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K-12 State Tuition Support

Watchdog Indiana E-mail sent to Governor Daniels and all General Assembly members on February 28

House Bill 1001 is the state’s budget bill for the 2011-2013 biennium. An important part of this budget bill is the state tuition support formula for K-12 public schools. The purpose of this Watchdog Indiana E-mail is to evaluate the changes in the tuition support formula in the version of HB 1001 approved by the House Ways and Means Committee on February 18.

One Taxpayer Friendly consideration is whether or not the state’s tuition support dollars "follow the student." Current Indiana Code provisions allow a three-year transition before tuition support dollars are completely removed from school corporations with declining enrollment. HB 1001 removes this three-year transition period. Corporations with declining enrollments will be somewhat affected in the short term because school overhead costs decline at a rate slower than enrollment declines. Conversely, growing school corporations will have more money available to provide needed school resources including classroom teachers. Removing the three-year transition period is Taxpayer Neutral because the funding disruptions to declining-enrollment schools will be offset by the funding enhancements to increasing-enrollment schools.

Another effort to have the state’s tuition support dollars better "follow the student" is Taxpayer Friendly. Prior legislative decisions based more on politics than evidence-based research have kept the Foundation Revenue per average daily membership artificially high for some school corporations. HB 1001 begins a transition plan to equitable Foundation Revenue levels over nine years with a starting point that is the lesser of (1) 120% of the current year foundation funding or (2) the previous year revenue.

Another Taxpayer Friendly consideration is whether the state’s tuition support dollars are (1) allocated to achieve improved education outcomes according to evidence-based research or (2) distributed based on "political" considerations to protect the status quo.

The "Complexity Index" in the state tuition support formula is based on the percentage of students eligible for free or reduced price lunches. This is consistent with research findings reported by Toutkoushian and Michael (2006) that free lunch accounted for almost 57 percent of the variations in student performance across school corporations. The Complexity Index generates more dollars to schools that should be spent on evidence-based improvement efforts like remedial teachers and aides for K-3 students. Fewer tuition support dollars will be allocated by HB 1001 to lower socioeconomic students because the Complexity Index multiplier is reduced by increasing the second tier calculation factor from 1.25 to 1.28 in 2012 and 1.31 in 2013. This is Taxpayer UNfriendly.

The current state tuition support formula consists of the following seven factors: (1) Basic Tuition Support, (2) Academic Honors Diploma Grant, (3) Special Education Grant, (4) Career and Technical Education Grant, (5) Prime Time Grant, (6) Restoration Grant, (7) Small Schools Grant. The Academic Honors Diploma Grant, Special Education Grant, and Career and Technical Education Grant are unchanged in HB 1001. Maintaining these three grants is Taxpayer Friendly because they focus on desirable education outcomes in a sufficiently evidence-based manner.

The Restoration Grant and Small Schools Grant are eliminated in HB 1001, and their dollars are allocated to Basic Tuition Support. This is Taxpayer Friendly because these two grants are not based on evidence-based research, but exist to disproportionably support rural and declining-enrollment school corporations because of past political "clout."

HB 1001 moves the minimum guarantee dollars from the Prime Time Grant to Basic Tuition Support. This is Taxpayer Friendly because the minimum guarantee dollars are artificially high as a result of political action rather than evidence-based research.

However, HB 1001 also lowers the Prime Time Grant allocation by increasing the complexity index required to help maintain funding for a student-teacher ratio of 15 to 1 in Grades K-3. This is Taxpayer UNfriendly because lower student-teacher ratios in Grades K-3 help improve education outcomes for lower socioeconomic students.

It would be Taxpayer Friendly to take a few Basic Tuition Support dollars and dedicate them to a Professional Development Grant in the tuition support formula. A recent survey of Indiana elementary school principals who were Third Grade Spring 2010 ISTEP+ Results Leaders confirmed that the careful selection and ongoing professional development of effective teachers are important to improve education outcomes. One principal observed, "We have lost all professional development money from the state that was coming directly to the school and lost our PBA days. Working with teachers in 30 or 40 minute ‘prep’ time blocks is not sufficient to sustain best practice."

To better understand the nuances of the state’s tuition support formula, Watchdog Indiana has developed a spreadsheet [see below] for an Example School Corporation that compares how tuition support formula calculations under current law for 2011 compare to the calculation changes in HB 1001 for 2012. This Example School Corporation is based on actual 2010 tuition support formula calculations for the Medora Community School Corporation. Medora is a stable-enrollment rural Jackson County school corporation that today has a total of 274 students (56% of whom receive free lunches/textbooks), 10 elementary school teachers, and 12 junior/senior high school teachers. For calculation comparison purposes, all the 2011 and 2012 demographic data for the Example School Corporation are assumed to stay exactly the same. 

