Proposition 28—Arts and Music in Schools FAQs

Funding Calculations and Apportionment of Funds

1. Which schools will receive Arts and Music in Schools (AMS) funding? (Updated 11-1-2023)

   Recipients include eligible public preschools, transitional kindergarten through grade twelve public schools (including charter schools), and the State Special Schools (California School for the Blind, Fremont; California School for the Deaf, Fremont; and California School for the Deaf, Riverside).

2. Which preschools will receive funding? (Updated 01-Nov-2023)

   Funding for preschools is limited to local educational agency (LEA) based California state preschool programs and preschools for pupils with exceptional needs in an LEA. In accordance with statute, all funds will be apportioned to the LEA, which is required to allocate funds to eligible school sites in the amounts calculated by the California Department of Education.

3. When will schools learn how much funding they will receive each year? (Updated 21-Apr-2025)

   Arts and Music in Schools (AMS) funding for each eligible school will be estimated each July as part of the Advance Apportionment certification using second prior year data and the current year budget appropriation. At First Principal Apportionment the following February, the California Department of Education (CDE) will publish AMS funding amounts based on updated data as required by statute. AMS allocations are final as of that fiscal year’s Second Principal Apportionment, which is certified in June. For example, Fiscal Year 2025–26 amounts will be estimated in July 2025, recalculated in February 2026, and final as of June 2026. Funding allocations will be published by fiscal year to the Proposition 28: Arts and Music in Schools web page.

   Please refer to Frequently Asked Question (FAQ) 7 for detailed information about data sources for the purpose of the calculation of funding.

   For information about the Principal Apportionment, go to the California Department of Education Principal Apportionment web page.

4. How much funding is available? (Updated 21-Apr-2025)

   The amount of funding available each fiscal year for the Arts and Music in Schools (AMS) program will be one percent of the kindergarten through grade twelve portion of the Proposition 98 funding guarantee provided in the prior fiscal year, excluding funding appropriated for the AMS program. The measure specifies that this funding is on top of the Proposition 98 minimum guarantee calculated for the year excluding the amount provided under the AMS program.

   Fiscal Year	Total Appropriation	Per Enrollmnent Grant Amount	Per FRPM Grant Amount
   2023–24	$938 million	$110.51	$78.42
   2024–25	$907 million	$107.09	$73.83

5. Will the amount of funding for each fiscal year change? (Updated 24-Jul-2023)

   The amount of funding available for each fiscal year will be determined prior to the beginning of the fiscal year by the Department of Finance as part of the May Revision of the Governor’s Budget. This total appropriation amount is final.

6. Does my local educational agency (LEA) need to apply for Arts and Music in Schools (AMS) funds? How will allocations be calculated? (Updated 01-Nov-2023)

   LEAs do not need to apply for AMS funds. Funding will be automatically allocated by the California Department of Education (CDE) to each transitional kindergarten through grade twelve (TK–12) LEA using the methodology outlined in subdivision (c) of California Education Code (EC) Section 8820 , which is based on the share of statewide total enrollment and the share of enrollment of economically disadvantaged pupils, as defined in EC Section 8821 , at each eligible schoolsite of the TK–12 LEA.

   Funding will be calculated at the school site level and allocated to the LEA, which is required to allocate funds to eligible school sites in the amounts calculated by the CDE (EC Section 8820[d]).

7. What data is used in the funding calculation?

   Arts and Music in Schools (AMS) funding is calculated based on prior year pupil enrollment and prior year enrollment of pupils eligible for free or reduced-price meals (FRPM).
   
   Transitional kindegarten through grade twelve Census Day total enrollment and enrollment of FRPM-eligible pupils are reported in the California Longitudinal Pupil Achievement Data System (CALPADS) as part of the Fall 1 data submission. This data is publicly available on the Free or Reduced-Price Meal (Student Poverty) Data web page.
   
   Preschool enrollment used to calculate AMS funding includes pupils enrolled in local educational agency (LEA) based California state preschool programs and pupils three through five years of age enrolled in preschool programs for pupils with exceptional needs in an LEA. California state preschool program enrollment is from the prior year October report in the Child Development Management Information System. Preschool enrollment for special education programs is from prior year Census Day enrollment data reported via CALPADS.
   

8. How is the determinative elementary school selected for the purpose of calculating an individual school site’s free and reduced price meal (FRPM) eligible preschool pupil count? (Added 11-Jun-2023)

   For schools serving preschool pupils that are eligible for Arts and Music in Schools (AMS) funding, a proxy count of economically disadvantaged preschool pupils is calculated by multiplying the school’s prior-year preschool enrollment by the prior-year percentage of FRPM-eligible transitional kindergarten through grade twelve (TK–12) pupils at a determinative elementary school, pursuant to Education Code Section 8820(c)(2). The determinative elementary school is the elementary or TK–12 school in the local educational agency (LEA) with the highest percentage of FRPM-eligible pupils enrolled. If there is no elementary or TK–12 school within the LEA, then the determinative elementary school is the elementary or TK–12 school within the county with the highest percentage of FRPM-eligible pupils.

