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Introduction to Title I, Part A Fiscal Requirements
Presented by Tiffany R. Winters, Esq. Brustein & Manasevit, PLLC Spring 2012 Forum
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Overview W 1) LEA-to-School allocations 2) Set asides
3) Equitable Services allocation 4) Carryover 5) MOE 6) Comparability 7) Supplement not Supplant W
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Valuable Legal Resource
“Title I Fiscal Issues” Feb. 2008 fiscalguid.doc Consolidating funds in schoolwide programs, MOE, SNS, Comparability, Grantbacks, Carryover
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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
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Step 1: Identify Eligible Schools
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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
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LEA Discretion: Eligibility
“35 Percent Rule” May designate as eligible Must still serve in order
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LEA Discretion: Eligibility
“Grandfathering” option If a school has lost eligibility (fallen below the poverty threshold used by the LEA) THEN May continue to serve but only for one more year
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5 Poverty Measures: Census data Free and reduced price lunch TANF
Medicaid eligibility Composite of above
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Step 2: Rank Eligible Schools in order of poverty
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Ranking and Serving Exceeding 75% poverty At or below 75% poverty
Strictly by poverty Without regard to gradespan At or below 75% poverty May rank by gradespan
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Ranking with Grade Span Option
School Poverty Rate Albermarle Elementary 92% Lincoln Middle School 87% Beaumont High School 83% Roosevelt Elementary 79% Scott Elementary 74% Toshiba Elementary 59% Brennan Elementary 49% Key Middle School 58% Washington High School 70%
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Step 3: serve schools STRICtLY in order of rank
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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
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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
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Ranking with Grade Span Option
School Poverty Rate # Poverty Students PPA Allocation Albemarle Elementary 92% 82 $1,500 $123,000 Lincoln Middle School 87% 90 $1,250 $112,500 Beaumont High School 83% 76 $95,000 Roosevelt Elementary 79% 40 $1,000 $40,000 Scott Elementary 74% 56 $56,000 Toshiba Elementary 59% 119 $119,000 Brennan Elementary 49% 92 $92,000 Key Middle School 58% 47 $47,000 Washington High School 70% 160 n/a
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Ranking with Skipping School Poverty Rate # Poverty Students PPA
Allocation Albemarle Elementary 92% 82 $1,500 $123,000 Lincoln Middle School 87% 90 $1,250 $112,500 Beaumont High School 83% 76 $95,000 Roosevelt Elementary 79% 40 $50,000 Scott Elementary 74% 56 $70,000 Toshiba Elementary 59% 119 $148,750 Brennan Elementary 49% 92 $115,000 Key Middle School 58% 47 n/a Washington High School 70% 160
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Exception: Rank & Serve
“Skip” school, ONLY if: Meet Comparability; Receiving supplemental State/local funds used in Title I-like program; and Supplemental State/local funds meet or exceed amount that would be received under Title I Still count and serve nonpublic in area 18
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Title I Set-Asides W
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LEA MUST reserve specific percentage:
W 20% choice transportation and SES 1% parental involvement 5% for teacher and paraprofessional qualifications 10% professional development (if LEA ID) W W
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LEA MUST reserve but not specific percentage:
Administration (public and private) Homeless Neglected & Delinquent
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LEA MAY reserve: Incentives to teachers in ID schools (<5%)
Professional development “other authorized activities” Summer school Preschool Districtwide program
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DON’T CIRCUMVENT “RANKING AND SERVING” RULES!
CAUTION: DON’T CIRCUMVENT “RANKING AND SERVING” RULES!
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Funds for Supplemental Education Services & Choice Transportation
W Amount equal to 20% of LEA allocation (unless lesser amount needed) To pay transportation for choice To satisfy all requests for SES services Both
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Credit for “Parent Outreach”
W 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 25
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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
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W Use 20% “unless a lesser amount is needed” How do you know if less is needed? 27
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To spend less than 20%, LEA must: 200.48(d)(2)(i)
W Partner, to the 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) 28
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W 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
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Does LEA need SEA’s permission before reallocating the 20%?
W Does LEA need SEA’s permission before reallocating the 20%? NO!
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LEA must document and notify SEA!