The HB 1001 changes reduce the Example School Corporation total state tuition support by $139,298.98 from $1,938,107.23 in 2011 to $1,798,808.25 in 2012. This 7.2% reduction in state tuition support means that the Example School Corporation will need to further consider savings and efficiency efforts such as (1) freezing or reducing the salary and benefits of all school employees; (2) using insurance pools, including the state health plan, to compare cost effectiveness, level of coverage, and appropriate deductibles; (3) reducing school administration and school board compensation packages; (4) instituting a corporation hiring freeze except for those positions that are neutral to the general fund or add teachers; (5) eliminating memberships in professional associations and reducing travel expenses; (6) outsourcing transportation and custodial services and directing savings to the rainy day fund; (7) using extra money in the general fund and rainy day fund; (8) selling, leasing, or closing underutilized buildings; (8) reducing operating and program budgets; (9) reviewing school consolidation options; (10) offering no summer school opportunities that are not fully reimbursable from the state level or do not pay for themselves with reimbursements from vocational dollars; (11) enabling shift of dollars from administrative use to targeted summer school or other remedial use; (12) focusing the corporation curriculum on core subjects and narrowing elective offerings within core subjects; (13) reducing the number of sports, clubs, and academic teams, or using participation fees or sponsorships to pay for them; (14) charging all non-school groups to contribute to incremental costs of operating facilities; and (15) eliminating delivery systems that increase the cost of academic education by more staff, such as block schedules or trimesters.

If the foregoing savings and efficiency efforts do not make up for the 2012 state tuition support reduction, the Example School Corporation may have to eliminate a couple of teaching positions. The HB 1001 state tuition support changes will generate revenue decreases for all declining-enrollment and small school corporations similar to what is computed for the Example School Corporation. The truth of the matter is that about 45% of our declining-enrollment and small school corporations have "artificially" low student-teacher ratios compared to the 55% of our growing suburban schools because of the cumulative effects of the Restoration and Small Schools grants. The elimination of the Restoration and Small Schools grants in HB 1001 would give more revenue to growing suburban school corporations that they should use to help lower their student-teacher ratios.

IN CONCLUSION, please support the Taxpayer Friendly tuition support formula provisions currently included in and suggested for HB 1001, and improve the Taxpayer UNfriendly Complexity Index provisions.

NOTE: Please send an E-mail to taxless3@comcast.net if you wish to receive an Excel spreadsheet version of the table below.

