Second Principal Apportionment Deferral, Fiscal Year 2025–26
Dear School Business Professionals,
We have been asked to forward the following information regarding the Certification of the Second Principal Apportionment for Fiscal Year 2025-26.
Important Deferral Information: Due to the large EPA revenue increase at quarter four and the commensurate reduction in LCFF state aid, CDE has deferred the full P-2 payment from June 2026 to July 2026. County treasurers are estimated to receive warrants for the 2025–26 P-2 Apportionment on July 16, 2026. The total deferral amount listed by LEA is located on the attached Monthly Payment Schedule. Additional information can also be found below. EPA: The 4th Quarter EPA payment will be distributed in June as further detailed below. See attached EPA Payment Schedule.
Please review the impact of the deferral and EPA apportionment on your district’s cash flow for June and July.
As a reminder, for most local educational agencies (LEAs), EPA revenues serve as an offset to the state aid portion of the Local Control Funding Formula entitlement. Because of this increase in EPA revenues, many LEAs have received a significant increase in EPA revenues and an equivalent reduction in state aid. This increase in EPA revenues has led to some LEAs being overpaid as of P-2. These overpayments will be collected via an offset to the 2026-27 Advance Apportionment.
We recommend LEAs consult with their external auditors to confirm the accounting method for the 2025-26 apportionment deferral.
Regards,
School Business Advisory Services Team Santa Barbara County Education Office sbasweb.sbceo.org
Note: This message was sent on behalf of the School Business Advisory Services Team. Please do not respond to this message. Replies will be routed to an unmonitored mailbox.
To unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe>
2025–26 P-2 Apportionment
The 2025–26 Second Principal (P-2) Apportionment has been certified, which includes updated calculations for the 2024–25 First Annual Recertification (Annual R1) and 2023–24 Third Annual Recertification (Annual R3).
The following information is available on the California Department of Education’s (CDE) website at www.cde.ca.gov/fg/aa/pa/pa2526.asp to assist local educational agencies (LEAs) in understanding the components of the 2025–26 P-2 Apportionment:
* Apportionment letter<staging.cde.ca.gov/fg/aa/pa/appt25p2ltr.asp> and accompanying attachment<staging.cde.ca.gov/fg/aa/pa/calc25p2.asp> that describe the funding calculations and available resources. * LEA Funding Detail: * Funding Exhibits<ias.cde.ca.gov/apportionment/PrincipalApportionmentWebExhibit?SchoolYear=2025&ReportType=P2&CertificationType=Non>: Detailed entitlement calculations by LEA for each Principal Apportionment program.
* Excel files<staging.cde.ca.gov/fg/aa/pa/iassf25p2.asp>: * Principal Apportionment Summary, Adjustments and Prior Year Re-computations, Payment Schedules, etc. * The LCFF Fingertip Facts<www.cde.ca.gov/fg/aa/pa/lcffswfacts.asp> has been updated with 2025–26 P-2 data * Statewide LCFF Summary Data<www.cde.ca.gov/fg/aa/pa/lcffsumdata.asp>: Statewide summary data of the main components of the Local Control Funding Formula (LCFF), including base, supplemental, and concentration grants.
* Special Education funding details, including the Special Education Local Plan Area (SELPA) Assembly Bill 602 Average Daily Attendance, are available on the Special Education web page at www.cde.ca.gov/fg/aa/se/index.asp.
2025–26 EPA Fourth Quarter Apportionment
The CDE has also certified the 2025–26 Fourth Quarter Apportionment for the Education Protection Account (EPA). The EPA apportionment letter and payment schedule are available on the CDE website at www.cde.ca.gov/fg/aa/pa/epa.asp.
County treasurers are estimated to receive warrants for the EPA Q4 apportionment on June 24, 2026, and county offices of education should advise school districts and charter schools immediately of this apportionment.
Important Payment Information
The June 2026 payment, calculated with the P-2 Apportionment, reflects the final principal apportionment payment for the fiscal year. Payment details are available on the funding excel files webpage linked above.
Due to the large EPA revenue increase at quarter four and the commensurate reduction in LCFF state aid, the full P-2 payment in the amount of $267,203,387 is deferred from June 2026 to July 2026 for all LEAs except those with an approved deferral exemption. County treasurers are estimated to receive warrants for the 2025–26 P-2 Apportionment on July 16, 2026. LEAs with an approved deferral exemption will see the exemption reflected in the LEA payment schedule, and county treasurers are expected to receive those warrants on June 30, 2026.
County superintendents of schools should advise school districts and charter schools immediately of this apportionment.