9. What enrollment is used to determine if my local educational agency (LEA) is above the 500 pupils or more threshold and subject to the requirement to use at least 80 percent of Arts and Music in Schools (AMS) expenditures to employ certificated or classified employees to provide arts education program instruction?

   The enrollment count used to determine whether an LEA is subject to this requirement is based on the total enrollment of the LEA that was used to calculate the LEA’s funding for the allocation year. For example, funding allocated in Fiscal Year 2023–24 is based on the LEA’s enrollment in Fiscal Year 2022–23. See Frequently Asked Question 7 for details on sources of enrollment data.

10. How can I determine whether planned expenditures are allowable? (Updated 21-Apr-2025)

    The California Department of Education is not approving or denying individual local educational agency requests for allowable expenditures. All expenditures should be consistent with statute. See Frequently Asked Questions found in the secion below "Use of Arts and Music (AMS) Funds" for additional information.

Use of Arts and Music in Schools (AMS) Funds

11. What type of arts programs can these funds be used for? (Updated 21-Apr-2025)

    "Arts education program" includes, but is not limited to, instruction and training, supplies, materials, and arts educational partnership programs for instruction in dance, media arts, music, theatre, and visual arts including folk art, painting, sculpture, photography, craft arts, creative expression including graphic arts and design, computer coding, animation, music composition, ensembles, script writing, costume design, film, and video.
    
    California Education Code sections 51210 and 51220 recognize dance, music, theatre, and visual arts as courses of study, aimed at the development of aesthetic appreciation and the skills of creative expression.
    
    The 2019 California Arts Standards for Public Schools, Prekindergarten Through Grade Twelve (Arts Standards) (PDF) add an additional course of study: media arts.
    
    The table below captures recognized courses of study, along with a non-exhaustive list of examples accessed on the California Longitudinal Pupil Achievement Data System (CALPADS) System Documentation web page. The document that lists codes that can only be used in specific combinations in CALPADS is titled CALPADS Valid Code Combinations.
    
    Note: When viewing the most recent version of the document titled "CALPADS Valid Code Combinations," navigate using the arrows at the bottom left of the document to the sheet titled "Course Group Master Combos." This tab includes all course group names, course group codes, and content area assignments, etc. An additional sheet on this document titled "CrsGrpSt-ContentSbctgy" details all associated course subcategories, including their course names, course codes, and effective academic years.

    Dance	Theatre	Music	Visual Arts	Media Arts
    ballet folk/traditional hip hop jazz modern	costume design script writing acting directing stagecraft	music theory vocal music music composition and ensembles music appreciation	folk art painting sculpture craft arts drawing	graphic arts and design computer coding animation film and video photography

12. Who decides which program a school will offer? (Updated 12-Nov-2024)

    School administrators—in collaboration with teachers, families, and students—should together make the choice that best serves students in their local school community.
    There are several conditions of receipt of funds that must be met and are subject to audit verification (see Frequently Asked Questions 25 and 30). Failure to comply with those requirements will result in the loss of some or all of the local educational agency’s (LEA’s) Arts and Music in Schools funding for the year. Coordination between the school and the LEA’s administration is necessary to ensure expenditures are consistent with all statutory requirements.

13. Are there restrictions on how schools can use this funding? (Updated 15-Jul-2024)

    All funds must be used to provide expanded arts education programs, as described in Frequently Asked Question 11. California Education Code (EC) Section 8820(g)(1) requires that local educational agencies (LEAs) with an enrollment of 500 or more pupils ensure that at least 80 percent of expended funds will be used to employ certificated or classified employees to provide arts education program instruction. Up to 20 percent of the expended Arts and Music in Schools (AMS) funds may be used for “training, supplies and materials, and arts educational partnership programs,” which includes outside contractors. The department may, for good cause shown, provide a waiver from this requirement.

    Additionally, no more than 1 percent of funds received may be used for the LEA's administrative expenses, including indirect costs, to implement this program.

    LEAs that use AMS funds for arts program instruction as part of the regular school day should keep in mind that statute requires that students be under the immediate supervision and control of a certificated employee of the LEA in order to generate attendance for apportionment and receive instructional time credit. See EC sections 46300(a) and 47612.5(e)(1).
    
    Information about attendance accounting and instructional time requirements is available on the California Department of Education Instructional Time and Attendance Accounting web page.

14. Are community partners hired as independent contractors/vendors considered “staff”––in other words do they fall under the 80 percent? (Added 15-Jul-2024)

    
    No. Contractors/vendors are not employees of the local educational agency. Up to 20 percent of the expended Arts and Music in Schools (AMS) funds may be used for “training, supplies and materials, and arts educational partnership programs,” which includes outside contractors.