K-12 State Tuition Support
2011 Calculations Compared To 2012 Calculations
Example Based On Actual 2010 Calculations For Medora Community School Corporation
(February 27, 2011)
2011 Calculation Data:
A1 Prior Year Basic Tuition Support = $1,815,929
A2 and C13 Prior Year P L 874 Loss Amount = $0.00
B1 Third Prior Year Average Daily Membership = 267.50
B2 and B7 Second Prior Year Average Daily Membership = 255.00
B3, B5, B8, and H3 Prior Year Average Daily Membership = 278.50
B9, B11, C12, G9, H5, H7, H15, I1, I4, and I6 Current Year Average Daily Membership = 257.00
C1 2009-2010 Percent Of School Corporation Students Eligible For Free And Reduced Lunch = 0.5895
C1 2011 Free Lunch Allocation / 2011 Foundation Amount = $2,241 / $4,505 = 0.4974
C5 2011 Foundation Amount = $4,505
D1 Prior Year Students Who Received An Academic Honors Diploma = 3.00
D1 Prior Year Academic Honors Diploma Grant = $900
E1 Current Year Special Education Severe Disabilities Grant = $8,350
E1 Current Year Special Education Severe Disabilities Pupil Count = 1
E2 Current Year Special Education Mild and Moderate Disabilities Grant = $2,265
E2 Current Year Special Education Mild and Moderate Disabilities Pupil Count = 32
E3 Current Year Special Education Communication and Homebound Grant = $533
E3 Current Year Special Education Communication and Homebound Pupil Count = 20
E4 Current Year Special Education Preschool Program Grant = $2,750
E4 Current Year Special Education Preschool Program Pupil Count = 1
F1 Curr. Yr. Car. and Tech. Ed. More Than Moderate Labor Market Need/High Wage Student Credit Hrs = 12
F1 Current Year Career and Technical Ed. More Than Moderate Labor Market Need/High Wage Grant = $450
F2 Current Year Area Participation Student Count For More Than Moderate/High Wage = 4
F2 Current Year Area Participation Grant For More Than Moderate/High Wage = $150
F4 Curr. Yr. Car. and Tech. Ed. More Than Moderate Labor Market Need/Mod. Wage Student Credit Hrs = 0
F4 Current Year Career and Technical Ed. More Than Moderate Labor Market Need/Mod. Wage Grant = $375
F5 Current Year Area Participation Student Count For More Than Moderate/Moderate Wage = 0
F5 Current Year Area Participation Grant For More Than Moderate/Moderate Wage = $150
F7 Current Year Career and Technical Ed. Moderate Labor Market Need/High Wage Student Credit Hours = 0
F7 Current Year Career and Technical Education Moderate Labor Market Need/High Wage Grant = $375
F8 Current Year Area Participation Student Count For Moderate/High Wage = 0
F8 Current Year Area Participation Grant For Moderate/High Wage = $150
F10 Current Year Career and Tech. Ed. Moderate Labor Market Need/Mod. Wage Student Credit Hours = 0
F10 Current Yr. Career and Technical Education Moderate Labor Market Need/Moderate Wage Grant = $300
F11 Current Year Area Participation Student Count For Moderate/Moderate Wage = 0
F11 Current Year Area Participation Grant For Moderate/Moderate Wage = $150
F13 Curr. Yr. Career and Tech. Ed. Less Than Moderate Labor Market Need/High Wage Stud. Cred. Hrs = 0
F13 Current Year Career and Tech. Ed. Less Than Moderate Labor Market Need/High Wage Grant = $300
F14 Current Year Area Participation Student Count For Less Than Moderate/High Wage = 0
F14 Current Year Area Participation Grant For Less Than Moderate/High Wage = $150
F16 Curr. Yr. Career and Tech. Ed. Less Than Mod. Labor Market Need/Mod. Wage Student Credit Hrs = 0
F16 Current Year Career and Technical Ed. Less Than Mod. Labor Market Need/Mod. Wage Grant = $225
F17 Current Year Area Participation Student Count For Less Than Moderate/Moderate Wage = 0
F17 Current Year Area Participation Grant For Less Than Moderate/Moderate Wage = $150
F19 Current Year Student Count In All Other Approved Career and Technical Education Programs = 47
F19 Current Year Grant In All Other Approved Career and Technical Education Programs = $250
G7 Current Year Grade K-3 Average Daily Membership = 68.00
G11 Staff Cost Amount = $74,500
G14 Prior Year Prime Time Grant = $35,368
2011 State Tuition Support Calculation Steps
Under Current Law IC 20-43:
Section A: PREVIOUS YEAR REVENUE (IC 20-43-4-4)
(Section A applies to school corporations and charter schools.)
A1 Prior Year Basic Tuition Support	$1,815,929.00
A2 Prior Year P L 874 Loss Amount	$0
A3 Previous Year Revenue (Add A1 + A2)	$1,815,929.00
Section B: ADJUSTED CURRENT YEAR AVERAGE DAILY MEMBERSHIP (IC 20-43-4-7)
(If the calculation is for a school corporation, complete all of Section B.)
(If the calculation is for a charter school, omit B1 through B5 and enter the Prior Year ADM in B6.)
(If the calculation is for a charter school, omit B7 through B11 and enter the Current Year ADM in B12.)
B1 Third Prior Year Average Daily Membership / 3 = 267.5 / 3 = 89.17	89.17
B2 Second Prior Year Average Daily Membership / 3 = 255 / 3 = 85.00	85.00
B3 Prior Year Average Daily Membership / 3 = 278.5 / 3 = 92.83	92.83
B4 Add B1 + B2 + B3	267.00
B5 Prior Year Average Daily Membership	278.50
B6 Prior Year Adjusted Average Daily Membership (Greater of B4 or B5)	278.50
B7 Second Prior Year Average Daily Membership / 3 = 255 / 3 = 85.00	85.00
B8 Prior Year Average Daily Membership / 3 = 278.5 / 3 = 92.83	92.83
B9 Current Year Average Daily Membership / 3 = 257 / 3 = 85.67	85.67
B10 Add B7 + B8 + B9	263.50
B11 Current Year Average Daily Membership	257.00
B12 Current Year Adjusted Average Daily Membership (Greater of B10 or B11)	263.50
Section C: TRANSITION TO FOUNDATION REVENUE (IC 20-43-5-3 through 7 and IC 20-43-6-3)
(If calculated for a school corp. or a charter school beyond the first year of operation, complete all Section C.)
(For charter sch. in 1st year op. outside Marion Cty, C1-C9 do not apply, C10=C12, and complete C11-C14.)
(For a Marion County charter school in 1st year of op., C1-C13 do not apply and C14 is from a Worksheet.)
C1 (2008-09 % Sch. Corp. Free Lunch Students) X (Free Lunch Alloc. / Foundation Amnt)	0.2932
C2 Add C1 + 1 = 0.2932 + 1 = 1.2932	1.2932
(If line C2 is equal to or greater than 1.25, complete line C3 and applicable remaining lines.)
(If line C2 is less than 1.25, omit line C3 and move line C2 to line C4.)
C3 Subtract 1.25 from C2 = 1.2932 - 1.25 = 0.0432	0.0432
C4 Complexity Index (Add C2 + C3)	1.3364
C5 Foundation Funding (C4 X Current Yr. Foundation Amount = 1.3364 X $4,505)	$6,020.48
C6 Prior Year Revenue Per Adjusted ADM (A3 / B6 = $1,815,929 / 278.50 = $6,520.39)	$6,520.39
C7 Unadjusted Remaining Foundation Revenue Difference (C5 - C6)	($499.91)
C8 Divide C7 by 1 = -$499.91 / = -$499.91	($499.91)
(If C7 amount is less than negative $150, complete C9a below.)
(If C7 amount is negative $150 to not greater than $50, complete C9b below.)
(If C7 amount is greater than $50, complete C9c below.)
C9a1 Select the greater of $150 or the Absolute Value of C7 divided by 8 ($499.91 / 8)	$150.00
C9a2 Subtract C9a1 from C6 = $6,520.39 - $150.00 = $6,370.39	$6,370.39
C9b Amount from C5
C9c1 Select greater of C8 or $50.00
C9c2 Add C6 + C9c1
C10 Current Year Transition to Foundation per adjusted ADM (select C9a2, C9b, or C9c2)	$6,370.39
C11 Multiply C10 by B12 (or actual ADM if a charter school or school corp. ADM < 100.)	$1,678,597.77
C12 Transition to Foundation Per ADM (C11 / Current Yr. ADM = $1,678,597.77 / 257.00)	$6,531.51
(If C10 equals C5, complete C13 and C14.)
(If C10 does not equal C5, put C11 in C14.)
C13 Prior Year P L 874 Loss Amount	$0.00
C14 Current Year Basic Tuition Support (select C11 + C13 or C11 as applicable)	$1,678,598.00
(C15 and C16 are completed for Virtual Charter Schools only.)
C15 Multiply Current Year State Average Basic Tuition Amount by 80%	$0.00
C16 Multiply C15 by Current Year Virtual Charter Average Daily Membership	$0.00
Section D: ACADEMIC HONORS DIPLOMA GRANT (IC 20-43-10-1 and 2)
(Section D applies to school corporations and charter schools.)
D1 (Pr. Yr. Aca. Hnrs Dip. Students) (Pr. Yr. Academic Honors Diploma Grant) = 3 X $900	$2,700.00
Section E: SPECIAL EDUCATION GRANT (IC20-43-7-6)
(Section E applies to school corporations and charter schools.)
E1 Multiply Current Year Severe Disabilities Grant by Pupil Count = $8,350 X 1 = $8,350.00	$8,350.00
E2 Multiply Current Year Mild and Moderate Disabilities Grant by Pupil Count = $2,265 X 32	$72,480.00
E3 Multiply Current Year Communication and Homebound Grant by Pupil Count = $533 X 20	$10,660.00
E4 Multiply Current Year Preschool Program Grant by Pupil Count = $2,750 X 1 = $2,750.00	$2,750.00
E5 Special Education Grant (Add E1 + E2 + E3 + E4)	$94,240.00
Section F: CAREER AND TECHNICAL EDUCATION GRANT (IC 20-43-8-2 and IC 20-43-8-9)
(Section F applies to school corporations and charter schools.)
F1 Multiply Curr. Yr. More Than Mod. Labor Mkt Need/High Wage Stud. Cred. Hrs by Grant	$5,400.00
