Step 1: Adjustments are
made based on district
characteristics

Cost of Education Index (CEI) –
based on 1989 -1990 district
characteristics such as size of district,
teacher salaries of neighboring districts,
% of low-income students in the district.
The CEI has not been updated since
1991
Multiplier ranges from 1.02 to 1.20

Basic Allotment – amount that every school
district is guaranteed to receive in state and local
funds for each student in Average Daily Attendance
(ADA)

Adjustments are made

$4,950 for FY2014
$5,040 for FY2015

Small or MidSize District
Adjustment

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Sparsity
Adjustment

Adjusted Allotment
(AA)

 Step 2: Adjustments are made for student characteristics
Start with the Regular Program Allotment
Regular Program
Allotment

Adjusted
Allotment

Regular Education ADA
(students not eligible for weighted
funding)

Regular Program Adjustment Factor
(RPAF)
Created in 2011 to reduce the regular
program allotment. It was set to
100% for 2014 and 2015, effectively
eliminating this reduction before it
expires at the close of FY2015

Then make adjustment for the weights or allotments attributed to special populations. Weights and allotments are assigned for
Compensatory Education (0.20), Special Education (1.1 to 5.0), Career & Technical (1.35), Advanced Course Career & Technical,
Bilingual/ESL (0.1), Pregnancy Related Services (2.41), Military Allotment (only by appropriation), Gifted & Talented (0.12), Public
Education Grant (0.1), High School Student, New Instructional Facility Allotment, Transportation Allotment.
For example: The Compensatory Education weight is a 20% add-on for a student that is economically disadvantaged:
Adjusted
Allotment

0.20

Compensatory Education
Enrollment (ADA)

Compensatory Education
Allotment

For example: The High School Allotment allows for $275 per each student in ADA in grades 9 through 12:
Adjusted
Allotment

$275

ADA for grades 9 through 12

Once all of the allotments are calculated they are added together to arrive at the

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High School Allotment

Tier I Entitlement

 Step 3: Calculate the State and Local Share of the Tier I Entitlement
First determine how much revenue can be generated through local property wealth:
Compressed Tax Rate
($1.00 for each $100 of
property value for most
districts)

Local Fund Assignment (LFA) –
The portion of the Tier I
Entitlement that the district is
responsible for

Prior year property value as
determined by the Comptrollers
Office

Then  the  state’s  share  is  the  amount  of  the  Tier  I  Entitlement  over  the  Local  Fund  Assignment  

Tier I Entitlement

Local Fund Assignment
(LFA)

State Share of Entitlement

If the Local Fund Assignment for a district is more than the Tier I Entitlement that district is subject to the Recapture
provisions of Chapter 41 in the school code. One hundred fifty-three districts were subject to recapture in FY2015.

Tier I Entitlement < LFA = Recapture

Tier I Entitlement > LFA = State Aid

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1.
2.
3.
4.
5.

Five Recapture Options:
Consolidate with another district
Detach property
Purchase attendance credits from the state
Contract to educate nonresident students
Consolidate tax bases with another district

 Now  on  to  Tier  II….  
Tier II funding is based on Weighted Average Daily Attendance (WADA)
Take the Tier I Entitlement
(subtract) Transportation Allotment
(subtract) New Instructional Facilities Allotment

(subtract) High School Allotment
(subtract) 50% of the Cost of Education Index
----------------------------------------------------Adjusted Tier I Entitlement
Adjusted Tier I
Entitlement

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Adjusted Basic
Allotment

WADA