Perkins Fiscal TrainingOctober 19,2009

Daniel Smith, Minnesota Department of Education

JoAnn Simser, Minnesota State Colleges and

Universities

Career and Technical EducationWe’ve Come a Long Way!

Thanks to UW Stout and the STEM Equity Pipeline for pictures used in this introduction.

Vocational Education

AGENDA

1. Welcome and introductions2. The Carl D. Perkins Career and

Technical Education Act of 20063. Governing Documents4. Minnesota Perkins Funding for 2009-

20105. Requirements to Receive Funds6. Local Distribution of Funds7. Uses of Funds8. Accessing Funds9. Suggestions and next steps

JoAnn/Dan

DanRekha/PamJoAnn/DanDan/JoAnn

DanRekha/PamRekha/PamJoAnn/Dan

GOALS FOR THE DAY Review state and federal fiscal regulations and

legislation, Board of Trustee policies and MDE regulations regarding Minnesota Career and Technical Education and Perkins fiscal procedures

Review Minnesota state allocation and local consortium distribution of funds

Review and discuss requirements to receive funds and requirements for uses of funds

Utilize procedures for accessing funds through secondary and postsecondary systems

Provide suggestions for Minnesota CTE fiscal policies and procedures and for next steps to provide support to fiscal operations

The Carl D. Perkins Career and Technical Education Act of 2006

Purpose:

The purpose of this Act is to develop more fully the academic and career and technical skills of secondary education students and postsecondary education students who elect to enroll in career and technical education programs

Carl D. Perkins Career and Technical Education Act of 2006, Section 2

Authorization vs. Appropriation:

There is authorized to be appropriated to carry out this Act … such sums as may be necessary for each of the fiscal years 2007 through 2012.

Carl D. Perkins Career and Technical Education Act of 2006, Section 9

Authorization

Authorization vs. Appropriation:President’s budget for Perkins – May 7, 2009

(in millions) 2008 Actual

2009 Est.

2010 Est.

State Grants 1,164 1,162 1,161

National Programs 10 16 8

Tech Prep 103 103 103

TOTAL 1,277 1,281 1,272

Appropriation

Authorization vs. Appropriation:Minnesota’s allocation for 2009-2010

Basic Grant 17,697,927

Tech Prep 1,735,278

TOTAL 19,433,205

Tydings and FIFOFederal fiscal year for Perkins is from October 1

through September 30.

However, states may receive a portion of their funds beginning on July 1 prior to the beginning of the fiscal year and have 12 months beyond the fiscal year to expend funds.

This extension is referred to as the Tydings Amendment.

FFY 2009 Perkins Funds(2009-2010)

October 1, 2010October 1, 2009

July 1, 2009

FFY 2009

FY 2011FFY 2010

FY 2010FFY 2009

TydingsForward

Funding

ReallocationFFY 2009

July 1, 2011July 1, 2010

October 1, 2011

FIFO

ST

AT

ELO

CA

L

Unexpended funds returned to state

Governing Documents

Minnesota Perkins Funding for 2009-

2010

Perkins Funds Title I Allocation (Basic Grant)

Title II Allocation (Tech Prep)

Amount of Title II Consolidated with Title I

Total Available under Title I

17,697,927

1,735,2780

1,735,278

19,433,205

Perkins Funds Perkins State Administration (5%)

Perkins State Leadership (10%)

Perkins Basic Grant Distribution (85%)

971,660

1,943,321

16,518,224

Requirements to Receive Perkins

Funds

To Receive Perkins Funds

Secondary State-approved CTE Program(s) Utilizing appropriately licensed staff

Postsecondary In a state community or technical college Identified as a CTE program by CIP code Meet faculty qualifications

To Receive Perkins Funds Participate in one of the state’s Perkins

consortia Each consortium must have at least one eligible

secondary recipient and at least one eligible postsecondary recipient

No district nor college may belong to more than one consortium

A charter school with a state-approved CTE program must be invited to participate in a consortium

To Receive Perkins Funds

Consortia are encouraged to consider other potential partners who may participate but may not directly receive funds

WorkForce Centers

Adult Basic Education Programs

4-year Universities

Non-public schools and institutions

To Receive Perkins Funds The consortium must develop a single

regional plan The plan must address secondary basic grant

programs, postsecondary basic grant programs, and tech prep activities

The plan must address all required Perkins activities and any permissible Perkins activities organized around five broad goals

The plan must be signed by each participating college president and each participating school superintendent

To Receive Perkins Funds

The consortium must identify one secondary fiscal host and one postsecondary fiscal host to receive and manage Perkins funds

Consortium funds may not be commingled, but may be used across secondary/postsecondary lines

The signed local plan is the legal document governing use of the funds – no other joint powers agreement is required

To Receive Perkins Funds

Expectations of the Perkins Coordinators 1

2

To Receive Perkins Funds

Expectations of the Perkins Fiscal Hosts 1

2

Distribution of Perkins Funds to Local Consortia

Secondary/Postsecondary Split Minnesota Rule 3505.1700 states:

ALLOTMENT AVAILABILITY OF FEDERAL FUNDS.

