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Permissible State Uses of Tech-Prep Funds

Program Memorandum - OVAE/DVTE - FY 2000-8

Date:May 19, 2000
To:State Directors of Vocational - Technical Education
State Directors of Community, Technical and Junior Colleges
From:Patricia W. McNeil
Subject:Permissible State Uses of Tech-Prep Funds

A number of questions have arisen about the permissible uses of Tech-Prep Education grant funds by States for curriculum development, professional development, and other State leadership activities. I hope this memorandum clarifies this issue for you.

Section 204 of the Carl D. Perkins Vocational and Technical Education Act of 1998 (Perkins III) requires States to use their Tech-Prep allocations to award grants to eligible consortia to carry out the requirements of section 204(c) and (d) of Perkins III. A State may elect to reserve a portion of the State's allocation for reasonable and necessary State administration costs, including supervision and technical assistance to eligible consortia. Although there is no set percentage in the statute for State administrative costs, generally reasonable and necessary administrative expenses would not exceed five percent of the Tech-Prep allotment, and often would be less. A State is not required to use any Tech-Prep funds for administrative expenses. These same principles apply to the use of Tech-Prep funds for administrative expenses by local consortia, subject to State approval.

All remaining funds must be awarded to eligible consortia for Tech-Prep education programs. Thus, a State may not reserve a portion of the State Tech-Prep allocation for State leadership activities such as curriculum or professional development, regardless of whether the State carries out these activities directly or by contracting with a third-party entity. "Administration," as defined by section 3(1) of Perkins III, specifically excludes "curriculum development activities, personnel development, or research activities" but does not exclude technical assistance. Technical assistance might include, for example, the costs of organizing and facilitating a Statewide professional development conference but would not include the non-administrative, substantive costs of the event, such as presenter fees, which would be professional development and, thus, State leadership. A State may, however, choose to use funds provided under section 112(a)(2) for State leadership activities to carry out these types of activities to improve Tech-Prep programs in the State. Additionally, a State may choose to use available State funds for this purpose.

Further, a State may not require local consortia to agree to fund professional development or other leadership activities that are carried out or supervised by the State as a condition of receiving funding. Local consortia may choose voluntarily to contribute funds to these Statewide activities, but they may not be required to do so as a condition of receiving funds.

If you have any additional questions about your use of Tech-Prep funds for State-level activities, please feel free to contact your State liaison in the Division for Vocational and Technical Education.

cc:State Tech-Prep Coordinators
 State Liaisons, DVTE

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Last Modified: 09/06/2006