Calculations to Determine 2022–23 P-2

Principal Apportionment Highlights | 2021–22 ADA Loss Mitigation | LCFF Entitlement | Basic Aid Inter-district | Basic Aid Supplement | AICF | Special Education | Infant | Mental Health Services | Early Intervention Preschool Grant | Expanded Learning Opportunities Program | County Funding Transfer | Other State Aid | HTSTR | Charter Special Advance | Charter Overpayments | Payment Schedule | Resources

The California Department of Education (CDE) certified the Second Principal Apportionment (P-2) for fiscal year (FY) 2022–23 on June 19, 2023, pursuant to California Education Code (EC) Section 41335. The following provides specific details regarding the calculation of funding for each Principal Apportionment component.

Local educational agency (LEA) funding calculations are available through the Principal Apportionment Funding Exhibits. In addition to certifying the 2022–23 P-2 funding calculations, FYs 2021–22 First Annual Recertification (Annual R1) and 2020–21 Third Annual Recertification (Annual R3) have been recalculated, as well as other prior years, as necessary. The cumulative amount of prior year adjustments is reflected on Line A-21 of the 2022–23 P-2 Principal Apportionment Summary (XLSX), and further detailed on the Adjustments and Prior Year Recomputations (XLSX) file. For more information about these adjustments and other resources, please see the Resources for Understanding Principal Apportionment Entitlements and Payments section below.

2022–23 Principal Apportionment Highlights

Each year, there may be statutory or administrative changes to Principal Apportionment calculations. Notable changes for FY 2022–23, based on various provisions of Assembly Bill (AB) 181 (Chapter 52, Statutes of 2022) and AB 185 (Chapter 571, Statutes of 2022) are as follows:

• 2021–22 Annual R1 entitlements for the Local Control Funding Formula (LCFF) include adjustments to average daily attendance (ADA) pursuant to EC Section 42238.023, implemented as part of the 2022–23 Budget, also known as 2021–22 ADA Loss Mitigation.
• Effective FY 2022–23, school district funded ADA for the LCFF has changed from the greater of current or prior year reported ADA to the greater of current, prior, or the average of the three most recent prior years’ ADA.
• School district and charter school 2022–23 LCFF entitlements include the following:
  • A statutory cost of living adjustment (COLA) of 6.56 percent;
  • A 6.70 percent adjustment to the LCFF base grant rates, pursuant to EC Section 42238.02(d)(5) (statutory COLA and this adjustment are applied separately from each other to the FY 2021–22 base grant rates such that it is a cumulative and not compounded percentage increase);
  • Add-on funding of $2,813 per each unit of Transitional Kindergarten (TK) reported ADA.
• Necessary Small School (NSS) funding has been updated, effective FY 2022–23 to reflect changes made to EC sections 42280, 42282, 42284, and 42287:
  • NSSs will generate funding based on the greatest allowance using current, prior, or the average of the three most recent prior years’ NSS data;
  • The greatest allowance for each NSS will now be determined at the school level instead of the district in aggregate;
  • Allowances for necessary small elementary and high schools have been updated.
• LCFF entitlements for County Offices of Education (COEs) have been modified, effective FY 2022–23 to include the following:
  • County Operations Grant rates increases;
  • An adjustment to LCFF Floor and Minimum State Aid Guarantee for COLA calculated in the LCFF Target;
  • A base allowance of $200,000 for COEs in single-district counties as part of the County Funding Based on Districts Identified for Differentiated Assistance;
  • Authority for additional state aid based on charter schools identified for differentiated assistance. For FY 2022–23 the amount is zero because charter schools are not eligible to be identified for differentiated assistance in 2022.
• Special Education Funding AB 602, pursuant to AB 181 and Budget Bill Senate Bill (SB) 164, has been modified effective FY 2022–23, to include the following changes:
  • An additional $500 million provided to increase the base rate to $820 per ADA. The base rate includes 6.56 percent COLA. Special Education Local Plan Areas (SELPAs) that have a base rate greater than $820 per ADA in 2021–22 will continue to be funded at their SELPA base rate;
  • Funded ADA and Base Grant Entitlement are calculated at the LEA level, and not at the SELPA level. Charter schools that are an LEA for the purpose of special education will now have Funded ADA and Base Grant Entitlement exhibits;
  • Prior year and second prior year ADA is attributed to the charter school when the charter school becomes an LEA for the purpose of special education in the current fiscal year and is removed from the previous LEA’s prior year and second prior year ADA. Adjustments are made on Line A-11 of the new SELPA LEA AB 602 ADA exhibit.
• The 2022–23 P-2 includes funding for the Home-to-School Transportation Reimbursement (HTSTR) funding. See HTSR section for detail.

