Policy Guidance for Title I, 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

School Improvement

200.60(b) of Regulations

If funds are appropriated under Section 1002(f) of Title I, each SEA will receive an allocation under for School Improvement. In addition, an SEA may, and in some cases is required to, reserve funds from its State allocations for Title I, Part A LEA Grants under Section 1002(a), Part C Migrant Education program under Section 1002(c), and Part D, Subpart 1 State agency N or D program under Section 1002(d). An SEA must make available from funds received under Section 1002(f) or reserved from its State allocations no less that $200,000 to carry out school improvement activities.

  1. Compute the maximum amount an SEA may reserve from Title I funds for School Improvement by multiplying the total of the State allocations for the above three programs by 0.5 percent. However, if this amount plus the amount received under Section 1002(f) is less than $200,000, the SEA must reserve a higher amount in order to bring total State School Improvement funds up to $200,000.

    Note that no funds may be reserved from Capital Expenses under Section 1002(e) of Title I or from School Improvement funds under Section 1002(f).

    In States where the Section 1002(f) funds are at least $200,000, the SEA may reserve additional funds up to the 0.5 percent maximum (see Example I). If the Section 1002(f) funds are less than $200,000, the SEA must reserve additional funds to bring the total of the reserved funds plus the Section 1002(f) funds to at least $200,000; the SEA may reserve funds above the amount needed to reach $200,000 up to 0.5 percent (see Example II). If the total of the Section 1002(f) funds plus the 0.5 percent maximum reserve is not sufficient to equal the $200,000 minimum, the SEA must reserve additional funds to bring the total up to $200,000 (see Example III).

    Example I - Section 1002(f) Allocation Is $200,000 or More (Reservation from State allocations is optional)
    Program State Allocation Maximum Reserve
    Part A LEA Grants

         Basic Grants $88,588,632
         Concentration Grants 7,285,841
    Part C Migrant Program 472,992
    Part D, Subpart 1 State Agency N or D Program 761,985
    TOTAL $97,109,450
    Maximum Reserve (total allocations x .005) $485,547
    Amount available for School Improvement:
         Section 1002(f) allocation
         Optional reservation from State allocations

         Maximum amount available for School Improvement
    335,0001
    485,547 
    820,547 

    1 No funds must be reserved for School Improvement

    Example II - Section 1002(f) Allocation Is Less than $200,000 but 0.5 Percent Reserve Is Sufficient to Make $200,000 or More Available for School Improvement
    Program State Allocation Maximum Reserve
    Part A LEA Grants

         Basic Grants $15,000,000
         Concentration Grants 5,000,000
    Part C Migrant Program 600,000
    Part D, Subpart 1 State Agency N or D Program 300,000
    TOTAL $20,900,000
    Maximum Reserve (total allocations x .005) $104,500
    Amount available for School Improvement:
         Section 1002(f) allocation
         Reserve from State allocations

              Total
    195,000
    104,500
    299,500

    1 The SEA must reserve $5,000 ($200,000 - $195,000).

    Example III - Section 1002(f) Allocation Is Less than $200,000 and 0.5 Percent Reserve Is Not Sufficient to Make $200,000 Available for School Improvement
    Program State Allocation Maximum Reserve
    Part A LEA Grants

         Basic Grants $11,350,333
         Concentration Grants 544,595
    Part C Migrant Program 5,743,305
    Part D, Subpart 1 State Agency N or D Program 170,859
    TOTAL $17,809,092
    Maximum Reserve (total allocations x .005) $89,045
    Amount available for School Improvement:
         Section 1002(f) allocation
         0.5% reserve from State allocations

              Total
    Additional amount SEA must reserve for School Improvement
    Maximum amount available for School Improvement (reserved funds plus Section 1002(f) allocation)


    61,186
    89,0451
    150,231
    49,7691
    $200,000

    1 The 0.5 percent reserve is not sufficient, when added to the Section 1002(f) allocation, to make $200,000 available for School Improvement. Thus, the SEA must reserve more than 0.5 percent, that is, $138,814 ($89,045 plus $49,769).

  2. Determine the actual amount that the SEA will reserve from each State allocation for School Improvement. The SEA must reserve proportionate amounts from Basic and Concentration Grants but is not required to reserve proportionate amounts from its Parts A, C, and D allocations (see Example I below).

    In States where the Section 1002(f) funds are at least $200,000 but the State is opting to reserve additional funds, the SEA may not reserve more than 0.5 percent from any allocation (see Example I above). In States where the Section 1002(f) allocation plus the 0.5 percent reserve is sufficient to meet the $200,000 minimum, the SEA also may not reserve more than 0.5 percent from any allocation (see Example II above). In States where the Section 1002(f) allocation plus the 0.5 percent reserve is not sufficient to meet the $200,000 minimum, the SEA must reserve at least 0.5 percent from each allocation and will need to reserve a higher percentage from at least some of the allocations in order to meet the $200,000 minimum (see Example III above).

