Introduction to Title I, Part A Fiscal Requirements

1. Introduction to Title I, Part A Fiscal Requirements Presented by Kristen Tosh Cowan, Esq. ktoshcowan@bruman.com Brustein & Manasevit, PLLC Fall Forum 2011

2. Overview 1) LEA-to-School allocations 2) Set asides 3) Equitable Services allocation 4) Carryover 5) MOE 6) Comparability 7) Supplement not Supplant 8) Reauthorization Predictions

3. Valuable Legal Resource • “Title I Fiscal Issues” Feb. 2008 www.ed.gov/programs/titleiparta/ fiscalguid.doc • Consolidating funds in schoolwide programs, MOE, SNS, Comparability, Grantbacks, Carryover

4. LEA-to-School Allocations “Ranking and Serving” Rules • 1) Identify Eligible Schools • 2) Rank Schools in Order of Poverty • 3) Serve Schools Strictly in Accordance with Rank

5. Step 1: Identify Eligible Schools

6. Eligible School Attendance Areas • Percentage of children from low-income families who reside in area . . . AT LEAST AS HIGH AS . . . • percentage of children from low-income families in LEA

7. LEA Discretion: Eligibility • “35 Percent Rule” • May designate as eligible • Must still serve in order

8. LEA Discretion: Eligibility • “Grandfathering” option • Continue if served last year • But, only continue for one year

9. 5 Poverty Measures: • Census data • Free and reduced lunch • TANF • Medicaid eligibility • Composite of above

10. Step 2: Rank Eligible Schools in order of poverty

11. Ranking and Serving • Exceeding 75% poverty • Strictly by poverty • Without regard to gradespan • At or below 75% poverty • May rank by gradespan

12. Exception: NO Rank & Serve if • Small LEA exclusion • If <1000 students • One school at each gradespan

13. Step 3: serve schools STRICtLY in order of rank

14. Allocation to Schools • NOTE: first, reserve set-asides • Allocate to schools based on total # of students from low income families residing in area (including nonpublic) • Discretion on amount of PPA • Higher PPAs must be in higher schools on ranked list

15. Allocations given without regard to schoolwide or targeted assistance model Title I funding . . . . . . To serve school based on poverty . . . To serve student based on academics

16. Title I Set-Asides

17. LEA MUST reserve specific percentage: • 20% choice transportation and SES • 1% parental involvement • 10% professional development (if LEA ID)

18. LEA MUST reserve but not specific percentage: • Administration (public and private) • Homeless • Neglected & delinquent

19. LEA MAY reserve: • Incentives to teachers in ID schools (<5%) • Professional development • “other authorized activities” • Summer school • Preschool • Districtwide program

20. CAUTION: DON’T CIRCUMVENT “RANKING AND SERVING” RULES!

21. Funds for Supp Ed Services and Choice Transportation • Amount equal to 20% of LEA allocation (unless lesser amount needed) • To pay transportation for choice • To satisfy all requests for SES services • Both

22. Credit for “Parent Outreach” • Allow limited amount of funds for “parent outreach” to count toward 20% • Capped at 0.2% of LEA Part A grant • May spend more for outreach, but only 0.2% counts toward 20% • EX. – $1 million LEA grant; • 20% = $200,000 • 0.2% = $2,000 can count toward $200,000 22

23. What costs count as “parent outreach”? Parent notices, communication through the media, internet, and community, displaying information on LEA’s website, and parent fairs Allowance, not a requirement

24. Use 20% “unless a lesser amount is needed”How do you know if less is needed? 24

25. To spend less than 20%, LEA must: 200.48(d)(2)(i) • Partner, to extent practicable, with outside groups (CBO, FBO, etc.) • Send timely, accurate notice to parents • Ensure SES sign-up forms given directly to all eligible students/parents • Ensure SES sign-up forms made widely available through broad dissemination (Internet, other media, public agencies) 25

