7.2 Set-Aside Proposal
ATTACHMENT 7.2
CHARTER SELPA SEPTEMBER CEO COUNCIL
ALLOCATION PLAN – SET ASIDE
ISSUE If the Organization (CMO/Non-profit with two or more charters) Partner proposal is approved, the set aside allocation plan language should be updated to reflect use of the longevity of the Organization Partner, rather than the specific entry date of the charter. Also proposed for consideration is a recommendation to provide a lower set-aside schedule for Organization Partners and those charters belonging to a special education JPA.
BACKGROUND Current Allocation Plan Language (in italics) Charter SELPA will maintain a Set Aside Contribution per LEA. This Set Aside contribution is for the protection of the SELPA as a whole entity. The Set Aside Contribution will not be utilized for any shared costs. (examples provided) The Set Aside contribution will be tracked per LEA. The contribution calculation will be based on a percentage of the current year’s entitlement (after the EDCOE administration fee is deducted) based on a declining scale. The amount of set aside in the prior year will be used as a beginning balance, and then when the current year’s contribution is calculated, any amount overpaid to the Set Aside will be returned with the LEA’s net distribution. As such, any amount additionally due will be deducted from the LEA’s net distribution. 1st Year = 5% 2nd Year = 4% 3rd Year = 3% 4th Year and subsequent years = 2% For those charters who are deemed “high risk”, as determined by the Executive Committee, the contributions will be calculated based upon the “high risk scale”. Criteria determining “high risk” may include, but is not be limited to, length of time as a charter school, financial stability, and declining ADA (average daily attendance) history. 1st Year = 10% 2nd Year = 7.5% 3rd Year = 5% 4th Year and subsequent years = 2% Any LEA leaving the Charter SELPA (or closing) after four years of membership will have their set aside contribution returned if there are no outstanding financial obligations to the SELPA. The funds will be held for two years after the LEA is no longer a member of the SELPA. This two-year hold is necessary to ensure that no prior year ADA adjustment by the LEA will impact the SELPA funding. When an LEA leaves the Charter SELPA (or closes) prior to completion of four years of membership, the set aside contribution is not returned. The funds are available for use by the Charter SELPA as follows: a) If the SELPA advances funds to a charter that are unearned, and the funds cannot be recaptured, any and all such set-aside funds shall be used to cover the shortage, not just the set-aside for the charter with unearned funds.
El Dorado Charter SELPA/ Allocation Plan Set-Aside
Page 1 of 3
ATTACHMENT 7.2
CHARTER SELPA SEPTEMBER CEO COUNCIL
ALLOCATION PLAN – SET ASIDE
b) Allocated to the risk pool for usage as determined by the CEO Executive Committee under the approved risk pool guidelines. Each charter “Set-Aside” will receive interest. Interest will be earned for the Set Aside contributions based on the interest rates of the El Dorado County Treasurer. The allocation of interest per LEA will be determined by the number of months the LEA had funds in the Set Aside pool. Returning LEAs will be allocated 12 months of earned interest and LEAs in their first year will earn interest beginning in February with their first apportionment.
RECOMMENDATION Part 1 Establish the date of entry, for purposes of set-aside calculation rate and vesting, be based on date of entry of the Single Charter Partner or Organization Partner Part 2 Establish an alternate set-aside schedule (4%, 3%, 2%) for Single Charter Partners who are members of a JPA and for Organization Partners
PART 1 DETAIL Add the following language: For determination of year one, two, three or four, and applicable % of set aside, the date of entry of the Single Charter Partner, or the Organization Partner will be used. For determination of year one, two, three or four, for vesting and return of set-aside, the date of entry of the Single Charter Partner, or the Organization Partner will be used.
PART 2 DETAIL JPAs are not members of the Charter SELPA but are an important component of delivery of regionalized service. In 2013-14, 36 (out of 192 Charter LEAs) belong to some type of regional JPA (see chart).