Principal Apportionment Section PASE@cde.ca.gov<mailto:PASE@cde.ca.gov>
We have been asked to forward the following information regarding the Certification of the Second Principal Apportionment for Fiscal Year 2025-26.
Important Deferral Information: Due to the large EPA revenue increase at quarter four and the commensurate reduction in LCFF state aid, CDE has deferred the full P-2 payment from June 2026 to July 2026. County treasurers are estimated to receive warrants for the 2025–26 P-2 Apportionment on July 16, 2026. The total deferral amount listed by LEA is located on the attached Monthly Payment Schedule. Additional information can also be found below. EPA: The 4th Quarter EPA payment will be distributed in June as further detailed below. See attached EPA Payment Schedule.
Please review the impact of the deferral and EPA apportionment on your district’s cash flow for June and July.
As a reminder, for most local educational agencies (LEAs), EPA revenues serve as an offset to the state aid portion of the Local Control Funding Formula entitlement. Because of this increase in EPA revenues, many LEAs have received a significant increase in EPA revenues and an equivalent reduction in state aid. This increase in EPA revenues has led to some LEAs being overpaid as of P-2. These overpayments will be collected via an offset to the 2026-27 Advance Apportionment.
We recommend LEAs consult with their external auditors to confirm the accounting method for the 2025-26 apportionment deferral.
Regards,
School Business Advisory Services Team Santa Barbara County Education Office sbasweb.sbceo.org
Note: This message was sent on behalf of the School Business Advisory Services Team. Please do not respond to this message. Replies will be routed to an unmonitored mailbox.
To unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe>
2025–26 P-2 Apportionment
The 2025–26 Second Principal (P-2) Apportionment has been certified, which includes updated calculations for the 2024–25 First Annual Recertification (Annual R1) and 2023–24 Third Annual Recertification (Annual R3).
The following information is available on the California Department of Education’s (CDE) website at www.cde.ca.gov/fg/aa/pa/pa2526.asp to assist local educational agencies (LEAs) in understanding the components of the 2025–26 P-2 Apportionment:
* Apportionment letter<staging.cde.ca.gov/fg/aa/pa/appt25p2ltr.asp> and accompanying attachment<staging.cde.ca.gov/fg/aa/pa/calc25p2.asp> that describe the funding calculations and available resources. * LEA Funding Detail: * Funding Exhibits<ias.cde.ca.gov/apportionment/PrincipalApportionmentWebExhibit?SchoolYear=2025&ReportType=P2&CertificationType=Non>: Detailed entitlement calculations by LEA for each Principal Apportionment program.
* Excel files<staging.cde.ca.gov/fg/aa/pa/iassf25p2.asp>: * Principal Apportionment Summary, Adjustments and Prior Year Re-computations, Payment Schedules, etc. * The LCFF Fingertip Facts<www.cde.ca.gov/fg/aa/pa/lcffswfacts.asp> has been updated with 2025–26 P-2 data * Statewide LCFF Summary Data<www.cde.ca.gov/fg/aa/pa/lcffsumdata.asp>: Statewide summary data of the main components of the Local Control Funding Formula (LCFF), including base, supplemental, and concentration grants.
* Special Education funding details, including the Special Education Local Plan Area (SELPA) Assembly Bill 602 Average Daily Attendance, are available on the Special Education web page at www.cde.ca.gov/fg/aa/se/index.asp.
2025–26 EPA Fourth Quarter Apportionment
The CDE has also certified the 2025–26 Fourth Quarter Apportionment for the Education Protection Account (EPA). The EPA apportionment letter and payment schedule are available on the CDE website at www.cde.ca.gov/fg/aa/pa/epa.asp.
County treasurers are estimated to receive warrants for the EPA Q4 apportionment on June 24, 2026, and county offices of education should advise school districts and charter schools immediately of this apportionment.
Important Payment Information
The June 2026 payment, calculated with the P-2 Apportionment, reflects the final principal apportionment payment for the fiscal year. Payment details are available on the funding excel files webpage linked above.
Due to the large EPA revenue increase at quarter four and the commensurate reduction in LCFF state aid, the full P-2 payment in the amount of $267,203,387 is deferred from June 2026 to July 2026 for all LEAs except those with an approved deferral exemption. County treasurers are estimated to receive warrants for the 2025–26 P-2 Apportionment on July 16, 2026. LEAs with an approved deferral exemption will see the exemption reflected in the LEA payment schedule, and county treasurers are expected to receive those warrants on June 30, 2026.
County superintendents of schools should advise school districts and charter schools immediately of this apportionment.
Principal Apportionment Section PASE@cde.ca.gov<mailto:PASE@cde.ca.gov>
payschedlea25p2.xlsx