SB-153 Education finance: education omnibus budget trailer bill outlines changes to ELO-P that impact “Rate 2 LEAs.”

Background:  

ELO-P Funding is currently organized into two “rates” based on a Local Education Agencie’s (LEA’s) Unduplicated Pupil Percentage (UPP) impacting the funding amount for the LEA and the subsequent requirements for program offering and student access.

Rate 1 LEAs

• LEA UPP of 75% or more.
• Currently set in statute as $2,750 per the LEAs’ average daily attendance (ADA) for TK-6th grade enrollment. 
• Rate 1 LEAs are required to offer ELO-P to all TK-6th grade students and to provide access to any student whose parent requests placement.

Rate 2 LEAs 

• LEAs with an UPP of less than 75%. 
• This rate is calculated annually based on the funds remaining after the Rate 1 funds are determined. 
• Rate 2 LEAs are required to offer ELO-P to at least all unduplicated students and provide access to any unduplicated student whose parent requests placement. 
• Due to the way it is calculated, Rate 2 can vary significantly from year to year. The ELO-P Rate 2 declined by more than 12% between 2022-23 and 2023-24, dropping from $2,054 per student to $1,802 per student. 

What’s New

As outlined in the Expenditure Deadline section, ELO-P apportionments from FYs 2021-22 and 2022-23 must be expended by September 30, 2024. Any funds not spent must be returned to the state.

For FY 2024–25, those returned funds shall be used to provide a Rate 2 at $2,000 per student. If there is insufficient funding to provide the full amount the Superintendent may prorate that amount.

Beginning in FY 2025-26 (as LEA’s must annually declare their intent to run an ELO-P), any funds made available by an LEAs decision not to run an ELO-P, may be reallocated to Rate 2.

Click here to return to the full July 10, 2024 Policy Newsletter.