The 2022–23 Education Protection Account (EPA) revenue amount used for the P-2 calculation of EPA entitlements is significantly lower than the estimated EPA revenue amount used to determine payments made through the Third Quarter. As a result, many LEAs have been overpaid and will see a significant reduction in their Fourth Quarter EPA entitlement. See EPA section for additional details.

2021–22 ADA Loss Mitigation

LCFF entitlement calculations for 2021–22 Annual R1 include adjustments to 2021–22 reported ADA based on provisions of EC Section 42238.023, when the following criteria are met:

• The 2019–20 ADA yield exceeds the 2021–22 ADA yield, calculated by dividing each fiscal year’s ADA by enrollment, capped at value of 1.00.
• School districts and COEs certify that they met the 2021–22 independent study requirements, as applicable.
• Charter schools are determined to be classroom-based as of the 2021–22 Second Principal Apportionment certification.
  • List of Nonclassroom-based Charter Schools based on the 2021–22 Second Principal Apportionment (XLSX)

To accommodate the 2021–22 ADA Loss Mitigation, the 2021–22 Annual certification includes new funding exhibits. See the 2021–22 ADA Loss Mitigation Reference Guide (DOCX) for additional information.

Note that calculations of school district funded ADA for FY 2022–23 and after, as applicable, use the 2021–22 ADA adjusted for ADA Loss Mitigation.

LCFF Entitlement and State Aid – All Local Educational Agencies

The calculation of LCFF state aid shown on lines A-1, A-2, and A-3 of the Principal Apportionment Summary can be found on the County LCFF Calculation, School District LCFF Calculation, and Charter School LCFF Calculation exhibits, respectively.

For all LEAs, LCFF state aid is determined by subtracting local property taxes (or in-lieu of property taxes for charter schools) and the 2022–23 Education Protection Account (EPA) Entitlement from the LCFF Entitlement. If applicable, the LCFF state aid is increased to reach the LCFF minimum level of state aid required by law, and includes additional LCFF state aid for COEs as specified below.

LCFF Entitlement

For school districts and charter schools, the LCFF Entitlement is primarily comprised of grade span specific per-ADA base grants, plus supplemental and concentration grant funding based on the Unduplicated Pupil Percentage (UPP) of targeted disadvantaged students.

The LCFF Entitlement for COEs funded at the LCFF Target is comprised of an Operations Grant based on the student and LEA populations of the county, and an Alternative Education Grant based on a specific student population served by the COE. COEs that received revenue limit and categorical program funding at a higher level than their LCFF Target entitlement are subject to the hold harmless provisions that hold their funding at the 2012–13 levels, adjusted by current year Alternative Education Grant ADA, until their LCFF Target grows and surpasses the 2012–13 funding levels. These calculations comprise the LCFF Floor which is used in lieu of the LCFF Target for determination of the LCFF Entitlement for COEs funded on the “hold harmless” provisions of EC Section 2575(g)(2).

Descriptions of the LCFF components are available on the LCFF Overview web page. The details of each LEA’s LCFF Entitlement are displayed on the School District LCFF Calculation, Charter School LCFF Calculation, and County LCFF Calculation exhibits. All applicable current year funding rates used in the calculations are available on the Funding Rates and Information web page.

Unduplicated Pupil Percentage

The UPP is a percentage based on three years of data (current, prior, and second prior year). The UPP is not an average of each year’s percentage; rather, the sum of the unduplicated pupil count (UPC) for the three years is divided by the sum of enrollment for the three years to produce the current year’s UPP. In the subsequent years, the newest year will be added and the oldest will be dropped off.

The data used to determine the UPP were collected by the CDE in the California Longitudinal Pupil Achievement Data System (CALPADS) 2022–23 Fall 1 data collection. CALPADS Fall 1 data certified as of the close of the final amendment window (January 27, 2023), was used for the 2022–23 P-2 UPP calculations. Subsequent changes to CALPADS counts for LCFF can only be submitted through the audit process.

