CAARO Update April 2026: ESSA Funding Allocations and Key Deadlines

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CAARO Update Issue #2026-04

April 6, 2026: Categorical Allocations and Audit Resolution Office (CAARO) Updates – twice monthly notifications of key reporting deadlines, applications for funding, annual audits, and any other topics related to programs administered by CAARO. The purpose of the California Department of Education (CDE) CAARO updates is to provide local educational agencies (LEAs) and other interested parties with timely information related to programs administered by CAARO.

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Key Dates

which are used by CAARO to calculate apportionment payments.
Title I, Part A; Title I, Part D, Subpart 2; Title II, Part A; Title III; and Title IV, Part A | 4/10/26 - 4/30/26 |
| Expenditure Deadline for One-Time State Programs LEAs must fully expend and liquidate funds for the following programs:

• A–G Completion Improvement Grant, Fiscal Year (FY) 2021–22
• Arts, Music, and Instructional Materials Discretionary Block Grant, FY 2022–23

• Educator Effectiveness Block Grant, FY 2021–22 | 6/30/2026 |

  • Estimated Cash Flow for State and Federal Programs

Federal Categorical Program Updates

Categorical Programs - Allocations & Apportionments (CA Dept of Education)

Fiscal Year 2026-27

• The Preliminary State Reservation Tables were received by CDE on March 13, 2026.
• Title V does not have a Preliminary State Reservation Table. The Grant Award Notification (GAN) is expected in July The table below compares the prior year’s final allocation to the current year’s preliminary allocation and indicates whether the total state allocation increased or decreased. An increase in the allocation does not necessarily result in an increase to an individual LEA’s allocation.

FY 2025–26 Final State Allocations from U.S. Department of Education (ED) are expected in July 2026.

ESSA Comprehensive Support and Improvement (CSI)

• FY 2025–26
  • LEAs that have an approved Application for Funding Status by January 31 will receive payment in March 2026.
• FY 2024–25
  • As a condition of funding, LEAs that have filed expenditures in the Grant Management and Reporting Tool (GMART) by February 28, 2026, will receive payment in April 2026.

Title V, Part B SRSA Fiscal Year 2026-27

• Under the Small, Rural School Achievement (SRSA) program, ED awards grants on a formula basis to eligible LEAs to address the unique needs of rural school districts.
• Applications become available April 13, 2026. Deadline for transmittal of applications is May 18,2026.
• All LEAs eligible for FY 2026 SRSA funds must apply electronically, additional information can be found at Federal Register: Application Deadline for Fiscal Year 2026 web page .

State Categorical Program Updates

Categorical Programs - Allocations & Apportionments (CA Dept of Education)

Prop 39 California Clean Energy Jobs Act

• The CDE is coordinating with the California Energy Commission (CEC) on the recovery of unspent Prop 39 funds as identified in the final project completion reports that were submitted by LEAs to the CEC.
• The CDE is preparing a final recovery of unspent Prop 39 California Clean Energy Jobs Act funds. The schedule of the proposed recovery is posted on CDE’s Prop 39 web page at Proposition 39 California Clean Energy Jobs Act - Categorical Programs (CA Dept of Education).
• LEAs that would like to dispute the proposed recovery amount may contact Christopher Meyer, California Energy Commission, by email at Christopher.meyer@energy.ca.gov.
• Other questions about Prop 39 can be sent to CDE at prop39fiscal@cde.ca.gov.

Literacy Instruction Professional Development

• The allocations for the Literacy Instruction Professional Development funding provided in Section 83 of Assembly Bill 121 (Chapter 8, Statutes of 2025) will be available in May, with the apportionment to be released in late June. Funding is available to school districts, county offices of education, charter schools, and state special schools to support the implementation of California Education Code (EC) Section 33319.6 .
• Funds will be allocated on an equal amount per full-time equivalent (FTE) certificated staff who teach pupils in transitional kindergarten, kindergarten, or any of grades 1 to 5, inclusive, using the data submitted through the California Longitudinal Pupil Achievement Data System (CALPADS) as of October 2025. CAARO will provide the per-FTE certificated staff funding rate once it is available.
• Information regarding the program timeline, reporting requirements, and professional development criteria is available on the CDE’s Literacy Professional Development Programs web page. Details regarding the funds will be available on the CDE’s Categorical Programs web page.

Audit Resolution Updates

Local Educational Agency Annual Audits - Auditing (CA Dept of Education)

Management Decision Letters and Correction Action for 2024–25 Audit Findings

• Management decision letters for the 2024–25 audit findings are currently being issued.
• LEAs should provide corrective action to the CDE within three weeks of receiving a management decision letter.

Key Dates for 2024-25 Kindergarten Through Grade Twelve (K–12) Annual Audit

• 12/15/2025 – Submit Audit Report to the CDE, State Controller’s Office (SCO), and the County Superintendent of Schools.
• 1/31/2026 – School board review of audit report and corrective actions.
  • If your LEA has an extension for the submission of the annual audit report, we recommend presenting the audit report to your board within 45 days of submitting the K-12 annual audit report.
• 3/15/2026 – LEA corrective actions for audit findings due to the county office of education (COE).
• 5/15/2026 – COE certifications of annual audits due to the CDE and SCO.

Key Dates for 2025-26 K-12 Annual Audit

• 4/1/2026 – LEA deadline to contract with independent auditor.

FY 2025-26 Supplemental Audit Guide

• The FY 2025–26 Supplemental Audit Guide will be available on the Education Audit Appeals Panel (EAAP) website . Procedures with substantive changes are listed below. For a summary of changes, see CAARO Update Issue #2026-02, issued on February 25, 2026.

State Controller’s Office (SCO) 2024-25 Audit Advisory

• The SCO releases an annual audit advisory, which includes an overview of the changes proposed for the annual audit guide. The advisory for the 2024-25 fiscal year can be found on the SCO website at 2024-2025 Audit Advisory

(PDF).
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