The Expanded Food and Nutrition Education Program (EFNEP) is
    funded out of restricted Smith-Lever 3(d) appropriations. 
    EFNEP budget management provides for the operation of the
    University of California Adult EFNEP and Youth EFNEP programs
    on a statewide basis, allocating resources annually to meet
    the highest priority needs in the state as a whole. 

    Administrative responsibilities for county program operations
    for California EFNEP are described in a Memorandum of
    Understanding between the Vice President, DANR, and Regional
    Directors as first signed on April 1, 1992.

I.  LOCATION OF THE PROGRAM

    EFNEP program locations are determined on a biennial basis by
    the Vice President, DANR, based on recommendations from an
    administrative group composed of the Assistant Director--ANR
    Programs, and the four Regional Directors.  This group works
    with the EFNEP Advisory Committees and takes into account
    such factors as poverty demographics and program
    effectiveness.  Program units with the highest rankings on
    family and youth poverty demographics, together with the
    capacities to manage effective, cost-efficient programs are
    given priority.  Other factors considered include: 
    availability of academic staff to initiate and supervise the
    program; ability to staff a program to ensure measurable
    impact; and possibility of cross-county or sub-regional
    cooperation in use of staff or extension of program services.

II.  OPERATING BUDGET

    A.   Annual Appropriation

         California Cooperative Extension receives an annual
         appropriation of Smith-Lever 3(d) funds from the United
         States Department of Agriculture for the operation of
         Adult and Youth EFNEP.  Guidelines issued by USDA on
         August 3, 1976, as modified in 1983, require that a
         minimum of 60 percent of the total statewide annual
         appropriation be used for paraprofessional personnel and
         their support costs.  California allocates 80 percent of
         the federal appropriation to programs for families with
         young children (Adult EFNEP) and 20 percent to youth
         programs (Youth EFNEP).

         Each of the two programs is treated as a separate
         Statewide Special Program, under the jurisdiction of the
         Associate Vice President--Programs and the Assistant
         Director--Programs.  To meet the highest priority needs
         in the state as a whole and to maximize the utilization
         of the limited resources, annual program budget
         decisions are made on a statewide basis.

    B.   Annual Workplan and Budget Process

         Each Regional Director, in consultation with County
         Directors and EFNEP Program Managers, is responsible for
         submitting annual county workplans and budget proposals
         for counties within his/her region to the Assistant
         Director--ANR Programs for approval.  The EFNEP State
         Office Supervisor is responsible for preparing Adult and
         Youth EFNEP statewide budget plans for each fiscal year
         for submission to the Assistant Director--ANR Programs
         from the information provided by the Regional Directors.

         If, due to budget decreases or the impact of salary or
         price increases, there are insufficient funds to
         continue programs in the agreed-upon counties, the
         Assistant Director--ANR Programs, in consultation with
         the Regional Directors, will recommend a budget,
         adjusted in accordance with the provisions of section
         III below.  As part of the annual workplan/budget
         process of the Division, final approval and allocation
         of the budget will be made by the Vice President.

III.  FUNDING DECREASES

    Should there be inadequate federal appropriations to cover
    approved workplans and budgets, the Assistant Director--ANR
    Programs and the Regional Directors will recommend
    adjustments to the Vice President considering the following
    options:

    A.   Use of statewide funds in the Prior Balances Provision
         or Contingency Reserve accounts from total Adult or
         Youth EFNEP operations;

    B.   Reallocation of uncommitted funds from the state office
         or from other counties; or

    C.   Reduction or elimination of specific county programs and
         layoff of staff when it has been determined to be in the
         best interest of total statewide Adult or Youth EFNEP.

IV.  FISCAL YEAR CLOSING

    While the federal appropriation is on an October 1 -
    September 30 fiscal year, the University is on a July 1 -
    June 30 fiscal year.  To facilitate management of the
    program, California EFNEP will operate on the University
    fiscal year, July 1 - June 30.

    Budget allocations for the fiscal year are intended to be
    used by each county during the year.  At June 30, any
    uncommitted balances will lapse into the statewide Prior
    Balances Provision.  

V.  STATEWIDE PROVISION FOR ALLOCATIONS ACCOUNT

    A statewide Provision for Allocations Account exists for each
    program.  Each provision account has three distinct sub-accounts 
    in which funds are maintained.  These sub-accounts
    are the Unallocated Provision for current operating funds,
    the Prior Balances Provision for flexibility in the
    management of funds, and the Contingency Reserve for use as
    necessary in emergencies.  

    A.   Unallocated Provision

         The Unallocated Provision holds the current year annual
         appropriation until funds are allocated to program
         accounts.

    B.   Unexpended Balances Provision

         EFNEP program managers are expected to annually expend
         their allotted program budget.  The Prior Balances
         Provision has been established, however, for the
         placement of year-end uncommitted balances from county
         and state operations.  Funds in this provision are
         available as needed for allocation in the annual
         workplan/budget process and are expended during the
         following 1-2 year period.

    C.   Contingency Reserve

         A Contingency Reserve Account has been established for
         each program in the event the annual appropriation is
         eliminated or drastically reduced.  The maximum amount
         to be retained is equal to 5 percent of an annual
         federal appropriation for Adult and Youth EFNEP. 

VI.  PERSONNEL MANAGEMENT

    A.   Non-Academic Staff Vacancies

         When a vacancy occurs during the year, a replacement may
         be hired on a casual basis for the balance of the fiscal
         year upon approval of the appropriate Regional Director. 
         Should there be extenuating circumstances to require
         replacement on a career basis, approval of the Assistant
         Director--ANR Programs, is required.

    B.   Career Appointments of Non-Academic Staff

         When approved by the Assistant Director--ANR Programs,
         career appointments may be made on a full-year or
         partial-year appointment basis, at 50% time or more,
         depending on the needs and structure of the program
         (refer to Staff Personnel Policy [SPP] 215, Partial-year
         Career Positions, for further information on the
         structure of these appointments).  All career
         appointments will be made for a minimum of 50% time. 
         All Personnel Action Forms (PAFs) for career
         appointments should clearly show that the program is
         funded out of restricted federal appropriations that are
         subject to annual Presidential and Congressional budget
         action.  Continued employment will be subject to
         continuation of adequate federal funding and a
         continuing programmatic need for staff with the same
         abilities, skills, and familiarity with communities to
         be served.

    C.   Layoffs

         Should it be determined that program reductions must be
         made, the Assistant Director--ANR Programs, in
         consultation with County and Regional Directors,
         Director of Personnel Services, and Director of
         Affirmative Action, will determine where the layoffs
         will be made, taking into consideration total statewide
         program factors as well as the affirmative action
         commitment of the Division.  Any layoff will follow the
         provisions of SPP 760.  For these purposes, each county
         is defined as a "department" and layoff will be based
         upon seniority within the county.  Individual
         performance is not a criterion factor in layoffs. 
         Unsatisfactory performance should be handled under the
         provisions of SPP 740.  

                          --

September 1993