DFP Allocations: Understanding My Award Amount Presented By: Kelly Gallatin Federal Funds Manager

Objectives Give an extended overview of the Title I allocation process and briefly discuss the Title IIA and Title IV allocation processes. Review the effects ESSA had on 2017-18 Title I and Title IIA allocations. Explain the significant impact of ESSA on the PA Title I School Improvement set aside to be deducted from an LEA in 2018-19 and beyond. Show the continuing effect of ESSA on the PA state Title IIA allocation.

Status of PA Federal Funds for 2018-19 Based on USDE Tables (as of 4/09/18) Percent of Change from 2017-18 Levels for Major Programs: Title I, Grants to LEAs (+1.42%) Title II, Improving Teacher Quality (-3.29%) Title III, English Language Acquisition (2.80%) Title IV, SSAE (+185%) PA allocation increases from $15,128,493 in 2017-18 to $43,148,678 in 2018-19

“Problem” Terminology The following terms are often confused: Census Poor (or Poverty Level) Percent of Free and Reduced Lunch (vs. Census Poor) Formula Percent (USDE basis for Title I eligibility and allocation of funds to SDs)

Census Poor Census Poor The number of children age 5-17 from families below the poverty level on the basis of the most recent satisfactory data.

How Different is Census Poor from Free & Reduced Lunch? Students whose family income is up to 130% of the applicable family size income levels are eligible for Free lunch Students whose family income is up to 185% of the applicable family size income levels are eligible for Reduced lunch

Major distinction between Census Poor and Free & Reduced Lunch Census poor is part of the formula used by USDE in their calculation of Title I allocations by school district. Free & Reduced Lunch is a local measure—used to make schools eligible for Title I within the school district. Free & Reduced Lunch is not used as a factor in USDE or PDE allocations.

Formula Percent (basis for USDE and PDE Title I Allocations)  

How USDE calculates Title I Allocations to PA School Districts School Districts may receive funds from one, three or four funding streams making up the total available Title I allocation: Basic Grant Concentration Grant Targeted Grants EFIG (Education Finance Incentive Grant) Eligibility for each of these funding streams is based on percent of formula children

Eligibility for the Four Funding Streams included in USDE Title I Allocations Basic Grants 10 Formula Children; AND 2% Formula Children (Census, TANF, Foster & Neglected) Concentration Grants 15% Formula Children OR 6500 Formula Children

Eligibility for the Four Funding Streams included in USDE Title I Allocations (cont’d) Targeted Grants 10 Formula Children; AND 5% Formula Children Education Finance Incentive Grant (EFIG)

Title I Allocation Process at PDE PDE receives initial Title I Allocations by school district as calculated by USDE PDE Adjusts for charter schools: Enrollment of charter school from each sending school district Calculate Formula Children for charters Enrollment times percent of formula children of each sending school district Number of formula children derived from above calculation times per pupil allocation of each sending school district yields school district contribution

Title I Allocation Process at PDE Adjustments to USDE allocations are performed separately within each of the four possible formula funding streams. Within each funding formula adjustment, a hold harmless provision is applied. The adjusted allocations from the four formulas are totaled, and any applicable state set asides are deducted.

HOLD-HARMLESS GUARANTEE All 4 formulas provide for a variable hold-harmless guarantee for each LEA of 85%, 90%, and 95% of their previous year’s allocation The hold-harmless percentage depends on the current year percent of formula children for each LEA (described on following slide) For Basic, Targeted, and EFIG, an LEA must meet the eligibility criteria in order for hold-harmless protection to apply For Concentration Grants, once an LEA meets the 15% formula children eligibility criterion to receive it, the hold-harmless provision applies for an additional four years, even if the LEA no longer meets the eligibility criterion (15%) in any of those years

HOLD-HARMLESS GUARANTEE Hold Harmless Level (or Rate) Dependent on Percent of Formula Children in LEA 95% for LEAs with Percent of Formula Children of 30% or more 90% for LEAs with Percent of Formula Children at >=15% but <30% 85% for LEAs with Percent of Formula Children at less than 15%

HOLD-HARMLESS GUARANTEE STATE DETERMINED 2017-18 ALLOCATION TOTAL FORMULA COUNT 5-17 POP PERCENT LEAs at 85% Hold- Harmless 90% 95% Hold Rate Amount $247,099 282 3,906 7.22% 0% $210,034 $546,886 643 9,473 6.79% $464,853 $1,913,276 1,128 3,678 30.67% $1,817,612 $894,945 454 1,320 34.39% $850,198 $175,611 156 1,076 14.50% $149,269 $178,712 153 828 18.48% $160,841 $8,257,005 8,235 21,130 38.97% $7,844,155 $2,334,090 2,215 8,895 24.90% $2,100,681

Review Impact of ESSA on 2017-18 Title I Allocations For 2017-18 only, all LEAs were required to contribute to the 7% Title I set aside for School Improvement (previously 4%) Set aside taken on total LEA allocation after formula hold harmless process Optional 3% set aside for Direct Student Services was not deducted Remains an option for PDE If taken, all LEAs would be required to contribute

Impact of ESSA on 2018-19 Title I Allocations Beginning with SY 2018-19 and going forward: 7% School Improvement set aside Special rule in ESSA activates; LEAs not required to contribute, if doing so would reduce their allocation below the previous year state- determined final allocation. If not enough set aside from contributing LEAs, then state reservation may be limited to an amount <7%.

Ongoing Title I Allocation Processes in ESSA All LEAs must contribute to the regular 1% Title I State Admin set aside. PDE will perform a final hold harmless adjustment on the total allocation after the State Admin set aside is taken. If PDE would decide to take optional DSS set aside: Per updated allocation guidance, all LEAs would be required to contribute, and this amount would be taken as the last step in the process.

Ongoing Impact of ESSA & Allocation Guidance on Title IIA Allocations To States To LEAs ESSA reduces the hold harmless amount between FY 2017 and FY 2022, until it is ultimately eliminated. Hold Harmless provision guaranteed that states receive at least as much money as in FY 2001. Once hold harmless is eliminated, allocation will be based 20% on population and 80% on poverty numbers. Hold Harmless provision was permanently eliminated, effective 2017-18 SY. 20% of funds to LEAs based on their number of school age (5-17) population. 80% of funds to LEAs based on their number of school age (5-17) low income.

Title IV Allocation Process at PDE Under ESSA, an LEA’s previous year Title I allocation is the basis for the current year Title IV allocation amount. PDE determines an LEA’s share of the total previous year state-determined Title I allocation. Initially, an LEA is allocated that same share of the current year available Local Title IV funds. If initial allocation not >=$10,000 PDE calculates total amount needed to bring all LEA allocations up to the $10,000 minimum. PDE ratably reduces allocations of LEAs already above $10,000 until all LEA allocations meet the minimum.

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