LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SCR 2 SLS 23RS 102
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 30, 2023 7:50 AM Author: FIELDS
Dept./Agy.: Education
Subject: Minimum Foundation Program funding formula Analyst: Julie Silva
BESE EG +$258,512,590 GF EX See Note Page 1 of 2
Provides for legislative approval of the MFP formula for the 2023-2024 school year. (7/1/23)
Concurrent resolution provides for the FY 23-24 Minimum Foundation Program (MFP) formula that was adopted by the Board
of Elementary and Secondary Education (BESE) on March 8, 2023. The formula contains 4 levels: Level 1 - provides for the
calculation of the total MFP costs and the proportion supported by the state and local school districts; Level 2 - provides
incentive for local effort; Level 3 - provides for specific legislative allocations (continued funding for past pay raises,
historical funding allocations based on hold harmless reallocations, and mandated cost increases in health insurance,
retirement and fuel); Level 4 - provides for supplementary funding, including Foreign Language Associate salary and
stipends; career development allocations; high cost services allocations; and supplemental course allocations.
EXPENDITURES 2023-24 2024-25 2025-26 2026-27 2027-28 5 -YEAR TOTAL
State Gen. Fd. $258,512,590 $0 $0 $0 $0 $258,512,590
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $258,512,590 $0 $0 $0 $0 $258,512,590
REVENUES 2023-24 2024-25 2025-26 2026-27 2027-28 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
The proposed concurrent resolution will result in an estimated net increase of $258.5 M in state expenditures over the FY 23 Existing
Operating Budget (EOB). $4,281,747,984 is needed to fully fund the MFP.
SCR 1 Compared to FY 23 EOB:
FY 23 Existing Operating Budget MFP: $4,023,235,394
FY 24 BESE-Adopted MFP: $4,281,747,984
Difference $258,512,590
Significant increases include the addition of a differentiated compensation component to address teacher recruitment and retention
($61 M), a $33 increase in the per pupil mandated cost allocation ($21.5 M), an expansion of the Supplemental Course Allocation (SCA)
for student apprenticeships ($1.5 M), a proposed across-the-board pay raise of $2,000 for certificated personnel and $1,000 for non-
certificated personnel ($197.7 M), and the inclusion of the Ecole Pointe au Chien in the formula ($325,750).
LEVEL 1: Uses the February 1 student count to determine the cost of education services. Maintains the weights for Career and Technical
Education units (6%), Special Education/Other Exceptionalities (150%) and Special Education/Gifted and Talented (60%), Low Income and
English Learner (22%), and Economy of Scale (0%-20%). Maintains the base cost per pupil of $4,015. Maintains a state and local
allocation ratio of 65% to 35%. The February 2023 student count is 650,475, down from the February 2022 count by 2,987 students, or
less than 1%. The total weighted membership count is 930,627.
LEVEL 2: Maintains the provisions of incentives for local effort. The total MFP educational costs are shared between the state and the city
or parish school systems. The ability of school systems to support the cost of education in their communities is measured by the potential
to raise local revenue measured in Level 1 by 1) local property tax revenue contribution, 2) local sales tax revenue contribution, and 3)
other local revenue contribution. Level 2 provides incentives for city and parish school systems that contribute a greater proportion of local
revenues towards the cost of education in their communities by increasing local property and sales tax revenues as measured by 1) total
sales taxes, 2) total property taxes, 3) state and federal revenue in lieu of taxes, and 4) 50% earnings on property revenue.
CONTINUED ON PAGE 2
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SCR 2 SLS 23RS 102
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 30, 2023 7:50 AM Author: FIELDS
Dept./Agy.: Education
Subject: Minimum Foundation Program funding formula Analyst: Julie Silva
CONTINUED EXPLANATION from page one: Page 2 of 2
LEVEL 3: Continues the pay raises for certificated and support personnel initiated in 2001-2002, 2006-2007 through 2008
-2009, and increases the per pupil allocation amount of the Mandated Costs Allocation by $33 per pupil from $100 to $133.