F2 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For More Than Mod./High Wage	$600.00
F3 Total Funding More Than Moderate Labor Market Need/High Wage (Add F1 + F2)	$6,000.00
F4 Multiply Curr. Yr. More Than Mod. Labor Mkt Need/Mod. Wage Stud. Cred. Hrs by Grant	$0.00
F5 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For More Than Mod./Mod. Wage	$0.00
F6 Total Funding More Than Moderate Labor Market Need/Mod. Wage (Add F4 + F5)	$0.00
F7 Multiply Curr. Yr. Moderate Labor Market Need/High Wage Student Credit Hours by Grant	$0.00
F8 Multiply Current Year Area Participation Student Count by Grant For Moderate/High Wage	$0.00
F9 Total Funding Moderate Labor Market Need/High Wage (Add F7 + F8)	$0.00
F10 Multiply Curr. Yr. Moderate Labor Market Need/Mod. Wage Student Credit Hrs by Grant	$0.00
F11 Multoply Current Year Area Participation Stud. Count by Grant For Moderate/Mod. Wage	$0.00
F12 Total Funding Moderate Labor Market Need/Moderate Wage (Add F10 + F11)	$0.00
F13 Multiply Curr. Yr. Less Than Mod. Labor Mkt Need/High Wage Stud. Cred. Hrs by Grant	$0.00
F14 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For Less Than Mod./High Wage	$0.00
F15 Total Funding Less Than Moderate Labor Mkt Need/High Wage (Add F13 + F14)	$0.00
F16 Mult. Curr. Yr. Less Than Mod. Labor Market Need/Mod. Wage Stud. Cred. Hrs by Grant	$0.00
F17 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For Less Than Mod./Mod. Wage	$0.00
F18 Total Funding Less Than Moderate Labor Mkt Need/Mod. Wage (Add F16 + F17)	$0.00
F19 Multiply Curr. Yr. Stud. Count by Grant In All Other Career and Tech. Ed. Programs	$11,750.00
F20 Career and Technical Education Grant (Add F3 + F6 + F9 + F12 + F15 + F18 + F19)	$17,750.00
Section G: PRIME TIME (IC 20-43-9)
(Section G applies to school corporations and charter schools.)
G1 Complexity Index (See C4)	1.3364
(If G1 less than 1.1 or equal to or greater than 1.2, continue calculation on G6.)
(If G1 is greater than or equal to 1.1 and less than 1.2, complete lines G2 through G5.)
G2 Subtract G1 from 1.2	0.0000
G3 Divide G2 by 0.1	0.0000
G4 Multoply G3 by 3	0.0000
G5 Add G4 + 15	0.0000
Adjusted Complexity Index less than 1.1 = 18:1 Target Pupil/Teacher Ratio
Adjusted Complexity Index greater than or equal to 1.1 and less than 1.2 = G5 Amount
Adjusted Complexity Index equal to or greater than 1.2 = 15:1
G6 Select Target Pupil/Teacher Ratio from Chart Above	15.0000
G7 Current Year Grade K-3 Average Daily Membership	68.00
G8 Divide G7 by G6 = 68.00 / 15.0000 = 4.5333	4.5333
G9 Multiply C14 by .75 and Divide by Current Year ADM = ($1,678,598.00 X .75) / 257.00	$4,898.63
G10 Multiply G9 by G7 = $4,898.63 X 68.00 = $333,106.84	$333,106.84
G11 Divide G10 by $74,500 = $333,106.84 / $74,500 = 4.47	4.47
G12 Subtract G11 from G8 = 4.5333 - 4.47 = 0.0633	0.0633
G13 Multiply G12 by $74,500 = 0.0633 X $74,500 = $4,715.85	$4,715.85
G14 Greater of G13 or Prior Yr. Prime Time Grant (if appl.) or 1st Prog. Yr. Grt. Amt. (if appl.)	$35,368.00
G15 Multiply Prior Year Prime Time Grant by 1.075 = $35,368.00 X 1.075 = $38,020.60	$38,020.60
G16 Current Year Prime Time Grant (lesser of G14 or G15)	$35,368.00
Section H: RESTORATION GRANT (IC 20-43-12)
(Section H applies to school corporations and charter schools.)
H1 Current Year Basic Tuition Support (C14)	$1,678,598.00
H2 Previous Year Revenue (A3)	$1,815,929.00
H3 Divide H2 by Prior Year Average Daily Membership = $1,815,929.00 / 278.50 = $6,520.39	$6,520.39
H4 Add H3 + $25 = $6,520.39 + $25	$6,545.39
H5 Multiply H4 by Current Yr. Avg. Daily Membership = $6,545.39 X 257.00 = $1,682,165.23	$1,682,165.23
H6 Subtract $25 from H3 = $6,520.39 - $25 = $6,495.39	$6,495.39
H7 Multiply H6 by Current Yr. Avg. Daily Membership = $6,495.39 X 257.00 = $1,669,315.23	$1,669,315.23
H8 Lesser of H2 or H5	$1,682,165.23
H9 Greater of H7 or H8	$1,682,165.23
H10 Greater of Zero or H9 - H1 = Greater of Zero or $1,682,165.23 - $1,678,598.00	$3,567.23
H11 Add H1 + H10 = $1,678,598.00 + $3,567.23 = $1,682,165.23	$1,682,165.23
H12 Divide H11 by H2 = $1,682,165.23 / $1,815,929.00 = 0.93	0.93
H13 Greater of Zero or 0.97 - H12 = Greater of Zero or 0.97 - 0.93 = Greaterof Zero or 0.04	0.04
H14 Lesser of $220 or H13 multiplied by $9,500 = Lesser of $220 or 0.04 X $9,500	$220.00
H15 Multiply H14 by Current Yr. Average Daily Membership = $220.00 X 257.00 = $56,540.00	$56,540.00
