940,000 “Federally Connected
Children” Nationwide
2013
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Military (376,441)
Indian Lands (115,172)
Low Rent Housing (224,859)
Civilian (224,468)
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Top Ten States 2013
Impact Aid Funding
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Arizona
Alaska
Texas
New Mexico
California
South Dakota
Montana
Washington
New York
Hawaii
Federally Connected Children
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Virginia
New York
Texas
California
Florida
North Carolina
Arizona
Maryland
Washington
Georgia
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2013 Impact Aid Funding by State
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Impact Aid Program Components
• Department of Education Impact Aid:
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Section 8002 – Payments for Property
Section 8003(b) – Basic Support Payments
Section 8003(b)(2) – Heavily Impacted Districts
Section 8003(d) – Disability Payments
Section 8007(a & b) – Construction
Section 8008 – Facilities
Note: Although this presentation addresses various aspects of the
Impact Aid Program, the primary focus is on Section 8003(b) and
8003(b)(2). They will be discussed after the other sections
Section 8002
8002 - Federal Property
• Payments for Federal Property assist local school
districts that have lost a portion of their local tax
base because of Federal ownership of property.
• To be eligible, a school district must demonstrate
that the Federal Government has acquired, since
1938, real property with an assessed valuation of
at least 10 percent of all real property in the
district at the time of acquisition.
8002 - Federal Property Payment Calculation
• Although property is not the focus of this
presentation, familiarization with the 8002 formula
may be useful. The formula for the computation
of the payment for federal land is:
 Determine average per acre value of all taxable
property in the district
 Apply that to the number of acres of federal
property
 Multiply total value of federal property by tax rate
 Result = 8002 foundation payment owed
Section 8003
8003(d) - Children with Disabilities Payments
• Payments are made to school districts for the additional
costs of educating Military and Indian lands students
with disabilities.
• Any military or Indian land child eligible to receive IDEA
funds will attract these dollars.
• Military and Indian land students must have an
Individual Education Plan (IEP) on the survey date.
• These payments are in addition to Basic Support
Payments and Individual with Disabilities Education Act
(IDEA) funds provided on behalf of these children.
8003(d) - Children with Disabilities Payments Cont’d
• The formula for calculation of the 8003(d)
payment is determined by dividing the total
appropriation for section 8003(d) by the
nationwide total of children with disabilities
reported on surveys conducted by the
impacted districts.
Section 8007
8007 - Construction
• Construction Grants go to local school districts that educate high
percentages of certain federally connected children — both children
living on Indian lands and children of members of the uniformed
services.
• Districts must have an enrollment of 50% or more Indian Land or
Military children or be classified as a Heavily Impacted District under
8003(b)(2).
• These grants help pay for the construction and repair of school
buildings. Section 8007(a) provides formula grants to the local
school districts based on the number of eligible federally connected
children they educate.
• Section 8007(b) provides competitive grants for emergency repairs
and modernization (discretionary). Priority is given to school districts
with limited bonding capacity for emergency repairs.
Section 8008
8008 - Facilities
• Payments for upkeep and repair of school
buildings owned by the Department of
Education used by local school districts.
• Approximately 50 buildings are currently
owned by the U.S. Department of Education.
Section 8003(b)
8003(b) - Basic Support Payments
• Basic Support Payments (BSP) help local school districts
that educate federally connected children. These may
be the children of members of the uniformed services,
children who reside on Indian lands, children who
reside on Federal property or in federally subsidized
low-rent housing, and children whose parents work on
Federal Property.
• In general, to be eligible for assistance a local school
district must educate at least 400 such children in
average daily attendance, or the federally connected
children must make up at least 3 percent of the school
district's total average daily attendance.
940,000 “Federally Connected
Children” Nationwide
2013
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Military (376,441)
Indian Lands (115,172)
Low Rent Housing (224,859)
Civilian (224,468)
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Rationale for 8003(b) BSP Payments
• Based on the premise that funding in the local district comes from
two sources…50% local business and homeowner taxes and 50%
from the state.
