LtrQ4-13: EPA Payment Letter, FY 13-14 Q4

June 18, 2014

Dear County Superintendents of Schools:

Notice of the Fourth Quarterly Apportionment for the
Education Protection Account Fiscal Year 2013–14

This apportionment, in the amount of $2,105,072,267, 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 revised 2013–14 EPA revenue estimate of approximately $6.3 billion, the California Department of Education (CDE) recalculated EPA entitlements using a factor of  21.0317 percent based on the statewide total of adjusted revenue limits and charter school block grant funding, as of the 2013–14 Second Principal (P-2) Apportionment. 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.

Each local educational agency’s (LEA) 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 unit of average daily attendance (ADA). Additionally, charter schools newly operational in the 2013–14 fiscal year 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.

Fiscal year 2012–13 EPA entitlements became final as of the 2012–13 Annual Apportionment and have not changed from the Third Quarterly Apportionment for the EPA. Any adjustment (positive or negative) in 2012–13 EPA entitlements calculated between 2012–13 P-2 and 2012–13 Annual, has been applied against an LEA’s 2013–14 current year EPA apportionment. For more information on adjustments to the 2012–13 EPA entitlements, refer to the letter dated March 14, 2014, for the Third Quarterly Apportionment, which can be found on CDE’s Web site indicated below. 

This quarterly apportionment equals 100 percent of each LEA’s 2013–14 EPA entitlement, net of 2012–13 adjustments, less any amounts previously apportioned from September 2013 through March 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 by the end of June 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 Principal Apportionment Funding Office 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 sacsinfo@cde.ca.gov.

Sincerely,

Peter Foggiato, Director
School Fiscal Services Division

PF:th