October 13, 2010: The California Department of Education (CDE) has posted an important letter about the new cash deferral that will occur in October 2010 and the process to apply for an exemption.
On October 8, 2010, the Governor signed Assembly Bill (AB)1624 (Chapter 713, Statutes of 2010) to address an immediate state cash shortfall by deferring from October 2010 to early or mid-November 2010, most if not all state apportionments to county offices of education, school districts, and charter schools. As we understand it, the state's current plan is to defer most or all payments of K-12 apportionments in October and to repay them all by November 15, 2010.
Subject to the approval of the Department of Finance, in order for a charter school to be exempt from the AB 1624 deferrals in October 2010, its authorizer (county office, school district or State Board of Education) must certify to the SSPI and Department of Finance on or before October 15, 2010, that the deferral will result in the charter school being unable to meet its expenditure obligations during the time that warrants are deferred. Charter schools that are new in 2010-11 will not be impacted by the October 2010 deferral and should not apply for an exemption.
Applications for exemption from school districts and charter schools are due by statute on October 15, 2010. Please visit the CDE Web site to find a copy of the letter, application and certification forms.