The CALPADS data used to determine each LEA’s UPP also reflects transfers reported in CALPADS for students that are served by the COE and funded based on the LCFF of the district of residence, as well as transfers for charter school students who are funded through the LCFF COE formula. The Report of Attendance and CALPADS Enrollment/Unduplicated Pupil Count Transfers for District Funded County Program Students (XLSX) file shows the District Funded County Program ADA reported by COEs by district of residence and CALPADS enrollment and unduplicated pupil count transfers as of the amended CALPADS Fall 1 report. Similarly, the Report of Attendance and CALPADS Enrollment/Unduplicated Pupil Count Transfers for County Program Charter School Students (XLSX) file shows the Charter Served, County Funded ADA reported by the charter schools and CALPADS enrollment and UPC transfers. The CDE published a series of Frequently Asked Questions on the transfer of enrollment and unduplicated pupils, as well as the flow of funds under LCFF for these students.

Details of the UPP calculations are displayed on the County Unduplicated Pupil Percentage, School District Unduplicated Pupil Percentage, and Charter School Unduplicated Pupil Percentage exhibits.

Necessary Small School Allowance

If applicable, the NSS Allowance and NSS ADA are taken into account for the School District LCFF Entitlement exhibit. ADA funded through the NSS formula is excluded from the Base Grant Funding but is included for purposes of Supplemental and Concentration Grant calculations. The CDE calculated the NSS Allowance for the LCFF Entitlement based on the NSS Funding Band amounts for the applicable FY. The CDE also calculated the NSS Allowance for the EPA Proportionate Share calculation based on the 2012–13 Deficited NSS Funding Band amounts, adjusted for COLA. For both calculations, the allowance is based on the combination of ADA and the number of full-time teachers for elementary schools, or the number of full-time equivalent certificated employees for high schools, whichever provides the lesser allowance. Additional details can be found on the School District Necessary Small Schools Allowance exhibit.

To incorporate the changes to the NSS funding, commencing with FY 2022–23, the School District Necessary Small Schools Allowance exhibit has been updated to show the new calculations and updated funding bands for NSS allowance.

Add-on Amounts

School district and COE LCFF Entitlements include, if applicable, add-on funding based on three 2012–13 programs: Targeted Instructional Improvement Block Grant, Home-to-School Transportation, and Small School District Bus Replacement Program. School district and charter school LCFF Entitlements include, if applicable, Economic Recovery Target (ERT) add-on funding and TK add-on funding. ERT is based upon a calculation done in 2013–14 that determined if the LEA would have generated a higher entitlement under the revenue limit/categorical funding model rather than the LCFF model. TK add-on funding, newly added in FY 2022–23, is based on current year ADA reported for students enrolled in TK for school districts and charter schools.

Minimum State Aid Guarantee

Some LEAs receive additional state aid to meet the level of the statutory minimum guarantee based on 2012–13 funding, known as Minimum State Aid Guarantee. The additional state aid to meet the Minimum State Aid Guarantee is added to the school district, charter school or COE LCFF State Aid, as applicable.

Effective fiscal year 2022–23, the Minimum State Aid Guarantee for COEs is adjusted by the COLA amount calculated in the LCFF Target for COEs without excess local revenues, as shown on the County LCFF Calculation exhibit, Section D.

Additional COE LCFF State Aid

EC Section 2575.1, effective as of the 2017–18 FY, provides each COE funded at the LCFF Target as of the 2016–17 P-2 additional LCFF state aid based on the number of school districts under its jurisdiction, or a statutory minimum. Details of the funding calculation can be found in the County LCFF Calculation exhibit.

EC Section 2575.2 provides all COEs with $200,000 in additional LCFF state aid, plus an allowance for each COE with more than one school district under its jurisdiction based on the number and size of school districts identified for differentiated assistance pursuant to EC Section 52071. Details of the funding calculation can be found in the County Funding Based on Districts Identified for Differentiated Assistance exhibit. The assistance status for each school district is available in the 2022 LCFF COE/District Assistance Status Spreadsheet on the Local Control Funding Formula web page.

LCFF State Aid pursuant to EC Section 2575.1 and EC Section 2575.2 represents a portion of a COE’s overall LCFF State Aid and is included in standardized account code structure (SACS) Object Code 8011.

