ESEA Title I Supplement, Not Supplant, and American Reinvestment and Recover Act (ARRA) funds

 General rule: A district may not use Title I, Part A funds for activities that it would have carried out in the absence of Title I, Part A funds.

Ask the following questions:  Does the district use Title I funds to provide services that the district is required to make available under state, local or other federal law?  Does the district use Title I funds to provide services that it provided in the prior year with non-federal funds?  Does the district use Title I funds to provide services for children participating in a Title I program or in a Title I school that it provides with non-federal funds to children in non-Title I schools?

If you answer ‘yes’ to any of these questions, your district is at risk of supplanting.

However… If the district has documentation that it would not have been able to provide the services with state or local funds had the federal funds been unavailable, a district can overcome a presumption of supplanting.

Condition #1: A district can demonstrate that there was a reduction in the amount of state and local funds available to pay for the activity. Possible evidence: budgetary documents, accounting ledgers, payroll documentation (including sources of salary funds), legislation and statutes showing reduced funding allocations from year to year.

Condition #2: A district makes the decision to eliminate the activity without taking into consideration the availability of Title I, Part A funds. Possible evidence: minutes from board meetings, internal memoranda, board resolutions and proposals, as well as other documentation explaining the LEA’s reasons for eliminating the position if it was to be supported with state and local funds

Condition #3 (REQUIRED): The activity that is now paid with Title I, Part A funds is allowable under Title I, Part A, and consistent with all Title I fiscal and programmatic requirements. Possible evidence: program statutes detailing allowable uses of funds, descriptions of employee responsibilities, time distribution records, contracts, purchase orders and invoices, and other documentation detailing the procurement process

Possible example:  A reading support teacher who was formerly paid with state and local funds is in jeopardy of losing his job. The district has an official memo that states that the position is about to be cut at the end of the school year. The teacher is re-assigned using ARRA funds to provide supplemental services in a targeted assistance school.

Possible example:  A district has minutes from a Board meeting that show the need to cut all Math Specialists. These positions had been paid with state and local funds. The district uses ARRA funds to restore the positions in Title I schools. The Math Specialists in Title I Targeted Assistance schools must be providing supplemental services to Title I eligible students only.

Possible example:  A school district facing budget reductions has submitted a board proposal to cut one reading support teacher from each elementary school. One elementary school that has just gone schoolwide decides to use ARRA funds to re-assign their Title I teacher to a reading coach position.

For more information on supplement, not supplant and the ARRA funds:  Contact your DPI Title I Consultant  DPI Title I Page  DPI ARRA Page l