CAARO Update Issue #2026-14

The purpose of the California Department of Education (CDE) CAARO updates is to provide local educational agencies (LEAs) and other interested parties with timely information related to programs administered by CAARO.

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Key Dates

• Estimated Cash Flow for State and Federal Programs (Updated Sep-2026)

Federal Categorical Program Updates

Categorical Programs - Allocations & Apportionments

Every Student Succeeds Act (ESSA) Title I, Title II, Title III, and Title IV

• The FY 2024-25 Ninth Apportionments and FY 2025-26 Fifth Apportionments are expected to be released to LEAs in September 2026.
• To receive an allocation, a local educational agency (LEA) must submit a State Board of Education (SBE) approved CARS Consolidated Application for Funding (ConApp) and an approved local control and accountability plan (LCAP) Federal Addendum by 12/15/2026.
• The obligation period for FY 2024–25 ESSA Title I–IV funds will close on September 30, 2026. After the obligation period closes, LEAs have one final opportunity to report cash balances which will be followed by the tenth and final apportionment, after which LEAs will forfeit any unclaimed balances.
• The Cash Management Data Collection (CMDC) reporting period will open on October 10 through 31, 2026.
• To review FY 2024–25 remaining balances please refer to the schedule under “Allocations” on the “Funding Results” page. Links to the Funding Results page for each program are provided in the table below.

Categorical Programs - Allocations & Apportionments

Literacy Instruction Professional Development

• The Literacy Instruction Professional Development allocations are available on the Funding Results web page. Additional information, including frequently asked questions, is available on the Literacy Instruction Professional Development Funding web page.
• The CDE will release an apportionment reflecting 100 percent of the allocation by mid-October 2026.
• Information regarding the program timeline, reporting requirements, and professional development criteria is available on the CDE’s Literacy Professional Development Programs web page.

Classified School Employee Summer Assistance Program (CSESAP)

• Based on the data reported by LEAs the final state match funding is sixty and eight hundred nineteen thousand seven hundred nine hundred-millionths cents ($0.60819709) for each one dollar ($1) withheld from participating employees during the 2025–26 school year.
• The apportionment letter and schedule for state match funding for the 2025–26 school year, in the amount of $90,000,000, is available on the CSESAP FY 2024–25 Funding Results web page.
• Important Note: By July 31, 2026, participating LEAs were required to submit a payment request to the California Department of Education (CDE) for the actual amount of classified employee pay withheld during the 2025–26 school year. The statewide allocation methodology used the withholding amounts reported by all participating LEAs to calculate the final matching rate and distribute the available appropriation. Because the reporting deadline has passed and the statewide allocation process has been completed, CDE cannot recalculate the statewide matching rate or revise individual LEA allocations. Accordingly, payment requests cannot be adjusted to reflect corrected withholding amounts. LEAs should ensure that future CSESAP submissions report actual withholding amounts rather than prorated amounts.

Prop 39 California Clean Energy Jobs Act

• The method for the Prop 39 closeout process has changed from the apportionment offset to individual invoices for the return of unspent funds. Each LEA will receive an invoice reflecting the amount already calculated for your agency.
• This change is intended to reduce the risk of unintended impacts on LEAs. The invoice process provides a clearer and more controlled method for returning funds, allowing your LEA to either: return the funds promptly; or notify us of any discrepancies before repayment.
• This approach ensures accuracy and transparency for all parties as we complete the Prop 39 closeout. If you have any questions once you receive your invoice, please contact us at prop39fiscal@cde.ca.gov.

Literacy Coaches & Reading Specialists Grant Program

• The 2026–27 Literacy Coaches & Reading Specialists (LCRS) Grant Program allocations are available on the LCRS Funding Results web page.
• LEAs with eligible school sites may opt out of program participation and funding by submitting the web-based Opt-Out Form on or before September 30, 2026.

California Community Schools Partnership Program

• The LEA Opt-In web form will be available by September 23 and will be open until November 1, 2026.
• School site level allocations will be posted by September 23, 2026.

Audit Resolution Updates

Local Educational Agency Annual Audits - Auditing

• Section 39 of Assembly Bill (AB) 126 (Chapter 65, 2026) made changes to the due dates for the annual audit process. A summary of the key date changes was provided in CAARO Update Issue #2026-10 and can be found on the CDE Audit Resolution web page.

• Other audit resolution related changes from AB 126 were provided in CAARO Update Issue #2026-13.