26. Provide (at a minimum) two enrollment windows at separate points in school year of sufficient length • Ensure SES providers are given access to school facilities, using a fair, open and objective process, on same basis as others

27. Does LEA need SEA’s permission before reallocating the 20%? NO!

28. LEA must document and notify SEA! Before reallocating remainder of 20%, LEA must: Maintain records demonstrating it has met criteria Notify the SEA that it met criteria Notify SEA of amount of remainder it intends to spend on other allowable activities

29. Set Aside for Parent Involvement • For LEAs with Part A allocations >$500,000 • 1% minimum reserved • Proportional amount to private students • 95% of remainder to schools • 5% of remainder kept at LEA

30. Equitable Services for Private School Students

31. Equitable Services:Deriving Allocation General Formula: • Based on number of: • Private school students • From low-income families • Who reside in Title I-participating public school attendance areas

32. Calculate Allocation for Instruction: • Identify eligible school attendance areas • Rank in order of poverty • Strictly serve in rank order (i.e., ID who is “Participating Public School”) • Calculate PPA for each area • Derive allocation amount for each area • must include nonpublic low-income # • Reserve nonpublic amount • PPA x # of nonpublic low-income students who reside in participating public sch area

33. Reservation for districtwide instruction • If LEA reserves for “districtwide instructional programs for public elementary and secondary” • Then proportional amount goes to nonpublic • 34 CFR sect 200.64(a)(2)(i)(A)

34. Example • LEA reserves $500,000 for districtwide reading initiative • Of all low-income in LEA residing in participating attendance areas, 5% are private • 5% of $500,000 to private allocation

35. Applies to: • Summer school • After school programs • Reading coaches DOES NOT APPLY TO: • SES/Choice (20%) • Preschool

36. Reservation for teachers and families • If LEA reserves funds for parental involvement or professional development • Then proportional amount to nonpublic • 34 CFR sect 200.65(a)

37. Example • LEA reserves 1% of $1,000,000 allocation for parental involvement ($10,000). • Of all low-income families residing in participating attendance area, 6% are private. Then 6% of $10,000 used for families of participating private school students ($600).

38. Carryover

39. Carryover • General Rule: May carryover up to 15% of Title I, Part A • Reallocated by state if exceeds • Waiver by SEA once every 3 years • NOTE: FY 2009 flexibility

40. Use of Carryover Funds • Flexible • 3 Options: • Put back in LEA formula & redistribute • Designate for particular LEA activities • (Allow school to retain) • Cannot use in ineligible school

41. 3 Pillars of Fiscal Accountability Maintenance of Effort Supplement not Supplant Comparability

42. Maintenance of Effort Most Directly Affected by Declining Budgets

43. MOE: The NCLB Rule • The combined fiscal effort per student or the aggregate expenditures of the LEA • From state and local funds • From preceding year must not be less than 90% of the second preceding year

44. MOE: Preceding Fiscal Year (PFY) • Need to compare final financial data • Compare preceding FY to second preceding FY • EX: To receive FY 2011 funds (available July 2011), compare preceding FY (2009-10) to second PFY (2008-09)

45. MOE: Failure under NCLB • SEA must reduce amount of allocation in the exact proportion by which LEA fails to maintain effort below 90% • Reduce all applicable NCLB programs, not just Title I

47. MOE: Waiver • USDE Secretary may waive for State • Exceptional or uncontrollable circumstances such as natural disaster OR • Precipitous decline in financial resources of the LEA

48. July 2009 Draft Non-Regulatory Guidance • SEA may apply for waiver on behalf of LEAs http://www.ed.gov/policy/gen/leg/recovery/programs.html

49. Comparability May not be affected by declining non-federal revenue, if treat all schools equally

50. General Rule- §1120A(c) • An LEA may receive Title I, Part A funds only if it uses state and local funds to provide services in Title I schools that, taken as a whole, are at least comparable to the services provided in non-Title I schools. • If all are Title I schools, all must be “substantially comparable.”