On June 30, 2012, and on June 30 of each school year thereafter, if the total aggregate balance of all state categorical fund sources exceeds twenty percent (20%) of the school district's total aggregate annual state categorical fund allocations for the current school year, the school district shall reduce the total balance by ten percent (10%) each year until the school district's June 30 balance of aggregate annual categorical fund sources is twenty percent (20%) or less of the total aggregate annual state categorical fund allocations for the current school year.
In the attached spreadsheet, 20% of Categorical Funds, the column "20% of Total Categorical Funds" reflects the aggregate categorical funds balance a school district should have as of June 30, 2012, to be in compliance with Act 1220.
The data supporting the amount in the column "Aggregate Categorical Funds Balances March 31, 2012" is provided in the attachment: All Cat Fund Balances FY12 March 31, 2012.
The column "20% of Funding Versus Categorical Fund Blcs" is the difference in the first two columns.
The attachment 20 Percent of Categorical Funds Example is provided to assist in projecting the June 30, 2013, balance of categorical funds.
All of this data is provided to assist in gauging your progress towards compliance with Act 1220. We fully recognize there are three more months of expenditures that will be used in the final calculation of this requirement. As stated in law, if the June 30, 2012, aggregate balance of all state categorical funds exceeds 20% of the aggregate of current year categorical funding, you are required to reduce the aggregate balance by at least 10% in the 2012-2013 school year.
If you make budget changes to reduce your aggregate categorical funds balance, please be sure to update the ACSIP also.