1 / 14

Understanding the Local Composite Index (LCI)

Understanding the Local Composite Index (LCI). December 5, 2013. Facts to Keep in Mind. Local Composite Index (LCI) is a wealth indicator Ratio of locality wealth per capita relative to the state Numerators: Wealth Factors (with weights) Real Estate Values (.5)

ivory-chen
Download Presentation

Understanding the Local Composite Index (LCI)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understanding the Local Composite Index (LCI) December 5, 2013

  2. Facts to Keep in Mind • Local Composite Index (LCI) is a wealth indicator • Ratio of locality wealth per capita relative to the state • Numerators: • Wealth Factors (with weights) • Real Estate Values (.5) • Adjusted Gross Income or AGI (.4) • Taxable Sales (.1) • Denominators: • Average Daily Membership or ADM (.67) • Population (.33)

  3. Charlottesville’s LCI Decreased From .6861 to .6680 • When LCI decreases, state funds increase • For 2015, there is a decrease of 1.81 percentage points, or - 2.64% • This decrease is due primarily to a relatively small increase in Charlottesville’s Adjusted Gross Income (AGI) compared to the state, relatively small decrease in real estate values compared to the state and a higher than average increase in enrollment compared to the state • Using this year’s funding formula, the decrease in the LCI increases state funding by $404,900

  4. Numerators: • Wealth Factors (with weights) • Real Estate (.5) • Adjusted Gross Income or AGI (.4) • Taxable Sales (.1) • Denominators: • Average Daily Membership or ADM (.67) • Population (.33)

  5. Key Points to Remember • Relative value of real estate local to state and ADM affect the LCI the most. AGI also had a significant impact this biennium. • When the LCI decreases, state funds increase • The LCI is computed each biennium by the DOE

  6. Understanding the Local Composite Index (LCI) December 5, 2013

More Related