In an effort to address California’s budget deficit the California State Legislature recently passed SBX 3 2 (meaning the bill was passed in the third extraordinary session of the Legislature) to allow unencumbered 2006/07 ASES funds to be retained by the state. Currently new ASES programs that have requested extensions from the CDE by December 31, 2007 have until March 31, 2008 to expend these funds. New programs not meeting attendance targets this year will not be affected by this legislation, however meeting attendance targets will be required in subsequent years. In the meantime there will be no new Requests for Applications (RFA’s) for the ASES program this year.