• Payments are calculated on a needs basis…not a simple proration.
The law uses an individual school district’s “need” and adjusts a
school districts BSP based upon the individual need of the district.
• Need is computed by adding together the percentage of federal
students and the percentage of the operating budget the BSP
payment represents.
• 100% of BSP is the total amount (before adjustments) the district is
entitled to receive.
• The Learning Opportunity Threshold (LOT) Payment is the prorated
amount the district will receive (if fully funded).
8003(b) Application Process
8003(b) Basic Support Payments Application Steps
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School district must determine the number of military/federally connected students.
There are three options:
 Conduct Student Survey
 Source check (capture data from base housing)
 Both
Compile survey results.
Complete application.
Submit application electronically to: State Education Agency – U.S Department of
Education…also a copy to National Association of Federally Impacted Schools
(NAFIS).
Submit application on time:
 4:30pm EST. Last day of January or 1st working day following weekend or
holiday.
 Department of Education has 60 days after Oct 1 to get 90% of the payments
out.
Note: 1 to 60 days late = 10% payment reduction.
61 days late = total loss of funding.
8003(b) BSP Payments
Things to Keep in Mind
• Impact Aid payments not always timely.
• School begins in Aug. Federal fiscal year begins Oct 1.
• First payment received October - February – May, depending on
Congressional appropriations.
• Impact Aid payments based on data from 2d preceding and
sometimes 3d preceding year.
• All funds electronically deposited into the school district’s bank
account.
• Districts will receive electronic notification and voucher from
Department of Education.
• When there is not enough money to provide all districts their
maximum payments, the LOT system funnels available funds to
districts with a greater need. As appropriations increase, additional
money flows down to school districts with a lower lot.
Let’s work a few examples in order to gain a
better appreciation for how the 8003(b) BSP is
calculated. To do so, we’ll need to understand
certain terms.
Terms
• ADA – Average Daily Attendance – Average daily attendance of federally
connected students.
• TCE – Total Current Expenditure – The amount funding in a school districts
general operating budget Percentage of district’s budget made up of
Impact Aid.
• LCR – Local Contribution Rate – The term used to compute the local loss to
the school district as measured by a per pupil expenditure. There are four
ways to calculate the LCR. The most commonly used figures are either
half of the national or state average per pupil cost…whichever is highest
based on data three years prior to year for which the payment is
calculated.
• WSU/WFSU – Weighted (Federal) Student Unit – The weight assigned to
the various child categories.
Terms Cont’d
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CWD – Children with Disabilities
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LEA – Local Education Agency (school districts)
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BSP – Basic Support Payment – The amount a district is entitled to receive.
Attendance Ratio x WSU x LCR = BSP.
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LOT – Learning Opportunity Threshold – The school district’s need. Determined by
the sum of the percentage of federal students and the percentage of the operating
budget represented by the Basic Support Payment.
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LOT Modifier (LOT MOD.) – A representation of the degree of dependency of the
school district on Impact Aid funding. The higher the LOT Modifier, the closer the
LOT payment is to the maximum BSP. The % of federal students compared to the
total number of students; and the % that the maximum BSP is of the total current
expenditures (Operation and Maintenance Expenditures).
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LOT Payment – BSP x LOT MOD. = LOT Payment
8003(b) LOT Payment Calculation
Let’s look at the calculations required to
determine the LOT Payment for a school district.
To calculate the LOT payment, we’ll need to:
 Calculate LCR
 Determine attendance ratio
 Calculate total WFSU
 Calculate maximum BSP
 Calculate LOT MOD
 Calculate LOT Payment
Calculating the LCR
• The most commonly used figures for the calculation of the
LCR are either half of the national or state average per
pupil cost…whichever is highest based on data three years
prior to year for which the payment is calculated.