Class Size Penalties

Class Size Penalties (CSP) are financial penalties applied to a school district’s LCFF Entitlement for exceeding the average class size maximums in kindergarten and grades one through eight. The provisions governing the calculation of CSP are not the same as the conditions of apportionment for the LCFF K–3 Grade Span Adjustment. The penalties calculated for CSP are found on Line F-2 of the Class Size Penalties exhibit and are applied through the Miscellaneous Adjustments, Line H-2, and Minimum State Aid Adjustments, Line J-5, of the School District LCFF Calculation exhibit. The CSP section of the PADC User Manual file provides detail on how the penalties are calculated and on the distinction between the CSP and LCFF K–3 Grade Span Adjustment.

In-lieu of Property Taxes

In-lieu of property taxes have been calculated for FY 2022–23 as well as recalculated for FYs 2020–21 and 2021–22 to reflect revised ADA and sponsoring school district tax per ADA rates. Total in-lieu of property taxes for each charter school is shown on Line I-4 of the Charter School LCFF Calculation exhibit. Countywide charter schools, county program charter schools and charter schools approved on appeal by the State Board of Education may have multiple sponsoring school districts, as defined in EC Section 47632(i). A summary of the in-lieu of property taxes for these charter schools is shown on the ADA and In-lieu of Property Taxes by District of Residence (XLSX) file. Details of the calculation are provided in the Local Revenue Detail by District of Residence exhibit. In-lieu of property taxes are final as of the third annual recertification.

Since the sponsoring school district is not always the same as the authorizing entity, a complete list of charter schools included in the Principal Apportionment is published with each certification to identify the authorizer, sponsoring school district(s), petition type, and petition expiration date for each charter school included in the Principal Apportionment. The Excel file, titled Charter Schools in the 2022–23 Second Principal Apportionment (XLSX) is available on the 2022–23 P-2 Funding Excel Files web page.

Education Protection Account Entitlement

EPA revenues, as authorized by Section 36 of Article XIII of the California Constitution, are generated by increases in personal income tax rates for upper-income taxpayers. LEAs will receive quarterly EPA payments through the 2030–31 FY, paid outside of the Principal Apportionment.

Due to the significant decrease in 2022–23 EPA revenue, many LEAs have been overpaid. Overpaid funds will be recovered from an offset of the 2022–23 P-2 Apportionment payment and by invoice if Principal Apportionment funds are insufficient. LEAs that are due a Fourth Quarter EPA payment will not receive a payment in June, and will likely be deferred to no later than August 2023. However, this is contingent on forthcoming statute. For additional information on the 2022–23 P-2 EPA calculations, refer to the EPA FY 2022–23 Fourth Quarter Apportionment Letter.

For the purpose of calculating EPA entitlements, revenue limit rates for school districts and charter schools were increased by the 2022–23 COLA of 6.56 percent.

Details of the EPA calculations are displayed on the Education Protection Account Calculation exhibit. EPA entitlements are also displayed on the County LCFF Calculation, School District LCFF Calculation, and Charter School LCFF Calculation exhibits, and are shown for informational purposes on the Principal Apportionment Summary.

For additional information on EPA and quarterly payments to LEAs, visit the CDE’s EPA web page.

Basic Aid Choice and Basic Aid Court-Ordered Voluntary Pupil Transfer

The Basic Aid Choice and Basic Aid Court-Ordered Voluntary Pupil Transfer programs are inter-district attendance programs that provide state aid to basic aid (excess tax) school districts that are serving students from non-basic aid districts. The calculation of state aid shown on lines A-4 and A-5 of the Principal Apportionment Summary can be found on the School District Basic Aid Choice Calculation and School District Basic Aid Court-Ordered Voluntary Pupil Transfer Calculation exhibits, respectively.

2022–23 P-2 Statewide Totals

Basic Aid Supplement Funding (Charter School Adjustment)

The School District Basic Aid Supplement program provides to basic aid (excess tax) school districts supplemental funding for the loss of local property taxes due to charter schools that provide instruction to nonresident (out-of-district) students. The calculation of state aid shown on Line A-7 of the Principal Apportionment Summary can be found on the School District Basic Aid Supplement Calculation and School District Basic Aid Supplement Funding exhibits. The statewide total amount for this program at P-2 is $40,685,558.

Adults in Correctional Facilities

The Adults in Correctional Facilities (AICF) program provides funding on a reimbursement basis to eligible LEAs that offer schools and classes for adults in correctional facilities. The calculation of state aid shown on Line A-8 of the Principal Apportionment Summary can be found on the Adults in Correctional Facilities Funding exhibit.