    Furthermore, instruction provided by community-based organizations is considered part of the 20 percent and, therefore, is not annually reported as Full Time Equivalent.

    For further information about certificated or classified employees, see FAQ 16.

15. Can Arts and Music in Schools (AMS) funds be used for arts instruction outside of the regular school day or off campus? (Updated 15-Jul-2024)

    Yes. All expenditures should be consistent with statute. For information regarding restrictions on the use of AMS funds, see Frequently Asked Question 13. For information regarding reporting and certification requirements, see Frequently Asked Question 24.
    
    Information about attendance accounting and instructional time requirements is available on the California Department of Education Instructional Time and Attendance Accounting web page.

16. What counts as certificated or classified employees for the purpose of Arts and Music in Schools (AMS)? (Updated 12-Nov-2024)

    Both the California School Accounting Manual (CSAM) and California Education Code (EC) provide information regarding employment classification.
    
    The 2019 CSAM, including object codes, definitions, instructions, and procedures, is located on the Definitions, Instructions, and Procedures web page.
    
    EC Section 44006 refers to a “certificated person” as a person who holds one or more documents such as a certificate, a credential, or a life diploma which singly or in combination license the holder to engage in the school service designated in the document or documents. (Enacted by Stats. 1976, Ch. 1010.)
    
    EC sections 45103, 45104, 45256 specify what is considered a classified employee.

    • EC 45103 text
      
    • EC 45104 text
      
    • EC 45256 text

    
    For additional questions regarding teacher credentialing, please refer to the California Commission on Teacher Credentialing Prop 28 Arts and Music in School .
    

17. What is California Education Code (EC) Section 8820(g)(1)(2)(3), and does it apply to the local educational agency (LEA) or the school site? (Updated 15-Jul-2024)

    EC Section 8820 states:

    7. As a condition of receipt of funds pursuant to this chapter, a local educational agency shall annually:
       
       
       1. Certify that all funds will be used to provide arts education programs, and that funds expended in the prior fiscal year were, in fact, used for those purposes, except as provided in paragraph (3). For local educational agencies with an enrollment of 500 or more pupils, the certification shall also ensure that at least 80 percent of funds to be expended will be used to employ certificated or classified employees to provide arts education program instruction and that the remaining funds will be used for training, supplies and materials, and arts educational partnership programs.
          
          
       2. Certify that such funds received will be used to supplement funding for arts education programs and that funds expended in the prior fiscal year were, in fact, used to supplement arts education programs.
          
          
       3. Certify that no more than 1 percent of funds received will be used for a local educational agency’s administrative expenses to implement this chapter and that funds received in the prior fiscal year were, in fact, used within that limit.
          For purposes of AMS, an LEA is a school district, county office of education, or charter school. Each of the certifications, see FAQ 26, and requirements listed in EC Section 8820(g) is required of the LEA, not the individual school site. As part of the annual audit, each LEA will be subject to verification that each of these requirements has been met.
          

    
    

    For purposes of AMS, an LEA is a school district, county office of education, or charter school. Each of the certifications, see Frequently Asked Question 29, and requirements listed in EC Section 8820(g) is required of the LEA, not the individual school site. As part of the annual audit, each LEA will be subject to verification that each of these requirements has been met.

    If an LEA has enrollment of 500 or more pupils, even if individual school sites have less than 500 pupils, at least 80 percent of AMS funds expended by the LEA should be used to employ certificated or classified employees to provide arts education program instruction. This does not prohibit individual school sites within an LEA from being under the 80 percent requirement so long as the LEA is in compliance. Additionally, this requirement may be met over a three-year expenditure period to the extent that not all funds received in a given fiscal year are fully expended within that same fiscal year. If an LEA decides to submit a written waiver request of the requirement found in EC Section 8820(g)(1), the request will be submitted by the LEA, not individual school sites, and the waiver, if granted, will apply to the entire LEA.

    All LEAs, including charter schools, with total enrollment of fewer than 500 pupils are only exempt from the requirement that at least 80 percent of funds to be expended will be used to employ certificated or classified employees to provide arts education program instruction. See FAQ 9 for details about what enrollment is used to make this determination.

    Lastly, the certification that expended funds supplement funding for arts education programs and that no more than 1 percent of funds received will be used for an LEA’s administrative expenses applies to the entire LEA regardless of total pupil enrollment or waiver status.

18. Does California Education Code (EC) Section 8820(g)(1) require every school site within a local educational agency (LEA) with more than 500 pupils to utilize 80 percent of expended funds on staffing? (Added 15-Jul-2024)

    No. EC Section 8820(g)(1) does not prohibit individual school sites within an LEA from being under the 80 percent requirement so long as the LEA is in compliance. Additionally, this requirement is only verified by the audit process at the end of the three-year expenditure period or when the entire allocation has been spent, whichever comes first. Please refer to Examples of the Instructional Costs Minimum Calculation for Local Educational Agencies with 500 or More Enrollment section of the California Department of Education Proposition 28-AMS Financial & Audit Requirements web page.