• Data used to calculate LCR is based on data that is three
years prior to the fiscal year for which the payments are to
be calculated.
• If the state average per pupil expenditure is $5,000, a
district can use $2,500 as the LCR.
• or it can use the national average per pupil expenditure.
• Half of the of the national average per pupil expenditure for
FY 2014 is $5,397. The district can use $5,397 as the LCR.
• A school district can always use the higher.
For the purpose of the following examples we’ll
use 1/2 the national average per pupil
expenditure as the LCR which is $5,397. Again,
the LCR represents the rate of local loss to the
school district. Now we’ll need to calculate the
total WFSU. The next slide provides a table of
weights for each student category.
Weights for Calculating WFSU
Type Student
Weight
Child of parent living on Indian trust or treaty land
1.25
Child of parent in uniformed services (including foreign 1.00
military officers) residing on federal property
Child of parent in uniformed services (including foreign .20
military officers) residing off of federal property
Child of parent residing in low rent housing (not
including Sect 8)
0.10
Child of civilian parent working and residing on federal
property
1.00
Child of civilian parent working on federal Property, but 0.05
residing on taxable property
Calculating the Total WFSUs
In order to calculate the Total WFSU, we multiply the
# of federal students in Average Daily Attendance
within each child category x the weight for each
student by category. Then we total each category
for the Total WFSU.
Example Calculation of Total WFSUs
Type Student
# Federal Students X
Weight
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Indian Trust Land
100
1.25
125.00
Military on Federal
Property
100
1.00
100.00
Military off federal
property
100
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20.00
Low Rent Housing
100
0.10
10.00
Civilian Working on
Federal Property
100
0.05
5
District Total
500
Total WFSU ->
Weighted
Federal
Student Unit
260
Maximum BSP Payment Calculation Example
• With the total WFSU and an LCR, we’re able to
calculate the maximum BSP.
 Total WFSU X LCR = Maximum BSP
 260 x $5397 = $1,403,220
• At this point we have a basic understanding of the calculation
required to determine the maximum BSP involving multiple
categories of students. However, keep in mind that the BSP
represents an ideal.
• A district will not normally receive the full BSP amount because
Congress does not appropriate sufficient funding and so payments
are prorated based on need. The LOT payment is the actual
payment a district will receive (provided federal funding is
appropriated) based on a proration. The program hasn’t been fully
funded since 1969.
• Let’s work a different example. We’ll go beyond simply determining
the BSP and calculate a LOT Payment. To do so in this case we’ll
focus on only one category of students….military students.
Calculation of the LOT Modifier (LOT MOD.)
• We’ll need the LOT MOD. in order to calculate the LOT
Payment…the amount the district will actually receive.
• The LOT MOD is the proration factor that represents
how dependent a school district is on Impact Aid funds
--- the higher the LOT MOD, the closer the LOT
payment is to the maximum BSP.
• To calculate the LOT MOD., add the percentage of
federal students compared to the total number of
students; and the percentage that the maximum BSP is
of the total current expenditures (Operation and
Maintenance Expenditures).
Explanation of Example LOT MOD. Calculation
In the following example, District A has a dependency factor
(or need) of 100% since 54% of its students are federal and
58% of its total budget is based on its BSP Payment. This is
an example of one school district that receives 100% of its
BSP, as long as the funding level is sufficient to pay districts
100% of their LOT percentage payment.
District B only has a dependency on Impact Aid of 7.6%
because federal students make up only 4.2% of its ADA and
the BSP makes up only 3.4% of its operating budget. In other
words, the LOT payment is only 7.6% of its BSP Payment.
