![](media/image1.wmf){width="1.6965277777777779in"
height="1.4569444444444444in"}Archived Information

##### UNITED STATES DEPARTMENT OF EDUCATION

**OFFICE OF ELEMENTARY AND SECONDARY EDUCATION**

**WASHINGTON, DC 20202-6132**

###  ESEA, TITLE I

###  PROGRAM GUIDANCE

+------------------------------------+---------------------------------+
| #                                  | #                               |
|                                    |                                 |
| # SUBJECT                          | # TYPE AND                      |
|                                    | NUMBER OF DIRECTIVE OR GUIDANCE |
| Final Allocations of School Year   |                                 |
| 1999-2000                          | FM-29                           |
|                                    |                                 |
| Funds for Programs Authorized by   |                                 |
| Title I of the Elementary and      |                                 |
| Secondary Education Act (ESEA)     |                                 |
+------------------------------------+---------------------------------+
|                                    | #                               |
|                                    |                                 |
|                                    | # DATE SIGNED                   |
|                                    |                                 |
|                                    | June 23, 1999                   |
+------------------------------------+---------------------------------+
|                                    | #                               |
|                                    |                                 |
|                                    | # ISSUING OFFICE                |
|                                    |                                 |
|                                    | OESE/CEP/MEP                    |
+------------------------------------+---------------------------------+
| #                                  |                                 |
|                                    |                                 |
| # REFERENCE: Public Law 105        |                                 |
| -277, Department of Education Appr |                                 |
| opriations Act, 1999 and Public La |                                 |
| w 106-31, Fiscal Year 1999 Emergen |                                 |
| cy Supplemental Appropriations Act |                                 |
+------------------------------------+---------------------------------+

#### TO : Chief State School Officers

PURPOSE: To Announce Final ESEA Title I Allocations for School Year (SY)
1999-2000

I am pleased to announce final allocations of SY 1999-2000 funds for
Title I, Part A Grants to Local Educational Agencies (LEAs) and the Even
Start Family Literacy program. The allocations for the Title I Capital
Expenses, Migrant Education, and State Agency Neglected and Delinquent
programs have not changed from the allocations announced on May 17.

We based these allocations on action taken by Congress in the fiscal
year (FY) 1999 Department of Education Appropriations Act, Public Law
(PL) 105-277, and the FY 1999 Emergency Supplemental Appropriations Act
(PL 106-31). Approximately 20 percent of the FY 1999 funds appropriated
for Title I Grants to LEAs under PL 105-277 will become available on
July 1, 1999; the remainder will become available on October 1, 1999.
Concentration Grant funds made available under PL 106-31 will become
available on October 1. In the case of Even Start and the other Title I
programs, FY 1999 funds will become available on July 1. All Title I
funds will remain available for obligation and expenditure at the State
and local level until September 30, 2001.

The amounts provided for each Title I program under PL 105-277 and PL
106-31 are as follows:

+-----------------------------+------------+-------------+-------------+
| #                           | ##         | Amount      | Amount      |
|                             |            |             |             |
| #                           | ## To      | Available   | Available   |
|                             | tal Amount | on          | on          |
| # Program[^1]               |            |             |             |
|                             | # [Av      | [July 1,    | [October 1, |
|                             | ailable]{. | 1999]{      | 1999]{      |
|                             | underline} | .underline} | .underline} |
+-----------------------------+------------+-------------+-------------+
| Grants to LEAs              | \$7,7      | \$1,        | \$6,        |
|                             | 29,797,000 | 525,034,000 | 204,763,000 |
|                             | [^2]       |             |             |
+-----------------------------+------------+-------------+-------------+
| Basic Grants (Part A,       | (6,50      | (1,4        | (5,0        |
| section 1124)               | 5,686,000) | 48,299,800) | 57,386,200) |
|                             | ^2^        |             |             |
+-----------------------------+------------+-------------+-------------+
| Concentration Grants (Part  | (1,09      |             | (1,0        |
| A, section                  | 0,999,800) |             | 90,999,800) |
|                             |            |             |             |
| 1124A)                      |            |             |             |
+-----------------------------+------------+-------------+-------------+
| > Concentration Grant       | (5         |             | (           |
| > Supplemental              | 6,377,000) |             | 56,377,000) |
| >                           |            |             |             |
| > (FY 1999 Emergency        |            |             |             |
| > Supplemental              |            |             |             |
| > Appropriations Act, PL    |            |             |             |
| > 106-31)                   |            |             |             |
+-----------------------------+------------+-------------+-------------+
| Set-aside for the           | (7         | (           |             |
| Department of the Interior  | 6,734,200) | 76,734,200) |             |
|                             |            |             |             |
| and the Outlying Areas      |            |             |             |
+-----------------------------+------------+-------------+-------------+

