Policy Guidance for Title 1, Part A: Improving Basic Programs Operated by Local Educational Agencies - April 1996

A r c h i v e d  I n f o r m a t i o n

Fiscal Requirements

To ensure that Title I, Part A funds are used to provide services that are in addition to the regular services normally provided by an LEA for participating children, three fiscal requirements related to the expenditure of regular State and local funds must be met by the LEA. An LEA must--

  1. Maintain State and local effort;

  2. Provide services in project areas with State and local funds that are at least comparable to services provided in areas not receiving Part A services; and

  3. Use Part A funds to supplement, not supplant regular non-Federal funds.

Maintenance of Effort


EXAMPLE:

For funds first made available on July 1, 1995, if a State is using the Federal fiscal year, the "preceding fiscal year" is Federal fiscal year 1994 (which began on October 1, 1993) and the "second preceding fiscal year" is Federal fiscal year 1993 (which began on October 1, 1992).

If a State is using a fiscal year that begins on July 1, 1995, the "preceding fiscal year" is the 12-month period ending on June 30, 1994, and the "second preceding fiscal year" is the period ending on June 30, 1993.


Funds First Available Preceding Fiscal Year Second Preceding Fiscal Year
July 1, 1996 1995 (1994-95) 1994 (1993-94)
July 1, 1997 1996 (1995-96) 1995 (1994-95)
July 1, 1998 1997 (1996-97) 1996 (1995-96)
July 1, 1999 1998 (1997-98) 1997 (1996-97)
July 1, 2000 1999 (1998-99) 1998 (1997-98)

Failure to maintain effort

If in the preceding year an LEA failed to spend at least 90 percent of what it spent in the second preceding year, the SEA must reduce the LEA's Part A allocation proportionate to the LEA's failure to maintain effort.


EXAMPLE:

If, during the preceding year, the LEA needed to spend $900,000 to meet the 90 percent level but only spent $85,000, the LEA failed to meet the 90 percent level by $50,000. Therefore, unless the Secretary grants a waiver, the SEA must reduce the LEA's allocation by 5.6 percent ($50,000 divided by $900,000 = 5.6%)


In determining maintenance of effort for the fiscal year immediately following the fiscal year in which the LEA failed to maintain effort, the SEA must consider the LEA's expenditures in the year the failure occurred to be no less than 90 percent of the expenditures for the third preceding year.

EXAMPLE: (This example is based on an LEA with expenditures of $1,000,000 in FY 94, $850,000 in FY 95, $810,000 in FY 96, $800,000 in FY 1997, and $700,000 in FY 1998.)


1 2 3 4
Program/Grant Year Expenditures first preceding year Expenditures second preceding year Level required to meet the requirement (90% of column 2) Reduction in LEA allocation
1996-97
(FY 97)
$850,000
(FY95)
$1,000,000
(FY 94)
$900,000 5.6% of LEA's allocation ($50,000/$900,000)
1997-98
(FY 98)
$810,000
(FY 96)
$900,000
90% of FY 94
i.e., 3rd preceding year-instead of FY 95
$810,000 No reduction to
FY 98 grant
1998-99
(FY 99)
$800,000
(FY 97)
$810,000
(FY 96)
$729,000 No reduction to
FY 99 grant
1999-2000
(FY 00)
$700,000
(FY 98)
$800,000
(FY 97)
$720,000 2.8% of LEA's FY 2000 allocation ($20,000/$720,000)

Comparability

An LEA may determine comparability on a districtwide basis or on a grade-span basis.

Records: If the LEA files a written assurance that it has established and implemented a districtwide salary schedule and policies to ensure equivalence among schools in staffing and in the provision of materials and supplies, it must keep records to document that the salary schedule and policies were implemented and that equivalence was achieved among schools in staffing, materials, and supplies. If the LEA established and implemented other measures for determining compliance with comparability such as student/instructional staff ratios, it must maintain source documentation to support the calculations and documentation to demonstrate that any needed adjustment to staff assignments were made.

Developing Procedures for Compliance

Determining Compliance

Note: Title I no longer permits any exclusion of supplemental State or local funds from the Title I comparability requirement.

Supplement, not supplant

An LEA may use Title I funds only to supplement and, to the extent practical, increase the level of funds that would, in the absence of Title I funds, be made available from non-Federal sources for the education of children participating in Title I programs. In no case may Title I funds be used to supplant--take the place of--funds from non-Federal sources. To meet this requirement, an LEA is not required to provide Title I services using a particular instructional method or in a particular instructional setting.

Program Designs

There are several types of programs that meet the supplement, not supplant requirement. As provided in the statute and also highlighted in the schoolwide and targeted assistance school sections of this guidance, schools are to use effective instructional strategies that give primary consideration to providing extended learning time such as an extended school year, before- and after-school, and summer programs, and minimize removing children from the regular classroom during regular school hours for Title I services. LEAs, in turn, should provide as much assistance as possible to schools to facilitate these types of instructional strategies. The Targeted Assistance Schools chapter of this guidance contains a variety examples of these strategies.

Exclusion of Supplemental State and Local Program Funds from the Supplement, not Supplant Requirement

When determining whether Title I funding is supplemental, an SEA or LEA may exclude State and local funds expended in any eligible school or school attendance area for carrying out a program that meets the schoolwide programs requirements of section 1114 or targeted assistance schools requirements of section 1115.

A program meets the requirements of section 1114 if it is--

A program meets the requirements of section 1115 if it--

Although past authorizations required approval, neither a State nor an LEA needs to apply for approval to exclude State or local funds under the Title I of the ESEA.
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