REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
May 4, 2021
FROM
PHALOS HAIRE, Director, Preschool Services Department
MATTHEW ERICKSON, County Chief Financial Officer, County Administrative Office
SUBJECT
Title
General Fund Loan for California State Preschool Program Expenses
End
RECOMMENDATION(S)
Recommendation
Authorize a $1,000,000 loan from the County General Fund to the Preschool Services Department to provide temporary funding of expenses for the California State Preschool Program pending reimbursement from the California Department of Education, for the period of July 1, 2021 through December 31, 2021.
(Presenter: Phalos Haire, Director, 383-2005)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
This item does impact Discretionary General Funding (Net County Cost). The County General Fund's unreserved fund balance will decrease by the amount of the loan, and these funds will not be available in the County General Fund for appropriation until repaid. The Preschool Services Department (PSD) will repay the total $1,000,000 loan plus interest to the County General Fund no later than December 2021. The interest amount will be calculated based on the County Treasurer's Investment Pool rate and validated by the Auditor-Controller/Treasurer/Tax Collector (ATC). The loan interest amount is an allowable expense for the California State Preschool Program (CSPP) funded through the California Department of Education (State).
BACKGROUND INFORMATION
CSPP revenue is received as reimbursements from the State after services have been rendered. Historically, the State has issued partial reimbursements on an inconsistent basis which creates an insufficient cash flow to cover CSPP expenses. As a result, PSD requests an annual loan from the County General Fund to ensure adequate funding for ...
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