We allocated Basic and Concentration Grant funds made available under PL
105-277 to LEAs through a statutory formula based primarily on the
number of children ages 5 through 17 from low-income families and each
State's per-pupil expenditure for education. In order to receive a Basic
Grant, an LEA must have at least ten "formula" children and the number
of those children must exceed 2 percent of the LEA's total population
ages 5 through 17. To qualify for a Concentration Grant, the number of
formula children in an LEA must exceed 6,500 or 15 percent of its total
population ages 5 through 17. In PL 105-277, Congress established
through special appropriations language a 100 percent "hold-harmless"
provision to ensure that each eligible LEA and each State receives an
allocation that is at least equal to the amount allocated to it in SY
1998-99 for Basic and for Concentration Grants. This provision differs
from the authorizing statute, which provides for Basic Grants a variable
hold-harmless guarantee to eligible LEAs of 85, 90, or 95 percent of the
prior year amount, depending on the individual LEA's formula child rate,
and no hold-harmless guarantee for Concentration Grants. However, in PL
106-31 Congress provided Concentration Grants to LEAs that received a
Concentration Grant allocation in SY 1998-99 but are ineligible for such
funds in SY 1999-2000.

The LEA allocation tables for Basic and Concentration Grants for each
State show, at the end, the amount of funds generated by children in
local institutions for delinquent children in the State. An SEA must use
these funds to award subgrants to LEAs with high numbers or percentages
of these children, as required under Title I, Part D, Subpart 2.

We allocated funds only to the LEAs on the Census Bureau's list of LEAs,
which shows LEAs as they existed in SY 1995-96. For many States, our LEA
allocation list will not match the

State's current list of school districts because of LEA consolidations
and the creation of special LEAs such as charter schools since SY
1995-96. State educational agencies (SEAs) must, therefore, adjust our
LEA allocations to account for eligible LEAs that did not receive an
allocation from us in order to determine final LEA allocations for all
eligible LEAs within the State. Attached is final guidance on steps to
follow for SY 1999-2000 when adjusting our LEA allocations to account
for LEAs that have come into existence since SY 1995-96. In developing
this guidance (first issued in draft on April 23), we worked closely
with representatives from the States through a series of conferences and
workshops held during the spring. The final guidance reflects comments
received from the States.

The statute also gives States the flexibility to use alternative poverty
data (which, by statute, we must approve) to redistribute our Title I
allocations for LEAs with fewer than 20,000 total residents. Please
refer to program guidance (FM-27) issued on March 22 for details
concerning procedures an SEA must follow if it wishes to use this
flexibility.

SEAs are authorized to reserve for State administration not more than 1
percent or \$400,000, whichever is greater, from funds allocated to the
State under Parts A, C, and D (Subpart 1) of Title I. SEAs may also
reserve not more than .5 percent from funds allocated to the States
under Title I, Parts A, C, and D (Subpart 1) to carry out the
requirements of sections 1116 and 1117 of Title I. Because Congress
appropriated no funds for school improvement purposes under section
1002(f) of Title I, a State must reserve at least \$200,000 from its
Title I, Parts A, C, and D (Subpart 1) allocations for this purpose. The
attached guidance instructs SEAs on how to adjust our Title I, Part A
allocations to LEAs in order to reserve funds for both State
administration and school improvement activities. In addition, SEAs are
authorized to reserve for State administration and technical assistance
not more than 5 percent from funds allocated to the State under Part B
of Title I (Even Start).

Any questions regarding the attached Title I allocations for the Migrant
Education Program should be referred to Francisco Garcia, Director,
Office of Migrant Education, at (202) 260-1164. For the other Title I
programs, please refer questions to Mary Jean LeTendre, Director,
Compensatory Education Programs, at (202) 260-0826.

Judith Johnson

Acting Assistant Secretary

Attachments

#### LEA allocations for Basic Grants

#### LEA allocations for Concentration Grants

A.  State allocations for Basic Grants, Concentration Grants, Capital
    Expenses, Even Start, Migrant Education, and the State agency
    Neglected or Delinquent program

B.  Guidance on State educational agency procedures for adjusting Basic
    and Concentration Grant Allocations Determined by the U.S.
    Department of Education.

cc: State Title I Coordinators

CEP/6/12/98/SBrown/260-0976/PDFM29 Final 99-2000 allocations

cc: Hunkin/State/writer

[^1]: Except where noted, funds are made available under PL 105-277.

[^2]: Excludes \$2,600,000 set aside from Basic Grants for updating
    census poverty data.