Five Notable Changes to Community College Apportionment Formula

2019-20

• Rescinds Scheduled Increases in Share of Formula Based on Student Outcomes. For 2019-20, 70 percent of apportionment funding will be distributed based on enrollment, 20 percent will be distributed based on the number of low-income students, and 10 percent will be distributed based on student outcomes. In subsequent years, these rates are to be adjusted for inflation. When the new funding formula was adopted last year, the share of funding based on student outcomes was scheduled to increase from 10 percent to 20 percent by 2020-21, with a corresponding reduction to the share based on enrollment.
• Extends a Hold Harmless Provision One Additional Year. Extends for an additional year (through 2021-22) a hold harmless provision that ensures community college districts will receive no less than their total apportionment amount in 2017-18, adjusted for inflation.
• Uses a Three-Year Rolling Average to Calculate Outcomes-Based Funding. Requires the outcomes-based portion of the formula to be calculated using a three-year rolling average of student outcome data. In 2018-19, allocations to districts were based on one year of student outcome data.
• Limits Funding to Highest Award Earned by a Student Each Year. Provides districts with outcome-based funding only for the highest degree or certificate earned by a student in any particular year. In 2018-19, districts received funding for all degrees and certificates earned by students.
• Clarifies and Changes Transfer Definition. For 2018-19 only, clarifies that a transfer student will generate outcomes funding for only one community college district. Beginning in 2019-20, transfer students will generate outcomes-based funding for any community college district where they completed 12 or more units.