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10.20.102    CALCULATION OF AVERAGE NUMBER BELONGING (ANB)

(1) A school must receive accreditation from the Board of Public Education before the pupils attending the school are eligible for ANB calculation purposes and for determining the BASE funding program for the district.

(2) The Superintendent of Public Instruction shall determine the appropriate budget units for the ANB calculation and the BASE funding program for the district. The enrollment generated by a budget unit that is subsequently closed shall be added to the enrollment of another budget unit of the district for the first year after the closing of a budget unit if students are enrolled in the other budget unit.

(3) If the school district has not received accreditation by the Board of Public Education for students in grades 7 and 8 funded at the high school per-ANB entitlement rate, the Superintendent of Public Instruction shall certify the regularly enrolled 7th and 8th grade students as elementary pupils for ANB purposes. The school district must budget accordingly.

(4) The official count of enrolled students, as defined in ARM 10.15.101, is taken on the first Monday in October and the first Monday in February, or the next school day if those dates do not fall on a school day. Changes to the October enrollment count will not be accepted after December 31 except in cases of significant reporting error, as determined by the Superintendent of Public Instruction.

(a) A school district may not count as enrolled for purposes of ANB calculations a student who has been absent for the 11th consecutive pupil instruction day immediately prior to and including the official count date.

(b) A school district may not count as enrolled on the count date a student who:

(i) has enrolled in another public school district;

(ii) will not resume attendance according to notification received by the district;

(iii) has had records transferred to another school; or

(iv) is otherwise unable to continue in attendance.

(5) After a student is dropped from the rolls in accordance with (4)(b), student absences will not be included for absence and attendance calculations, and student enrollment may not be considered in ANB calculations unless attendance is resumed on or before the date of the official count.

(6) For calculation of average daily attendance (ADA), a school district will report the number of enrolled students who are present and the number of enrolled students who are absent on the official fall and spring disaggregated enrollment and attendance data collection days.

(7) For purposes of the enrollment count described in (4):

(a) a student who has reached the age of five on or before September 10 and is enrolled in a kindergarten program but is receiving services in a preschool environment pursuant to an individualized education program (IEP), is included in eligibility for purposes of ANB.

(b) a kindergarten student enrolled in a program designed to provide less than 180 hours of pupil instruction time per school year is reported as enrolled but is excluded from eligibility for purposes of ANB. A kindergarten student enrolled in a program designed to provide 180 hours or more of pupil instruction time per school year is reported as enrolled and is included in eligibility for purposes of ANB.

(c) a student in grades FTK through 12 enrolled in a program designed to provide:

(i) less than 180 hours of pupil instruction time per school year is reported as enrolled but is excluded from eligibility for purposes of ANB;

(ii) 180 to 359 hours of pupil instruction time per school year is reported as one-quarter time enrolled;

(iii) 360 to 539 hours of pupil instruction time per school year is reported as half-time enrolled;

(iv) 540 to 719 hours of pupil instruction time per school year is reported as three-quarter time enrolled; and

(v) 720 or more hours of pupil instruction time per school year is reported as full-time enrolled.

(8) Homebound students, as defined in ARM 10.15.101, and students who are confined to a treatment, medical, or custodial facility may be counted as enrolled on the count dates for ANB purposes if the student:

(a) is enrolled as defined in ARM 10.15.101 and is currently receiving organized and supervised pupil instruction as defined in 20-1-101, MCA;

(b) is in a home or facility which does not offer a regular educational program; and

(c) has instructional costs during the absences which are financed by the school district general fund.

(9) A student enrolled in a course providing less than the required aggregate hours of pupil instruction who has demonstrated proficiency in the course content may be counted as enrolled and included in the calculation for ANB. The ANB for the student must be converted to an hourly equivalent based on the hours of instruction ordinarily provided for the course content.

(10) Trustees may apply for increased ANB for a student placed by the trustees, a state agency, or court in an accredited private education program if the trustees enter into a contract as provided in ARM 10.20.106.

