2014–15 Q2 EPA Payment Letter
December 11, 2014
Dear County Superintendents of Schools:
Notice of the Second Quarterly Apportionment for the
Education Protection Account
Fiscal Year 2014–15
This apportionment, in the amount of $1,651,670,630, is made from the Education Protection Account (EPA), in accordance with Proposition 30, The Schools and Local Public Safety Protection Act of 2012, as enacted by Section 36 of Article XIII, of the Constitution of the State of California. This apportionment is made for the support of county offices of education, school districts, and charter schools as directed by law.
Using a 2014–15 EPA revenue estimate of approximately $6.6 billion, the California Department of Education (CDE) calculated estimated EPA entitlements using a factor of 21.9621 percent based on the 2013–14 Second Principal (P-2) statewide total of revenue limits and charter school block grant funding and 2013–14 P-2 local revenue data, adjusted to exclude one-time Redevelopment Agency Asset Liquidation funds reported as part of the County Office of Educations’ 2013–14 P-2 property taxes. With the implementation of the Local Control Funding Formula (LCFF) in fiscal year 2013–14, EPA entitlements will continue to be calculated based on adjusted revenue limits, including the allowance for necessary small schools, and charter school block grant funding, in accordance with Proposition 30. These funding amounts continue as components of the LCFF.
If a local educational agency’s (LEA) 2013–14 P-2 EPA entitlement was based on the minimum funding of $200 per unit of average daily attendance (ADA), the 2014–15 estimated EPA entitlement was not recalculated for this apportionment. Each LEA’s EPA entitlement was then reduced so that funding from local property taxes and the EPA combined did not exceed the LEA’s adjusted revenue limit or charter school general purpose funding, provided that each LEA received the minimum EPA funding at a rate of $200 per ADA. Additionally, charter schools newly operational in the 2013–14 fiscal year and after, received the minimum funding of $200 per ADA. Except for LEAs fully funded through local revenue, EPA funding offsets LCFF state aid allocated through the Principal Apportionment.
The CDE will allocate EPA revenues on a quarterly basis through the 2018–19 fiscal year. This quarterly apportionment equals 50 percent of each LEA’s 2014–15 estimated annual EPA entitlement less any amounts previously apportioned in September 2014 (for new charter schools this equals $100 for each unit of funded ADA, less any amounts previously apportioned in September 2014). Future payments may be adjusted for ADA changes and previous over- or under- payments of EPA funds.
County treasurers will receive warrants for this apportionment on December 24, 2014, and should advise school districts and charter schools immediately of this apportionment. For standardized account code structure (SACS) coding, use Resource 1400, Education Protection Account, and Revenue Object 8012, Education Protection Account Entitlement.
LEAs should be aware that Proposition 30 requires an LEA’s governing board to make spending determinations for EPA funds at an open public meeting and that LEAs report on their Web sites an accounting of how much money was received from the EPA and how that money was spent. For additional information on EPA calculations, letters of apportionment, payment schedules, spending restrictions, frequently asked questions, SACS financial reporting and more, please refer to the CDE Web site at http://www.cde.ca.gov/fg/aa/pa/epa.asp.
If you have questions regarding the EPA entitlement calculation, please contact the Office of Principal Apportionment and Special Education by phone at 916-324-4541 or by e-mail at PASE@cde.ca.gov. For questions related to SACS financial reporting, please contact the Office of Financial Accountability and Information Services by phone at 916-322-1770 or by e-mail at firstname.lastname@example.org.
Peter Foggiato, Director
School Fiscal Services Division