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Ltr12-07: K3CSR

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

March 17, 2010

Dear Select County Superintendents of Schools and Treasurers:

NOTICE OF THE SIXTH RECOVERY OF OVERPAYMENTS FOR THE
KINDERGARTEN AND GRADES ONE THROUGH THREE CLASS SIZE
REDUCTION PROGRAM FROM THE PRINCIPAL APPORTIONMENT
FISCAL YEAR 2007-08

This recovery of overpayment, in the amount of $60,359, is made pursuant to California Education Code (EC) Section 52124(d). The recovery is for amounts overpaid for the 2007-08 Kindergarten and Grades One through Three Class Size Reduction (K-3 CSR) Program, and will be made through an offset to each affected school district’s and charter school’s March 2010 principal apportionment payment.

County superintendents of schools are requested to immediately inform each affected school district and charter school of the offset. To view the schedule of recoveries showing affected school districts and charter schools and amounts being recovered, please visit the California Department of Education (CDE) K-3 CSR Program Web page at http://www.cde.ca.gov/fg/aa/ca/k3csr.asp.

This recovery is composed of three parts. First, the overpaid amount to each school district or charter school is based on the final, audited entitlement, computed using the revised (audited) enrollment counts for 2007-08 submitted on the Form J-7CSR, as compared to the total amounts paid in the advance, provisional, and final apportionments. In accordance with EC Section 52124(d), which states that a school district shall not retain any funds it receives for any class that does not actually meet all the requirements of the Class Size Reduction Program, the CDE is required to recover the amount overpaid.

Second, funding for the K-3 CSR Program was reduced by $32.0 million through legislation enacted in February 2008, and sufficient funding was not available to fully fund the program at the original rates of $1,071 and $535 per pupil for Options 1 and 2, respectively. In order to fund the program within existing resources, per pupil rates were reduced to 99.85 percent of the original rates (a 0.15 percent decrease) to $1,069 and $534 per pupil for Options 1 and 2, respectively, and final entitlements were calculated accordingly for all school districts and charter schools participating in the program. Thus, some overpayments being recovered in this apportionment resulted from prior payments that exceeded the deficited final entitlement. The CDE has submitted to the state Department of Finance a request for additional K-3 CSR funding in order to fully fund the program.

Third, in February 2008, a provisional apportionment for the 2007-08 K-3 CSR Program was certified in accordance with EC Section 52126(g)(2). However, some school districts and charter schools that received the provisional funding, based on estimated program participation reported in their November 2007 Operations Applications, actually participated in 2007-08 at a lower level. In accordance with EC Section 52124(d), the CDE is required to recover the amount overpaid. All three parts of the recovery reflect the overpayment of funds calculated at the deficited per pupil rates.

If you have any questions regarding this recovery, please contact Rebecca Lee, Fiscal Consultant, Categorical Allocations and Management Assistance Office, by phone at 916-324-4533 or by e-mail at relee@cde.ca.gov.

Sincerely,

 

Scott Hannan, Director
School Fiscal Services Division

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