    Furthermore, waivers will apply to the entire LEA, not individual school sites. Individual school sites should not attempt to submit a waiver.

19. What is a local educational agency (LEA) for the purpose of Arts and Music School (AMS)? (Added 18-Dec-2023)

    For the purpose of the AMS, statute defines LEA as transitional kindergarten through grade twelve school districts, county offices of education, charter schools, and the California School for the Blind, Fremont; and California school for the Deaf, Fremont; and the California School for the Deaf, Riverside.

20. Can a local educational agency (LEA) spend more than 1 percent of Arts and Music in Schools (AMS) funds on administrative expenses?

    No more than 1 percent of funds received may be used for an LEA’s administrative expenses, including indirect costs, to implement this program. Additional guidance for LEAs to demonstrate compliance with this requirement for the purpose of the annual audit (i.e., example worksheets, etc.) is available on the California Department of Education Proposition 28 AMS Financial & Audit Requirements web page.

21. Can schools pool their Arts and Music Schools (AMS) funds? (Updated 15-Jul-2024)

    Yes, schools can share teachers and teacher aides as well as community arts partners as long as the allocation from one school site is not being used to pay for the cost of arts education programs at another school site. This strategy may be useful for school sites whose AMS allocation is not sufficient to hire a full-time teacher. For example, a teacher could teach at one school on Monday and Tuesday and at another on Wednesday, Thursday, and Friday. See Frequently Asked Question (FAQ) 13 for information about use of funds requirements. See FAQ 22 for information about restrictions on the reallocation of funds between school sites. Lastly, local educational agencies (LEAs) that use AMS funds for arts education program instruction as part of the regular school day should keep in mind that statute requires that students be under the immediate supervision and control of a certificated employee of the LEA in order to generate attendance for apportionment and receive instructional time credit. Information about attendance accounting and instructional time requirements is available on the California Department of Education Instructional Time and Attendance Accounting web page.
    

22. Can local educational agencies (LEAs) reallocate funds from one school to another or others? (Added 02-Jan-2024)

    No. The language in the statute specifies that funds must be allocated to each school site in the amount calculated by California Department of Education. Statute does not provide for the reallocation of funds from one school site to another under any circumstances. California Education Code Sections 8820[c] and 8820[d].
    

23. How are local educational agencies (LEAs) held accountable for their usage of AMS funds? (Updated 21-Apr-2025)

    The AMS statute establishes several reporting requirements for this program, both at the school site and LEA level. The statute also calls for an annual audit to ensure funds are allocated and used properly. What follows is a brief overview (with additional details, including completion dates in FAQ 24):

    • School Site Expenditure Plan (California Education Code [EC] Section 8820[e]): This report is prepared for each school site. The LEA uses the information in each school’s expenditure plan to inform an annual report. Note: Statute does not require this plan to be submitted to the California Department of Education (CDE), publicly posted, or board or governing body approved.
      
      
    • LEA Annual Report (EC Section 8820[g][4]): This report must be board or body approved annually and posted on the LEA and California Department of Education web pages. For this report, the mandated information is:
      
      
      • types of arts education programs funded by the program;
        
      • the number of full-time equivalent teachers, classified personnel, and teaching aides funded by the program;
        
      • the number of pupils served through the program funds; and
        
      • the number of school sites providing arts education programs with the program funds.
        
        
    • Annual Certification (EC Section 8820[g][1–3]): LEAs must annually certify that all funds will be used to provide arts education programs, among other assurances. Note: the certification must be kept for auditing purposes but is not required to be posted on the LEA web page or submitted to the CDE. See FAQs 17, 18, and 34 for additional information.
      
      
    • Expenditure Report (EC Section 8820[f][2]): LEAs are required to report to the CDE the amount of unexpended AMS funds by October 1 following the conclusion of the three-year expenditure period. If a charter school ceases operation, a final expenditure report is due to the CDE within 60 days of the effective date of closure.
      
      
    • Pursuant to EC Section 8820(i), these funds are subject to the annual audit which is conducted in accordance with EC Section 41020. The annual audit includes verification that LEAs expended funds in accordance with their certifications and the requirements in EC Section 8220 beginning with the 2023–24 annual audit. For more information on the audit process, please see FAQ 37 and the CDE-published Proposition 28- AMS Financial & Audit Requirements website.
      
      

      The CDE encourages you to reach out to your local school board, or other local avenues, to further inquire about appropriate expenditures both for your school as well as at the overall LEA certifications, reports, and potential audit findings. The appropriate body to voice concerns is the board or governing body of the LEA, due to their role in approving the required reports.
      

