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

## SEA Allocation of Title I Funds to LEAs for School Year 1995-96

200.60(a) of Regulations

1. Compute the maximum amount an SEA may reserve from Title I funds for State Administration by multiplying the total State allocation for Part A LEA Grants under Section 1002(a) of Title I, Part C Migrant Education program under Section 1002(c), and Part D, Subpart 1 State agency Neglected or Delinquent (N or D) program under Section 1002(d) by 1 percent. Note that no funds may be reserved from Capital Expenses under Section 1002(e) and School Improvement funds under Section 1002(f). The maximum amount that may be reserved is the greater of 1 percent of the allocations or \$400,000. Following are examples of how to compute the maximums:

Example I - 1 Percent
Program State Allocation Maximum Reserve 1 Percent
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 \$971,095

Example II - \$400,000
Program State Allocation 1 Percent 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 \$178,0911 \$400,000

1 One percent is less than \$400,000, so SEA may reserve no more than \$4000,000.

2. After determining the maximum total a State may reserve for State Administration in Step 1, compute the maximum amount the SEA may reserve for State Administration from each of the State allocations and the amount up to the maximum that the State will reserve from each of Parts A, C, and D allocations. Following are examples of how to compute the amount from each allocation to be reserved:

Reservation based on 1 percent maximum: The 1 percent maximum applies to each of the four State allocations as well as to the total of the allocations. If the SEA reserves less than 1 percent, the SEA is not required to reserve proportionate amounts from the State's Parts A, C, and D allocations. However, the amounts reserved from Basic and Concentration Grants must be proportionate (see Example I).

Example I - Maximum of 1 Percent May Be Reserved

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

Basic Grants \$88,588,632 1.00 % \$885,886 1.00 % \$885,886
Concentration      Grants 7,285,841 1.00 72,858 1.00 72,858
Part C Migrant Program 472,992 1.00 4,730 0.95 4,493
Part D, Subpart 1 State Agency N or D Program 761,985 1.00 7,620 0.50 3,810
TOTAL \$97,109,450 1.00 \$971,094
\$967,047

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

2 Amount reserved may be less but not more than the maximum percentage. An SEA is not required to reserve proportionate amounts from the State allocations under Parts A, C. and D but the amounts from Basic Grants and Concentration Grants must be proportionate.

Reservation based on \$400,000 maximum: In this case the SEA must reserve proportionate amounts from each of the State allocations. To compute the maximum amount that the SEA may reserve from each allocation, divide \$400,000 by the total of all four State allocations. The resulting percentage is applied to each of the State allocations to determine the maximum amount that may be reserved from each allocation (see Example II).

Example II - Maximum of \$400,000 May Be Reserved

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

Basic Grants \$11,350,333 2.25 % \$254,933 1.97 % \$223,067
Concentration Grants 544,595 2.25 12,232 1.97 10,703
Part C Migrant Program 5,743,305 2.25 128,997 1.97 112,872
Part D, Subpart 1 State Agency N or D Program 170,859 2.25 3,838 1.97 3,358
TOTAL \$17,809,092 2.25 \$400,000 1.97 \$350,000

1 In this example, \$400,000 was divided by \$17,809,092, which equals 2.25 percent.

2 In this example, the SEA reserves less than the maximum amount; \$350,000 is divided by \$17,809,092 to equal 1.97 percent.
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