Category: Finance

Dear School Business Professionals,
Please see the email below from the CDE regarding: Application Now Available for Exemption from Fiscal Year 2020-21 Apportionment Deferrals.
Regards,
School Business Advisory Services Team Santa Barbara County Education Office _ Please do not reply to this email. This is an unattended mailbox. __________________________________________________________________________________________________________________________________________________ From: Tonya Holmes <THolmes@cde.ca.gov<mailto:THolmes@cde.ca.gov>> Sent: Thursday, November 12, 2020 11:34 AM To: CDEfisc <CDEfisc@cde.ca.gov<mailto:CDEfisc@cde.ca.gov>> Subject: Application Now Available for Exemption from Fiscal Year 2020-21 Apportionment Deferrals
Please forward this email to all school districts and charter schools in your county. California Education Code Section 14041.8 provides the opportunity for school districts and charter schools to apply for a dollar-limited exemption from the deferral of the principal apportionment payments in February 2021 through June 2021. There is no exemption provision for county offices of education. The application for exemptions to the February 2021 through May 2021 deferrals is now available on the CDE web page at www.cde.ca.gov/fg/fi/ad/. This application is due no later than December 15, 2020. If applications exceed the funds available, approvals will be made in the order in which applications are received. For more information on the deferral exemption application process, please refer to the CDE web page at www.cde.ca.gov/fg/fi/ad/. Questions regarding the deferral exemption process and applications should be directed to DeferralExemption@cde.ca.gov<mailto:DeferralExemption@cde.ca.gov>.

Dear School Business Professionals,
Please see email below from the CDE regarding: Exemption from Fiscal Year 2020-21 Apportionment Deferrals. Regards, School Business Advisory Services Team Santa Barbara County Education Office
Please do not reply to this email. This is an unattended mailbox. _______________________________________________________________________________________________________________________________________________
From: CDEfisc <CDEfisc@cde.ca.gov> Sent: Monday, November 9, 2020 8:13 AM To: CDEfisc <CDEfisc@cde.ca.gov> Subject: Exemption from Fiscal Year 2020-21 Apportionment Deferrals
Please forward this email to all school districts and charter schools in your county. The purpose of this email is to provide information about the deferral exemption application process. California Education Code Section 14041.8 provides the opportunity for school districts and charter schools to apply for a dollar-limited exemption from the deferral of the Principal Apportionment payments in February 2021 through June 2021. There is no exemption provision for county offices of education. The application for exemptions to the February 2021 through May 2021 deferrals will be available on the California Department of Education (CDE) web page at www.cde.ca.gov/fg/fi/ad/ beginning Thursday, November 12, 2020. This webpage is not currently live. This application is due to CDE per statute no later than December 15, 2020. If applications exceed the funds available, approvals will be made in the order in which applications are received. For questions regarding the deferral exemption process and applications, please contact DeferralExemption@cde.ca.gov<mailto:DeferralExemption@cde.ca.gov>.

Dear School business Professionals,
Please see information below related to Charter School Advances that you may find useful.
Regards,
School Business Advisory Services Team Santa Barbara County Education Office
__________________________________________________________________________ Please do not reply to this email. This is an unattended mailbox.

From: ASAP <asap@treasurer.ca.gov<mailto:asap@treasurer.ca.gov>> Sent: Thursday, October 22, 2020 3:52 PM Cc: Johantgen, Katrina <Katrina.Johantgen@treasurer.ca.gov<mailto:Katrina.Johantgen@treasurer.ca.gov>>; Dear, Thomas <Thomas.Dear@treasurer.ca.gov<mailto:Thomas.Dear@treasurer.ca.gov>> Subject: CSFA ASAP Program – Deadline Extension and Program FAQ’s
Due to the overwhelming response to the Charter School Advances on State Aid Payments Program (“ASAP Program”), the California School Finance Authority (CSFA) is extending the ASAP Program application deadline for the March 2021 issuance from October 23, 2020 to October 30, 2020.
Please click on the following link for the ASAP Program website and to apply to participate: www.treasurer.ca.gov/csfa/charter-trans/index.asp
There is no cost to apply nor any commitment to proceed with the TRAN.
We have added Frequently Asked Questions below for your consideration. Should you have additional questions regarding the ASAP Program, financing team contact information can be found on the program website.
We look forward to hearing from you.
Thank you,
Katrina M. Johantgen, Executive Director California School Finance Authority 300 South Spring Street, Suite 8500 Los Angeles, CA 90013 213-620-2305 Direct Line 213-620-6309 Fax kjohantgen@treasurer.ca.gov<mailto:kjohantgen@treasurer.ca.gov> www.treasurer.ca.gov/csfa<www.treasurer.ca.gov/csfa>
Frequently Asked Questions
* Is it true that I can only borrow the lesser of my school’s deferral amount or its facility costs?
No; each charter school that qualifies can borrow 100% of its deferral amount, less fees and costs. Facility costs will be reviewed to help determine how much of each school’s need can be financed in the lowest cost pool, which will be credit enhanced.
* The State Intercept seems like a very important credit feature – can it be utilized with other short-term financing programs?
The use of the State Intercept for short-term borrowing is only available to participants that borrow through the ASAP Program. We expect that the presence of the State Intercept will be a critical factor in bringing down the interest rate for charter schools.
* We have multiple charter schools which need financing. If we participate with multiple schools, how closely will we need to track the spending of the funds received for each school?
Each charter school (by CDS code) is eligible to finance its deferral. The State Intercept will be utilized to repay the notes from the deferral payments to be made by the State from July 2021 through November 2021. Schools will NOT be required to track the spending of funds received under the ASAP Program; as such, those borrowers with multiple charter schools can spend the proceeds of the TRAN as they would their normal State Aid payments (i.e. they can spend the proceeds at the schools that need the funds).
* We’d like to borrow at the CMO or network level, but the application is done by school. Is this possible?
Yes; there will be some additional legal documentation, but the CMO can be the borrower under the Program. The Notes would still be payable from the State Intercept by CDE code.
* We already have a State Intercept in place. Can we still use the program?
Generally; yes. We will work with you to review your existing financing covenants to ensure that your participation in the ASAP Program is permitted.
* Is there any flexibility in the repayment schedule of the TRANs?
Each school will repay the Notes in the same manner; their deferred payments will be intercepted each month in the amount due (up to 100%). Those funds will be held in escrow by the Trustee until the maturity date of the Notes, which is expected to be in January 2022.
* How does the cost of this program compare with other short-term borrowing options?
The cost of the ASAP program is likely lower because of CSFA’s work to economize fees, bring together a large pool of borrowers, and apply credit enhancement to a significant part of the pool.
* Does my school need to meet the Credit Enhancement Grant Eligibility to apply?
Your school does not need to meet the credit enhancement grant eligibility to apply. If your school does, it may be able to access that enhanced portion of the financing which may result in lower borrowing costs.