Education Protection Account
Proposition 30, The Schools and Local Public Safety Protection Act of 2012, approved by the voters on November 6, 2012, temporarily increases the states sales tax rate for all taxpayers and the personal income tax rates for upper income taxpayers. 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 revenues generated from Proposition 30 are deposited into a newly created state account called the Education Protection Account (EPA). School districts, county offices of education, and charter schools (LEAs) will receive funds from the EPA based on their proportionate share of the statewide revenue limit amount.
EPA is a component of an LEA's total revenue limit. Accordingly, a corresponding reduction is made to an LEA's revenue limit equal to the amount of their EPA entitlement.
Pursuant to Article XIII, Section 36 of the California Constitution, school districts, county offices of education, and community college districts are required to determine how the moneys received from the Education Protection Account (EPA) are spent in the school or schools within its jurisdiction, 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
In accordance with Proposition 30, districts are required to report (annually) Education Protection Account (EPA) funds received and how those funds are spent.