/

JACK SCOTT, CHANCELLOR

California Community Colleges
chancellor’s Office
1102 Q street
Sacramento, Ca 95811-6511
(916) 445-8752
http://www.cccco.edu

September 1, 2009

MEMO: CTE 09-18

TO: Administrators of Occupational Education

FROM: Ron Selge, Dean

Career Technical Education Unit

SUBJECT: Perkins IV Title I-C Advisory

The Career Technical Education Unit, California Community Colleges is providing this advisory as guidance on several issues regarding categorical flexibility, supplanting, remedial education (basic skills), Perkins IV support of travel for professional development and tips on what auditors look for when auditing Perkins IV funds.

Categorical Flexibility

There seems to be some confusion in the field regarding Categorical Flexibility that is included in the latest budget passed on July 28, 2009 by the California Legislature.

AB X4 2 contains language that provides districts with increased discretion in the use of some categorical funds. Specifically, districts would be able to redirect funds from any of the categorical programs subject to the 32 percent reduction (see attachment) to support any other categorical program funded in the state budget. Before exercising flexibility, districts would be required to discuss the redirection of funds at a regularly scheduled public meeting. This flexibility applies to fiscal years 2009-10 through 2012-13.

The Carl D. Perkins Career Technical Education Act (Perkins IV) funds are Federal funds and are not included in the state budget cuts or flexibility provisions. Districts are reminded that the purpose of the Perkins IV, Title IC funds is for Career Technical Education (CTE) program improvement.

Note: The CTE program referenced in the budget (see attachment) is a set of CTE state funded projects through SB 70/SB 1133 Governor's Career Technical Education Pathways and Workforce Development Program.

The following information was provided in the 2009-10 Categorical Program Guidance Memorandum from Erik Skinner, Vice Chancellor, College Finance and Facilities Planning and Linda Michalowski, Vice Chancellor, Student Services and Special Programs on August 26, 2009 regarding pending cleanup Legislation.

Pending Cleanup Legislation

Please be advised that at the time this item was written, it appears that a cleanup bill will be introduced to remove ambiguity regarding the categorical funding allocations and flexibility provisions. The cleanup legislation will likely address the following issues:

·  Identify in statute the specific allocations of state and ARRA funds to each categorical program.

·  Exempt from the flexibility provisions funding directed to statewide and regional functions in the following programs: Transfer and Articulation; Economic and Workforce Development; and Academic Senate.

·  Specify that SB 70 CTE funding is not subject to the flexibility provisions.

Supplanting

Federal funds cannot displace state and local funds per Section 311 (a) Perkins IV:

SEC. 311. FISCAL REQUIREMENTS.

(a) SUPPLEMENT NOT SUPPLANT.—Funds made available under this Act for career and technical education activities shall supplement, and shall not supplant, non-Federal funds expended to carry out career and technical education activities and tech prep program activities.

Using federal Perkins IV funds to fund CTE activities that have been cancelled due to lack of general funds or other funding streams may be allowable. If the district can prove in the absence of federal funds it would have eliminated the activity and it did not solely target the activity in anticipation of using federal funds, it may use the federal funds to support that activity, assuming the activity is allowable. The district must retain evidence (e.g. legislative cut, board minutes) to document this action.

What is supplanting?

Federal grant funds must supplement and not supplant state or local funds. Federal funds may not result in a decrease in state or local funding that would have been available to conduct the activity had Federal funds not been received. In other words Federal funds may not free up state or local dollars for other purposes but should create or augment programs to an extent not possible without federal dollars. You must be able to demonstrate that Federal funds are added to the amount of state and local funds that would, in absence of Federal funds, be made available for uses specified in your plan.

To determine if an activity is supplanting ask the following questions:

  1. Was the activity paid for in the prior year with non-federal funds?
  2. Was the activity required by state/local law or policy?
  3. What would the district have done in the absence of federal funds?

Note: It is not allowable to use Perkins IV funds to pay for Services, Staff, Programs, or Materials that would otherwise be paid with State and/or Local Funds.

Using Perkins IV Funds for Basic Skills

In the Perkins IV Act Section 3, Definitions it states:

(5) CAREER AND TECHNICAL EDUCATION.—The term ‘career

and technical education’ means organized educational activities that—

(A) offer a sequence of courses that—

(i) provides individuals with coherent and rigorous content aligned with challenging academic standards and relevant technical knowledge and skills needed to prepare for further education and careers in current or emerging professions;

(ii) provides technical skill proficiency, an industry-recognized credential, a certificate, or an associate degree; and

(iii) may include prerequisite courses (other than a remedial course) that meet the requirements of this subparagraph; and

(B) include competency-based applied learning that contributes to the academic knowledge, higher-order reasoning and problem-solving skills, work attitudes, general employability skills, technical skills, and occupation-specific skills, and knowledge of all aspects of an industry, including entrepreneurship, of an individual.

It is not allowable to use Perkins IV funds for remedial (Basic Skills) courses as part of a CTE program due to limitations set by the definition of CTE in the Perkins IV Act.

In addition, these funds cannot be used for courses with non-vocational TOP codes, due to state restrictions, even if the courses meet general education requirements in a CTE degree program or are CTE course prerequisites. The Chancellor’s Office and the California Department of Education have further limited the funds to support improvements in CTE courses within CTE programs only. Those restrictions are primarily based on the limited funds available and the great need for constant revisions to CTE curricula and equipment. With these limited funds and great need there are concerns over spreading these funds too thin for actual CTE improvements if funds were distributed among General Education courses even when they are required for a CTE AA/AS degree.

