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Ltr1-08: Recovery of Overpayments

California Department of Education
Official Letter
California Department of Education
Official Letter

May 15, 2009

Dear County Superintendents of Schools, Auditors, and Treasurers:


This recovery of overpayment in the amount of $205,289,370.40 [Note: the preceding value is incorrect and has been replaced with $205,285,554.40.], is made pursuant to Sections 34 and 43 of Senate Bill 4 of the Third Extraordinary Session, Chapter 12, Statutes of 2009 (SBX3 4). SBX3 4, enacted in February 2009, amended the Budget Act of 2008 which was signed into law in September 2008. Specifically, Section 34 of SBX3 4 reduced the appropriations of 50 budget act items by approximately 15.4 percent, and Section 43 directed that the principal apportionment payment for school districts and county offices of education be reduced in order to recover any amounts already paid in excess of the February 2009 appropriation levels.

By the time SBX3 4 was enacted during the eighth month of the fiscal year, the California Department of Education (CDE) had allocated funds for 12 budget items by a total of $225 million in excess of their reduced appropriations. This notice of recovery seeks to recover the majority of the amounts overpaid. The balance will be recovered through the principal apportionment as early as possible in 2009-10. You will be notified through a separate letter as to the specific time of the recovery in 2009-10. We note that funds for 2 of the 50 budget act items are not allocated by CDE, rather by the Office of Public School Construction and California Commission on Teacher Credentialing. This notice does not recover funds that may have been overpaid by these agencies.

County offices of education are requested to inform the affected school districts and direct-funded charter schools in their counties of these recoveries. To view the schedule of recovery showing how much is being recovered from each county office, school district and direct-funded charter school in total and by program, in May 2009 and in 2009-10, please visit the CDE Web page at

To find information on the data used in the recovery calculation for a specific program or budget act item, please refer to the following list:

  • K-12 High-Speed Network Item 6110-182-0001, please contact Cliff Rudnick at 916-323-5072 or by e-mail at
  • Kern County Office of Education for the Fiscal Crisis and Management Assistance Team, Schedules 2 and 4 through 6 of Item 6110-107-001, please contact Kathy Mathews at 916-322-1647 or by e-mail at
  • Teacher Credentialing Block Grant Regional Infrastructure Grant, Item 6110-244-0001 provision 1, please contact Christy Gunsolley at 916-323-5549 or by e-mail at
  • Year-Round School Grant Program, Item 6110-224-0001, please contact Shannon Farrell-Hart at 916-323-3923 or by e-mail at
  • For all other programs and budget act items, please visit the CDE Web page at Select the program name and then the fiscal year 2008-09 funding results link. There, you will find a link to the schedule showing the data used in the calculations, and the name and contact information for the fiscal staff who can answer additional questions.

If you have any questions regarding the recovery process, please contact Marcie Gregory, Fiscal Assistant, Categorical Allocations and Management Assistance, at 916- 324-4537or by e-mail at or Austin Nodohara, Manager, Categorical Programs Unit, at 916-323-1314 or by e-mail at [Note: the preceding contact information is no longer valid.]



Scott Hannan, Director
School Fiscal Services Division

Last Reviewed: Tuesday, March 01, 2022

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