Ltr-09: PTHSSE

Dear County Superintendents of Schools, Auditors, and Treasurers:

NOTICE OF THE SPECIAL PURPOSE APPORTIONMENT
FOR THE PUPIL TRANSPORTATION PROGRAM
SEPTEMBER 2009 CERTIFICATION
FISCAL YEAR 2009-10

This apportionment, in the amount of $489,104,935, is made from funds provided by Schedule (1) of Item 6110-111-0001 of the Budget Act of 2009 (Chapter 1, Statutes of 2009, Third Extraordinary Session) as amended by Assembly Bill 1 of the Fourth Extraordinary Session (ABX4 1, Chapter 1, Statutes of 2009) in support of the Pupil Transportation program. This apportionment certifies local educational agencies’ (LEAs) estimated 2009-10 entitlements for Pupil Transportation. Funds for Economic Impact Aid which previously were allocated through the Special Purpose Apportionment will be allocated separately with the first payment of 20 percent in September 2009.

County superintendents are requested to immediately notify the LEAs in their county of this apportionment. This letter, and the items listed below can be found on the California Department of Education (CDE) Web site at http://www.cde.ca.gov/fg/aa/ca/pupiltransport.asp:

1. Schedule of Apportionment for Pupil Transportation (LEA data)
2. County Summary of the Special Purpose Apportionment (county level annual data)
3. Monthly Payment Schedule, by County (county level monthly data)
4. Monthly Payment Schedule, by LEA (LEA level monthly data)
5. Schedule of the September 2009 Recovery of Categorical Overpayment

Pursuant to the provisions of California Education Code Section 14041, as amended by  Senate Bill 16 of the Fourth Extraordinary Session (SBX4 16, Chapter 23, Statutes of 2009), payments for the Special Purpose Apportionment are to be made in twelve instead of ten installments beginning in July and ending in June. Under the new “5-5-9” schedule, five percent of the annual entitlement is to be allocated in each of July and August and 9 percent in each month thereafter through the following June. Due to the enactment of the revised budget act in late July 2009, the September 2009 warrant for each LEA will consist of the July, August, and September payments and will equal 19 percent of each LEA’s estimated entitlement to funds provided by the revised Budget Act of 2009. Thereafter, LEAs will receive a payment equal to 9 percent of their annual entitlements in October 2009 through June 2010.

The September payment received by some LEAs will be reduced below the amounts shown in the Schedule of Apportionment, County Summary, and county and LEA level Monthly Payment Schedules to reflect the recovery of 2008-09 overpayments for various categorical programs. Specifically, Section 34 of Senate Bill 4 of the Third Extraordinary Session, Chapter 12, Statutes of 2009 (SBX3 4), enacted in February 2009 to amend the Budget Act of 2008, reduced the appropriations of 50 budget act items by approximately 15.4 percent, and Section 43 directed that the Superintendent of Public Instruction reduce apportionments for school districts and county offices of education in order to recover any amounts already paid in excess of the February appropriation levels. As such, the recovery of $1.3 million is being made from the September 2009 Special Purpose Apportionment payment for Pupil Transportation. These recoveries are detailed on the schedule noted in #5 above.

Other recoveries are being made from various Principal Apportionment payments, the September 2009 payment for the AB 825 Block Grants, and final payment for the   2008-09 Teacher Credentialing Block Grant program. Please visit the following CDE Web site address to view these recovery schedules: http://www.cde.ca.gov/fg/aa/ca/recovery08.asp [Note: Link no longer available].

Calculation of Estimated Entitlements

With this apportionment, funds are advanced based on the calculation of estimated Home-to-School Transportation and Special Education Transportation entitlements for 2009-10. Estimated entitlements were calculated based on actual 2008-09 entitlements which were adjusted to reflect reorganizations that were effective as of July 1, 2009, notifications of transfers and terminations of service that were submitted prior to August 1, 2009, any revised 2007-08 expenditure data that were submitted after the final certification of 2008-09 entitlements, and a 19.84 percent funding cut enacted by ABX4 1 which revised the Budget Act of 2009. The state budget did not provide funding for a growth or cost of living adjustment. The certified estimated apportionment reflects adjustments per EC 41851(d) and to recover prior year overpayments of Pupil Transportation funds.

Please note the following:

• Pursuant to Section 22 of Senate Bill 4 of the Third Extraordinary Session (Chapter 12, Statutes of 2009), the annual deferral of $52.6 million in transportation funding was permanently eliminated. As a result, school districts and county offices of education will receive all payments for both Home-to-School and Special Education Transportation through the 2009-10 Special Purpose Apportionment. There will be no separate or additional payment in July 2010.
• The Schedule of Apportionment shows the estimated 2009-10 Home-to-School Transportation entitlement for each participating school district and county office of education, and total estimated apportionment through June 2009. The estimated transportation entitlement is the allowance for non-special education pupils and special education pupils who are not severely disabled or orthopedically impaired (non-SD/OI). When actual Home-to-School Transportation entitlements are certified in April 2010 with data collected on the Form TRAN for fiscal year 2008-09, school districts and county offices of education will be entitled to the lesser of their 2008-09 approved home-to-school expenses or their 2008-09 home-to-school entitlement. The amount apportioned in satisfaction of final entitlements will be reduced to reflect the state funding cut.
• The Schedule of Apportionment shows the estimated 2009-10 Special Education Transportation entitlement for each participating school district and county office of education, and total estimated apportionment through June 2009. The estimated transportation entitlement is the allowance for pupils who are SD/OI. When actual Special Education Transportation entitlements are certified in April 2010 using 2008-09 data collected on the Form TRAN for fiscal year 2008-09, school districts and county offices of education will be entitled to the lesser of their 2008-09 approved SD/OI expenses or their 2008-09 special education entitlement. The amount apportioned in satisfaction of final entitlements will be reduced to reflect the state funding cut.School districts and county offices of education that were unable to expend up to their full fiscal year 2007-08 entitlements due to the funding deferral from 2007-08 to 2008-09 did not have their entitlements reduced for 2008-09. However, school districts and county offices of education must have spent all 2007-08 entitlements deferred to 2008-09 as well as their fiscal year 2008-09 entitlements by the end of fiscal year 2008-09 to avoid a reduction in their fiscal year 2009-10 entitlements.

Charter Schools

Charter schools, with few exceptions, receive Pupil Transportation funding through the charter school funding model (California Education Code, commencing with 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.

Beginning in 2006-07, the Pupil Transportation program is included on the list of programs for which charter schools may not apply separately due to its inclusion in the Charter School Categorical Block Grant. Essentially, charter schools will receive funding for the Pupil Transportation program through the block grant. LEAs and charter schools may wish to consider this in their discussions about how to provide transportation services to charter school pupils.

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.

If you have any questions regarding this apportionment, please contact Christina Schlueter, Fiscal Analyst, Categorical Programs and Management Assistance Office, at 916-324-9806 or by e-mail at cschlueter@cde.ca.gov or Marcie Gregory, Consultant, Categorical Programs and Management Assistance Office, 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 by e-mail at jbriggs@cde.ca.gov.].

Sincerely,

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