The short answer: Every year, the LEA completes a certification and keeps it for the audit, then submits a board-approved annual report through the AMS Portal and posts it on its website by September 30, the deadline AB 2440 sets in statute. When each allocation's three-year window closes, a Final Expenditure Report is due by October 1, and the annual audit reaches CDE by December 15. Under AB 2440, every school must also post its expenditure plan, and from 2027–28 the LEA certifies for each school site.
The four things you report, at a glance
| Report | Who acts | Where it goes | When |
|---|---|---|---|
| Annual certification | The LEA | Kept on file for the auditor | Each allocation year, before the annual audit |
| Annual report | Approved by the governing board or body | AMS Portal, the LEA's website and CDE's website | On or before September 30 |
| School site expenditure plan | Each school site | The school's website, or the LEA's if it requires | Locally set |
| Final Expenditure Report | The LEA | AMS Portal | By October 1 after the three-year window closes |
The annual certification
Each year the LEA certifies that it meets Prop 28's requirements: the 80/20 staffing rule where it applies, supplement not supplant, and the 1 percent administrative cap. CDE makes the certification available in the AMS Portal. For the 2025–26 allocation it was available through June 30, 2026.
CDE says the certification must be kept for auditing purposes but does not have to be posted on the LEA's website or submitted to CDE. It is required whether or not any Prop 28 funds were spent that year.
The annual report
Statute requires an annual report approved by the governing board or body. It must be posted on the LEA's website and CDE's website, and CDE collects it through the AMS Portal. The report states:
- the types of arts education programs funded;
- the number of full-time equivalent teachers, classified personnel and teaching aides;
- the number of pupils served; and
- the number of school sites providing arts education programs with the funds.
The report is a snapshot in time. It is not broken out by allocation year, and it is required even if no funds were spent. CDE publishes an annual report template on its FAQ page.
The deadline. Before AB 2440, statute gave no due date and CDE opened the report in the portal each year from May 1 to September 30. AB 2440 writes the date into law: the board-approved report must be submitted and posted on or before September 30. Put board approval on a September agenda at the latest, and post the approved version the same day it is submitted.
The school site expenditure plan
Each school site develops its own plan for its allocation. CDE publishes no template, and the due date is set locally. Before AB 2440, statute did not require the plan to be submitted to CDE, posted or board-approved.
AB 2440 changes the posting part. Each school site or preschool must post its expenditure plan on its website, along with information on any waiver granted. An LEA may instead require its schools to post that information on the LEA's website. CDE posts approved waivers on its own website.
Pooled funds must also follow the plan: under AB 2440, a pooled expense has to comply with an adopted expenditure plan and stay in proportion to each site's allocation.
The Final Expenditure Report
Each allocation can be spent over three fiscal years. When the window closes, the LEA files a Final Expenditure Report showing the amount disbursed, the amount spent and the remainder that reverts to CDE. It opens in the AMS Portal on May 1 of the final year and is due by October 1 after the spending period ends. A charter school that ceases operation files within 60 days.
An LEA that spends its whole allocation early can request access sooner by emailing Prop28@cde.ca.gov. Unspent money is collected and reallocated to all LEAs the following year; see Prop 28 unspent funds.
| Allocation year | Spending window ends | Final Expenditure Report |
|---|---|---|
| 2023–24 | June 30, 2026 | Opened May 1, 2026; due by October 1, 2026 |
| 2024–25 | June 30, 2027 | Opens May 1, 2027; due by October 1, 2027 |
| 2025–26 | June 30, 2028 | Opens May 1, 2028; due by October 1, 2028 |
| 2026–27 | June 30, 2029 | Opens May 1, 2029; due by October 1, 2029 |
The 2023–24 row is CDE's own example. The later rows follow the same pattern; confirm each one in the portal. CDE's portal window has closed on September 30, a day before the statutory date, so treat September 30 as the working deadline.
