CCSA Answers: Procedure for Designating Expenditures for EPA Payments

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May 12, 2013

Question: Our authorizing district recently passed a board resolution to accept and designate expenditures for its Education Protection Act (EPA) payments. The resolution suggested that there was a 'required hearing' as to how the funds would be spent. The resolution also stated how the district would use the funds. Is this required for charter schools, too?

Answer: Charter schools are specifically referenced in Proposition 30 as being required to use the EPA payments for non-administrative salaries and benefits. Proposition 30 also protects charters with ongoing access to EPA funds. It does not specify a board resolution, but requires a board vote to show how the funds will be spent. Section 4. (e) (6) states,

"A community college district, county office of education, school district, or charter school shall have sole authority to determine how the moneys received from the Education Protection Account are spent in the school or schools within its jurisdiction, provided, however, that the appropriate governing board or body shall make these spending determinations in open session of a public meeting of the governing board or body and shall not use any of the funds from the Education Protection Account for salaries or benefits of administrators or any other administrative costs. Each community college district, county office of education, school district, and charter school shall annually publish on its Internet Web site an accounting of how much money was received from the Education Protection Account and how that money was spent."

There is no legal requirement for a board resolution. This requirement could be met, for example, with a motion in the adoption of the budget, and be recorded in the minutes.

Read Proposition 30 here.

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