Funding for the 2022–23 AICF program is based on the LEA’s prior year AICF entitlement, plus an increase or decrease in funding based on the ADA funded in the prior year compared to the ADA funded in the second prior year. Decreases in ADA are multiplied by the LEA-specific prior year funded rate per ADA, while increases in ADA and COLA are funded at a statewide average rate for the program. For most LEAs, ADA growth is capped at 2.5 percent. Growth and COLA funding may be prorated if there are insufficient funds.

The 2022–23 Budget Act appropriates $8,136,000 for the AICF program, which was sufficient to fully fund the program at P-2.

Special Education Funding AB 602

The Special Education Program, also known as AB 602, provides funding to SELPAs based on the SELPA’s ADA and other data elements. Funding for the Extraordinary Cost Pool Claims Process (ECP) and the Necessary Small SELPAs’ Extraordinary Cost Pool for Mental Health Services Process (NSS ECPMH) is not calculated until the Annual Apportionment.

The calculation of state aid shown on Line A-9 of the Principal Apportionment Summary can be found on the SELPA Special Education Funding Exhibit, SELPA Special Education Funding Exhibit – LA Court, and SELPA Special Education Funding Exhibit – Charter SELPA exhibits. The Special Education AB 602 ADA and SELPA's memberships information can be viewed on the Special Education web page.

To incorporate the recent changes as a result of the amendments enacted by AB 181, P-2 includes the following new special education exhibits:

• SELPA LEA AB 602 ADA (LEA level):
  • Calculate funded ADA for each LEA (greater of current year, prior year, or second prior year ADA)
• SELPA Total AB 602 ADA:
  • Aggregate ADA to SELPA total
• SELPA Base Grant Funding (LEA level):
  • Determine funded base rate for each LEA
  • Calculate base grant entitlement for each LEA

The add-on special education programs also received an increase of 6.56 percent COLA. Funding rates are available on the Funding Rates and Information web page. The 2022–23 Budget Act appropriates $4,488,775,000 for the program, which is sufficient to fully fund the program at P-2.

Special Education Out-of-Home Care

The Out-of-Home Care (OHC) Program provides funding to SELPAs for foster youth enrollment and pupils residing in facilities located within each SELPA’s geographic boundaries. The calculation details for OHC funding is a component of the AB 602 entitlement.

At P-2, actual prior year Annual data and current year funding rates were used to determine funding. Funding rates are available on the Funding Rates and Information web page. At Annual, funding will be updated to reflect current year data and each SELPA’s funding will be adjusted. The 2022–23 Budget Act appropriates $151,027,000 for the program.

AB 602 State Aid Adjustments and Prior Year Recomputations

2021–22 Annual R1

The 2021–22 appropriation of $3,938,366,000 provided for Special Education AB 602 program was sufficient to fully fund the program at Annual R1. The OHC Annual R1 entitlements were updated to include pupil counts for additional types of community care facilities that were not included in the 2021–22 Annual certification, February 17, 2023. The 2021–22 appropriation of $148,328,000 was sufficient to fully fund the program at Annual R1.

Funding for the ECP Program was insufficient to fully fund the program, and a proration factor at Annual R1 is the same as Annual, 0.2062031586. Funding for the NSS ECPMH Program was fully funded at Annual R1.

2020–21 Annual R3

The 2020–21 AB 602 appropriation was sufficient to fully fund the program at Annual R3. There were no changes to the 2020–21 OHC, ECP, and NSS ECPMH programs from Annual R2 to Annual R3.

Special Education Infant (Ages Two and Younger) Program

The Infant Program provides funding for SELPAs that operate early education programs for individuals with exceptional needs who are younger than three years of age. The calculation of state aid shown on Line A-10 of the Principal Apportionment Summary can be found on the Infant Entitlement exhibit.

The 2022–23 Budget Act appropriates $84,886,000 for the Infant Program, which is sufficient to fully fund the program at P-2. The statewide average unit rates and COLA information is available on the Funding Rates and Information web page.

Prior year adjustments are included on Line A-21 of the Principal Apportionment Summary and details are displayed on the Adjustments and Prior Year Recomputations (XLSX) file.

