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Ltr1-12: Mandate Block Grant

Letter Head: Tom Torlakson, State Superintendent of Public Instruction, California Department of Education

August 27, 2012

Dear County and District Superintendents and Charter School Administrators:

2012–13 MANDATE BLOCK GRANT LETTER OF INTENT

Commencing with the 2012–13 fiscal year, funds are available through a newly established Mandate Block Grant (MBG) for local educational agencies (LEAs) to support state mandated activities.  Pursuant to the implementing legislation, Senate Bill (SB) 1016, Section 71, (Chapter 38, Statutes of 2012), LEAs make an annual choice to receive funds for mandated activities, as specified, either through the MBG or through the claim reimbursement process pursuant to Government Code (GC) Section 17560. Because the claims process does not include charter schools, the MBG is the only vehicle for charter schools to receive such funding.

Attached is the Letter of Intent, specific to your LEA, to opt into the 2012–13 MBG program. It must be submitted to CDE by October 1, 2012 to receive 2012–13 MBG funding.

For 2012–13, the MBG pays for 2012–13 costs associated with the mandate programs listed in GC Section 17581.6(d) (see attached).  However, note the legislative session is still in process and based upon current proposals, it is likely the following programs may be added to the MBG:

  • Academic Performance Index (01-TC-22; Chapter 3 of the Statutes of 1999, First Extraordinary Session; and Chapter 695 of the Statutes of 2000).
  • Child Abuse and Neglect Reporting (01-TC-21: Chapters 640 and 1459 of the Statutes of 1987; Chapter 132 of the Statutes of 1991; Chapter 459 of the Statutes of 1992; Chapter 311 of the Statutes of 1998; Chapter 916 of the Statutes of 2000; and Chapters 133 and 754 of the Statutes of 2001).
  • Expulsion of Pupil: Transcript Cost for Appeals (SMAS; Chapter 1253 of the Statutes of1975).
  • Inter-district Attendance Permits (CSM 4442; Chapters 172 and 742 of the Statutes of 1986; Chapter 853 of the Statutes of 1989; Chapter 10 of the Statutes of 1990; and Chapter 120 of the Statutes of 1992).
  • Student Records (02-TC-34; Chapter 593 of the Statutes of 1989; Chapter 561 of the Statutes of 1993; Chapter 311 of the Statutes of 1998; and Chapter 67 of The Statutes of 2000).

Given the uncertainty of legislation that may impact the 2012–13 MBG program, an LEA may withdraw a previously submitted Letter of Intent as long as the request is prior to any allocation by CDE of MBG funds. Information on the MBG and legislative changes will be posted on the CDE Web page at http://www.cde.ca.gov/fg/aa/ca/mandatebg.asp.

The 2012 Budget Act appropriates $166,609,000 for the MBG program for fiscal year 2012–13. The funds are unrestricted in use. Allocation of funds is based on the average daily attendance (ADA) as of the Second Principal Apportionment for the 2011–12 fiscal year. Specific ADA categories are attached to this e-mail and also posted on the CDE Web page. The 2012–13 funding rates set forth in Item 6110-296-0001 of the 2012 Budget Act are as follows:

LEA Amount per Prior Year ADA
County Offices of Education (COE) $28 per prior year ADA plus an additional $1 per ADA for all prior year revenue limit ADA generated by school districts and the COE within that county
School Districts $28 per prior year ADA
Charter Schools $14 per prior year ADA

If necessary, funding will be proportionately reduced to stay within total available funding. We have been asked what the rate would be if there is 100 percent participation. CDE estimates the funding would be decreased to approximately $27.92 for districts, $13.96 for charter schools, and $.99 for county office of education oversight.

Mandated programs covered by the MBG are subject to review in the overall annual compliance audit per California Education Code Section 41020.  The Governor’s Administration has indicated that it does not intend to submit any proposals in the annual K–12 audit guide related to the MBG.  Compliance with mandate requirements would be enforced through corrective action; school district would not forfeit funds as a result of audit findings.

CDE will post a list of LEAs that have submitted a Letter of Intent to participate in the MBG. As a reminder, follow-up e-mails will be sent prior to the deadline to those LEAs that have not submitted a Letter of Intent. If your LEA does not elect to participate in the MBG, you may notify CDE of that decision by sending an e-mail to mandate@cde.ca.gov and your agency will be removed from the 2012–13 contact list. If you have any questions regarding this letter, please send an e-mail to mandate@cde.ca.gov or contact Marcie Gregory, Fiscal Consultant, Categorical Allocations and Management Assistance Office, by phone at 916-324-4537 [Note: the preceding contact information is no longer valid and has been replaced by Julie Klein Briggs, Fiscal Consultant, Categorical Allocations & Management Assistance Unit, by phone at 916-323-6191.], or Tonya Holmes, Fiscal Analyst, Categorical Allocations and Management Assistance Office, by phone at 916-323-6028.

Sincerely,

Scott Hannan, Director
School Fiscal Services Division

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