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Ltr1-12: K-3 CSR

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

August 8, 2012

Dear County Superintendents of Schools and County Chief Business Officials:


The California Department of Education (CDE) is accepting applications for fiscal year 2012–13 funding for the Kindergarten and Grades One through Three Class Size Reduction (K–3 CSR) Program. The funding rates remain the same as in 2011–12 at $1,071 per pupil for Option One classes and $535 per pupil for Option Two classes.

County offices of education are requested to forward a copy of this letter to eligible elementary and unified school districts and charter schools serving K–3 in their counties. To aid in the distribution, CDE is sending by e-mail the link to this letter and referenced documents to each county superintendent, addressed to the county’s CDEfisc e-mail address, and all subscribers of the K–3 CSR list serve.

The estimated 2012–13 pupil enrollment counts submitted on the 2012–13 Operations Application will be used to calculate provisional funding (estimated entitlements) for school districts and charter schools. Pursuant to Section 91 of Senate Bill (SB) 1016 (Chapter 38, Statutes of 2012), a payment of 55 percent of these estimated entitlements, less the amount paid in the Advance Apportionment, will be made in February 2013. Final entitlements will be calculated and a final payment (or recovery) will be made in July 2013 based on actual enrollment data submitted on the 2012–13 Form J-7CSR, which is due May 10, 2013.

Elementary and unified school districts and direct-funded charter schools that applied for 2008–09 K–3 CSR Program funds are eligible to apply for the program. Locally funded charter schools may apply on their own behalf or through their authorizing entity, but must apply in 2009–10 through 2013–14 in the same manner as they applied in 2008–09. Locally funded charter schools and their authorizing agencies should consult to ensure that only one application is submitted on behalf of each charter school.

Pursuant to California Education Code (EC) Section 52124.3, the K–3 CSR Program is closed in 2009–10 through 2013–14 to participants that had not applied for 2008–09 funds. EC Section 52124.3 also limits for a six-year period, from 2008–09 through 2013–14, any reduced or full class funding to the number of classes for which each local educational agency had applied for in 2008–09. As such, in fiscal year 2012–13, school districts and charter schools can apply for no more than the total number of Options 1 and 2 classes identified on its 2008–09 Operations Application. Grade level implementation priorities at each participating schoolsite for reducing class size or claiming reduced funding for classes exceeding 20.44 pupils remain in effect, such that grade one must be reduced/claimed first, followed by grade two, and then any combination of classes in grade three or kindergarten.

Pursuant to EC Section 52124.3, the most recent schedule of reduced funding percentages for classes exceeding 20.44 pupils replaces for a six-year period, from 2008–09 through 2013–14, the schedule of reduced funding percentages established in EC Section 52124. This 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.

Applications must be submitted to CDE (postmarked) by September 25, 2012, in order for school districts and charter schools to retain advance funding that will be allocated in September 2012, and receive two additional payments in February and July 2013. The operations application and instructions, waiver application and instructions for severely impacted multitrack schoolsites, and program guide for 2012–13 are available on the K–3 CSR Program Web page at

County offices are also requested to ensure that, on or before September 25, 2012, the eligible school districts and charter schools in their county complete, sign, and submit (postmark) the Operations application and any Waiver application to:

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

CDE and participating school districts and charter schools are obligated to ensure that the K–3 CSR Program is implemented in a manner that does not discriminate against pupils with disabilities. Specific information about this obligation can be found on the K–3 CSR Program Web page at School district superintendents are requested to distribute a copy of this letter at the beginning of the school year to the Community Advisory Committee and the Parent Teacher Association of each school in the district that participates in the K–3 CSR Program so that these entities are aware of the availability of the funding and have access to the application package and program information.

SB 1381 (Chapter 705, Statutes of 2010) enacted the Kindergarten Readiness Act of 2010 which changed the required birthday for admission to kindergarten and first grade, and established a transitional kindergarten program beginning in the 2012–13 school year for pupils who will no longer be age eligible to opt into kindergarten. For the K–3 CSR Program, transitional kindergarten classes will be recognized in the same manner as kindergarten classes, such that transitional kindergarten classes can be claimed for full or reduced funding as a kindergarten class, provided grade level implementation priorities are met and the school district or charter school has sufficient classes in its class cap to claim those classes. More information regarding kindergarten classes is available on CDE’s Web page at

All information for the K–3 CSR Program is available on the K–3 CSR Program Web page at 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

If you have any questions regarding the Operations application, Waiver application, or the program, please contact Rebecca Lee, Fiscal Consultant, Categorical Allocations and Management Assistance Office, by phone at 916-324-4533 or by e-mail at


Scott Hannan, Director
School Fiscal Services Division

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