Understanding Flexibility Levels and Fund Sources

Overview

To maintain transparency in allocation funding and flexibility, the initial allocation worksheet displays the fund source and flexibility level of each allocation. The fund source relates to how the district receives the funds, and the flexibility level relates to how much autonomy Principals have in budgeting those funds. Below are definitions of the fund sources and levels of flexibility to help understand the initial budget allocation worksheet.

Fund Sources on the FY26 Initial Budget Allocation Worksheets

Local (Fund number 1010001) – These allocations are funded by local dollars from the city’s UPSFF. Some are fully locked due to programmatic or legal requirements or because they are part of a Memorandum of Understanding (MOU). Additionally, some allocations in this fund source are pre-budgeted while others are fully flexible allocations. All local funds contain the first four fund number digits, 1010. Different types of local funds will have different last three digits of the fund number.

English (i.e., Multilingual) Learner Uniform Per Student Funding Formula (EL UPSFF)* (Fund number 1010001) – This fund source contains allocations provided to schools through the city’s UPSFF. Per D.C. Act 24-176, DCPS must have a separate funding source for the elementary and secondary EL UPSFF student weight. EL UPSFF is a type of local fund denoted in DIFS by specific program codes. EL Elementary is program code 400475 and EL Secondary is program code 400474.

At-Risk and At-Risk Overage* (Fund number 1010001) – This fund source contains allocations provided to schools through the city’sUniform Per Student Funding Formula (UPSFF). Per D.C. Act 24-176, DCPS must have a separate funding source for at-risk students and at-risk high school overage supplement. Per DC Code, DCPS allocates 90% of the at-risk supplement directly to schools. Both at-risk and at-risk overage are types of local funds. In DIFS, At-Risk overage funds are loaded into program code 400476 and general at-risk funds are loaded across a variety of at-risk program codes based on the budgeted item.

At-Risk Concentration (Fund number 1010212) – This fund source contains allocations provided to schools through the UPSFF at-risk concentration. DCPS allocates 100% of the UPSFF at-risk concentration amount directly to schools. At-Risk concentration is a type of local fund differentiated by a specific fund number, 1010212. Budget items funded by at-risk concentration dollars will be loaded in various at-risk program codes based on the item budgeted and will mirror how the general at-risk funds are budgeted. Note that the DCPS at-risk concentration weight part of Student-Based funds is locally funded and not funded through at-risk dollars.

Title I (Fund number 4020002) – Title I – Schoolwide funds are a combination of Title I and Title II funds at Title I schools and are budgeted in support of Title I students at the school.

Title II (Fund number 4020002) – These allocations are funded by Title II and should be budgeted for professional development, in alignment with the grant.

Department of Defense (DoD) (Fund number 1060031) – These allocations fund the JROTC programming at high schools and are funded by a cost sharing agreement with the Department of Defense and cannot be repurposed during the budget development process.

21st Century (Fund number 4020002) – Allocations for afterschool programming at participating Title I elementary and education campuses are loaded here. These allocations are funded by the 21st Century Grant and cannot be repurposed outside of afterschool programming during budget development.

*Information about the EL UPSFF and At-Risk tracking requirements can be found on page 84: https://lims.dccouncil.us/downloads/LIMS/47312/Signed_Act/B24-0285-Signed_Act.pdf 

Levels of Flexibility

The model provides funding to schools for positions, programs, and non-personnel dollars. Each allocation is designated a level of flexibility that determines principal autonomy over budgeting the allocation, programs, and non-personnel dollars.

For FY26, there are two changes to flexibility levels including the re-categorization of CTE and NAF from nonflexible (NF2) to nonflexible (NF1), and Title I and II from nonflexible (NF1) to nonflexible (NF2).

See the definitions below: 

  • Nonflexible 1 Allocations (NF1): These allocations are unable to be changed. This may be determined by fund source requirements or allowability (grants and Memorandums of Understanding (MOUs), legal requirements, or other core operational considerations). 
  • Nonflexible 2 Allocations (NF2): These allocations must maintain the intended purpose of funds but may be appealed to other uses within the intended purpose.
  • Required Teaching Staff: These dollars must be used to budget for general education classroom teachers aligned to teacher-to-student ratios.
  • Required Non-Personnel, Additional Compensation, and Bilingual Counselors: These dollars ensure schools budget for minimum levels of administrative premium, overtime, bilingual counselors for schools with other 100 multilingual learners projected, and the DC Public Library MOU.
  • Flexible Allocation (F): The remaining fully flexible allocation after required teaching staff, NPS, and additional compensation have been budgeted.

Exercising Flexibility Over Allocations: Requested changes made to nonflexible 2 (NF2) allocations through budget petitions will be reviewed holistically by Instructional Superintendents and Program Teams to ensure all requirements are still met.