W 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
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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
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Equitable Services for Private School Students
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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
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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 school area
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Equitable Services Set-Aside
School Poverty Rate # Poverty Students PPA Allocation Albemarle Elementary 92% 82 $1,500 $123,000 Albemarle Elementary School Equitable Services Share Children in Poverty in Albemarle Schools 82 Children in Poverty in Private Schools located in the attendance area 20 PPA $1,500 Equitable Services Set-Aside $30,000
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Distributing the Funds
37 Two options: 1) Pooling: pool the funds to use for students with greatest educational need anywhere in LEA; or 2) School-by-School: funds follow child to private school for educationally needy child in that school
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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 (a)(2)(i)(A)
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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
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Applies to: Summer school programs After school programs
Reading coaches Parental involvement Professional development (optional set-aside ONLY) Preschool Programs (If Preschool is not included in the definition of an elementary school)
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Does Not Apply to: SES/Choice (20%) Preschool
(If Preschool is not included in the definition of an elementary school) Professional Development (10% for LEA Improvement)
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Carryover
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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
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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
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3 Pillars of Fiscal Accountability
Maintenance of Effort Supplement not Supplant Comparability
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Most Directly Affected by Declining Budgets
Maintenance of Effort Most Directly Affected by Declining Budgets
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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
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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 ( ) to second PFY ( )
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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
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Maintenance of Effort Example (SY 2011-2012)
Aggregate expenditures Amount per student SY 08-09 $1,000,000 $6,100 SY 09-10 must spend 90% $900,000 $5,490 Actual amount $850,000 $5,200 Shortfall -$50,000 -$290 Percent shortfall ** reduction in all ESEA programs -5.6% -5.3%**
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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
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July 2009 Draft Non-Regulatory Guidance
SEA may apply for waiver on behalf of LEAs
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Comparability May not be affected by declining non-federal revenue,
if treat all schools equally
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General Rule – Section 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.”
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Timing Issues Guidance: Must be annual determination
Review for current year and make adjustments for current year
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Written Assurances LEA must file with SEA written assurances of policies for equivalence: LEA-wide salary schedule Teachers, administrators, and other staff Curriculum materials and instructional supplies Must keep records to document implemented and “equivalence achieved”
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How to show equivalence achieved?
Student/instructional staff ratios; Student/instructional staff salary ratios; Expenditures per pupil; or A resource allocation plan based on student characteristics, such as poverty, LEP, disability, etc. (i.e., by formula)
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How to measure?? Compare:
Average of all non-Title I schools to each Title I school
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For example: Using student/ instructional staff ratios
Average of all non-Title I schools 10:1 Title I schools: Lincoln: 10:1 Washington: 9:1 Madison: 11:1 Jefferson: 12:1
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Basis for evaluation: by similar grade-spans or by similar size school
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Exclusions: Federal Funds Private Funds
Need not include unpredictable changes in student enrollment or personnel assignments that occur after the start of a school year
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Exclusions: LEA may exclude state/local funds expended for:
Staff salary differentials for years of employment
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Who is “instructional staff”?
Consistent between Title I and non-Title I Teachers (art, music, physical education), guidance counselors, speech therapists, librarians, social workers, psychologists Paraprofessionals – up to SEA/LEA
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Supplement Not Supplant
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Supplement not Supplant
Federal funds must be used to supplement and in no case supplant state and local resources
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Auditors’ Tests for Supplanting
“What would have happened in the absence of these federal funds??” OMB Circular A-133 Compliance Supplement
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Auditors presume supplanting occurs if federal funds were used to provide services . . .
Required to be made available under other federal, state, or local laws; Provided with non-federal funds in prior year; or Title I funds used to provide service to Title I students, and the same service is provided to non-Title I children using non-Title I funds.
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Presumption Rebutted! If SEA or LEA demonstrates it would not have provided services if the federal funds were not available NO non-federal resources available this year!
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What documentation needed?
Fiscal or programmatic documentation to confirm that, in the absence of federal funds, would have eliminated staff or other services in question State or local legislative action Budget histories and information
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Must show: Actual reduction in state or local funds
Decision to eliminate service/position was made without regard to availability of federal funds (including reason decision was made)
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Can you rebut this presumption?
USDE assumes state and local officials will work to find a way to comply with a state-mandated requirement “While it is conceivable that an SEA or LEA could demonstrate that its loss of revenue is so great that it cannot meet a legal requirement, we believe that it typically would be extremely difficult to do so” “The bar for rebutting this presumption is very high” Letter from Asst. Secretary Melendez to Leigh Manasevit, January 2011
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Rebuttal Example State supports a reading coach program 2010 -2011
State cuts the program from State budget LEA wants to support Title I reading coach program
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Rebuttal Example LEA must document State cut the program
LEA does not have uncommitted funds available in operating budget to pick up LEA would cut the program unless federal funds picked it up The expense is allowable under Title I
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Exception: 1120A(d) Exclusion of Funds:
SEA or LEA may exclude supplemental state or local funds used for program that meets intents and purposes of Title I, Part A EX: Exclude State Comp Ed funds
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Supplanting in a schoolwide program
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Supplement not Supplant
Statute 1114(a)(2)(B): Title I must supplement the amount of funds that would, in the absence of Title I, be made available from non-federal sources. E-18 in schoolwide guidance The actual service need not be supplemental.
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Questions??
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This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances.
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