Special Education Mental Health Services

The 2022–23 Budget Act appropriates $422,334,000 for Mental Health Services. Funding for the program continues to use the ADA reported for the SELPA for the 2019–20 P-2 fiscal year. The mental health rates per ADA are $0.5272775220 for the Los Angeles County Court and $71.5833553563 for all other SELPAs, as shown on the Funding Rates and Information web page. The calculation of state aid shown on Line A-11 of the Principal Apportionment Summary can be found on the Mental Health Services exhibit.

Special Education Early Intervention Preschool Grant

The 2022–23 Budget Act appropriates $260,000,000 for the Early Intervention Preschool Grant. Funding for each school district is based on the 2022–23 CALPADS Fall 1 pupil counts for grade 1 with exceptional needs. CALPADS Fall 1 data certified as of the close of the final amendment window (January 27, 2023), was used for 2022–23 P-2. The per pupil rate was recalculated from $6,075.7593329046 at P-1 to $6,165.8124909273 at P-2, as shown on the Funding Rates and Information web page. The calculation of state aid shown on Line A-12 of the Principal Apportionment Summary can be found on the Early Intervention Preschool Grant exhibit.

Expanded Learning Opportunities Program

The total appropriation for the 2022–23 Expanded Learning Opportunities (ELO) Program is $4 billion, as provided in Item 6100-110-0001 of the 2022–23 Budget Act. Of the total $4 billion, $5 million is allocated outside of the Principal Apportionment to COEs to provide technical assistance, evaluation, and training services to support program improvement, pursuant to EC Section 46120(d)(8). The total appropriation to eligible school districts and charter schools at P-2 is $3,995,000,000.

The calculation of state aid shown on Line A-13 of the Principal Apportionment Summary can be found on the Expanded Learning Opportunities Program exhibit.

The ELO Program Entitlement calculation is based on each eligible LEA’s classroom-based kindergarten through sixth grade (TK/K–6) ADA and UPP as of the 2021–22 certified P-2 apportionment in June 2022. Nonclassroom-based ADA, including full-time traditional and course-based independent study ADA, are excluded. Funding rates are available on the Funding Rates and Information web page.

County Funding Transfer Process

The calculations for the transfer of funds shown on Line A-14 of the Principal Apportionment Summary can be found on the County Transfer of Funds for County Served District Funded ADA exhibit for COEs and School District Transfer of Funds for County Served District Funded ADA exhibit for school districts.

The CDE calculates the transfer of funds in accordance with EC Section 2576, which requires the CDE to transfer funds from a school district of residence to a COE for all ADA served by the COE and not eligible for funding under the COE Alternative Education Grant. LCFF funding for this ADA is credited to the district of residence as part of its LCFF Entitlement, and is used to determine the school district’s LCFF State Aid. The amount transferred to the COE is equal to the ADA attributed to the district of residence multiplied by the district’s LCFF rate, comprised of the LCFF base, supplemental and concentration grant per ADA, unless the COE and the district of residence agree on an alternative amount.

To account for this transfer in SACS, school districts will use Object Code 7142 (Other Tuition, Excess Costs, and/or Deficit Payments to County Offices) to record the payment to COEs. COEs will use Object Code 8710 (Tuition) to record the receipt from districts. All LEAs will use the unrestricted Resource Code 0000.

To help understand the basis for the transfers, the CDE has published a series of Frequently Asked Questions on the transfer of enrollment and unduplicated pupil counts in CALPADS and the flow of funds under the LCFF for students served by a COE for which the funding is allocated to the district of residence. Additionally, the Report of Attendance and CALPADS Enrollment/Unduplicated Pupil Count Transfers for District Funded County Program Students (XLSX) file provides a summary of ADA and pupil counts by district of residence.

Other State Aid

Other State Aid is shown on line A-15 of the Principal Apportionment Summary. Total Other State Aid allocated at 2022–23 P-2 includes $5,500,000 for the following items:

• Ongoing funding pursuant to AB 104 (Chapter 13, Statutes of 2015)
• Ongoing funding pursuant to AB 130 (Chapter 44, Statutes of 2021)

Home-to-School Transportation Reimbursement (HTSTR)

HTSTR funding was added to the Principal Apportionment by AB 181 (Chapter 52, Statutes of 2022), as amended by AB 185 (Chapter 571, Statutes of 2022). It provides reimbursement funding for school districts and COEs based on the prior year eligible transportation expenditures and prior year LCFF Add-on amounts based on two former transportation funding programs. The 2022–23 P-2 includes the first apportionment in the amount of $585,699,186, as shown on Line A-16 of the Principal Apportionment Summary.