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Ace Ace Ace Ace Alpha Middle School Oakland Military Institute College Preparatory Academy Oakland School for the Arts Oxford Oxford Oxford Oxford Oxford Oxford Bayshore Preparatory Charter School Coastal Academy The Academy North Woods Discovery School Redding School for the Arts II King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez Magnolia Magnolia Arroyo Paseo Charter High City Heights Preparatory Charter Darnall Charter School Gompers Harriet Tubman Village Charter Howard Gardner Innovations Academy Keiller Leadership Academy KIPP Adelante McGill School of Success Museum School Old Town Academy The Learning Choice Academy The O'Farrell Charter School The Preuss School UCSD Urban Discovery Academy Charter
El Dorado Charter SELPA/ Allocation Plan Set-Aside
Norcal JPA Norcal JPA Norcal JPA Norcal JPA Norcal JPA North County Charter JPA North County Charter JPA North County Charter JPA North County Charter JPA North County Charter JPA North County Charter JPA North State Charter JPA North State Charter JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA
ACE Charter ACE Charter High School Alpha Middle School Oakland Military Institute College Preparatory Academy Oakland School for the Arts Oxford Preparatory Academy Oxford Preparatory Academy Chino Oxford Preparatory Academy So Orange County Bayshore Preparatory Charter School Coastal Academy The Academy North Woods Discovery School Redding School for the Arts II King-Chavez Academy of Excellence King-Chavez Arts Academy King-Chavez Athletic Academy King-Chavez Community High King-Chavez Preparatory Academy King-Chavez Primary Academy Magnolia Science Academy Arroyo Paseo Charter High City Heights Preparatory Charter Darnall Charter School Gompers Harriet Tubman Village Charter Howard Gardner Innovations Academy Keiller Leadership Academy KIPP Adelante McGill School of Success Museum School Old Town Academy The Learning Choice Academy The O'Farrell Charter School The Preuss School UCSD Urban Discovery Academy Charter
Page 2 of 3
ATTACHMENT 7.2
CHARTER SELPA SEPTEMBER CEO COUNCIL
ALLOCATION PLAN – SET ASIDE
The proposed set-aside schedules are proposed as shown in the chart below. A high-risk schedule (starting at 10%) is still available, should the need arise, but has yet to be utilized by the Charter SELPA.
Organization Partner (may or may not belong to JPA)
Single Charter not in a JPA
Single Charter in a JPA
Set-Aside
Set-Aside
Year 1 5%
Year 1 4%
Year 1 4%
Year 2 4%
Year 2 3%
Year 2 3%
Year 3 3%
Year 3 2%
Year 3 2%
Year 4 and beyond 2%
Year 4 and beyond 2%
Year 4 and beyond 2%
Date of entry based on Single Charter Partner
Date of entry based on Single Charter Partner
Date of entry based on Organization Partner
El Dorado Charter SELPA/ Allocation Plan Set-Aside
Set-Aside
Page 3 of 3
CHARTER SELPA SEPTEMBER CEO COUNCIL
ALLOCATION PLAN – SET ASIDE
ISSUE If the Organization (CMO/Non-profit with two or more charters) Partner proposal is approved, the set aside allocation plan language should be updated to reflect use of the longevity of the Organization Partner, rather than the specific entry date of the charter. Also proposed for consideration is a recommendation to provide a lower set-aside schedule for Organization Partners and those charters belonging to a special education JPA.
BACKGROUND Current Allocation Plan Language (in italics) Charter SELPA will maintain a Set Aside Contribution per LEA. This Set Aside contribution is for the protection of the SELPA as a whole entity. The Set Aside Contribution will not be utilized for any shared costs. (examples provided) The Set Aside contribution will be tracked per LEA. The contribution calculation will be based on a percentage of the current year’s entitlement (after the EDCOE administration fee is deducted) based on a declining scale. The amount of set aside in the prior year will be used as a beginning balance, and then when the current year’s contribution is calculated, any amount overpaid to the Set Aside will be returned with the LEA’s net distribution. As such, any amount additionally due will be deducted from the LEA’s net distribution. 1st Year = 5% 2nd Year = 4% 3rd Year = 3% 4th Year and subsequent years = 2% For those charters who are deemed “high risk”, as determined by the Executive Committee, the contributions will be calculated based upon the “high risk scale”. Criteria determining “high risk” may include, but is not be limited to, length of time as a charter school, financial stability, and declining ADA (average daily attendance) history. 1st Year = 10% 2nd Year = 7.5% 3rd Year = 5% 4th Year and subsequent years = 2% Any LEA leaving the Charter SELPA (or closing) after four years of membership will have their set aside contribution returned if there are no outstanding financial obligations to the SELPA. The funds will be held for two years after the LEA is no longer a member of the SELPA. This two-year hold is necessary to ensure that no prior year ADA adjustment by the LEA will impact the SELPA funding. When an LEA leaves the Charter SELPA (or closes) prior to completion of four years of membership, the set aside contribution is not returned. The funds are available for use by the Charter SELPA as follows: a) If the SELPA advances funds to a charter that are unearned, and the funds cannot be recaptured, any and all such set-aside funds shall be used to cover the shortage, not just the set-aside for the charter with unearned funds.
