Skip to main content
California Department of Education Logo

Ltr5-08: K-3 CSR

California Department of Education
Official Letter
California Department of Education
Official Letter

May 6, 2009

Dear County Superintendents of Schools, Auditors, and Treasurers:


This apportionment, in the amount of $46,161,769, is made from funds provided in Item6110-488 of the Budget Act of 2008 (Chapters 268 and 269, Statutes of 2008, as amended by Senate Bill 4 of the Third Extraordinary Session (SBX3 4), Chapter 12, Statutes of 2009) in support of the Kindergarten and Grades One Through Three Class Size Reduction (K-3 CSR) Program.

County superintendents of schools are requested to inform school districts and recipient charter schools, which may include both direct-funded and locally funded charter schools, immediately of this apportionment. To view the schedule of apportionment showing for each school district and charter school its estimated (provisional) entitlement and amount being paid in this apportionment, please visit the California Department of Education (CDE) K-3 CSR Program Web page at

Direct-funded and locally funded charter schools that applied for the K-3 CSR Program on their own behalf are listed separate on the apportionment schedule. Funding for charter schools that did not apply on their own behalf is included in the authorizing entity’s entitlement if that entity included charter school enrollment data on its Operations Application. Any school district or charter school whose estimated entitlement is less than what it received in the November advance apportionment will not appear on the schedule, and amounts will be recovered through a separate Notice of Recovery.

SBX3 4 changed the appropriation source but not the total state support for the 2008-09 K-3 CSR Program. Specifically, total funding was left unchanged at $1,815,453,000 but the appropriation of $570 million of the total was deferred until July2009, and $46,161,769 was shifted from an ongoing to a one-time fund source, from budget act item 6110-234-0001 to 6110-488. These one-time funds are now available for expenditure, and are to be disbursed from budget act Item 6110-234-0001.

This apportionment is based on the estimated (provisional) entitlement for each school district and charter school applying independent of its sponsoring entity. The entitlements were calculated based on the enrollment estimates submitted on the K-3 CSR Operations Application, capped by each participant’s prior year enrollment, then multiplied by the Option 1 full day and Option 2 one-half day funding rates, $1,071 and $535, respectively, as provided in the budget act. The amount allocated in this apportionment represents 2.6 percent of the estimated entitlement of each school district and charter school being paid in this apportionment.

Including this apportionment, to date, each participant will have received funds equal to approximately 70 percent of its estimated entitlement. Final entitlements for 2008-09 will be calculated after actual program enrollment counts are received, as submitted on the Form J-7CSR, and the final payment will be adjusted accordingly and paid from the deferred funds source.

We anticipate that the state will enact clean-up legislation to SBX3 4 that will affect the Form J-7CSR and claiming instructions for 2008-09 K-3 CSR funds. This legislation is not likely to be enacted until early summer 2009. At that time, we will disseminate the Form J-7CSR and instructions and post them on the CDE K-3 CSR Program Web page at

Not contemplated for revision in clean-up legislation is the new schedule of reduced funding percentages established by SBX3 4 in California Education Code (EC) Section 52124.3 for classes exceeding 20.44 pupils. This new schedule replaces for a four-year period from 2008-09 through 2011-12 the schedule of reduced funding percentages established in EC Section 52124. The new reduced funding schedule provides for funding reductions of:

  • Five percent for classes ranging from 20.45 to 21.44, inclusive;
  • Ten percent for classes ranging from 21.45 to 22.44, inclusive;
  • Fifteen percent for classes ranging from 22.45 to 22.94, inclusive;
  • Twenty percent for classes ranging from 22.95 to 24.94, inclusive; and
  • Thirty percent for classes ranging from 24.95 and more.

Like the previous schedule, funding for classes in excess of 20.44 pupils will be calculated based on a count of 20 pupils multiplied by the funding rate, less the funding reduction percentage multiplied by 20 times the funding rate.

Warrants will be mailed to each county treasurer approximately four weeks from the date of this Notice. For standardized account code structure coding, use Resource Code 1300, Class Size Reduction, Grades K-3, and Revenue Object Code 8434, Class Size Reduction, Grades K-3.

If you have any questions regarding this program or payment, please contact Rebecca Lee, Fiscal Consultant, Categorical Allocations and Management Assistance Office, at 916‑324‑4533 or by e-mail at



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

Last Reviewed: Monday, October 6, 2014

Share this Page

Related Content

Recently Posted in