Example of Basic Skills in CTE

Question:

The English Department is interested in partnering with one or more CTE departments to create short, contextualized learning classes to cover basic skills in writing and communication.

Are there ways to use the Perkins IV funds to support the English instructors as they work with CTE faculty to create the courses?

Answer:

The Act does permit integrating academic skills into a vocational context or framework- also known as contextualizing. Examples of this might be supporting basic skills math for HVAC as typically done in a learning or tutoring center or higher level algebra integrated into wastewater management courses coded in a Wastewater management TOP. This is acceptable because the curriculum results in improvements to a course coded in a CTE TOP.

The Act prohibits Perkins IV support of “remedial” (or Basic Skills) courses (i.e., Basic Arithmetic or Pre-Algebra coded as a math course) as part of a CTE program due to limitations set by the definition of CTE in the Act.

Perkins IV Support of Travel for Professional Development

The Perkins IV Act has certain requirements for “Professional Development.” Although many activities can meet the lower threshold requirements for “Technical Assistance,” states are required to satisfy the requirements for “Professional Development.” Those requirements are provided in the excerpt of the Perkins IV Act below:

SEC. 124. STATE LEADERSHIP ACTIVITIES.

(b) REQUIRED USES OF FUNDS

(3) professional development programs, including providing comprehensive professional development (including initial teacher preparation) for career and technical education teachers, faculty, administrators, and career guidance and academic counselors at the secondary and postsecondary levels,

(B) are high quality, sustained, intensive, and classroom-focused in order to have a positive and lasting impact on classroom instruction and the teacher’s performance in the classroom, and are not 1-day or short-term workshops or conferences;

For the State’s receipt of these funds, the Chancellor’s Office has asserted that this requirement is met through involvement with the two-times-a-year California Community College Association for Occupational Education (a.k.a. CCCAOE) conference. Therefore, although state funds at the local level may be restricted regarding travel, Perkins IV Act funds need to be available to meet this requirement as a condition of the state’s receipt of federal Perkins IV funds.

What Auditors Look For When Auditing Perkins IV Funds

To provide assurance that Perkins IV funds are used at the local level appropriately and the program is in compliance, listed below are several things auditors look for:

1.  Are the funds being used for CTE program improvement?

2.  Are the expenditures necessary and reasonable?

3.  Are the funds being used to supplement not supplant?

Please refer to OMB circular A-87 and A-21 for more detail on cost principals at www.whitehouse.gov/OMB/circulars.

We hope this advisory provides some guidance to you as you implement your CTE programs.

If you have further questions or concerns regarding the information above, please contact your project monitor at the Chancellor’s Office.

California Community Colleges - Categorical Funding*
2009-10
Budget Act AB4x-1 / ARRA Federal Funds / State General Funds / Flexibility Allowed
Categorical Programs
Student Financial Aid Administration / 52,884,000 / 52,884,000 / No
Foster Care Education Program / 5,254,000 / 5,254,000 / No
Fund for Student Success / 5,262,820 / 1,470,219 / 3,792,601 / No
CalWORKs / 37,043,000 / 10,348,318 / 26,694,682 / No
Student Success Initiative - Basic Skills / 27,804,000 / 7,767,315 / 20,036,685 / No
Nursing Support / 18,564,000 / 5,186,032 / 13,377,968 / No
Disabled Students / 96,057,240 / 26,834,514 / 69,222,726 / No
Extended Opportunity Programs & Services / 89,188,000 / 24,915,526 / 64,272,474 / No
Cooperative Agencies Resources for Education / 12,949,400 / 3,617,539 / 9,331,861 / No
Telecom & Technology Services / 21,217,380 / 5,927,279 / 15,290,101 / No
** / Academic Senate / 317,560 / 88,713 / 228,847 / Yes
** / Childcare Tax Bail Out / 4,648,480 / 1,298,598 / 3,349,882 / Yes
** / Equal Employment Opportunity / 1,187,960 / 331,868 / 856,092 / Yes
** / Economic Development / 31,817,200 / 8,888,441 / 22,928,759 / Yes
** / Apprenticeship / 9,955,880 / 2,781,271 / 7,174,609 / Yes
** / Part-time Faculty Office Hours / 4,876,960 / 1,362,426 / 3,514,534 / Yes
** / Part-time Faculty Health Insurance / 680,000 / 189,965 / 490,035 / Yes
** / Part-time Faculty Compensation / 34,563,040 / 9,655,518 / 24,907,522 / Yes
** / Transfer Education and Articulation / 968,320 / 270,510 / 697,810 / Yes
** / Matriculation - credit / 55,231,760 / 15,429,524 / 39,802,236 / Yes
** / Matriculation - non-credit / 13,017,000 / 3,636,424 / 9,380,576 / Yes
** / Physical Plant and Instructional Support / Yes
*** / Career Technical Education / 48,000,000 / 48,000,000 / No
Subtotal Categorical / 571,488,000 / 130,000,000 / 441,488,000
*Unresolved issues: 1) specific allocations of ARRA and state funds to each categorical program; 2) status of statewide and regional projects; and 3) status of SB 70 CTE funding.
** Flexibility provision applied to these categorical programs and allows funds to be moved from these programs into any categorical program. Categorical programs under flexibility rules lock-in 2008-09 district allocation level, less the 2009-10 cut, through 2012-13.
*** Reflects a shift in SB 1133 (2006 Prop. 98 Settlement Funds) to Budget Act