REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 14, 2022
FROM
JACQUELYN GREENE, 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, 2022 through December 31, 2022.
(Presenter: Jacquelyn Greene, 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; these funds will not be available in the County General Fund for appropriation until repaid. The Preschool Services Department (PSD) will repay the total of $1,000,000 loan plus interest to the County General Fund no later than December 2022. 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 is an allowable expense for the California State Preschool Program (CSPP) funded by 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 has requested an annual loan from the County General Fund, since 2013, to ensure adequate fundin...
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