Reporting, Annual Audits, and Waivers

24. What are the documents and reports that are required to be prepared by local educational agencies (LEAs) that received Arts and Music in Schools (AMS) funds, and do they apply at the school site level or at the LEA level ? (Updated 21-Apr-2025)

    LEAs that receive AMS funds are required to prepare four documents. One required document is to be completed at the school site level, and the other requirements are to be fulfilled at the LEA level, as outlined below:

    Report Name	California Education Code (EC) Statute	Responsible Party	Frequency	Purpose	Requirements	Subject to Audit Verification
    School Site Expenditure Plan	EC 8820(e)	School site	Annual	Transparency and guidance for expenditures	While each school is required to create an expenditure plan, it is not mandated that it be posted on the LEA website, or submitted to the California Department of Education (CDE). For details see Frequently Asked Question (FAQ) 24.	No
    Annual Report	EC 8820(g)(4)	LEA	Annual (available annually from 5/1 to 9/30 on the AMS web portal)	Collect point-in-time data demonstrating impact of Proposition 28 funding.	This annual report must be board approved, submitted to the CDE through the Arts and Music in Schools Portal, and posted to the LEA's website. The mandated information for this report includes: The number of full-time equivalent teachers, classified personnel, and teaching aides The number of pupils served The number of school sites providing arts education programs with AMS funds	Yes (see audit procedure T3 (PDF))
    Annual Certification	EC 8820(g)(1-3)	LEA	Annual (will become available to complete on the AMS web portal for the 2024–25 allocation through 6/30/25)	LEA commitment to use funds to supplement art education, not supplant funding and use no more than 1% on administrative costs.	Local educational agencies (LEAs) must annually certify that all funds will be used to provide arts education programs, among other assurances. See FAQ 26, conditions a–d, for the specific information the annual certification must include. Note that the certification must be kept for auditing purposes but is not required to be posted on the LEA web page or submitted to the CDE. To make this certification, access the Arts and Music in Schools Portal.	Yes (see audit procedures T1, T2, T4, T5, T6 and T7 (PDF))
    Expenditure Report	EC 8820(f)(2)	LEA	By October 1 after the three-year expenditure spending period concludes, or 60 days after ceasing operation (charter schools only) (This will become available to complete on the AMS web portal for the 2023–24 allocation from 5/1/26 through 9/30/26)	Determine if the LEA has unspent funds to be returned at the end of the three-year expenditure period.	LEAs are required to report to the CDE the amount of unexpended AMS funds. To submit this report, access the Arts and Music in Schools Portal.	No

    Statute does not indicate due dates for the required reporting. The School Site Expenditure Plan annual due date is determined locally. The Annual Certification and Annual Report are due prior to the LEA annual audit. LEAs risk losing funds if not completed prior to the annual audit. As per EC Section 8820(f)(2), the Final Expenditure report is due by October 1 in the final expenditure year or, for closing charter schools, within 60 days of school closure effective date.

25. What is the Arts and Music in Schools Portal? Who has access? How do LEAs use it? (Added 21-Apr-2025)

    The Arts and Music in Schools Portal is a California Department of Education (CDE) portal exclusively designed for AMS required reporting. LEA superintendents are provided with a unique password to access and submit required reporting. The Arts and Music in Schools Portal is not available to the public but serves as a central location for preparing reports available through either the LEA or the CDE. Technical assistance for each of the four reporting features is available on the Proposition 28—Arts and Music in Schools Funding page under the LEA Web Portal and Reports tab.
    

26. Do any "supplement not supplant" requirements apply to Arts and Music in Schools (AMS)? (Updated 22-Apr-2024)

    Yes, California Education Code (EC) Chapter 5.1, Section 8820, subdivision (g), paragraph (2), states that as a condition of receipt of funds pursuant to this chapter, a local educational agency (LEA) shall annually: “Certify that such funds received will be used to supplement funding for arts education programs and that funds received in the prior fiscal year were, in fact, used to supplement arts education programs.” For the purpose of this program, “supplement” means that the funds appropriated by this chapter shall be used by LEAs to increase funding of arts education programs and not to supplant existing funding for those programs (EC Section 8821[e]). The California Department of Education (CDE) recommends that each LEA seek guidance from their legal counsel for guidance relative to their annual usage of AMS funds and whether they can make this certification each year. The CDE is not approving or denying individual LEA requests for allowable expenditures. All expenditures should be consistent with statute. Additional guidance for LEAs to demonstrate compliance with this requirement for the purpose of the annual audit (i.e., example worksheets, etc.) is available on the CDE Proposition 28 —AMS Financial & Audit Requirements web page.

27. How might declining enrollment impact the allocation of Prop 28 funding? (Added 21-Apr-2025)

    As per FAQ #5, the amount of funding available for each fiscal year will be determined prior to the beginning of the fiscal year by the Department of Finance as part of the May Revision of the Governor’s Budget. This total appropriation amount is final.
    
    As per FAQ #7, AMS funding is calculated based on prior year pupil enrollment and prior year enrollment of pupils eligible for free or reduced-price meals (FRPM).
    
