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Apportionment Deferral Requests for Exemption

Applications and instructions for requesting an exemption to the fiscal year 2024–25 Principal Apportionment deferral.

Applications for school districts and charter schools to request an exemption from the Principal Apportionment payment deferral for the 2024–25 fiscal year.

Application for School Districts (XLSX)

Application for Charter Schools (XLSX)

Overview

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 $245,604,000 ($246,604,000 in proposed trailer bill language), which is estimated to be 5.14% of the 2024–25 Second Principal Apportionment (P-2) payment from June 2025 to July 2025. There is no exemption provision for county offices of education.

Exemptions totaling up to $100 million 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. If applications exceed the amount available, payments will be made in the order in which completed applications are received via email at DeferralExemption@cde.ca.gov.

This application is due no later than April 1, 2025.

Application Process

School Districts

Subject to the approval of 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.

Charter Schools

Subject to the approval of 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 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 June 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 of June for the Local Educational Agency (LEA) 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 California Department of Education (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 application document. The cash flow should meet the following requirements:

  • Assume the June to July deferral.
  • 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 2024–25.

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.

Additional Documentation

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

School Districts

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.

Charter Schools

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.

All Applicants

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 by April 1, 2025.

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

Questions:   Fiscal Oversight & Support Office | DeferralExemption@cde.ca.gov
Last Reviewed: Thursday, March 06, 2025
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