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##### Improving teacher quality

**state grants**

######## ESEA Title II, Part A

**Non-Regulatory Guidance**

######### Revised

October 5, 2006

Academic Improvement and Teacher Quality Programs

Office of Elementary and Secondary Education

U.S. Department of Education

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October 5, 2006

Dear Colleague:

I am pleased to share with you a revised version of the *Improving
Teacher Quality State Grants Non-Regulatory Guidance*. This revised
guidance, now issued separately from the guidance on Highly Qualified
Teachers (HQT), does not depart significantly from the previous version.
The portion of the guidance that covers HQT is under revision and will
be released in the near future.

Thanks to your tireless efforts, we are increasing educational
excellence. The goal of leaving no child behind will soon become a
reality. Please do not hesitate to contact the *ESEA Title II, Part A*
program staff in the Office of Elementary and Secondary Education with
any further questions or concerns. We would be pleased to assist in any
way possible.

Sincerely,

/s/

Margaret Spellings

**[Purpose of this Guidance]{.underline}**

This Non-Regulatory Guidance explains how State educational agencies,
local educational agencies, and State agencies for higher education can
effectively and correctly use *Title II, Part A* funds to ensure that
all teachers are qualified and effective*.*

The Guidance in this document supersedes all prior guidance issued by
the Department for the *Title II, Part A* program. This Guidance does
not impose any requirements beyond those that the law specifies and,
where possible, it encourages varying approaches and focuses on what can
be done rather than on what cannot be done.

Any requirements referred to in this Guidance are taken directly from
the statute, with citations provided throughout. Except for explicit
statutory requirements, State and local recipients are free to implement
*Title II, Part A* activities based on their own reasonable
interpretations of the law.

A.  [Professional Development](#ProfessionalDevelopment) 1

> A-1. What is meant by "high-quality professional development"?
>
> A-2. What strategies can States use to help LEAs adopt and implement
> more effective teacher professional development activities?
>
> A-3. The statute authorizes LEAs to use program funds for "teacher
> advancement initiatives that promote professional growth and emphasize
> multiple career paths, such as paths to becoming a career teacher,
> mentor teacher, or exemplary teacher..." \[Section 2113(c)(14)\]. What
> are some options by which LEAs can implement these activities?

B.  [federal awards to the state educational agency
    (sea)](#FederalAwardsToSEA) 2

> B-1. What is the purpose of the *Title II, Part A* program?
>
> B-2. Did this program exist prior to *No Child Left Behind* (NCLB)?
>
> B-3. How do the flexibility and transferability provisions of NCLB
> affect the *Title II, Part A* program?
>
> B-4. What is scientifically based research and how does it apply to
> this program?
>
> B-5. What general statutory and regulatory provisions apply to *Title
> II, Part A*?
>
> B-6. Can funds from other programs authorized in *No Child Left
> Behind* be used to improve teacher quality?
>
> B-7. Who is eligible to receive a *Title II, Part A* State allocation?
>
> B-8. How does the Department determine each State's *Title II, Part A*
> allocation?
>
> B-9. How much of the State's allocation must the SEA reserve for
> subgrants to LEAs, and how much do the SEA and SAHE retain for
> State-level activities and competitive grants, respectively?
>
> B-10. What portion of the State's total allocation is available for
> SEA and SAHE administration?
>
> B-11. If an SEA and SAHE cannot use all of the Title II, Part A funds
> allocated to the State for administration, for what may the unneeded
> administrative funds be used?
>
> B-12. What is the period of availability for *Title II, Part A* funds?
>
> B-13. What are the SEAs' reporting responsibilities?
>
> B-14.  When and how must an SEA or SAHE monitor subgrant activities?

C.  [state use of funds](#c.-state-use-of-funds) 10

> C-1. How may an SEA use its "State Activities" funds?
>
> C-2. Does the law restrict the amount of *Title II, Part A* funds that
> an SEA may spend on activities to recruit and hire teachers?
>
> C-3. States are authorized to assist LEAs in developing merit-based
> performance or differential pay systems in "high-poverty schools and
> districts" \[Section 2113(c)(12)\].
>
> How is "high-poverty" defined for this purpose?
>
> C-4. Does the law contain any restrictions on the amount of *Title II,
> Part A* funds that an SEA may spend on professional development?