    Declining enrollment on Census Day will be reflected in the next allocation. Each allocation has a three-year expenditure period providing time to make adjustments to your LEA strategic arts plan and individual school site expenditure plans as needed.
    
    

28. Has a Resource Code been established for these funds? (Updated 24-Jul-2023)

    Standardized Account Code Structure (SACS) Resource Code 6770 has been established for Arts and Music in Schools funding.

29. Is there an Arts and Music in Schools (AMS) school site expenditure plan template available? (Added 18-Dec-2023)

    No. The California Department of Education (CDE) does not intend to provide a template for an AMS individual school site plan required pursuant to California Education Code Section 8820, subdivision (e). Each school site should develop its own plan. The statute does not require school site expenditure plans to be submitted to or approved by the CDE. See Frequently Asked Question 12 for additional information about program selection and local educational agency coordination.

30. Do local educational agencies (LEAs) have three years to use the funds apportioned for a particular school year? (Updated 21-Apr-2025)

    Yes. California Education Code (EC) Section 8820(f) governs the expenditure period for Arts and Music in Schools (AMS) funds, and it indicates that allocated funds are available for use for up to three fiscal years.

31. What if the LEA does not expend all the funds in the three-year expenditure period? (Added 21-April-2025)

    As per California Education Code (EC) Section 8820(f)(2), at the end of the third year, the amount of unexpended funds shall be reported to the California Department of Education (CDE) as a final expenditure report through the AMS Portal by October 1. Unexpended funds will be collected by the CDE and allocated to all LEAs in the following fiscal year.

32. When can the LEA access the Final Expenditure Report in the AMS Portal? (Added 21-Apr-2025)

    The AMS Final Expenditure Report will become available in the AMS Portal on May 1 of the final year in the three-year allocation.
    Should your LEA expend all funds from one allocation prior to the end of the three-year allocation period, the LEA may send a request to access the Final Expenditure report through the Prop28@cde.ca.gov email box.

33. What information is included in the Arts and Music in Schools (AMS) final expenditure report? (Added 21-Apr-2025)

    The AMS Final Expenditure Report provides the amount of funding disbursed for the allocation, the amount of funding expended by the LEA, and any remaining funds to be reverted to the California Department of Education per California Education Code Section 8820(f). An AMS Final Expenditure Report template is available on the Proposition 28—Arts and Music in Schools Funding page under the LEA Web Portal and Reports tab.

34. If a local educational agency (LEA) has not spent any funds of an AMS allocation, do they still need to complete the annual report? (Added 15-Jul-2024)

    Yes, AMS statute (California Education Code [EC] Section 8820[g][4]) and the adopted audit guidelines (procedure T3) requires LEAs to complete an annual report, even if no AMS funds were expended. This report requires board approval, submission to the California Department of Education, and posting to the LEA’s website. For the full statute requirements, see the full text of EC Section 8820(g)(4) below:

    7. As a condition of receipt of funds pursuant to this chapter, a local educational agency shall annually:
       
       
       4. Submit an annual board- or body-approved report in a manner determined by the Superintendent, that shall be posted on the local educational agency’s and the department’s internet websites and that details the type of arts education programs funded by the program, the number of full-time equivalent teachers, classified personnel, and teaching aides, the number of pupils served, and the number of school sites providing arts education programs with those funds.
          

35. What data is reported on the AMS Annual Report? (Added 21-Apr-2025)
    

    The annual report must be board approved, submitted to the California Department of Education through the Arts and Music in Schools Portal and posted to the LEA's website.
    
    The mandated information for this report includes the number of full-time equivalent teachers, classified personnel, and teaching aides paid for with Prop 28 funds. Additionally, the number of pupils served and school sites providing arts education programs with AMS funds are included. An AMS Annual Report template is available on the Proposition 28—Arts and Music in Schools Funding page under the LEA Web Portal and Reports tab.

36. Do LEAs submit a unique AMS Annual Report for each allocation year? (Added 21-Apr-2025)

    No. Each year, the AMS Annual Report is a “snapshot in time” and will not differentiate which allocation funded the supplemental expenditures. It captures the impact of funding in the current fiscal year.
    