The new Home-to-School Transportation Reimbursement exhibit provides details on the funding calculation. LEAs should use unrestricted resource 0000 and object revenue code 8590 to record the receipt of funds.

In order for eligible LEAs to retain the HTSTR funding, the LEA’s governing board must adopt a transportation services plan on or before April 1, 2023. For additional information, including funding formula and accounting details, refer to the answers to frequently asked questions at the Home-to-School Transportation Reimbursement web page.

Charter Special Advance Payments

New or Expanding Charter Advance Payments shown on Line A-17 of the Principal Apportionment Summary are the total payments made in the First and Second Charter School Special Advance Apportionments as a result of the data submitted in the Pupil Estimates for New or Significantly Expanding Charters (PENSEC) and Charter School 20 Day Attendance (20 Day) reports. The PENSEC and 20 Day reports provide estimated and actual attendance data, respectively, for newly operational charter schools and charter schools that are expanding to add one or more grade levels.

School District Advance Payments of In-lieu Property Tax Transfers for New or Expanding Charter Schools, Line A-18 of the Principal Apportionment Summary, are the total in-lieu of property tax payments made to school districts at the First and Second Special Advance Apportionments based on the PENSEC and 20 Day charter school data used in the apportionment calculations.

See the CS Special Advance Apportionment, FY 2022–23 web page for information on the First and Second Charter School Special Advance apportionments.

Charter School Overpayments

Funding adjustments for charter schools are displayed on lines A-19 and A-20 of the Principal Apportionment Summary. Line A-19, Amount Charter Overpaid, includes amounts overpaid based on calculations in the current period, i.e., when payments received to date exceed annualized funding in the current period. Line A-20, PY Amount Charter Overpaid, includes overpayments not collected in the prior year that are brought forward and reduce the charter school’s current year LCFF State Aid apportionment payments. Overpayments typically result from changes between periods in ADA, local property taxes (in-lieu of property taxes for charter schools), or other data used in the apportionment calculations. In some cases, an invoice will be sent directly to the charter school to recover the overpayment.

Payment Schedule

The June payment, calculated with the P-2 Apportionment, reflects the final principal apportionment payment for the fiscal year. A summary of the data is available at the county level and by LEA. As a result of the 2022−23 EPA revenue reduction, many LEAs may have a significantly higher P-2 payment than expected. Overpaid EPA funds will be recovered from an offset of the P-2 Apportionment payment where possible, as displayed on the payment schedules. For additional information on the 2022–23 P-2 EPA calculations, refer to the EPA FY 2022–23 Fourth Quarter Apportionment Letter. For more information on the payment schedule, including monthly payment percentages, refer to the Principal Apportionment Payment Schedule web page.

Resources for Understanding Principal Apportionment Entitlements and Payments

The following resources are available to LEAs to help with understanding the calculation of Principal Apportionment program entitlements:

• Principal Apportionment Funding Exhibits
  Detailed entitlement calculations by LEA for each Principal Apportionment program.
• 2022−23 Funding Rates and Information
  Provides 2022−23 FY funding rates and other information used in the calculation of funding for Principal Apportionment programs.
• Funding Excel Files
  Below is a summary of notable Excel files applicable to most LEAs:
  • Principal Apportionment Summary (XLSX)
    Reflects an LEA’s total state aid for all programs included in the Principal Apportionment, including prior year adjustments. This forms the basis for determining an LEA’s monthly payments.
  • Adjustments and Prior Year Recomputations (XLSX)
    Detail by LEA, FY, and program of the adjustments and prior year recomputations reflected on Line A-21 of the Principal Apportionment Summary.
  • Payment Schedule Summary - LEA detail (XLSX)
    Provides an LEA’s Principal Apportionment payment for the month of June. The P-2 payment is based on the total P-2 Principal Apportionment amount, net of payments to date. Payment information , including offsets, is available on the State Controller’s (SCO) website, as well as estimated payment dates (XLSX).
  • Charter Schools in the 2022–23 Second Principal Apportionment (XLSX)
    List of charter schools that appear on the Principal Apportionment Summary by authorizing entity and sponsoring school district for FY 2022–23 P-2.
• LCFF Summary Data
  A high-level summary of the main LCFF funding components for each LEA, including base, supplemental, and concentration grant funding amounts. Details of the funding are also available in each funding exhibit.