March 21, 2011

Dear County Superintendents of Schools:

FORM J-7CSR REPORT OF ENROLLMENT
FOR THE KINDERGARTEN AND GRADES ONE THROUGH THREE
CLASS SIZE REDUCTION PROGRAM
FISCAL YEAR 2010-11

The California Department of Education (CDE) is pleased to announce the availability of the Form J-7CSR and instructions for reporting actual 2010-11 enrollment under the Kindergarten and Grades One through Three Class Size Reduction (K-3 CSR) Program. The form is to be completed by all participating school districts and charter schools and returned via their county offices of education to the CDE by May 13, 2011.

Beginning in 2010-11, apportionment letters and related information from the CDE’s School Fiscal Services Division are no longer being mailed to the county superintendents of schools. Instead, county superintendents are being notified by e-mail. Accordingly, the CDE has sent an e-mail to each county superintendent, addressed to the county’s CDEfisc e-mail address, to inform him or her of the availability of the K-3 CSR claim form. The e-mail contained a link to the CDE K-3 CSR Program Web page at http://www.cde.ca.gov/ls/cs/k3/formsinst.asp, where this letter, the Form J-7CSR, and instructions are posted. A similar e-mail has also been sent to all subscribers of the K-3 CSR list serve.

Page 1 of the Form J-7CSR is for reporting enrollment under Option One (class size reduction for the full school day) and Page 2 is for reporting enrollment under Option Two (class size reduction for at least 50 percent of the school day). The data submitted on the two pages of this form will be used to compute the final apportionment (or recovery) for fiscal year 2010-11. The payment will be made in July 2011.

Pursuant to California Education Code (EC) Section 52124.3, a new schedule of reduced funding percentages for classes exceeding 20.44 pupils 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:

•   5 percent for classes ranging from 20.45 to 21.44, inclusive;
• 10 percent for classes ranging from 21.45 to 22.44, inclusive;
• 15 percent for classes ranging from 22.45 to 22.94, inclusive;
• 20 percent for classes ranging from 22.95 to 24.94, inclusive; and
• 30 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. See Section I.A.2.a. of the Instructions for additional information on this topic.

Please note that the provisions of EC Section 52122(h), which allow qualifying school districts and charter schools to receive full funding for classes of size 21 and 22, continue to be applicable. However, school districts and charter schools are prohibited from using both this small school district flexibility and the reduced funding schedule noted above. See Section I.A.2.d. of the Instructions for additional information on this topic.

Information related to the addition of new classes after the first day of instruction is provided in Section I.A.2.g. Please review this section to ensure that classes added subsequent to day one of the school year are eligible for K-3 CSR funding.

The Form J-7CSR is in a single Excel file comprising two worksheets. The two worksheet tabs at the bottom of the electronic file may be used to navigate between the two worksheets containing the Form J-7CSR for Option One and the Form J-7CSR for Option Two. The electronic Form J-7CSR worksheets contain formulas. To complete the Form J-7CSR, school districts and charter schools need only enter the number of classes of each size in the appropriate grade level section. All computations are performed automatically. Please note the Form J-7CSR also allows the reporting of classes that range in size from 20.45 and above. These classes are funded at a reduced rate, as noted above.

After program participants have entered the number of classes in the electronic file, they should print the Form J-7CSR and certification page, sign the certification page, and forward both to their county office of education for signature and mailing to the CDE. The certification page is on page 1 of the instructions. The CDE is unable to accept completed Form J-7CSRs over the internet as e-mail attachments. School districts and charter schools that do not have access to Excel software may enter data on the paper form and submit that to their county office.

Please ensure that the Form J-7CSR is completed, signed, and returned on or before May 13, 2011, to:

Rebecca Lee, Fiscal Consultant
School Fiscal Services Division
California Department of Education
1430 N Street, Suite 3800
Sacramento, CA  95814

Please note that the due date for revised Form J-7CSRs is February 21, 2012. This is more than four months sooner than the historical June 30 deadline. The earlier deadline is due to the requirement, per Section 40 of Chapter 724, Statutes of 2010, that the Revised Final Apportionment be certified by April 30, 2012.

Information for the K-3 CSR Program is available on the CDE K-3 CSR Program Web page at http://www.cde.ca.gov/ls/cs/k3/ and additional fiscal information is available on the CDE K-3 CSR Program Web page at http://www.cde.ca.gov/fg/aa/ca/k3csr.asp. New information pertaining to the K-3 CSR Program is distributed via a list serve (subscriber’s list). Participating school districts, charter schools, and other interested parties are encouraged to subscribe to the list serve at http://www.cde.ca.gov/ls/cs/k3/emailsub.asp.

If you have any questions, 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