H16 Current Year Restoration Grant (H10 + H15 = $3,567.23 + $56,540.00 = $60,107.23)	$60,107.23
Section I: SMALL SCHOOL GRANT (IC 20-43-12.2)
(Section I applies to school corporations and does not apply to charter schools.)
(If school corp. ADM is less than 1,700 and Complexity Index [C4 = 1.3364] is less than 1.1, enter Zero in I7.)
(If school corp. ADM is less than 1,700 and Complexity Index [C4] is greater than 1.2, complete I1, I2 & I3.)
(If school corp. ADM is less than 1,700 and Complexity Index [C4] is 1.1 thru 1.2, complete I1, I2, I5 & I6.)
I1 If Avg. Daily Memb. less than 1,700, subtract Current Yr. ADM from 1,700 = 1,700 - 257.00	1,443.00
I2 If Complexity Index (C4 = 1.3364) is greater than 1.2, multiply I1 by $1 = 1,443.00 X $1	$1,443.00
I3 Lesser of I2 or $192 = Lesser of $1,443.00 or $192	$192.00
I4 Multiply I3 by Current Year Average Daily Membership = $192.00 X 257.00 = $49,344.00	$49,344.00
I5 Lesser of I2 or $91	$0.00
I6 Multiply I5 by Current Year Average Daily Membership	$0.00
I7 Current Year Small School Grant (Zero, I4, or I6 as applicable)	$49,344.00
Section J: CURRENT YEAR STATE TUITION SUPPORT
(Section J applies to school corporations and charter schools.)
J1 Current Year Basic Tuition Support (C14 or C16 if a Virtual Charter School)	$1,678,598.00
J2 Current Year Academic Honors Diploma Grant (D1)	$2,700.00
J3 Current Year Special Education Grant (E5)	$94,240.00
J4 Current Year Career and Technical Education Grant (F20)	$17,750.00
J5 Current Year Prime Time Grant (G16)	$35,368.00
J6 Current Year Restoration Grant (H16)	$60,107.23
J7 Current Year Small Schools Grant (I7)	$49,344.00
J8 Current Year State Tuition Support (J1 + J2 + J3 + J4 +J5 + J6 + J7)	$1,938,107.23
2012 Calculation Data:
A1 Prior Year Basic Tuition Support Actually Received = $1,678,598.00
A2 2011 Restoration Grant Actually Received = $60,107.23
A3 2011 Small School Grant Actually Received = $49,344.00
A4 and C13 Prior Year P L 874 Loss Amount = $0.00
B1, C11, G9, H5, H7, H15, I1, I4, and I6 Current Year Average Daily Membership = 257.00
C1 2010-2011 Percent Of School Corporation Students Eligible For Free And Reduced Lunch = 0.5895
C1 2012 Free Lunch Allocation / 2012 Foundation Amount = $2,113 / $4,247 = 0.4974
C5 2012 Foundation Amount = $4,247
C6 Prior Year Adjusted Average Daily Membership = 263.50
D1 Prior Year Students Who Received An Academic Honors Diploma = 3.00
D1 Prior Year Academic Honors Diploma Grant = $900
E1 Current Year Special Education Severe Disabilities Grant = $8,350
E1 Current Year Special Education Severe Disabilities Pupil Count = 1
E2 Current Year Special Education Mild and Moderate Disabilities Grant = $2,265
E2 Current Year Special Education Mild and Moderate Disabilities Pupil Count = 32
E3 Current Year Special Education Communication and Homebound Grant = $533
E3 Current Year Special Education Communication and Homebound Pupil Count = 20
E4 Current Year Special Education Preschool Program Grant = $2,750
E4 Current Year Special Education Preschool Program Pupil Count = 1
F1 Curr. Yr. Car. and Tech. Ed. More Than Moderate Labor Market Need/High Wage Student Credit Hrs = 12
F1 Current Year Career and Technical Ed. More Than Moderate Labor Market Need/High Wage Grant = $450
F2 Current Year Area Participation Student Count For More Than Moderate/High Wage = 4
F2 Current Year Area Participation Grant For More Than Moderate/High Wage = $150
F4 Curr. Yr. Car. and Tech. Ed. More Than Moderate Labor Market Need/Mod. Wage Student Credit Hrs = 0
F4 Current Year Career and Technical Ed. More Than Moderate Labor Market Need/Mod. Wage Grant = $375
F5 Current Year Area Participation Student Count For More Than Moderate/Moderate Wage = 0
F5 Current Year Area Participation Grant For More Than Moderate/Moderate Wage = $150
F7 Current Year Career and Technical Ed. Moderate Labor Market Need/High Wage Student Credit Hours = 0
F7 Current Year Career and Technical Education Moderate Labor Market Need/High Wage Grant = $375
F8 Current Year Area Participation Student Count For Moderate/High Wage = 0
F8 Current Year Area Participation Grant For Moderate/High Wage = $150
F10 Current Year Career and Tech. Ed. Moderate Labor Market Need/Mod. Wage Student Credit Hours = 0
F10 Current Yr. Career and Technical Education Moderate Labor Market Need/Moderate Wage Grant = $300
F11 Current Year Area Participation Student Count For Moderate/Moderate Wage = 0