The annual audit
Prop 28 funds have been part of the Education Code section 41020 annual audit since the 2023–24 audit. The audit goes to the LEA's governing board in a public meeting and then to CDE by December 15. The procedures are in the Education Audit Appeals Panel's supplemental audit guide; the 2025–26 guide was adopted March 1, 2026.
| Checked every year | Checked in year three, or when the allocation is fully spent |
|---|---|
| The certifications | The 80/20 staffing rule |
| The posted, board-approved annual report | The 1 percent administrative cap |
| Use of funds for arts education programs | |
| Supplement, not supplant |
The consequences are serious. Depending on the finding, CDE's audit summary says an LEA may have to return the entire allocation or the unallowable expenditures. CDE also says the certification and annual report are due before the annual audit and that LEAs risk losing funds if they are not complete by then. AB 2440 narrows what the audit itself determines, but the audit still covers all funds received and whether they were spent according to the certifications.
The per-site certification from 2027–28
Starting with the 2027–28 fiscal year, AB 2440 requires the LEA to certify that every Prop 28 provision has been implemented at each of its school sites. The statute does not name a deadline or a signer. Expect CDE guidance before the first one is due. Our site certification checklist lists the evidence to gather now.
Waivers
Only the 80/20 staffing requirement can be waived. The LEA requests it through the AMS Portal, with a separate request for each allocation year, at any point in the three-year window. CDE reviews on a rolling basis with no fixed timeline. An approved waiver covers the whole expenditure period and must be posted with the school's plan. See the 80/20 rule for what to include.
A year on one page
| When | What |
|---|---|
| July | CDE estimates the new allocation. Update site plans; see the allocation formula. |
| Fall | Post each school's expenditure plan and any waiver information. |
| February | CDE recalculates allocations. Adjust plans if the number moved. |
| May 1 | The annual report opens in the AMS Portal, and in an allocation's final year, so does the Final Expenditure Report. |
| By June 30 | Complete the annual certification in the AMS Portal and file it for the auditor. CDE's window for the 2025–26 allocation closed June 30, 2026. |
| By September 30 | Board approves, submits and posts the annual report. |
| By October 1 | Final Expenditure Report due for the allocation whose window just closed. |
| By December 15 | The annual audit goes to the board, then to CDE. |
The fall posting date is a practical target, not a statutory deadline; set your own. CDE has said AB 2440 will change its guidance, so check the portal and CDE's listserv each spring.
Frequently asked questions
When is the Prop 28 annual report due?
On or before September 30. AB 2440 put that date in statute. The report must be approved by the governing board, submitted through the AMS Portal and posted on the LEA's website.
What goes in the Prop 28 annual report?
The types of arts education programs funded, the number of full-time equivalent teachers, classified personnel and teaching aides, the number of pupils served, and the number of school sites providing arts education programs with the funds.
Is the annual report required if we spent nothing?
Yes. CDE says the annual report and the annual certification are both required even if no Prop 28 funds were spent that year.
Does the annual certification have to be submitted to CDE?
No. CDE says the certification must be kept for auditing purposes but does not have to be posted on the LEA's website or submitted to CDE.
When is the Prop 28 Final Expenditure Report due?
By October 1 after the allocation's three-year spending window ends. It opens in the AMS Portal on May 1 of the final year. For the 2023–24 allocation it opened May 1, 2026.
Do school expenditure plans have to be posted online?
Yes, under AB 2440. Each school site or preschool must post its expenditure plan and any waiver information on its website, or on the LEA's website if the LEA requires it.
Related guides
The annual report, drafted from your plans, free
clearAMS keeps every school's plan, spending and approvals in one place, so the counts the annual report asks for come from the record rather than a spreadsheet hunt. Free for every California district, county office and state special school.
Sources
- California Department of Education, Prop 28 Arts and Music in Schools FAQ (reviewed October 6, 2026)
- AB 2440 (Muratsuchi), Chapter 606, Statutes of 2026, with the text of Education Code section 8820, Digital Democracy
This article explains the law in plain terms and is not legal advice. Confirm details with your county office of education or counsel.