The Career and Technical Education (CTE) Add-on program provides funding to Local Education Agencies (LEAs) to pay for the higher costs associated with CTE courses. Add-on programs in the Minimum School Program (MSP) provide funding in addition to the regular Weighted Pupil Unit (WPU) generated by an enrolled student. Program funding only supports CTE courses approved by the State Board of Education and provided directly by an LEA or by an external provider contracted by the LEA.

Formula - Formulas for the CTE Add-on program are unique because the method used to calculate program cost (WPUs) is different than the method used to distribute program funding to LEAs. State statute (53A-17a-113) and State Board of Education rule (R277-911) govern the program. The current CTE formula was developed in the 1995 General Session.

Determining Cost - Like most WPU programs, the CTE Add-on program uses a prior-year plus growth formula to determine the number of WPUs each year. Prior year means the membership hours of students enrolled in CTE courses during the prior school year. The growth factor applies if an LEA's enrollment in grades 9-12 exceeds one percent over the previous year up to a maximum of 10 percent. If CTE membership hours decline, the LEA is held harmless.

WPUs generated by the program formula are multiplied by the Add-on WPU Value determined by the Legislature each year.

Distributing Funding - Funding appropriated for the CTE Add-on program is allocated to LEAs based on a two-step process. First, certain CTE programs or functions receive funding based on provisions outlined in statute and Board rule. Second, funding that remains after step one is distributed to LEAs based on average daily membership in approved CTE programs for the previous year.

Programs or functions receiving an initial allocation include: Comprehensive Guidance, Work Based Learning, CTE Introduction, Skill Certification (Competency), Student Leadership Organizations, and Summer Agriculture Programs.

Beginning in FY 2012, the Legislature adopted a lower WPU Value for Add-on programs in the MSP. This lower Add-on WPU Value was created to aviod significant program funding increases associated with funding transfers within the program. The Legislature moved funding from categorical programs in the Related to Basic School Program into the WPU Value. Because all WPU programs benefit from WPU Value increases, this influx of funding into the Basic School Program would have taken a significant amount of unrestricted funding to LEAs and placed it into restricted programs. The overall funding for the Add-on programs did not decrease as the lower Add-on WPU remained at the prior-year value. In FY 2013 and FY 2014, the Legislature increased both the primary and Add-on WPU values by the same percentage.

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session: