[Busmgrs] Poverty update in the State School Fund

[WILTFONG Michael - ODE]

Dear Business Managers,

We have been receiving comments from the districts regarding the recent change in the Poverty calculation for the 2015-16 school year. There appears to be confusion over why the change happened and what it means to the finances of the districts. We want to take a moment and let all districts know what is occurring with poverty for 2015-16.

To that end we are including two documents. The first document is an explanation of the poverty calculation. This document includes some history on the calculation, the reason for the move to SAIPE data, the basis for the SAIPE data, and some tables explaining how the current calculation works. The goal of this document is to provide a common understanding of SAIPE data and why the state uses it to ensure accurate poverty data across the state.

The second document compares the December 3, 2015 2015-16 estimate with the April 5, 2016 2015-16 estimate. Both the poverty weight and the extended ADMw for all districts are compared. This will allow districts to see whether a change in poverty had a corresponding change to their overall weights. The change to the overall weights is important because that is what drives the funding levels for districts.

Finally, below, please find an example of how poverty is calculated for each district. This calculation is stated in OAR 581-023-0102. The calculation is as follows:

ADMr/SAIPE population age 5 to 17. If that ratio is 1.00 or greater, then it is capped at 1.00.

Ratio* SAIPE children age 5 to 17 living in families in poverty = # of students in poverty for district.

Salem-Keizer is a good example of this calculation for 2015-16:
40,642.61 (2015-16 2nd period ADMr for district)
45,634 (Population of children age 5 to 17 in Salem-Keizer SD per SAIPE data)
9,605 (Population of children age 5 to 17 in families in poverty in Salem-Keizer SD per SAIPE data)

40,642.61/45,634 = 89.06%
89.06% * 9,605 = 8,554.42
8,554.42  = # of students in poverty and 8,554.42*0.25 = 2,102.36 number of poverty weights that Salem-Keizer SD receives.

Please review this information and if you have any questions please let me know.

Thank you,
Mike





Michael  Wiltfong   |   Director of School Finance and School Facilities
____________________________________________________________________________
Oregon Department of Education  |  255 Capitol Street  |  Salem, Oregon 97310
michael.wiltfong at state.or.us<mailto:michael.wiltfong at state.or.us>  |   http://www.ode.state.or.us<http://www.ode.state.or.us/>  | 503.947.5914






-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://omls.oregon.gov/pipermail/busmgrs/attachments/20160420/fffb6986/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: SAIPE poverty v.2.0.doc
Type: application/msword
Size: 78336 bytes
Desc: SAIPE poverty v.2.0.doc
URL: <https://omls.oregon.gov/pipermail/busmgrs/attachments/20160420/fffb6986/attachment.doc>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: 2015-16 December and 2015-16 April estimates 4-15-16.xlsx
Type: application/vnd.openxmlformats-officedocument.spreadsheetml.sheet
Size: 560456 bytes
Desc: 2015-16 December and 2015-16 April estimates 4-15-16.xlsx
URL: <https://omls.oregon.gov/pipermail/busmgrs/attachments/20160420/fffb6986/attachment.xlsx>