D.  [state awards to the local educational agency
    (Lea)](#StateAwardstotheLEA) 13

#### ***Administration***

> D-1. How does the SEA distribute funds to LEAs?
>
> D-2. What data should an SEA use for determining the portion of an
> LEA's program allocation that is attributable to the number of
> children who reside in the LEA?
>
> D-3. What data should an SEA use for determining the portion of an
> LEA's program allocation that is attributable to the number of
> children in poverty?
>
> D-4. How does the LEA apply for funds from the SEA, and what should be
> included in this application?
>
> D-5. If the number of districts within a State decreases or increases
> through consolidation or division of a district into new LEAs, how can
> the SEA determine the amount of *Title II, Part A* funds the newly
> created districts and the districts affected by the creation of the
> new districts should receive?
>
> D-6. If charter school-LEAs or other types of special LEAs without
> geographic boundaries are created, how should the SEA determine the
> amount of *Title II, Part A* funds that these newly created districts
> receive?
>
> D-7. Can charter schools apply for *Title II, Part A* funds?
>
> D-8. What are the LEAs' reporting responsibilities?
>
> D-9. What corrective steps must occur if an LEA fails to make adequate
> yearly progress (AYP) or fails to meet the annual measurable
> objectives for teacher quality?
>
> D-10. How may the SEA distribute any unclaimed LEA funds?

#### ***Needs Assessment***

> D-11. What is the purpose of the LEA needs assessment and how does the
> LEA use it?
>
> D-12. Who must be involved in the needs assessment process?
>
> D-13. What data should the LEA use when conducting a needs assessment?
>
> D-14. After conducting its needs assessment, must the LEA target its
> use of Title *II, Part A* funds?
>
> D-15. If a need is mentioned in the LEA needs assessment, must it be
> addressed in the district plan?
>
> D-16. Must staff at individual schools be involved in developing an
> LEA's needs assessment?
>
> D-17. Should an LEA needs assessment examine strategies for
> eliminating the achievement gap that separates low-income and minority
> students from other students?
>
> D-18. How can the SEA ensure that those activities an LEA proposes to
> implement with *Title II, Part A* funds are, in fact, consistent with
> the required local needs assessment?

E.  [local use of funds](#LocalUseOfFunds) 27

#### ***Allowable Costs***

> E-1. For what activities may an LEA use *Title II, Part A* funds?
>
> E-2. What amount of program funds may an LEA reserve for
> administrative and indirect costs?
>
> E-3. May an LEA use *Title II, Part A* funds to: (a) pay the costs of
> State tests required of new teachers to determine whether they have
> subject-matter competence or (b) to assist them in meeting State
> certification requirements?
>
> E-4. When can *Title II, Part A* funds be used to pay teacher
> salaries?
>
> E-5. May an LEA use *Title II, Part A* funds to pay out-of-area
> recruitment costs and moving expenses that may be needed in order to
> recruit and relocate new teachers?
>
> E-6. When may an LEA use *Title II, Part A* funds for programs to
> recruit and retain pupil services personnel (e.g., guidance
> counselors)?
>
> E-7. May an LEA use program funds to provide increased opportunities
> for minorities, individuals with disabilities, and other individuals
> underrepresented in the teaching profession?
>
> E-8. May an LEA use *Title II, Part A* funds to assist
> paraprofessionals to become highly qualified and meet the requirements
> for Title I paraprofessionals in Section 1119 of ESEA?
>
> E-9. May LEAs use *Title II, Part A* funds to provide training to
> enhance the involvement of parents in their child's education?
>
> E-10. May LEAs use *Title II, Part A* funds to purchase supplies or
> instructional materials that are used as part of professional
> development activities?
>
> E-11. Are LEAs required to spend a portion of their allocation on math
> and science activities?
>
> E-12. In many rural areas, offering high-quality professional
> development activities can be challenging because there may not be a
> critical mass of teachers who need help in the same subject. How can
> rural districts address this situation?

#### ***Maintenance of Effort***

> E-13. Do maintenance of effort requirements apply to the *Title II,
> Part A* program?
>
> E-14. What happens if the LEA fails to meet the requirements for
> maintenance of effort?

#### ***Supplement not Supplant***

> E-15. Does *Title II, Part A* have a supplement not supplant
> requirement?
>
> E-16. May *Title II, Part A* funds be used for State-mandated
> activities?

#### ***Class-Size Reduction***

> E-17. What are some ways in which LEAs may use highly qualified
> teachers hired with *Title II, Part A* funds to reduce class size?

F.  [federal awards to the state agency for higher education
    (sahe)](#f.-federal-awards-to-the-state-agency-for-higher-education)
    36

> F-1. Does the Department make separate grant awards to SAHEs?
>
> F-2. How is the amount of funds a SAHE receives for competitive grant
> awards to partnerships and for administration of the program
> determined?