F11 Current Year Area Participation Grant For Moderate/Moderate Wage = $150
F13 Curr. Yr. Career and Tech. Ed. Less Than Moderate Labor Market Need/High Wage Stud. Cred. Hrs = 0
F13 Current Year Career and Tech. Ed. Less Than Moderate Labor Market Need/High Wage Grant = $300
F14 Current Year Area Participation Student Count For Less Than Moderate/High Wage = 0
F14 Current Year Area Participation Grant For Less Than Moderate/High Wage = $150
F16 Curr. Yr. Career and Tech. Ed. Less Than Mod. Labor Market Need/Mod. Wage Student Credit Hrs = 0
F16 Current Year Career and Technical Ed. Less Than Mod. Labor Market Need/Mod. Wage Grant = $225
F17 Current Year Area Participation Student Count For Less Than Moderate/Moderate Wage = 0
F17 Current Year Area Participation Grant For Less Than Moderate/Moderate Wage = $150
F19 Current Year Student Count In All Other Approved Career and Technical Education Programs = 47
F19 Current Year Grant In All Other Approved Career and Technical Education Programs = $250
G7 Current Year Grade K-3 Average Daily Membership = 68.00
G11 Staff Cost Amount = $74,500
G14 Prior Year Prime Time Grant = $35,368
2011 Free Lunch Allocation / 2011 Foundation Amount = $2,241 / $4,505 = 0.4974
2012 State Tuition Support Calculation Steps
As Passed By The Indiana House Ways And Means Committee On February 18:
Section A: PREVIOUS YEAR REVENUE (IC 20-43-4-4)
(Section A applies to school corporations and charter schools.)
A1 Prior Year Basic Tuition Support Actually Received	$1,678,598.00
A2 2011 Restoration Grant Actually Received	$60,107.23
A3 2011 Small School Grant Actually Received	$49,344.00
A4 Prior Year P L 874 Loss Amount	$0
A5 Previous Year Revenue (Add A1 + A2 + A3 + A4)	$1,788,049.23
Section B: ADJUSTED CURRENT YEAR AVERAGE DAILY MEMBERSHIP (IC 20-43-4-7)
(Section B applies to school corporations and charter schools.)
B1 Current Year Average Daily Membership	257.00
B2 Current Year Adjusted Average Daily Membership (B1)	257.00
Section C: TRANSITION TO FOUNDATION REVENUE (IC 20-43-5-3 through 7 and IC 20-43-6-3)
(If calculated for a school corp. or a charter school beyond the first year of operation, complete all Section C.)
(For charter sch. in 1st year op. outside Marion Cty, C1-C8 do not apply, C9=C11, and complete C12-C13.)
(For a Marion County charter school in 1st year of op., C1-C12 do not apply and C13 is from a Worksheet.)
C1 (2010-11 % Sch. Corp. Free Lunch Students) X (Free Lunch Alloc. / Foundation Amnt)	0.2932
C2 Add C1 + 1 = 0.2932 + 1 = 1.2932	1.2932
(If line C2 is equal to or greater than 1.28, complete line C3 and applicable remaining lines.)
(If line C2 is less than 1.28, omit line C3 and move line C2 to line C4.)
C3 Subtract 1.28 from C2 = 1.2932 - 1.28 = 0.0132	0.0132
C4 Complexity Index (Add C2 + C3)	1.3064
C5 Foundation Funding (C4 X Current Yr. Foundation Amount = 1.3064 X $4,247)	$5,548.28
C6a Prior Year Revenue Per Adjusted ADM (A5 / Prior Yr. Adj. ADM = $1,788,049 / 263.50)	$6,785.76
C6b Multiply C5 by 1.2 = ($5,548.28) (1.2) = $6,657.94	$6,657.94
C7 Unadjusted Remaining Found. Revenue Difference (C5 minus lesser of C6a or C6b)	($1,109.66)
(If C7 amount is zero or greater, go to C8a.)
(If C7 amount is less than zero, go to C8b.)
C8a Amount from C5	$5,548.28
C8b Subtract the absolute value of C7 divided by 9 from C6b = ($6,657.94) - ($1,109.66 / 9)	$6,534.64
C9 Current Year Transition to Foundation per Adjusted ADM (select C8a or C8b)	$6,534.64
C10 Current Year Transition to Foundation Revenue (Multiply C9 by B2)	$1,679,402.40
C11 Transition to Foundation Per ADM (C10 / Current Yr. ADM = $1,679,402.40 / 257.00)	$6,534.64
(If C9 equals C5, complete C12 and C13.)
(If C9 does not equal C5, put C10 in C13.)
C12 Prior Year P L 874 Loss Amount	$0.00
C13 Current Year Basic Tuition Support (select C10 + C12 or C10 as applicable)	$1,679,402.40
(C14 and C15 are completed for Virtual Charter Schools only.)
C14 Multiply Current Year State Average Basic Tuition Amount by 80%	$0.00
C15 Multiply C14 by Current Year Virtual Charter Average Daily Membership	$0.00
Section D: ACADEMIC HONORS DIPLOMA GRANT (IC 20-43-10-1 and 2)
(Section D applies to school corporations and charter schools.)
D1 (Pr. Yr. Aca. Hnrs Dip. Students) (Pr. Yr. Academic Honors Diploma Grant) = 3 X $900	$2,700.00
Section E: SPECIAL EDUCATION GRANT (IC20-43-7-6)
