{"id":1786,"date":"2023-06-05T18:30:28","date_gmt":"2023-06-05T18:30:28","guid":{"rendered":"https:\/\/business.sbceo.org\/memos\/?p=1786"},"modified":"2023-06-06T17:55:09","modified_gmt":"2023-06-07T00:55:09","slug":"2022-23-education-protection-account-fourth-quarter-apportionment","status":"publish","type":"post","link":"https:\/\/business.sbceo.org\/memos\/?p=1786","title":{"rendered":"2022\u201323 Education Protection Account Fourth Quarter Apportionment"},"content":{"rendered":"
Dear School Business and Apportionment Professionals, We have been asked to forward the following information regarding 2022\u201323 Education Protection Account Fourth Quarter Apportionment Regards, School Business Advisory Services Team Santa Barbara County Education Office
\nNote: 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.
\nTo unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe<\/a><\/a>>
\nYou are receiving this message because you have subscribed to the Principal Apportionment (PASE) Listserv.
\nDue to the shift of state tax collections from April 2023 to October 2023, the final Education Protection Account (EPA) revenue for the 2022\u201323 fiscal year is significantly lower than the estimated revenue amount used to calculate the First Quarter (Q1) through Third Quarter (Q3) EPA apportionments. The final 2022\u201323 EPA revenue amount is projected to be around $4.1 billion, which is an $8.5 billion reduction from the previous estimate. To date, nearly $9.5 billion has been paid to local educational agencies (LEAs) in the current year through Q3, which is significantly higher than the revised EPA revenue for 2022\u201323. As a result of this reduction, LEAs that are due a Fourth Quarter (Q4) EPA payment will not receive a payment in June. Additionally, many LEAs have been overpaid in EPA funds for 2022\u201323 and will see a significant reduction in their Q4 EPA entitlement.
\nFor most LEAs, EPA funding offsets local control funding formula (LCFF) state aid allocated through the Principal Apportionment. While this fluctuation in EPA revenue will affect the distribution of state aid needed to fulfill the LCFF entitlement, LEAs will receive the same amount of total LCFF resources (all else being equal). As EPA revenue decreases, LCFF state aid increases to compensate, and vice versa.
\nOverpaid EPA funds will be recovered from an offset of the 2022\u201323 Second Principal (P-2) Apportionment payment and by invoice if Principal Apportionment funds are insufficient. A similar situation occurred in fiscal year 2019\u201320 with the Q4 EPA and P-2 payment being offset by the EPA overpayment.
\nOnce the offset of Principal Apportionment funds has been completed, the funds will be deposited into the EPA Fund and payments can be made to LEAs still owed a Q4 payment. For LEAs that are still due EPA funds at Q4, payments will likely be deferred to no later than August 2023. However, this is contingent on forthcoming statute.
\nTo assist LEAs in planning for this fluctuation, the California Department of Education is sharing a preliminary estimate of the proportionate share factor used to calculate each LEA\u2019s 2022\u201323 Q4 EPA entitlement. The proportionate share factor is currently projected to be 12.75%. For comparison, the factor used for the Q1 through Q3 calculations was 45.22%. The final figure will be available when the 2022\u201323 Q4 EPA and P-2 apportionments are certified on June 19, 2023.
\nPrincipal Apportionment Section 916-324-4541 PASE@cde.ca.gov<\/a><mailto:PASE@cde.ca.gov<\/a><\/a>>
\nThe CDE PASE Listserv provides to 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 web page located at www.cde.ca.gov\/fg\/aa\/pa\/#listserv<\/a>. The same web page also provides information for anyone wanting to subscribe to the PASE Listserv.<\/div>\n","protected":false},"excerpt":{"rendered":"

Dear School Business and Apportionment Professionals, We have been asked…Continue reading2022\u201323 Education Protection Account Fourth Quarter Apportionment<\/span><\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1786","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=\/wp\/v2\/posts\/1786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1786"}],"version-history":[{"count":0,"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=\/wp\/v2\/posts\/1786\/revisions"}],"wp:attachment":[{"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/business.sbceo.org\/memos\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}