December 13, 2013
Dear County Superintendents of Schools:
This apportionment, in the amount of $1,388,857,049, is made from the Education Protection Account (EPA), in accordance with Proposition 30, The Schools and Local Public Safety Protection Act of 2012, as enacted by Section 36 of Article XIII, of the Constitution of the State of California. This apportionment is made for the support of county offices of education, school districts, and charter schools as directed by law.
Using a 2013–14 EPA revenue estimate of approximately $5.6 billion, the California Department of Education calculated estimated EPA entitlements based on 2012–13 revenue limits and general purpose entitlements, as of the Second Principal (P-2) Apportionment, as adjusted for class size penalties, using a factor of 17.91987342 percent. If a local educational agency’s (LEA) 2012–13 EPA entitlement was based on the minimum funding of $200 per unit of average daily attendance (ADA), the 2013–14 estimated EPA entitlement was not recalculated for this apportionment. In addition, for charter schools that are newly operational in the 2013–14 fiscal year, estimated EPA entitlements were calculated at a rate of $200 per unit of ADA, based on the charter school’s first 20 days of actual attendance.
Each LEA’s estimated EPA entitlement was then reduced so that funding from local property taxes and the EPA combined did not exceed the LEA’s revenue limit or charter school general purpose entitlement, provided that each LEA received the minimum EPA funding at a rate of $200 per unit of ADA. Except for LEAs fully funded through local revenue, EPA funding offsets state aid allocated through the Principal Apportionment.
The CDE will allocate EPA revenues on a quarterly basis through the 2018–19 fiscal year. This quarterly apportionment equals 50 percent of each LEA’s estimated annual EPA entitlement less any amounts previously apportioned in September 2013 (for new charter schools this means quarterly payments of $100 for each unit of funded ADA, less any amounts previously apportioned in September 2013). Future payments may be adjusted for ADA changes and previous over- or under- payments of EPA funds.
County treasurers will receive warrants for this apportionment by the end of December and should advise school districts and charter schools immediately of this apportionment. For standardized account code structure (SACS) coding, use Resource 1400, Education Protection Account, and Revenue Object 8012, Education Protection Account Entitlement.
LEAs should be aware that Proposition 30 requires an LEA’s governing board to make spending determinations for EPA funds at an open public meeting and that LEAs report on their Web sites an accounting of how much money was received from the EPA and how that money was spent. For additional information on EPA calculations, payment schedules, spending restrictions, SACS financial reporting and more, please refer to frequently asked questions posted on the CDE Web site at http://www.cde.ca.gov/fg/aa/pa/epa.asp.
If you have questions regarding the EPA entitlement calculation, please contact the Office of Principal Apportionment and Special Education by phone at 916-324-4541 or by e-mail at PASE@cde.ca.gov. For questions related to SACS financial reporting, please contact the Office of Financial Accountability and Information Services by phone at 916-322-1770 or by e-mail at email@example.com.
Peter Foggiato, Director
School Fiscal Services Division