(Section E applies to school corporations and charter schools.)
E1 Multiply Current Year Severe Disabilities Grant by Pupil Count = $8,350 X 1 = $8,350.00	$8,350.00
E2 Multiply Current Year Mild and Moderate Disabilities Grant by Pupil Count = $2,265 X 32	$72,480.00
E3 Multiply Current Year Communication and Homebound Grant by Pupil Count = $533 X 20	$10,660.00
E4 Multiply Current Year Preschool Program Grant by Pupil Count = $2,750 X 1 = $2,750.00	$2,750.00
E5 Special Education Grant (Add E1 + E2 + E3 + E4)	$94,240.00
Section F: CAREER AND TECHNICAL EDUCATION GRANT (IC 20-43-8-2 and IC 20-43-8-9)
(Section F applies to school corporations and charter schools.)
F1 Multiply Curr. Yr. More Than Mod. Labor Mkt Need/High Wage Stud. Cred. Hrs by Grant	$5,400.00
F2 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For More Than Mod./High Wage	$600.00
F3 Total Funding More Than Moderate Labor Market Need/High Wage (Add F1 + F2)	$6,000.00
F4 Multiply Curr. Yr. More Than Mod. Labor Mkt Need/Mod. Wage Stud. Cred. Hrs by Grant	$0.00
F5 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For More Than Mod./Mod. Wage	$0.00
F6 Total Funding More Than Moderate Labor Market Need/Mod. Wage (Add F4 + F5)	$0.00
F7 Multiply Curr. Yr. Moderate Labor Market Need/High Wage Student Credit Hours by Grant	$0.00
F8 Multiply Current Year Area Participation Student Count by Grant For Moderate/High Wage	$0.00
F9 Total Funding Moderate Labor Market Need/High Wage (Add F7 + F8)	$0.00
F10 Multiply Curr. Yr. Moderate Labor Market Need/Mod. Wage Student Credit Hrs by Grant	$0.00
F11 Multoply Current Year Area Participation Stud. Count by Grant For Moderate/Mod. Wage	$0.00
F12 Total Funding Moderate Labor Market Need/Moderate Wage (Add F10 + F11)	$0.00
F13 Multiply Curr. Yr. Less Than Mod. Labor Mkt Need/High Wage Stud. Cred. Hrs by Grant	$0.00
F14 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For Less Than Mod./High Wage	$0.00
F15 Total Funding Less Than Moderate Labor Mkt Need/High Wage (Add F13 + F14)	$0.00
F16 Mult. Curr. Yr. Less Than Mod. Labor Market Need/Mod. Wage Stud. Cred. Hrs by Grant	$0.00
F17 Multiply Curr. Yr. Area Participation Stud. Cnt by Grant For Less Than Mod./Mod. Wage	$0.00
F18 Total Funding Less Than Moderate Labor Mkt Need/Mod. Wage (Add F16 + F17)	$0.00
F19 Multiply Curr. Yr. Stud. Count by Grant In All Other Career and Tech. Ed. Programs	$11,750.00
F20 Career and Technical Education Grant (Add F3 + F6 + F9 + F12 + F15 + F18 + F19)	$17,750.00
Section G: PRIME TIME (IC 20-43-9)
(Section G applies to school corporations and charter schools.)
G1 Complexity Index (See C4)	1.3064
(If G1 less than 1.1 or equal to or greater than 1.3, continue calculation on G6.)
(If G1 is greater than or equal to 1.1 and less than 1.3, complete lines G2 through G5.)
G2 Subtract G1 from 1.3	0.0000
G3 Divide G2 by 0.2	0.0000
G4 Multoply G3 by 3	0.0000
G5 Add G4 + 15	0.0000
Adjusted Complexity Index less than 1.1 = 18:1 Target Pupil/Teacher Ratio
Adjusted Complexity Index greater than or equal to 1.1 and less than 1.3 = G5 Amount
Adjusted Complexity Index equal to or greater than 1.3 = 15:1
G6 Select Target Pupil/Teacher Ratio from Chart Above	15.0000
G7 Current Year Grade K-3 Average Daily Membership	68.00
G8 Divide G7 by G6 = 68.00 / 15.0000 = 4.5333	4.5333
G9 Multiply C13 by .75 and Divide by Current Year ADM = ($1,679,402.40 X .75) / 257.00	$4,900.98
G10 Multiply G9 by G7 = $4,900.98 X 68.00 = $333,266.64	$333,266.64
G11 Divide G10 by $74,500 = $333,266.64 / $74,500 = 4.47	4.47
G12 Greater of Zero or G11 Subtracted from G8 (4.5333 - 4.47 = 0.0633)	0.0633
G13 Multiply G12 by $74,500 = 0.0633 X $74,500 = $4,715.85	$4,715.85
G14 Multiply Prior Year Prime Time Grant by 1.075 = $35,368.00 X 1.075 = $38,020.60	$38,020.60
G15 Current Year Prime Time Grant (lesser of G13 or G14)	$4,715.85
Section J: CURRENT YEAR STATE TUITION SUPPORT
(Section J applies to school corporations and charter schools.)
J1 Current Year Basic Tuition Support (C13 or C15 if a Virtual Charter School)	$1,679,402.40
J2 Current Year Academic Honors Diploma Grant (D1)	$2,700.00
J3 Current Year Special Education Grant (E5)	$94,240.00
J4 Current Year Career and Technical Education Grant (F20)	$17,750.00
J5 Current Year Prime Time Grant (G16)	$4,715.85
J8 Current Year State Tuition Support (J1 + J2 + J3 + J4 +J5)	$1,798,808.25

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