A cooperative agreement between the commissioner of education and Minnesota State Colleges and Universities will annually provide for the distribution of federal funds between secondary and postsecondary career and technical programs. Distribution to local education agencies must be determined by state and federal law.

Secondary/Postsecondary Split

Staff recommend the annual secondary/ postsecondary split using the following factors

FYE student count (50%)

Population of students with disabilities (10%)

Population of economically disadvantaged students (15%)

Population of limited English proficient students (10%)

Count of nontraditional students (5%)

Count of single parents/pregnant teens (10%)

Secondary/Postsecondary Split

In recent years, the previous calculation recommended a split of 40% secondary and 60% postsecondary

Expecting consortia to need approximately 1/5 of funds for consortium building and maintenance, the state recommended dividing 1/5 of the funds evenly

The result promoted a recommended split of 42% secondary and 58% postsecondary

Secondary Distribution The Perkins Act specifies that once the

split is determined, funds will be distributed to secondary recipients on the following basis:

30% will be distributed on the basis of individuals between the ages of 5 and 17 inclusive using the most recent US Census data available

70% will be distributed on the basis of individuals between the ages of 5 and 17 inclusive in households of poverty using the most recent US Census data available

Postsecondary Distribution The Perkins Act specifies that once the

split is determined, funds will be distributed to postsecondary recipients on the following basis:

100% will be distributed on the basis of individuals in career and technical education programs receiving PELL assistance

Reserve Distribution The Perkins Act allows states to utilize an

alternate method to distribute up to 10% of Perkins funds to address any of three factors:

1. rural areas;

2. areas with high percentages of career and technical education students; and

3. areas with high numbers of career and technical education students.

Reserve Distribution

Minnesota opted to address the needs of rural areas and areas with high numbers of career and technical education students by utilizing an alternate formula for 10% of the distribution to local recipients

Reserve Distribution

That formula distributed half of the funds on the basis of the number of

CTE participants in secondary and postsecondary programs, weighted 3:1 toward secondary participation to reflect programming formerly conducted under tech prep

half of the funds on the basis of the geographic area of the consortium

The postsecondary formula allocation is based on 688 Pell recipients out of a state total 26,747 Pell recipients times the postsecondary formula allocation

= (688/26,747) x $8,622,513.00= .0257… x $8,622,513.00

= $221,792.69

The secondary formula allocation is calculated for each district based 30% on its census population 5-17 and 70% on its census poverty population 5-17 against a state total census count of 906,108 and a state total poverty census county of 92,765.

e.g. for District 1001= (3,679/906,108) x .30 x $6,243,889.00

+ (271/92,765) x .70 x $6,243,889.00= $20,373.93

When this is done for all nine secondary districts the total is:

District 1000District 1001District 1002District 1003District 1004District 1005District 1006District 1007District 1008TOTAL

0.0020,373.9319,465.65

1,979.2332,840.1125,112.6025,084.8019,086.29

0.00143,942.61

In this example, District 1000 is a charter school and District 1008 is an intermediate school district. As such, neither has a unique geographic area against which census data are applied, so the formula calculation for each of those districts is zero. The districts remain, however, members of the consortium and are entitled to participate in the development of the plan and the use of the funds.

Reserve funds are based half on weighted participation and half on geographic area.

Using 6,185 secondary participants (including the cooperative and charter districts) and 4,534 postsecondary participants and a geographic area of 556.58 square miles:

= (6,185/186,182) x ¾ x .5 x $1,651,822+ (4,534/129,476) x ¼ x .5 x $1,651,822

+ (556.58 mi2/83,969.43 mi2) x .5 x $1,651,822= $33,282.59

These funds are divided 42% secondary and 58% postsecondary.

Secondary Reserve CalculationPostsecondary Reserve CalculationGeographic Area Reserve Calculation

So how much of the Perkins allocation belongs to District 1001?

0Nada

Zilch

Nuttin’Notapenny

Perkins is not an entitlement!

Naught

Zip

Minnesota relies on the language from Section 131(f)(2) of the Perkins Act which states:"Funds allocated to a consortium ... shall be

used only for purposes and programs that are mutually beneficial to all members of the consortium .... Such funds may not be reallocated to individual members of the consortium for purposes or programs benefitting only 1 member of the consortium."

Uses of Perkins Funds

Accessing Perkins Funds

SERVS Financial

Suggestions and Next Steps

Questions?Questions?