(11) Extenuating circumstances for students who do not meet the criteria in (8)(a) through (c) but which would support a variance should be submitted to the Superintendent of Public Instruction by a responsible school official prior to the official enrollment count date for consideration of inclusion of the student in the enrollment count for ANB purposes beyond the 10th day of absence.

(12) Trustees may apply for increased ANB for early graduates who are enrolled as of the first Monday of October as a senior in high school in the seventh semester of secondary school, and who complete the graduation requirements prior to the February enrollment count date in accordance with 20-9-313, MCA, by stating in the enrollment reports submitted to the Superintendent of Public Instruction the names of pupils which were not included in the February enrollment count because they graduated early and the date of the pupils' graduation. The information must be submitted by the deadline in ARM 10.20.103 preceding the year for which ANB is being calculated.

(13) The PIR days used for calculating ANB will be the number of PIR days, not to exceed seven, conducted by the school district in the school fiscal year immediately preceding the school year for which the BASE funding program payment will be received.

(14) If the school district fails to conduct the three PIR days for professional development required by 20-1-304, MCA, or does not conduct the PIR days for the purposes set out in ARM 10.65.101, the Superintendent of Public Instruction shall:

(a) adjust the direct state aid to reflect the actual number of PIR days conducted;

(b) adjust the general fund, if needed, to comply with legal budget limitations and requirements; and

(c) adjust the guaranteed tax base aid payment to reflect the amount which the district would be eligible for based on the budget recalculated in (b).

(15) A school district must conduct a minimum of 360 hours of pupil instruction for a half-time kindergarten program, a minimum of 720 hours of pupil instruction for grades FTK-3, and a minimum of 1,080 hours of pupil instruction for grades 4-12.

(a) If the school district fails to conduct the required minimum number of hours for any school or program, the Superintendent of Public Instruction will reduce the direct state aid payments for the year in which the requirement was not met by:

(i) calculating the direct state aid per hour attributable to the school or program in proportion to the budgeted ANB of the school or program divided by the required minimum number of hours and multiplying by two;

(ii) subtracting the number of aggregate hours conducted by the school or program from the number of minimum aggregate hours required under 20-9-311, MCA;

(iii) multiplying (a)(i) by (ii) to determine the amount of the funding penalty; and

(iv) withholding the adjustment from the ensuing year payments to the district.

(b) However, if a school district fails to conduct the minimum number of hours by reason of one or more unforeseen emergencies as defined in 20-9-802, MCA, the Superintendent of Public Instruction shall reduce the direct state aid payments proportionally for each aggregate hour less than the minimum required by applying the calculation in (a), divided by two.

(c) The reduction of state funding will be prorated based on enrollment for the portion of the district, such as one class, school, or grade level, for which the district fails to conduct the minimum pupil instruction hours.

(16) School districts will be funded based on the current ANB or three-year ANB, whichever generates the greatest maximum general fund budget. For the purpose of determining the BASE funding program of a district, current ANB and three-year average ANB will be calculated using the following methods:

(a) To calculate current ANB:

(i) the enrollment reported by the school district on the October and February enrollment report forms to the Superintendent of Public Instruction, pursuant to 20-9-311, MCA, will be adjusted and averaged by budget unit as follows:

By budget unit: [(enrollment for first Monday in October + enrollment for first Monday in February) - (kindergarten enrollment for students receiving less than 180 hours of pupil instruction time per school year) - (one-half kindergarten enrollment for students enrolled in a half-time kindergarten program receiving180 hours or more of pupil instruction time per school year) - (part-time enrollment for students in grades FTK through 12 receiving less than 180 hours of pupil instruction time per school year) - (0.75 times the part-time enrollment for students in grades FTK through 12 receiving 180 through 359 hours of pupil instruction time per school year) - (0.50 times the part-time enrollment for students in grades FTK through 12 receiving 360 through 539 hours of pupil instruction time per school year) - (0.25 times part-time enrollment for students in grades FTK through 12 receiving 540 through 719 hours of pupil instruction time per school year) - (enrolled students reaching 19 years of age by September 10 of the school year) - (0.50 times students enrolled in MT youth challenge) + (early graduates)] divided by 2 to get the average of the two enrollment counts by budget unit;