El Dorado Charter SELPA/ Allocation Plan Set-Aside
Page 1 of 3
ATTACHMENT 7.2
CHARTER SELPA SEPTEMBER CEO COUNCIL
ALLOCATION PLAN – SET ASIDE
b) Allocated to the risk pool for usage as determined by the CEO Executive Committee under the approved risk pool guidelines. Each charter “Set-Aside” will receive interest. Interest will be earned for the Set Aside contributions based on the interest rates of the El Dorado County Treasurer. The allocation of interest per LEA will be determined by the number of months the LEA had funds in the Set Aside pool. Returning LEAs will be allocated 12 months of earned interest and LEAs in their first year will earn interest beginning in February with their first apportionment.
RECOMMENDATION Part 1 Establish the date of entry, for purposes of set-aside calculation rate and vesting, be based on date of entry of the Single Charter Partner or Organization Partner Part 2 Establish an alternate set-aside schedule (4%, 3%, 2%) for Single Charter Partners who are members of a JPA and for Organization Partners
PART 1 DETAIL Add the following language: For determination of year one, two, three or four, and applicable % of set aside, the date of entry of the Single Charter Partner, or the Organization Partner will be used. For determination of year one, two, three or four, for vesting and return of set-aside, the date of entry of the Single Charter Partner, or the Organization Partner will be used.
PART 2 DETAIL JPAs are not members of the Charter SELPA but are an important component of delivery of regionalized service. In 2013-14, 36 (out of 192 Charter LEAs) belong to some type of regional JPA (see chart).
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Ace Ace Ace Ace Alpha Middle School Oakland Military Institute College Preparatory Academy Oakland School for the Arts Oxford Oxford Oxford Oxford Oxford Oxford Bayshore Preparatory Charter School Coastal Academy The Academy North Woods Discovery School Redding School for the Arts II King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez King-Chavez Magnolia Magnolia Arroyo Paseo Charter High City Heights Preparatory Charter Darnall Charter School Gompers Harriet Tubman Village Charter Howard Gardner Innovations Academy Keiller Leadership Academy KIPP Adelante McGill School of Success Museum School Old Town Academy The Learning Choice Academy The O'Farrell Charter School The Preuss School UCSD Urban Discovery Academy Charter
El Dorado Charter SELPA/ Allocation Plan Set-Aside
Norcal JPA Norcal JPA Norcal JPA Norcal JPA Norcal JPA North County Charter JPA North County Charter JPA North County Charter JPA North County Charter JPA North County Charter JPA North County Charter JPA North State Charter JPA North State Charter JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA SD Charter School JPA
ACE Charter ACE Charter High School Alpha Middle School Oakland Military Institute College Preparatory Academy Oakland School for the Arts Oxford Preparatory Academy Oxford Preparatory Academy Chino Oxford Preparatory Academy So Orange County Bayshore Preparatory Charter School Coastal Academy The Academy North Woods Discovery School Redding School for the Arts II King-Chavez Academy of Excellence King-Chavez Arts Academy King-Chavez Athletic Academy King-Chavez Community High King-Chavez Preparatory Academy King-Chavez Primary Academy Magnolia Science Academy Arroyo Paseo Charter High City Heights Preparatory Charter Darnall Charter School Gompers Harriet Tubman Village Charter Howard Gardner Innovations Academy Keiller Leadership Academy KIPP Adelante McGill School of Success Museum School Old Town Academy The Learning Choice Academy The O'Farrell Charter School The Preuss School UCSD Urban Discovery Academy Charter
Page 2 of 3
ATTACHMENT 7.2
CHARTER SELPA SEPTEMBER CEO COUNCIL
ALLOCATION PLAN – SET ASIDE
The proposed set-aside schedules are proposed as shown in the chart below. A high-risk schedule (starting at 10%) is still available, should the need arise, but has yet to be utilized by the Charter SELPA.
Organization Partner (may or may not belong to JPA)
Single Charter not in a JPA
Single Charter in a JPA
Set-Aside
Set-Aside
Year 1 5%
Year 1 4%
Year 1 4%
Year 2 4%
Year 2 3%
Year 2 3%
Year 3 3%
Year 3 2%
Year 3 2%
Year 4 and beyond 2%
Year 4 and beyond 2%
Year 4 and beyond 2%
Date of entry based on Single Charter Partner
Date of entry based on Single Charter Partner
Date of entry based on Organization Partner
El Dorado Charter SELPA/ Allocation Plan Set-Aside
Set-Aside
Page 3 of 3
