Ltr1-10: Economic Impact Aid
November 15, 2010
Dear County Superintendents of Schools:
NOTICE OF THE FIRST APPORTIONMENT
FOR THE ECONOMIC IMPACT AID PROGRAM
FISCAL YEAR 2010–11
This apportionment, in the amount of $363,786,376, is made from funds provided by Item 6110-128-0001 of the Budget Act of 2010 (Chapter 712, Statutes of 2010). These funds support the Economic Impact Aid (EIA) program pursuant to California Education Code sections 54020 through 54028.
Beginning in fiscal year 2010–11, letters of apportionment from the California Department of Education’s (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 contained a link to the CDE Categorical Programs Web page at http://www.cde.ca.gov/fg/aa/ca/ where, under the program name, the letter and schedule for this apportionment are posted. The CDE requested that the e-mail be forwarded to all school districts in the county.
This apportionment equals 40 percent of the LEAs estimated entitlements minus $8,309,578, representing reductions in categorical funding for basic aid school districts, as explained below. Three additional apportionments of 20 percent each are planned to be made in January, March, and May 2011. Those apportionments will reflect final EIA 2010–11 entitlements.
The English Language Acquisition Program (ELAP) was added to EIA starting in fiscal year 2010–11. An amount equal to each district's 2009–10 ELAP entitlement was added to the district's 2010–11 estimated EIA entitlement. This ELAP-generated 2010–11 funding can be spent for ELAP purposes or EIA purposes. ELAP funds will become part of the EIA funding calculation starting in fiscal year 2011–12, and will no longer be available for ELAP purposes at that time.
This apportionment also includes estimated funding for county juvenile court schools. This is the first year that county offices of education are eligible for EIA funding. The estimated entitlement is based on the number of English Learner pupils (Spring 2010) and the adjusted count of pupils eligible for Free Meals (October 2009), funded at the estimated statewide average per eligible pupil ($318.76). There are 63 eligible county operated juvenile court schools, representing 49 different counties.
Details for the 2010–11 EIA entitlements will be posted in December under the CDE 2010–11 EIA Funding Results Web page at http://www.cde.ca.gov/fg/aa/ca/eia.asp. Select the fiscal year Funding Results link, and then select “Entitlements.”
Under the EIA formula, each district receives funding equal to its EIA per-pupil funding rate multiplied by its EIA eligible pupil count. Each district’s 2010–11 per-pupil rate remains unchanged from 2009–10. Thus, any increase (non-ELAP) or decrease to a district’s 2010–11 EIA funding is solely due to an increase or decrease in its EIA eligible pupil count, which is the sum of the following:
- Number of economically disadvantaged (ED) pupils. For most districts, the ED count is the district’s Title I formula child count used in its current year Title I entitlement calculation. The Title I counts are primarily based on U.S. census poverty data. The ED count for a small, rural district (district has less than 600 enrollment and was given a small, rural “locale” code by the National Center for Education Statistics), and for county juvenile court schools, is the district’s prior year free meal count converted to a figure in lieu of its Title I formula child count.
- Number of English learners (EL), as reported by the district or county juvenile court school in the prior year R30-LC Language Census.
- A calculated number for each district that has a combined ED and EL pupil count (or concentration) greater than 50 percent of the district’s or county office’s (for the sum of its juvenile court schools) total pupil enrollment, as reported in the prior year California Basic Educational Data System.
Each school district's 2010–11 EIA per-pupil funding rate, for purposes of determining the 2011–12 rate, will be equal to the district’s 2010–11 total EIA funding, including the increase due to adding ELAP to the program, divided by the district’s 2010–11 EIA eligible pupil count.
There is no restriction on the amount of EIA funds that may be carried over from year to year. For standardized account code structure (SACS) coding, use Resource Code 7090, Economic Impact Aid (EIA), or Resource Code 7091, Economic Impact Aid: Limited English Proficiency (LEP), and Revenue Object Code 8311, Other State Apportionments-Current Year. The funding increase due to ELAP can be spent for EIA purposes, using the EIA Resource Codes above, or, for 2010–11 only, for ELAP purposes, by transferring funds from the EIA Resource Code to Resource Code 6286, English Language Acquisition Program, Teacher Training & Student Assistance, using Object 8990, Contributions from Restricted Revenue.
Section 37 of Assembly Bill 2 of the Fourth Extraordinary Session (ABX4 2) requires that categorical funding allocations to basic aid school districts in fiscal year 2010–11 be reduced by the lesser of: (1) the district’s 2009–10 total revenue limit subject to the deficit factor, calculated as of the 2009–10 certified second principal apportionment, multiplied by 5.81 percent, or (2) the amount of the district’s excess taxes. In implementation of ABX4 2, we reduced the amount paid to basic aid districts in this apportionment. The reduction amounts are shown in the apportionment schedule column labeled “Basic Aid Reduction (Offset 10-11 Based on 09-10 Status).”
The apportionment reduction for basic aid school districts applies to fiscal year 2010–11 only and their entitlement to funds in subsequent years for these programs will not be affected. To view the list of basic aid districts and the total amount to be reduced from their 2010–11 categorical funding allocations, please go to the CDE Web page at http://www.cde.ca.gov/fg/aa/ca/documents/basicaidcut2010.xls.
If you have any questions regarding this apportionment, please contact Ross Valentine, Consultant, Categorical Allocations & Audit Resolution Unit, by phone at 916-327-4405 or by e-mail at email@example.com.
Susan Lange, Deputy Superintendent
Finance, Technology, and Administration Branch