Example I - Section 1002(f) Allocation is $200,000 or More (200.60(b)(1) and (2)(i) of Regulations)

Maximum 1 Amount Reserved by the SEA
Program State Allocation Percent Amount Percent 2 Amount
Part A LEA Grants




     Basic Grants $88,588,632   0.5 % $442,943   0.5 % $442,943
     Concentration Grants 7,285,841   0.5 36,429   0.5 36,429
Part C Migrant Program 472,992   0.5 2,365   --- ------
Part D, Subpart 1 State Agency N or D Program 761,985   0.5 3,810   --- ------
TOTAL $97,109,450



1 Maximum amount that SEA may reserve from each State allocation is 0.5 percent.

2 In this example, the SEA reserved less than the maximum allowed for the State. It is not required that proportionate amounts be reserved from each of the State allocations under Parts A, C, and D, as long as no more than 0.5 percent is taken from any allocation and the amounts reserved from Basic Grants and Concentration Grants are proportionate.

Example II - Section 1002(f) Allocation Is Less Than $200,000 but 0.5 Percent Reserve Is Sufficient To Make $200,000 or More Available for School Improvement (200.60(b)(2)(ii)(A) of Regulations)

Maximum1 Minimum2 Amount Reserved by SEA3
Program State Allocation Perct Amount Perct2 Amount Perct Amount
Part A LEA Grants






   Basic Grants $15,000,000   0.5% $75,000  0.02% $3,588  0.48% $72,000
   Concentration    Grants 5,000,000   0.5 25,000  0.02 1,196  0.48 24,000
Part C Migrant Program 600,000   0.5 3,000  0.02 144  0.02 144
Part D, Subpart 1 State Agency N or D Program 300,000   0.5 1,500  0.02 72  0.02 72
TOTAL $20,900,000
$104,500
$5,000
$96,216
Available for School Improvement:

     Section 1002(f) allocation
     Reserve from State allocations

          Total



195,000
104,500
$299,500


195,000
5,000
$200,000


195,000
96,216
$291,216

1 Maximum for each allocation is 0.5 percent because this reserved amount, when added to the State's Section 1002(f) allocation, is over $200,000.

2 The minimum amount an SEA must reserve is $5,000 (Section 1002(f) allocation of $195,000 subtracted from $200,000). Proportionate amounts do not have to be reserved from each allocation under Parts A, C, and D to make up the minimum as long as proportionate amounts are reserved from Basic Grants and Concentration Grants.

3 In this example, less than 0.5 percent, but more than the $5,000 minimum, was reserved. Proportionate amounts do not have to be reserved from each allocation under Parts A, C, and D, but proportionate amounts from Basic Grants and Concentration Grants must be reserved.

Example III - Section 1002(f) Allocation Is Less Than $200,000 and 0.5 Percent Reserve Is Not Sufficient to Make $200,000 Available for School Improvement (200.60(b)(2)(ii)(B) of Regulations)

Reserve 0.5 % of Each Allocation1 Additional Funds Required2 Amount that Must Be Reserved
Program State Allocation
(1)		 Perct
(2)		 Amount
(3)		 Perct3
(4)		 Amount3
(5)		 Perct
(6)		 Amount4
(7)
Part A LEA Grants






   Basic Grants $11,350,333   0.5% $56,752   0.4% $47,447   0.9% $104,199
   Concentration    Grants 544,595   0.5 2,723   0.4 2,277   0.9 5,000
Part C Migrant Program 5,743,305   0.5 28,716   --- ------   0.5 28,716
Part D, Subpart 1 State Agency N or D Program 179,859   0.5 899   --- ------   0.5 899
TOTAL $17,818,092   0.5 $89,090
$49,724
$138,814
Available for School Improvement:
   Section 1002(f) allocation
   Reserve from State allocations

      Total
61,186
89,090
$150,276


49,724
$49,724

61,186
138,814
$200,000

1 SEA must reserve maximum of 0.5 percent from each State allocation.

2 SEA must reserve additional funds because $200,000, including Section 1002(f) funds, is not available for School Improvement. The SEA may, but is not required, to reserve proportionate amounts from each allocation under Parts A, C, and D to make up these additional funds, except the amounts reserved from Basic Grants and Concentration Grants must be proportionate.

3 In this example, the additional funds ($49,724) required to make $200,000 available were reserved from Basic and Concentration Grants only. To determine proportionate amounts for Basic and Concentration Grants, the additional amount required ($49,724) was divided by the sum of the total allocations for Basic and Concentration Grants ($11,844,928). The percentage was applied to the Basic Grant and Concentration Grant allocations.

4 Column 7 is the sum of columns 3 and 5.
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