2025–26 LCAP Penalty Calculator
You are receiving this message because you have subscribed to the Principal Apportionment (PASE) Listserv.
Assembly Bill 121 (Statutes of 2025) added Education Code 52065.1 to include a financial penalty that is assessed to a local educational agency (LEA) for failing to adopt a Local Control and Accountability Plan (LCAP), or an annual update to an LCAP, by July 1. An initial penalty of twenty percent of the LEA’s second principal apportionment Local Control Funding Formula (LCFF) entitlement will be assessed beginning July 2 for failing to meet this requirement. An additional assessment of one percent of the LEA’s second principal apportionment LCFF entitlement will be applied for each additional day LCAP approval is delayed. County offices of education, school districts, and charter schools will be audited for this requirement beginning in the 2025–26 fiscal year.
The California Department of Education has developed a penalty calculator to estimate the cost of an LCAP audit finding which is now available on the penalty calculators webpage at Penalty Calculators – Local Educational Agency Annual Audits (CA Dept of Education)<www.cde.ca.gov/fg/au/ag/penaltycalc.asp>.
More information regarding LCAP planning, implementation and evaluation can be found on the LCAP Resources<www.cde.ca.gov/re/lc/> web page.
Thank you,
Principal Apportionment Section School Fiscal Services Division
The CDE PASE Listserv provides local educational agencies and other interested parties important information pertaining to various apportionment-related items. If you no longer wish to receive information via the PASE Listserv, please follow the instructions provided on the CDE webpage in the Resources tab located at www.cde.ca.gov/fg/aa/pa/index.asp?tabsection=5#listserv, under the section Principal Apportionment Section (PASE) Listserv. The same web page also provides information for anyone wanting to subscribe to the PASE Listserv.
Assembly Bill 121 (Statutes of 2025) added Education Code 52065.1 to include a financial penalty that is assessed to a local educational agency (LEA) for failing to adopt a Local Control and Accountability Plan (LCAP), or an annual update to an LCAP, by July 1. An initial penalty of twenty percent of the LEA’s second principal apportionment Local Control Funding Formula (LCFF) entitlement will be assessed beginning July 2 for failing to meet this requirement. An additional assessment of one percent of the LEA’s second principal apportionment LCFF entitlement will be applied for each additional day LCAP approval is delayed. County offices of education, school districts, and charter schools will be audited for this requirement beginning in the 2025–26 fiscal year.
The California Department of Education has developed a penalty calculator to estimate the cost of an LCAP audit finding which is now available on the penalty calculators webpage at Penalty Calculators – Local Educational Agency Annual Audits (CA Dept of Education)<www.cde.ca.gov/fg/au/ag/penaltycalc.asp>.
More information regarding LCAP planning, implementation and evaluation can be found on the LCAP Resources<www.cde.ca.gov/re/lc/> web page.
Thank you,
Principal Apportionment Section School Fiscal Services Division
The CDE PASE Listserv provides local educational agencies and other interested parties important information pertaining to various apportionment-related items. If you no longer wish to receive information via the PASE Listserv, please follow the instructions provided on the CDE webpage in the Resources tab located at www.cde.ca.gov/fg/aa/pa/index.asp?tabsection=5#listserv, under the section Principal Apportionment Section (PASE) Listserv. The same web page also provides information for anyone wanting to subscribe to the PASE Listserv.