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?
2
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.
4
California Community Colleges - Categorical Funding*
2009-10
Budget Act
AB4x-1
**
**
**
**
**
**
**
**
**
**
**
**
***
Categorical Programs
Student Financial Aid Administration
Foster Care Education Program
Fund for Student Success
CalWORKs
Student Success Initiative - Basic Skills
Nursing Support
Disabled Students
Extended Opportunity Programs & Services
Cooperative Agencies Resources for
Education
Telecom & Technology Services
Academic Senate
Childcare Tax Bail Out
Equal Employment Opportunity
Economic Development
Apprenticeship
Part-time Faculty Office Hours
Part-time Faculty Health Insurance
Part-time Faculty Compensation
Transfer Education and Articulation
Matriculation - credit
Matriculation - non-credit
Physical Plant and Instructional Support
Career Technical Education
Subtotal Categorical
ARRA Federal
Funds
State General
Funds
52,884,000
5,254,000
5,262,820
37,043,000
27,804,000
18,564,000
96,057,240
89,188,000
1,470,219
10,348,318
7,767,315
5,186,032
26,834,514
24,915,526
52,884,000
5,254,000
3,792,601
26,694,682
20,036,685
13,377,968
69,222,726
64,272,474
No
No
No
No
No
No
No
No
12,949,400
21,217,380
317,560
4,648,480
1,187,960
31,817,200
9,955,880
4,876,960
680,000
34,563,040
968,320
55,231,760
13,017,000
3,617,539
5,927,279
88,713
1,298,598
331,868
8,888,441
2,781,271
1,362,426
189,965
9,655,518
270,510
15,429,524
3,636,424
9,331,861
15,290,101
228,847
3,349,882
856,092
22,928,759
7,174,609
3,514,534
490,035
24,907,522
697,810
39,802,236
9,380,576
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
48,000,000
571,488,000
48,000,000
130,000,000
Flexibility
Allowed
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