| Item Title: | Approval of Resolution 2012/13-53 and the Spending Plan for the State Education Protection Account (EPA) Funds Received in Fiscal Year 2012-13 | | Agenda Title: | Approval of Resolution 2012/13-53 and the Spending Plan for the State Education Protection Account (EPA) Funds Received in Fiscal Year 2012-13 | | Background: | Proposition 30 was approved by the voters of California on November 6, 2012 and is expected to generate between $6 billion and $9 billion in revenues annually over the next seven years. The funds are deposited and distributed from a special account established by the initiative called the Education Protection Account (EPA). Proposition 30 added Article XIII, Section 36 to the California Constitution which not only impacts cash flow patterns in school districts but also has an accountability component.
The Proposition provides that all K-14 local agencies have the sole authority to determine how the funds received from the EPA are spent, but with the following provisions:
- The spending plan must be approved by the governing board during a public meeting
- EPA funds cannot be used for the salaries or benefits of administrators or any other administrative costs (as determined through the account code structure)
- Each year, the local agency must publish on its website an accounting of how much money was received from the EPA and how the funds were expended
Moreover, EPA dollars will reduce the state’s obligation to fund state aid only to the extent that EPA dollars offset state aid in the prior year. Consistent with Proposition 30’s promise, the effect of this language ensures that no district shall receive less than $200 per unit of average daily attendance (ADA). | | Recommendation: | Staff recommends the board approve resolution 2012/13-53 and the spending plan for the EPA funds received in fiscal year 2012-13. | | Resource Person: | Conrad Tedeschi, CPA, CPFO, Director Fiscal Services | | Fiscal Impact: | Staff projects to receive $2,721,148 in funding from the Education Protection Account in fiscal year 2012-13, to be spent entirely on instructional salaries and benefits. | | Funding Source: | |
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