(ii) multiply (a)(i) by the sum of PIR days plus PI days, divided by 180, rounded up to the next whole number, equals current ANB; and

(iii) add the additional approved enrollment, as determined in ARM 10.20.104 and 10.20.104A, to the enrollment used to calculate the current ANB.

(b) To calculate three-year average ANB, the Superintendent of Public Instruction will do the following:

(i) total the current ANB by budget unit for the budget year and the two years preceding the year for which three-year average ANB could be used for funding, divide the sum by three, and round up to the nearest whole number; and

(ii) add the additional approved enrollment as determined in ARM 10.20.104A to the enrollment used to calculate three-year average ANB.

(c) To determine whether the current ANB or three-year average ANB will be used for budgeting and funding purposes, the Superintendent of Public Instruction will calculate the district's maximum general fund budget using the current ANB as determined in (a) for every budget unit of the district and also using the three-year average ANB as determined in (b) for every budget unit of the district. The ANB type that generates the highest maximum general fund budget will be used for budgeting and for determining the direct state aid funding for the district's general fund budget for the ensuing year.

(17) When an audit or other review determines the enrollment used for calculating ANB was incorrectly reported, the Superintendent of Public Instruction will make an adjustment as follows:

(a) If the enrollment reporting error is discovered and reported to the Superintendent of Public Instruction before the budget for FY 20XX is adopted and before the date by which the trustees must commence the final budget meeting required by 20-9-131, MCA, the Superintendent of Public Instruction will recalculate and recertify the district's current or three-year average ANB for the FY 20XX budget using the corrected enrollment figures in the ANB calculations.

(b) Except as provided in (c), if an enrollment reporting error is discovered and reported to the Superintendent of Public Instruction on or after the date by which the trustees must commence the FY 20XX final budget meeting required by 20-9-131, MCA, the Superintendent of Public Instruction will determine the direct state aid and guaranteed tax base aid payments the district would have received for FY 20XX if enrollment had been correctly reported and will make a payment adjustment in the current year. Funding will be adjusted, but ANB figures will not be changed for the current year or changed for use in future years' ANB calculations or budgets.

(c) If the Superintendent of Public Instruction determines the enrollment reporting error detected as described in (b) would materially affect the ANB of a future year, resulting either in significant financial hardship or significant overpayment of state funds to a district's general fund budget for a future year if not corrected, the superintendent may use the correct enrollment to certify ANB for the following year's budget. That is, the enrollment error will be corrected and will be used in ANB calculations affecting future years only if the financial impacts are significant.

History: 20-9-102, 20-9-346, 20-9-369, MCA; IMP, 20-1-301, 20-1-302, 20-1-304, 20-7-117, 20-9-311, 20-9-313, 20-9-314, 20-9-805, MCA; NEW, 1990 MAR p. 505, Eff. 3/16/90; AMD, 1992 MAR p. 214, Eff. 2/14/92; AMD, 1994 MAR p. 1824, Eff. 7/8/94; AMD, 1996 MAR p. 2168, Eff. 8/9/96; AMD, 1998 MAR p. 1719, Eff. 6/26/98; AMD, 2000 MAR p. 632, Eff. 2/25/00; AMD, 2002 MAR p. 1662, Eff. 6/28/02; AMD, 2004 MAR p. 1613, Eff. 7/23/04; AMD, 2006 MAR p. 3070, Eff. 12/22/06; AMD, 2008 MAR p. 1692, Eff. 8/15/08; AMD, 2010 MAR p. 1990, Eff. 9/10/10; AMD, 2016 MAR p. 880, Eff. 5/21/16.

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