How HB2003 increases per-pupil revenue in public schools

EXAMPLE:

Per pupil revenue with no ESA students

Revenue Enrollment Ave. Per Pupil Revenue$3,351,498,823 / 681,578 = $4,917.26

Per pupil revenue with 1,000 ESA students

Revenue Enrollment Ave. Per Pupil Revenue$3,348,304,248 / 680,578 = $4,919.80*

*A $2.54 increase in per pupil revenue

Explanation of example:

Without any ESA students

This example uses total public school enrollment and revenue for 2013-2014 school year. This seems acceptable as CCOSA & USSA used averages in presentations last fall demonstrating the need for increased per pupil revenue (excerpts of Steve Crawford’s presentation are attached).

• Public school enrollment is 681,578. • Total state & local revenue is $3,351,498,823.

Revenue divided by enrollment results in an average per pupil revenue of $4,917.26 ($3,351,498,823 / 681,578 = $4,917.26).

With 1,000 ESA students

For example, assume 1,000 students use ESAs.

• Total public school enrollment becomes 680,578 (681,578 - 1,000 = 680,578).

• The total per pupil revenue for all 1,000 students is $4,917,000 (1,000 x $4,917.26 = $4,917,000).

• Subtracting the total per pupil ESA revenue of $4,917,000 from the total original revenue of $3,351,498,823 leaves $3,346,581,823 in remaining revenue ($3,351,498,823 - $4,917,000 = $3,346,581,823).

But ESA students don’t get 100% of their per pupil revenue.

You know from the legislation that students may qualify to receive 90%, 60% or 30% depending on household income. Adding in the additional 5% administrative allowance provided makes those percentages 95%, 65% and 35%.

Now, assume for example that out of the 1,000 students, one-third qualify at each percentage level: 333 at 95%, 333 at 65% and 334 at 35%. The total per pupil revenue that would have been generated by each of the three groups of students in the public system is $1,637,361.

Therefore, the students at the 95% level represent $1,555,493 in total ESA benefit & admin out of the $1,637,361 in per pupil revenue they generated in the public system leaving $81,868 behind to be distributed through the school funding formula to student remaining in public system.

Those at the 65% level represent $1,064,285 in ESA benefit & admin out of the $1,637,361 in per pupil revenue they generated leaving $573,076 behind.

Those at 35% represent $574,797 out of $1,642,278 leaving $1,067,481 behind.

The total in per pupil revenue left behind by ESA students is $1,722,425 ($81,868 + $573,076 + $1,067,481 = $1,722,425).

The $1,722,425 left behind by ESA students is added back into the earlier remaining revenue figure of $3,346,581,823 resulting in a total remaining revenue figure of $3,348,304,248 to be distributed through the formula to students remaining in the public system. So the numerator ($3,348,304,248 in revenue) and denominator (680,578 in enrollment) have both changed yielding a new public school per pupil revenue of $4,919.80 which is $2.54 more than the original average per pupil revenue of $4,917.26.

The effect of the 1,000 ESA students on public education was to increase the public school per-pupil revenue by $2.54, without additional appropriated funds.