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Ltr2-10: Education Jobs Fund

Letter Head: Jack O'Connell, State Superintendent of Public Instruction, California Department of Education

December 27, 2010

Dear County Superintendents of Schools:

NOTICE OF THE SECOND APPORTIONMENT FOR THE
EDUCATION JOBS FUND OF THE
EDUCATION JOBS AND MEDICAID ASSISTANCE ACT (PL 111-226)
FISCAL YEAR 2010-11

This apportionment, in the amount of $7,173,207, is made to local educational agencies (LEAs) from federal funds provided to the state under the Education Jobs Fund (Ed Jobs) program authorized in the Education Jobs and Medicaid Assistance Act of 2010 (Public Law 111-226) (Act). These funds, appropriated in Section 1(a)(2)(A) of Senate Bill (SB) 847 (Chapter 220, Statutes of 2010), are one-time, with an intended use to create and save education jobs in the 2010–11 school year. The amount of Ed Jobs funds available to support kindergarten through grade twelve is $1.2 billion.

This apportionment reflects 90 percent of each LEA’s revised preliminary Ed Jobs entitlement, less funds previously paid. LEAs that applied for a State Fiscal Stabilization Funds (SFSF) grant are automatically eligible to receive an Ed Jobs grant. LEAs that have applied for SFSF funds as of December 13, 2010, are included in this apportionment, including direct funded charter schools that began operation in the 2010-11 fiscal year that were not previously included and LEAs that submitted the SFSF application subsequent to the first apportionment. In addition, preliminary entitlements for charter authorizers of new locally funded charter schools were adjusted and included in this apportionment.

Given the Legislature has directed the California Department of Education (CDE) to distribute 90 percent of the preliminary entitlement, the CDE requests that LEAs spend these funds as quickly as possible. Spending the funds immediately is consistent with the federal intent regarding the use of these funds. Spending funds quickly also conforms with federal cash management rules, which require that cash be distributed in a manner that minimizes the time elapsing between an LEA's receipt and expenditure of federal funds, and minimizes the interest earned on unspent funds.

Preliminary entitlements were calculated based on each LEA’s proportionate share of revenue limit and charter school general purpose funding (approximately 3.699 percent). Funding for continuing LEAs is based on data from the 2009–10 Second Principal Apportionment. Funding for charter schools that began operation in the 2010–11 fiscal year is based on the report of actual attendance for the first 20 school days. Final entitlements will be based on each LEA’s proportionate share of 2010–11 Second Principal Apportionment revenue limit and charter school general purpose funding. Further details about the revenue limit data sources used to calculate the preliminary Ed Jobs entitlements can be viewed on the Schedule of Preliminary Entitlements for the Education Jobs Fund at http://www.cde.ca.gov/fg/aa/ca/edjobsfund.asp.

Beginning in fiscal year 2010–11, letters of apportionment from the CDE School Fiscal Services Division are no longer being mailed to the county superintendents of schools. Instead, county superintendents will be notified of each apportionment by e-mail. Accordingly, the CDE has sent an e-mail to each county superintendent, addressed to the county’s CDEfisc e-mail address, to inform him or her of this apportionment. The e-mail contains a link to the CDE Categorical Programs, Ed Jobs Web page at http://www.cde.ca.gov/fg/aa/ca/edjobsfund.asp where the letter and schedule for this apportionment is posted. The CDE requests that the e-mail be forwarded to all school districts in the county.

Warrants will be mailed to each county treasurer within approximately two weeks from the date of this Notice. For standardized account code structure coding, use Resource Code 3205, Education Jobs Fund, and Revenue Object Code 8290, All Other Federal Revenue. The California sub-allocation (pass-through) number is Program Cost Account (PCA) 25152. County superintendents of schools are requested to immediately inform LEAs, including direct funded charter schools, of this apportionment.

Use of Funds

LEAs must use the Ed Jobs funds at the school site level only for compensation and benefits and other expenses, such as support services, necessary to retain existing employees, to recall or rehire former employees, and to hire new employees, in order to provide early childhood, elementary, or secondary educational and related services. For a comprehensive coverage of allowable and unallowable uses of Ed Jobs funds, all LEAs should review CDE's letter dated September 14, 2010, posted at the CDE's Ed Jobs Web site at http://www.cde.ca.gov/ar/ej/, and the U.S. Department of Education (ED) Initial Guidance for States on the Education Jobs Program at http://www2.ed.gov/programs/educationjobsfund/applicant.html

Ed Jobs funds are available for obligation through September 30, 2012. LEAs may not use Ed Jobs funds prior to August 10, 2010, the date of enactment of the Act.

Accountability and Reporting

LEAs must maintain records that separately track and account for Ed Jobs funds. In accordance with the requirements of Section 443(a) of General Education Provisions Act (20 United States Code, Section 1232f [a]), LEAs must maintain records that will facilitate an effective audit and demonstrate that the funds were used in compliance with applicable requirements.

Under Section 101 of the Act, LEAs must fulfill the quarterly reporting requirements under Section 1512 of the American Recovery and Reinvestment Act (ARRA). For additional information on Section 1512 reporting requirements, please see the CDE ARRA reporting Web page at http://www.cde.ca.gov/ar/rr/.

Section 101 also requires LEAs to provide annual reports as outlined under Section 14008 of the ARRA that would include information on the number of education personnel affected by the Ed Jobs program. The ED will be providing guidance on the annual reporting requirements.

Grant Award

The ED award number for this apportionment is S410A100005. The Catalog of Federal Domestic Assistance subprogram number is 84.410.

Title 34 of the Code of Federal Regulations, Section 80.21(i), requires that any interest earned by LEAs on federal dollars be returned to the ED promptly, but at least quarterly. LEAs may keep interest amounts up to $100 per year for administrative expenses. LEAs should forward interest payments for remittance to the ED to:

California Department of Education
Cashier’s Office
P.O. Box 515006
Sacramento, CA 95851

To ensure proper posting of payments, please include the program’s PCA number (PCA 25152) and identify the payment as “Federal Interest Returned.”

Each recipient and subrecipient awarded funds made available under the Ed Jobs program must promptly refer to the ED’s Office of Inspector General any credible evidence that a principal officer, employee, agent, contractor, subrecipient, subcontractor, or other person has submitted a false claim under the False Claims Act or has committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving those funds. Information about the Office of Inspector General Hotline is available at http://www.ed.gov/about/offices/list/oig/hotline.html.

If you have general questions regarding the Ed Jobs program, including questions regarding the appropriate use of funds, please contact the Fiscal Policy Division by e-mail at arra@cde.ca.gov. For questions on the apportionment, please contact Thi Huynh by phone at 916-324-4555, or by e-mail at thuynh@cde.ca.gov. For fiscal questions related to entitlement calculations, please contact Elizabeth Dearstyne by phone at 916-327-0398, or by e-mail at edearstyne@cde.ca.gov.

Sincerely,

Susan Lange, Deputy Superintendent
Finance, Technology, and Administration Branch
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