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School Districts and Community College Districts Payments and Offsets

The appropriations in the following fiscal years from the General Fund are for the purpose of offsetting the outstanding balances of the minimum funding obligation allocated to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution. The State Controller's Office is required to offset 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 (Gov. Code, §17561.5).

• Fiscal year 2009-10, $210 million, pursuant to Chapter 724, Statutes of 2010 (AB 1610)
• Fiscal year 2014-15, $450 million, pursuant to Chapter 25, Statutes of 2014 (SB 852) and Chapter 32, Statutes of 2014 (SB 858)
• Fiscal year 2015-16, $3.8 billion, pursuant to Chapter 10, Statutes of 2015 (AB 93) and Chapter 13, Statutes of 2015 (AB 104)
• Fiscal year 2016-17, $1.4 billion, pursuant to Chapter 23, Statutes of 2016 (SB 826) and Chapter 29, Statutes of 2016 (SB 828)
• Fiscal year 2016-17, $31.7 million, pursuant to Chapter 24, Statutes of 2016 (AB 1602)
• Fiscal year 2017-18, $876.6 million, pursuant to Chapter 15, Statutes of 2017 (AB 99)
• Fiscal year 2018-19, $1.1 billion, pursuant to Chapter 29, Statutes of 2018 (SB 840), Chapter 32, Statutes of 2018 (AB 1808), and Chapter 39, Statutes of 2018 (AB 1825)

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 45, Statutes of 1996, effective May 15, 1996, operative July 1, 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 2006-07 through the current fiscal year, pursuant to Chapter 179, Statutes of 2007, effective August 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 years 1995-96 through 2005-06, pursuant to Chapter 45, Statutes of 1996, effective May 15, 1996, operative on July 1, 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, contact the Local Reimbursements Section at LRSLGPSD@sco.ca.gov. The summary and detailed reports of claims cleared are available upon request.