37. What are the conditions of receipt of Arts and Music in Schools (AMS) funds? (Updated 21-Apr-2025)

    California Education Code Section 8820(g) states that, as a condition of receipt of funds, a local educational agency (LEA) shall annually

    1. certify that all AMS funds will be used to provide arts education programs and that AMS funds expended in the prior fiscal year were, in fact, used for those purposes;
       
       
    2. for LEAs with an enrollment of 500 or more pupils, the certification shall also ensure that at least 80 percent of AMS funds to be expended will be used to employ certificated or classified employees to provide arts education program instruction and that the remaining funds will be used for training, supplies and materials, and arts educational partnership programs—unless a waiver has been granted (see Frequently Asked Questions (FAQs) 41–43 for information on waivers);
       
       
    3. certify that AMS funds received will be used to supplement funding for arts education programs and that AMS funds expended in the prior fiscal year were, in fact, used to supplement arts education programs (see FAQ 26 for information on supplement verse supplant);
       
       
    4. certify that no more than 1 percent of AMS funds received will be used for a LEA’s administrative expenses to implement this chapter and that AMS funds received in the prior fiscal year were, in fact, used within that limit (see FAQ 20 for information on administrative expenses); and
       
       
    5. submit an annual board- or body-approved report in a manner determined by the Superintendent, that shall be posted on the LEA and the California Department of Education's internet websites and that details the type of arts education programs funded by the program, the number of full-time equivalent teachers, classified personnel, and teaching aides, the number of pupils served, and the number of school sites providing arts education programs with those funds.
       
       

38. Will these funds be subject to the annual state compliance audit pursuant to California Education Code (EC) Section 41020? (Updated 22-Apr-2024)

    Yes. Arts and Music in Schools (AMS) funds are subject to an annual audit to include verification that local educational agencies (LEAs) expended funds in accordance with their certifications and the requirements in EC Section 8220 beginning with the 2023–24 annual audit. Access the audit procedures associated with the AMS and other resources at the AMS Financial & Audit Requirements web page. The requirements of EC Section 8820(g) are conditions of receipt of funds and will be verified in the audit. As such, LEAs must make the required certifications annually regardless of whether any AMS funds are expended in that fiscal year.

39. What does the audit process entail? (Updated 21-Apr-2025)

    Every local educational agency (LEA) is required to have an annual audit by an independent auditor who is responsible for checking that the LEA has complied with various legal requirements associated with the funding they receive. EC Section 41020 auditors follow the procedures outlined in the Guide for Annual Audits of K–12 Local Educational Agencies and State Compliance Reporting (Audit Guide). When an auditor determines funds were used incorrectly or that the LEA did not comply with the conditions of receipt of funds, an audit finding is documented in the LEA’s annual audit report. Some findings result in the loss of funding and/or a penalty, while other findings may require the LEA to make corrections in their data or procedures. Annual audits are completed after the fiscal year concludes. They are submitted first to the LEA’s governing board in a public meeting and then to the California Department of Education (CDE), by December 15, who reviews them to ensure audit findings are resolved and any fiscal penalties or loss of funds are recovered by the state. For additional information on the annual audit process, please visit the Local Educational Agency Annual Audits web page.
    
    On March 1, 2025, the Education Audit Appeals Panel adopted the procedures for AMS in its Fiscal Year 2024–25 Supplemental Audit Guide .
    
    For every LEA that receives an allocation of AMS funds, the auditor will annually verify four requirements:
    
    

    • The LEA made the required certifications. Now available to complete and print through the AMS Portal.
      
      
    • The LEA posted on its website its board-adopted report about how the LEA used its funds and provided a copy to CDE. AMS Annual Report Template (PDF) may be used to prepare and post the annual report to the LEA website.
      
      
    • The LEA used its AMS funds for arts education programs.
      
      
    • The LEA used its AMS funds to supplement and not supplant funding for its arts education programs.
      
      

    There are additionally two checks that are only performed in year three of the expenditure period or in the audit year that an allocation is fully expended, whichever comes first:
    
    

    1. Verification of compliance with the 80/20 requirement for LEAs that have enrollment of 500 or more pupils and who do not have a waiver of EC Section 8820(g)(1).
       This calculation is based on the total expended funds. A worksheet to help LEAs complete this calculation can be found on the “InstrCosts” tab on the Arts and Music in Schools Audit Compliance Worksheets (XLSX).
       
       
    2. Verification that no more than 1 percent of the allocation was used for administrative costs, including indirect costs.
       This calculation is based on the entire allocation. A worksheet to help LEAs complete this calculation can be found on the “AdminCosts” tab on the Arts and Music in Schools Audit Compliance Worksheets (XLSX).

    
    A summary table of this information with additional details is also available in FAQ 40.
    

40. What are the penalties to a local educational agency (LEA) that has an audit finding associated with misuse of AMS funds? (Added 15-Jul-2024)

    Should the auditor have a finding, the LEA will face different outcomes depending on which audit procedure was found out of compliance.
    

    • Audit procedures T1–T3 have the auditor verify the LEA completed the annual certifications and completed all requirements of the annual report. If any of audit guide procedures T1–T3 have a finding, the LEA will have to return the entire allocation.
      
      
    • Audit procedure T4 verifies that the expenditures were used for providing arts education. Audit procedure T5 verifies that funds were used to supplement and not supplant. If either audit guide procedures T4 or T5 have a finding, the LEA will need to return the unallowable expenditures.
      
