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California Department of Education
Official Letter
California Department of Education
Official Letter
August 13, 2021

Charter School Superintendents, County and District Superintendents, and County and District Chief Business Officers:

CHARTER SCHOOL FUNDING FOR NONCLASSROOM-BASED INSTRUCTION FOR FISCAL YEAR 2021–22

This letter serves to notify existing charter schools that have not previously had a funding determination and that are offering nonclassroom-based (NCB) instruction (i.e., independent study) for the 2021–22 fiscal year, of the reporting requirements to receive funding for NCB average daily attendance (ADA).

Existing charter schools that have not previously had a funding determination but anticipate providing a combination of both classroom-based and NCB instruction in fiscal year 2021–22 should be aware that a funding determination is required to receive Local Control Funding Formula (LCFF) funding for their NCB ADA if their classroom-based ADA falls below the 80 percent minimum in accordance with California Education Code (EC) Section 47612.5(e)(1). Pursuant to EC Section 47612.5(d), charter schools must receive an approved funding determination from the State Board of Education (SBE).

Charter schools with classroom-based ADA to NCB ADA ratios projected near the 80 percent minimum may obtain a funding determination to ensure against LCFF funding impacts should they unexpectedly fall below the 80 percent minimum. Due to the continuing COVID-19 pandemic, the California Department of Education (CDE) recognizes that some schools may see an unanticipated demand for additional independent study, which charter schools should take into consideration when evaluating whether to seek a funding determination to avoid any potential future fiscal impacts. Charter schools should work with their authorizers to determine if offering an independent study program in the 2021–22 school year is a material change, which could require a material revision to the charter petition.

Upon receipt of a complete funding determination form, the CDE shall review and present the funding determination request to the Advisory Commission on Charter Schools (ACCS) and the SBE, pursuant to California Code of Regulations, Title 5 (5 CCR) Section 11963.4(a). Funding determination requests will be agendized according to the table below. The following deadlines provide CDE staff adequate time to review all funding determination forms received as well as allow the requests to be heard first at the ACCS meeting occurring the month before each SBE meeting. Waivers to submit funding determination requests after the below deadlines will not be required for existing classroom-based charters seeking a new funding determination:

Deadline for CDE Receipt of Funding Determination Form

ACCS Meeting

SBE Meeting

October 1, 2021

December 14, 2021

January 12–13, 2022

December 1, 2021

February 8, 2022

March 9–10, 2022

February 1, 2022

April 12, 2022

May 18–19, 2022


Pursuant to 5 CCR Section 11963.6(c), determination of funding requests approved by the SBE for existing nonclassroom-based charter schools shall be prospective (not for the current year) and shall be submitted in the fiscal year prior to the year the funding determination will be effective. This requirement does not apply to classroom-based charter schools; existing classroom-based charter schools are not required to submit a funding determination request prior to the year the funding determination will be effective. However, charter schools may experience significant fiscal impacts to their LCFF funding if funding determination requests are not submitted timely. Existing charter schools seeking funding for their NCB ADA for the 2021–22 school year must have a funding determination approved by the SBE by its January 2022 meeting. If a funding determination is not approved by the SBE by its January 2022 meeting, beginning with the First Principal (P-1) Apportionment for fiscal year 2021–22, the CDE will not disburse LCFF funds to charter schools based on its NCB ADA. In order to receive disbursement of LCFF funds for NCB ADA for the Second Principal (P-2) Apportionment, funding determinations must be approved by the SBE by its May 2022 meeting.

In the above scenario, funding may be adjusted after funding determinations are approved. However, any funding withheld at the P-2 Apportionment will not be adjusted until the following fiscal year P-1 Apportionment certified in February 2023. Additionally, the charter schools’ 2022–23 Advance Apportionment funding will be impacted. Other ADA-driven funding for charter schools, such as lottery funding, may also be impacted. More information about the Principal Apportionment processes and timelines can be found on the CDE Fiscal Calendars web page at http://www.cde.ca.gov/re/ca/fc.

Information and instructions for completing the NCB funding determination form are available on the CDE NCB Determination of Funding web page at http://www.cde.ca.gov/sp/ch/nclrbifunddet.asp. The CDE will consider a filing as timely when the completed and signed electronic copy of the funding determination request is received by email at Charter-SB740@cde.ca.gov by the applicable due date. It is not necessary to mail a signed hardcopy of the NCB funding determination form to the CDE.

Questions regarding implications to LCFF funding for charter schools’ NCB ADA should be directed to the School Fiscal Services Division by email at pase@cde.ca.gov. All other questions regarding the completion and submission of the funding determination form should be directed to the Charter Schools Division by email at charter-sb740@cde.ca.gov.

Sincerely,

/s/

Stephanie Farland, Director
Charter Schools Division

Elizabeth Dearstyne, Director
School Fiscal Services Division

SF/ED:mh
Last Reviewed: Friday, August 13, 2021

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