Following is a recap of California's statewide average indirect cost rates for the five most current years. For food service and adult education programs, Education Code (EC) sections 38101(c) and 52616.4(a)(3), respectively, limit school district indirect costs to amounts derived using the lesser of a school district's indirect rate (as approved by the California Department of Education) or the statewide average indirect cost rate for the program. Both the school district and statewide indirect cost rates are calculated using the standardized account code structure expenditure data from the 2nd prior fiscal year. Each district should compare these statewide rates with their individual indirect cost rate to determine the lesser rate for use with these program.
Because elementary school districts are included in the statewide average required by EC 38101(c) and are excluded from the statewide average required by EC 52616.4(a)(3), the resulting statewide average rates differ slightly.
Note: Pursuant to flexibility provisions of Senate Bill 4 of the 2009–10 Third Extraordinary Session (SBX3 4) (Chapter 12, Statutes of 2009), for fiscal years 2008–09 through 2012–13, funding provided by Budget Act Item 6110-156-0001, previously restricted to the Adult Education program, can be used for any educational purpose. Section 15 of SBX3 4 (EC Section 42605) authorizes complete flexibility in the use of these funds. Program or funding requirements, as otherwise provided in statute, regulation, and budget act provisional language associated with the funding, are not in effect, including the limitations of EC Section 52616.4 related to the charging of indirect costs. The statewide average rate for Adult Education is provided for the benefit of any adult education program not affected by budget act flexibility that would still be subject to the requirements of EC 52616.4.
2011–12
For food service and adult education programs for fiscal year 2011–12, districts are limited to the lesser of:
- Their CDE approved indirect cost rate (approved April 2011, based on 2009–10 data)
or
- 4.80% for Food Service
- 4.76% for Adult Education programs subject to EC 52616.4(a)(3)
2010–11
For food service and adult education programs for fiscal year 2010–11, districts are limited to the lesser of:
- Their CDE approved indirect cost rate (approved April 2010, based on 2008–09 data)
or
- 4.44% for Food Service
- 4.35% for Adult Education programs subject to EC 52616.4(a)(3)
2009–10
For food service and adult education programs for fiscal year 2009–10, districts are limited to the lesser of:
- Their CDE approved indirect cost rate (approved April 2009, based on 2007–08 data)
or
- 4.52% for Food Service
- 4.42% for Adult Education programs subject to EC 52616.4(a)(3)
2008–09
For food service and adult education programs for fiscal year 2008–09, districts are limited to the lesser of:
- Their CDE approved indirect cost rate (approved March 2008, based on 2006–07 data)
or
- 4.96% for Food Service
- 4.90% for Adult Education programs subject to EC 52616.4(a)(3)
2007–08
For food service and adult education programs for fiscal year 2007–08, districts are limited to the lesser of:
- Their CDE approved indirect cost rate (approved March 2007, based on 2005–06 data)
or
- 4.64% for Food Service
- 4.53% for Adult Education
