EIA hit to Basic Aid district eased in second apportionment

The apportionment of Economic Impact Aid for 2010-11 went out in November and included a big hit of $8.3 million to 102 Basic Aid school districts.

This week, the California Department of Education is set to release the second EIA apportionment but this time the hit will be just slightly more than $400,000 to only eight Basic Aid districts.

Many districts were surprised to see what happened to their EIA funding after the first apportionment, but recall that legislative leaders and former Gov. Arnold Schwarzenegger reached agreement in July, 2009, on a complex set of adjustments that included a reduction in Proposition 98 spending of $4.3 billion and a $1.6 billion cut in unspent categorical funding.

To ensure that Basic Aid districts took an equitable hit as districts largely supported by revenue limit, the leadership also imposed an even more complex formula on local educational agencies that are supported by local property taxes.

AB 2, one of the July trailer bills, required categorical funding allocations to basic aid school districts in fiscal year 2010-11 be reduced by the lesser of:

  • The district's 2009-10 total revenue limit subject to the deficit factor, calculated as of the 2009-10 certified second principal apportionment, multiplied by 5.81 percent;

  • Or the amount of the district's excess taxes. In implementation of ABX4 2, the amount paid to basic aid districts in this apportionment was reduced.

Ross Valentine, a consultant at the California Department of Education who helps oversee categorical allocations and audits, said that the Basic Aid adjustment is something most districts were aware of - but what might be of interest now is that the some of the Basic Aid reductions are being taken out of the 2010-11 EIA program. The first 2010-11 EIA apportionment in November 2010 included a Basic Aid reduction of $8.3 million for 102 school districts, he said.

A notice from the CDE in late November reported that EIA funding for many Basic Aid districts would likely be affected in the first apportionment.

The second 2010-11 EIA apportionment has just been certified with an additional Basic Aid reduction of $408,906 for 8 of the original 102 school districts.

Valentine noted that the action does not reduce the EIA entitlement but it does reduce EIA cash available for a district to use this year.

If a district wishes to make whole their EIA program this year, he said, they can do so by transferring unobligated general fund money into the EIA account.

To read more about EIA 2010-11 Funding Results visit: http://j.mp/fzdPIx

To read more about Basic Aid categorical funding visit: http://j.mp/hLM7Xa

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