Apportionment Deferrals Requests for ExemptionApplications and instructions for requesting an exemption to the fiscal year 2020–21 Principal Apportionment deferrals.
Applications for school districts and charter schools to request an exemption from the Principal Apportionment payment deferrals for the 2020–21 fiscal year.
June 2021 Deferral Exemption Applications
February 2021 through March 2021 Deferral Exemption Applications – Deadline has passed.
Approved Deferral Exemptions
California Education Code (EC) Section 14041.8 provides the opportunity for school districts and charter schools to apply for a dollar-limited exemption from the deferral of the Principal Apportionment payments in February 2021 through June 2021. There is no exemption provision for county offices of education.
Exemptions totaling up to $100 million in each month may be approved by the Department of Finance (DOF). If requests for exemptions exceed $100 million, the State Controller, State Treasurer, and DOF may authorize exemptions totaling up to $300 million in each month. If applications exceed the amount available, payments will be made in the order in which completed applications are received via email at DeferralExemptions@cde.ca.gov.
There are two application windows:
The application for exemptions to the February 2021 through May 2021 deferrals were available beginning Thursday, November 12, 2020. This application was due no later than December 15, 2020.
- The application for exemptions to the June 2021 deferral is available at the links provided above. Applications for the June 2021 apportionment deferral are due no later than April 1, 2021.
Subject to the approval of the Department of Finance (DOF), in order for a school district to be exempt from the apportionment deferrals, its county superintendent of schools must certify to the State Superintendent of Public Instruction and DOF that the deferral of payments will result in the school district being unable to meet its expenditure obligations for the month of deferral or any subsequent month until the deferred apportionment is paid.
Subject to the approval of the Department of Finance (DOF), in order for a charter school to be exempt from the apportionment deferrals, its charter authorizer must certify, in consultation with the county superintendent of schools, to the State Superintendent of Public Instruction and DOF that the deferral of payments will result in the charter school being unable to meet its expenditure obligations for the month of deferral or any subsequent month until the deferred apportionment is paid.
Information Required by the Application
As indicated in the application, the following information is required to submit a completed application.
Estimated Amount of Deferred Funds Necessary
All applicants must provide an estimate of the amount of deferred funds necessary in each month, February through June as applicable for the application window, for the applicant to meet its expenditure obligations for the period that payments are deferred.
If approved for the June deferral exemption, the applicant will receive the lesser of (1) the amount approved based on the amount of deferred funds requested for the month(s) for which an LEA requests an exemption to meet its expenditure obligations or (2) the total Principal Apportionment payment the LEA is entitled to receive for that month. After the DOF approves the applications for exemption, the CDE will post the list of exempted agencies.
Cash Flow Projection
All applications must be accompanied by a cash flow projection for the months indicated in the applicable application document. The cash flow should meet the following requirements:
- Assume all enacted deferrals (the full Principal Apportionment payment for the month of June is deferred to July).
- Include only those expenditure obligations that must be paid.
- Recognize the inflow and repayment of all sources of borrowing.
Education Protection Account (EPA) payments are not subject to deferral. EPA payments will continue to be issued on a quarterly basis in fiscal year 2020-21.
LEAs should use the information available on the Principal Apportionment Payment Schedule web page to ensure the accuracy of the cash flow projections submitted with its application. Other helpful information, including estimated cash flow schedules, may be found in the Categorical Programs web page.
All applicants must submit the documentation and information needed by the county superintendent of schools or chartering authority, as applicable, to complete and certify the applications. This information may include a narrative explanation for the amounts requested and documentation indicating that the applicant has exhausted all internal and external sources of borrowing.
Submitting the Application
A school district must submit the application and required documentation to its county superintendent of schools. The county superintendent of schools must review for accuracy, provide comments as appropriate, and certify the application and required documentation.
A charter school must submit the application and required documentation to its chartering authority. The chartering authority must consult with its county superintendent of schools in reviewing for accuracy, certifying, and submitting the applications.
Applications that are submitted without the required certification will not be accepted. Applications must be submitted in Excel format.
The application for the June deferral exemption is due no later than April 1, 2021. The application for the February through May deferral exemptions was due by December 15, 2020.
Applications and supporting documentation submitted to DeferralExemption@cde.ca.gov will be considered submitted to both the California Department of Finance and the California Department of Education.
Resources and Legal References
- Estimated Cash Flow Schedule and Entitlements for select Categorical Programs
- Principal Apportionment Payments
- Fiscal Crisis and Management Assistance Team Projection-Pro Cash Flow Projection Software
- California Education Code Section 14041.5, 14041.6, 14041.8, 42620.1, 42621, and 42622
- California Government Code Section 53850 through 53858
- California Constitution, Article XVI, Section 6