      
    • Audit procedure T6 verifies (for LEAs with 500 or more pupils) that at least 80 percent of the LEA's expenditures from each allocation were used to employ certificated or classified employees to provide arts education program instruction (this is commonly referred to as the 80/20 requirement), and lastly audit procedure T7 verifies that no more than 1 percent of the allocation was used for administrative costs, including indirect costs. Should the auditor have a finding for either of the audit guide procedures T6 or T7, the auditor will report the unallowable expenditures.
      

    
    Please note that audit procedures T6 and T7 are only conducted in year three of the expenditure period or in the audit year that an allocation is fully expended, whichever comes first, while audit procedures T1–T5 are completed annually.
    
    The same information is provided as a visual summary table below:

    Requirement	Statute	When Checked	Consequence of Audit Finding
    Use of Funds Certifications	EC Section 8820(g)(1–3)	Annually	Full loss of allocation
    Board-Adopted Report	EC Section 8820(g)(4)	Annually	Full loss of allocation
    Expenditures Used to Provide Arts Education	EC Section 8820(g)(1) and EC Section 8820(i)	Annually	Ineligible costs disallowed
    Supplement not Supplant	EC Section 8820(g)(2) and EC Section 8820(i)	Annually	Ineligible costs disallowed
    80/20 Requirement	EC Section 8820(g)(1) and EC Section 8820(i)	Third year of expenditure period or when allocation is fully expended, whichever comes first	Ineligible costs disallowed
    1 Percent Administrative Costs Cap	EC Section 8820(g)(3) and EC Section 8820(i)	Third year of expenditure period or when allocation is fully expended, whichever comes first	Ineligible costs disallowed

    For further details on the audit procedures including compliance worksheets and examples, please visit the CDE Proposition 28- AMS Financial & Audit Requirements web page.
    

41. What is the waiver process for Arts and Music in Schools (AMS) funds? (Updated 15-Jul-2024)

    California Education Code (EC) Chapter 5.1, Section 8820, subdivision (h) states that the California Department of Education (CDE) may, for good cause shown, provide a waiver to exempt them from EC Chapter 5.1, Section 8820, subdivision (g)(1).
    
    If a local educational agency (LEA) decides to submit a written waiver request of the requirement found in EC Section 8820(g)(1), the request will be submitted to the CDE by the LEA, not individual school sites, and the waiver, if granted, will apply to the entire LEA.
    
    If an LEA wishes to submit a waiver request for multiple allocation years, they must submit a separate waiver request for each allocation year within that allocation’s three-year expenditure period. LEAs that want a waiver must submit a new request for each allocation year. The request may be submitted at any point within the three-year expenditure period for each allocation. If a waiver request is approved, it applies for the duration of the expenditure period. Suggested components of the waiver request include:

    • Request Type & Allocation Year: LEAs should specify which portion of EC Section 8820(g)(1) they want to waive and for which allocation year.
      
      
    • Budgetary Proposal: LEAs should provide an estimate of how the funds will be spent compared to the statute's mandate of 80 percent on staffing.
      
      
    • Problem Statement: LEAs should write a clear explanation of why a waiver is needed, inclusive of a justification and prior efforts made to meet AMS statute requirements.
      
      
    • Narrative Proposal: LEAs should outline a plan detailing how AMS funds will be spent should a waiver be granted. The proposal should clearly address the problem statement.
      
      
    • Desired Outcome: LEAs should provide a measurable outcome of how a waiver will allow AMS funds to supplement arts programming.

    
    

    Access the waiver tool is available on the AMS Portal. After LEAs submit the waiver request, the CDE will review the waiver submissions on a rolling basis and either approve or return the waiver. Should the waiver request be returned, LEAs will be provided written feedback from the CDE, and they will have the opportunity to edit and resubmit the waiver request.
    

42. Does each school site submit their own waiver, or do local educational agencies (LEAs) submit waivers on behalf of schools seeking a waiver? (Updated 22-Apr-2024)

    If a local educational agency (LEA) decides to submit a written waiver request of the requirement found in California Education Code Section 8820(g)(1), the request will be submitted to the California Department of Education by the LEA, not individual school sites, and the waiver, if granted, will apply to the entire LEA. Access the waiver tool on the AMS Portal.

43. How long does it take for a waiver request to be approved or returned? (Updated 21-Apr-2025)

    Waivers are reviewed on a rolling basis. There is no exact date or set time period that a local educational agency (LEA) will receive a response based on when a waiver request is submitted. The review period is variable on how many other waivers are submitted and the content of the waiver requests. Please note that each LEA has three years to expend a single allocation and to obtain an approved waiver, if necessary. Should the LEA demonstrate “good cause” for not being able to meet the requirements of California Education Code Section 8820(g)(1), the waiver will be approved and utilized to satisfy audit procedure T6 (verification of the 80/20 requirement) in the final audit of that allocation. For more information on the difference between the annual audit and the final audit, please see FAQ 39 or visit the California Department of Education’s Proposition 28-AMS Financial & Audit Requirements web page.