State Government
Apportionment Payments to School and Community College Districts (AB1610)
Chapter 724, Statutes of 2010, added Section 41207.4 to the Education Code, which appropriated $210 Million in the 2010-11 fiscal year from the General Fund to the Controller for allocation to the school districts and community college districts for the purpose of offsetting the 2009-10 outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution. It further requires the Controller to apply amounts received by each school district or community college district against any balances of unpaid claims for reimbursement of state-mandated local costs and interest in chronological order beginning with the earliest claim. These offsets include accrued interest at the Pooled Money Investment Account rate (Government Code 17561.5). (Note: For the full list of school and community college districts' allocations, see Apportionments website.)
Interest is calculated as follows:
Initial Claims:
- If payment is not made within 365 days after the adoption of the statewide cost estimate, interest begins to accrue on the 366th day, pursuant to Chapter 47, Statutes of 1996, effective 05/15/1996, operative 07/01/1996.
Subsequent or Annual Claims:
- If claims remain unpaid as of August 15th, interest begins to accrue on August 16th . This applies to claims filed during fiscal year 2006/2007 through the current fiscal year, pursuant to Chapter 176, Statutes of 2007, effective 08/24/2007.
- If claims remain unpaid 60 days after the filing due date, interest begins to accrue on the 61st day, or actual date of receipt of claim, whichever is later. This applies to claims filed during fiscal year 1995/1996 through 2005/2006, pursuant to Chapter 45, Statutes of 1996, effective 05/15/1996, operative on 07/01/1996.
Exceptions:
- In the case where the apportionment could not fully satisfy both the claimed amount and the accrued interest, the accrued interest amount was not paid; and the remaining amount of the apportionment was applied to subsequent claims.
- In the event that the apportionment amount was greater than the amount of unpaid mandate claims, the remaining amount will not be offset against future claims, but may be expended by the governing board of a school district or community college district pursuant to Section 41207.4 (c) of the Education Code.
Contact Us:
Any questions or comments, call (916) 324-5729, or e-mail: LRSDAR@sco.ca.gov
