Voters approved Proposition 30 on November 6, 2012 which added Article XIII, Section 36 to the California Constitution.  Section 36 was to sunset effective December 31, 2017, but voters approved Proposition 55 on November 8, 2016 which continues Article XIII, Section 36 to the California Constitution starting January 1, 2018.   Section 36 of Article XIII requires the establishment of an Education Protection Account, “EPA”, within the state General Fund to which all additional revenues derived from the Proposition 30 and Proposition 55 incremental taxes will be held and subsequently disbursed pursuant to Proposition 30 and Proposition 55 specification.  Each year a portion of the EPA funds will be allocated directly to LEAs for educational support. 

The LEA has sole authority to determine how the monies received from the EPA are spent in the schools within its jurisdiction; however, EPA funds cannot be spent on administrative costs.  The governing board must make determinations as to how the EPA money shall be spent in open session of a public meeting of the governing board before the adoption of the annual budget.  Due to the annual requirement for board action and the fact that EPA apportionments will not be certified until late in the fiscal year, districts must estimate EPA revenues.