March 14, 2014
Dear County Superintendents of Schools:
This apportionment, in the amount of $1,401,459,444, 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 (CDE) recalculated EPA entitlements using a factor of 18.1903 percent based on the 2013–14 statewide total of revenue limits and charter school block grant funding as of the First Principal (P-1) Apportionment. Each local educational agency’s (LEA) 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 average daily attendance (ADA). Additionally, charter schools newly operational in the 2013–14 fiscal year received the minimum funding of $200 per ADA. Except for LEAs fully funded through local revenue, EPA funding offsets state aid allocated through the Principal Apportionment.
Because 2012–13 revenue limit and charter school general purpose entitlements have changed as of the 2012–13 Annual Certification, the 2012–13 EPA entitlements have also been recalculated, and are final as of the 2012–13 Annual Apportionment. The 2012–13 EPA revenues of approximately $6.5 million were allocated based on each LEA’s proportionate share of statewide deficited revenue limits and charter school general purpose funding as of the 2012–13 Annual Apportionment using a factor of 21.5165 percent; however, entitlements for charter schools that closed were held constant as of the 2012–13 Second Principal (P-2) period. LEAs fully funded through local revenue and in-lieu of property taxes received $200 per ADA. Except for excess tax LEAs, the amount of EPA funding each LEA received resulted in a corresponding reduction to the LEA’s 2012–13 Annual revenue limit or charter school general purpose state aid funding. Any adjustment (positive or negative) in 2012–13 EPA entitlements calculated between P-2 and Annual has been applied against an LEA’s 2013–14 current year EPA apportionment.
This quarterly apportionment equals approximately 75 percent of each LEA’s EPA entitlement (including 2012–13 adjustments) less any amounts previously apportioned from September through December 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 March 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, letters of apportionment, payment schedules, spending restrictions, frequently asked questions, SACS financial reporting and more, please refer to 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 firstname.lastname@example.org.Sincerely,