Example Calculation of LOT MOD. & Payment
Description
School District A
School District B
Total ADA
1200 (given)
1200 (given)
Total Federal ADA
650 (given)
50 (given)
Type of Federal Student
Military on-base
Military on-base
Total Current Expenditure
$6,000,000 (given)
$9,000,000 (given)
WFSU
650 (650 x 1.00)
50 (50 x 1.00)
LCR
$5,397.00 (given)
$5,397.00 (given)
Total Maximum Basic Payment
$3,508,050 (650 x $5397)
$269,850 (50 x $5,397)
% Federal Students
54% (650/1200)
4% (50/1200)
BSP % of Total Current
Expenditures
58% ($3,508,050/$6,000,000) 3%
($269,850/$9,000,000)
LOT MOD.
100% (54% + 58%)
7% (3% + 4%)
LOT PAYMENT (LOT% x BSP)
$3,508,050 (1 x $3,508,050)
$18,889.50 (.07x$269,850)
Note: Values indicated as “given” are not based on any calculation to be found on the table
Section 8003(b)(2)
8003(b)(2) – Heavily Impacted Districts
• District must have 40% student impact not
counting civilian students whose parent(s) work
on federal property or 50% if civilian students are
counted.
• Districts must make a “reasonable” tax effort
(minimum 95% of the state average).
• District must have less revenue per student than
the state average or if the district has less than
350 students has a per pupil expenditure less
than the expenditure of a comparable school
district or three comparable districts.
Department of Defense Impact Aid
Department of Defense Impact Aid
• In addition to Department of Education Impact Aid, since
the early 1990s, Congress has provided an appropriation
to support LEAs that educate military children.
• The program was established to help school districts with
military students who have faced:
 The prolonged war on terror
 Lack of adequate funding through the DOE IAP
 Challenges associated with base closures and
realignments
 Deteriorating facilities
 Safety issues
 Increasing costs of special education services
Department of Defense Impact Aid Cont’d
There are three DOD Impact Aid programs:
 Supplement
 Children with Severe Disabilities
 Large Scale Rebasing
Department of Defense Supplement Impact Aid
• Only for school districts with 20% or more military students.
• All LEAs that receive DOD supplement Impact Aid also receive
Department of Education Impact Aid.
• Other than for children with severe disabilities, the DOD Impact
Aid may be used by the LEA without restriction.
• Other than in the case of children with severe disabilities, LEAs do
not need to apply to DOD for supplemental payments. Department
of Education provides ADA for military children to DOD and
payments are made based on this data.
• DOD contacts selected LEAs about payments for children with
severe disabilities. LEAs apply to DOD for payments for children
with severe disabilities after contacted by DOD.
• Approximately 115 LEAs receive the DOD Impact Aid annually.
Department of Defense (Children with Disabilities) Impact Aid
• Provides financial assistance to LEAs who
have at least two military-connected children
with severe disabilities that meet certain
special education cost criteria through an
application process.
• Approximately 53 LEAs receive the DOD
Impact Aid for Children with Severe
Disabilities.
Department of Defense (Large Scale Rebasing) Impact Aid
• Provides financial assistance to LEAs that are
heavily impacted by the increase or reduction in
military-connected student enrollment resulting
from Large Scale Rebasing.
• Eligible LEAs have (or would have had) at least
19.5% military-connected students in average
daily attendance in their schools, as counted on
their Federal Impact Aid application for the
preceding year, and have an overall increase or
reduction of no less than 5% or 250 students as
a direct result of large scale rebasing.
Points of Contact for Assistance
National Association of Federally Impacted Schools (NAFIS)
www.sso.org/nafis
Phone: (202) 624-5455; Email: [email protected]
U.S. Department of Education
www2.ed.gov/about/offices/list/oese/impactaid
Phone: (202) 708-5366; Email: [email protected]
U.S. Department of Defense Education Activity (DoDEA)
http://www.militaryk12partners.dodea.edu/impact.cfm.
Phone: (571) 372-6026; Email: [email protected]
Impact Aid
An Overview for PTA Membership
As of Jan 25, 2014
Rodney M. Davis, Colonel, U.S. Army Retired, Military Family Support Committee, NPTA