School systems can utilize these funds to pay for operational expenses which have increased by 33% since this allocation
was last increased in FY 09. These mandated costs include health insurance, retirement and fuel, as well as historical
allocations based on the hold harmless provision. The total projected cost of this increase is $21.5 M.
LEVEL 4: Supplementary Allocations. 1) Career Development Allocation to support the development of technical courses
required for statewide credentials in city and parish school systems and other public schools in the amount of 6% of the base
per pupil cost for each qualifying student course enrollment; a minimum amount of $25,000 will be provided for each city
and parish school system and a minimum of $10,000 will be provided for other public schools with students enrolled in
grades 9 through 12; 2) Differentiated Compensation increases $61 M to support the recruitment and retention of
teachers based on local needs with an allocation of $1,000 per teacher. These funds may be used for any of the following
categories of expenditures: Stipends for teachers in critical shortage areas as determined by BESE; Stipends for Highly
Effective Teachers (as defined in R.S. 17:381 through 3095 and Bulletin 130, Section 309); Stipends for teachers working in
High Need schools defined as those with an Economically Disadvantaged rate of 85% or greater; Stipends for teacher
leadership positions including classroom teachers appointed to lead weekly teacher collaborations, or those that serve as
coaches or mentors. 3) High Cost Services Allocation to provide additional funds to public school systems and schools
which substantiate that the prior year cost of services for students with disabilities exceeds three times the most recent
state average total expenditure per pupil amount; allocation amounts will be limited by the amount budgeted for this
initiative and are to be distributed equitably to school systems and other public schools proportional to the total of qualifying
applications submitted. 4) Supplemental Course Allocation to provide for the cost of secondary course choices
specifically approved by BESE. For each school system and other public schools funded through the formula, the proposed
allocation shall equal $70 for each student enrolled in grades 7-12 as of February 1. Provides for the redistribution of
uncommitted funds as of a date set by LDE. Expands the SCA provision by adding a specific funding allocation for student
apprenticeships ($1.5 M). Funding would be allocated to school systems based on the number of eligible students who enroll
in the program in either the fall or spring semester, up to 500 enrollments annually. If a school system is defined as “rural”
by the U.S. Census Bureau, each school will receive $3,500 per enrollment and if the system is “non-rural”, each school will
receive $2,500 per enrollment. The variation in allocation amounts is due to the extra support needed for certain costs, such
as those associated with the transportation of students to apprenticeship sites in rural parts of the state. 5) International
Language Associate Program Salary and Stipends Allocation continues the supplemental allocation at $21,000 per
teacher, the first-year installation stipend of $6,000, and the second-year and third-year retention stipend of $4,000. The
cap of 300 teachers is retained. 6) Mentor Teacher Stipend Allocation to provide a $2,000 stipend to each certificated
mentor teacher or teacher serving as the assigned mentor of record responsible for supporting undergraduate and post-
baccalaureate resident teachers. 7) Resident Teacher Stipend Allocation moves the resident teacher stipend which
provides a $3,300 stipend to each undergraduate and post-baccalaureate resident teachers out of the pay raise allocations
within Level 4, to its own separate section in Level 4, with no impact on costs 8) Certificated and Non-Certificated Pay
Raises continues the 2019-2020 staff pay raises ($98.7 M), the 2021-2022 staff pay raises ($75.6 M), and the 2022-2023
staff pay raises ($148 M). Includes an additional pay raise of $2,000 for certificated staff and $1,000 for non- certificated
staff ($197.7 M).
ALLOCATIONS FOR OTHER PUBLIC SCHOOLS: Continues funding methodology for the LSU, Southern University, and
University of Louisiana at Lafayette Lab Schools, Type 2 Charter Schools, Office of Juvenile Justice Schools, the Recovery
School District, NOCCA, LSMSA, Thrive Academy, and the Special School District. Adds Ecole Pointe au Chien under the same
funding methodology used for the other special schools ($325,750).
70% EXPENDITURE REQUIREMENT: Continues language that city, parish, local public school systems or other public schools
ensure that 70% of the general fund expenditures are in the areas of instruction and school administration.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer