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Ltr1-12: Pupil Transportation

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

August 31, 2012

Dear County Superintendents of Schools:

NOTICE OF APPORTIONMENT
FOR THE PUPIL TRANSPORTATION PROGRAM
AUGUST 2012 CERTIFICATION
FISCAL YEAR 2012–13

This apportionment, in the amount of $464,029,515, is made from funds provided by Schedule (1) of Item 6110-111-0001 of the Budget Act of 2012 (Chapter 21, Statutes of 2012). This apportionment certifies local educational agencies’ (LEAs’) estimated 2012–13 entitlements for Pupil Transportation.

Warrants will be mailed to each county treasurer approximately three weeks from the date of this Notice. For standardized account code structure coding, use Resource Code 7230, Transportation: Home to School, or Resource Code 7240, Transportation: Special Education (SD/OI), and Revenue Object Code 8311, Other State Apportionments-Current Year, for both home-to-school and special education transportation. For prior year adjustments, use Revenue Object Code 8319, Other State Apportionments-Prior Year.

The county superintendents of schools were notified of this apportionment by e-mail which was sent to their CDEfisc e-mail addresses. The California Department of Education (CDE) requested that the e-mail be forwarded to all school districts and charter schools in the county, and included 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.

Pursuant to the provisions of California Education Code (EC) Section 14041, payments for the Special Purpose Apportionment (which consists solely of Pupil Transportation funds) are to be made in twelve installments beginning in July and ending in June. The July and August payments are equal to five percent of each LEA’s estimated 2012–13 apportionment, and nine percent in each month thereafter through the following June. The August 2012 warrant for each LEA will consist of the July and August payments and will equal ten percent of each LEA’s estimated entitlement. Thereafter, LEAs will receive a payment equal to nine percent of their annual entitlements in September through June 2013.

Calculation of 2012–13 Entitlements. With this apportionment, funds are advanced based on the calculation of estimated Pupil Transportation entitlements for 2012–13. Estimated entitlements were calculated based on actual 2011-12 entitlements adjusted to reflect reorganizations effective as of July 1, 2012, notification of transfers submitted prior to August 10, 2012, revised 2010–11 expenditure data submitted after the final certification of 2011–12 entitlements, and a 19.4 percent funding reduction established in Control Section 12.42 of the Budget Act.

An LEA must have spent in fiscal year 2011–12 an amount equal to or greater than its 2011–12 final entitlement in order to avoid a permanent reduction to its 2012–13 entitlement. Each LEA’s 2012–13 entitlement will be calculated as the lesser of its 2011–12 expenditures or 2011–12 entitlement. If an LEA spends in 2011–12 an amount equal to its 2011–12 state apportionment for pupil transportation, which is its 2011–12 entitlement minus the Control Section 12.42 reduction, it will incur a permanent reduction to its 2012–13 entitlement.

Basic Aid Reductions. Section 57 of Senate Bill (SB) 70 (Chapter 7, Statutes of 2011), as amended by SB 81 (Chapter 2, Statutes of 2012) requires that 2012–13 categorical funding allocations to school districts that were basic aid in fiscal year 2011–12 be reduced by the lesser of: (1) the district’s 2011–12 total revenue limit subject to the deficit factor, calculated as of the 2011–12 certified second principal apportionment, multiplied by 9.57 percent, or (2) the amount of the district’s excess taxes. In implementation of SB 81, we have reduced the amount paid to basic aid districts in this apportionment.

To view the list of basic aid districts and the total amount to be reduced from their 2012–13 categorical funding allocations, please go to the CDE Web page at http://www.cde.ca.gov/fg/aa/ca/documents/basicaidcut2011.xls. Basic aid districts will be held harmless from these reductions in the calculation of fiscal year 2012–13 Pupil Transportation entitlements as described below.

2012–13 Calculation of Entitlements for Basic Aid Districts. To satisfy the 2011–12 basic aid reduction requirements, the CDE recouped district funds from a number of categorical programs, generally, in the order in which funds were first apportioned. In this way, not all basic aid districts had funds recovered from their Pupil Transportation apportionments. A school district that did receive a reduction to its Pupil Transportation funding will be held harmless in the calculation of its 2012–13 entitlement. Specifically, a basic aid district’s 2012–13 entitlement will be calculated as the lesser of its 2011–12 entitlement (calculated prior to the Control Section 12.42 reduction) and the sum of its 2011–12 expenditures and its 2011–12 basic aid reduction to pupil transportation.

Charter Schools. Charter schools, with few exceptions, receive Pupil Transportation funding through the charter school categorical funding model (commencing with EC Section 47633). This funding model provides categorical block grant funds in lieu of various categorical programs, including Pupil Transportation. These block grant funds are allocated as part of the Principal Apportionment process. LEAs and charter schools may wish to consider this in their discussions about how to provide transportation services to charter school pupils.

If you have any questions regarding this apportionment, please contact Christina Kersey, Assistant Fiscal Consultant, Categorical Allocations and Management Assistance Unit, by phone at 916-324-9806 or by e-mail at ckersey@cde.ca.gov [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 by e-mail at jbriggs@cde.ca.gov.]

Sincerely,

Jeannie Oropeza, Deputy Superintendent
Services for Administration, Finance, Technology, and Infrastructure Branch

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