#### ***Competitive Process***

> F-3. How does the SAHE administer the competitive portion of the
> *Title II, Part A* program?
>
> F-4. Who is eligible to receive a competitive award from the SAHE?
>
> F-5. What is a high-need LEA?
>
> F-6. How can an SEA or LEA determine whether an LEA meets the poverty
> criterion in the definition of a high-need LEA?
>
> F-7. If a SAHE finds that the use of Census Bureau data to determine
> the numbers or percentages of children from families with incomes
> below the poverty line generates only a very small number of LEAs that
> meet the definition of "high-need," may other methods be used to
> determine which districts qualify as a high-need LEA?
>
> F-8. How does the SAHE determine its priorities for soliciting
> subgrant applications?
>
> F-9. Does the SAHE competition for IHE-LEA partnerships need to ensure
> that services are offered on an equitable basis to public and private
> school teachers?
>
> F-10. Are there any Federal requirements that govern how SAHEs must
> conduct the competition?

#### ***Eligible Partnerships***

> F-11. Section 2132(b) requires the SAHE to ensure that its subgrants
> are either "equitably distributed by geographic area within the State"
> or that "eligible partnerships in all geographic areas within the
> State are served through the subgrants." What do these phrases mean?
>
> F-12. Does the definition of an "eligible partnership" permit a
> community college to be part of a partnership that is eligible to
> receive a *Title II, Part A* subgrant?
>
> F-13. May a regional educational service agency, intermediate
> educational unit, or similar public agency participate in a
> partnership as a high-need LEA?
>
> F-14. May teachers or principals in low-performing schools that are
> not located in a high-need LEA participate in a SAHE project?
>
> F-15. Does the law require partnerships that receive subgrants from
> *Title II, Part A* and another program to coordinate activities
> conducted under the two awards?

#### ***Activities***

> F-16. What activities may a SAHE fund with its share of *Title II,
> Part A* funds?
>
> F-17. What is an "institution of higher education" for the purposes of
> the SAHE program?
>
> F-18. May a SAHE grant support pre-service teacher training?

#### ***Administration***

> F-19. What kinds of costs may a SAHE pay with its administration and
> planning funds?
>
> F-20. If a portion of the SAHE's administrative funds is not needed,
> can the SAHE fund additional partnership grants or must the funds be
> returned to the SEA?
>
> F-21. Must members of the partnership receiving a SAHE subgrant use a
> "restricted indirect cost rate" in calculating the maximum amount of
> indirect costs that may be charged to their awards?
>
> F-22. In establishing application selection criteria or funding
> priorities, may the SAHE preclude partnership members from charging
> any indirect costs to the subgrant?
>
> F-23. May the SAHE establish, as a selection criterion to be used in
> reviewing subgrant applications, the willingness of the partnership to
> limit the amount of their administrative costs?
>
> F-24. Is there a maximum project period for SAHE grants?
>
> F-25. May a high-need charter school that is an LEA qualify as the
> high-need LEA principal partner required for a SAHE grant?
>
> F-26. May a SAHE use *Title II, Part A* funds reserved for partnership
> subgrants to support a separate evaluation of subgrantee projects?
>
> ***Record Keeping and Reports***
>
> F-27. What kinds of records must partnership members keep under the
> *Title II, Part A* program?
>
> F-28. What are the SAHEs' reporting responsibilities?

#### ***Special Rule***

> F-29. What is the meaning of Section 2132(c) (the "special rule") that
> states "no single participant in an eligible partnership may use more
> than 50 percent of the *Title II, Part A* funds made available to the
> partnership'?
>
> F-30. May two principal partners (e.g., a school of education and a
> department of arts and sciences) each receive 50 percent of the
> subgrant funds?
>
> F-31. If an IHE receives program funds that teachers would otherwise
> pay for IHE-sponsored professional development, would those funds
> figure in as part of the funds "used" by the IHE partner?
>
> F-32. If IHE faculty are full-time employees of the IHE, but a
> percentage of their time and services go to the LEA, which partner is
> deemed to "use" *Title II, Part A* funds? Similarly, if IHE faculty
> members receive "release time" to serve LEAs, are their salaries
> attributable to the IHE or to the LEA partner?
>
> F-33. Are the salaries of teachers hired under a SAHE subgrant to work
> as mentors to other teachers attributable to the LEA or to the IHE if
> the IHE pays their salaries?
>
> F-34. Are indirect costs of the partnership's fiscal agent treated as
> part of the maximum allowable 50 percent of *Title II, Part A* funds
> that the partner may use?

G.  [private school participation](#PrivateSchoolParticipation) 47

#### ***General Issues***

> G-1. Are private school teachers, principals, and other educational
> personnel eligible to participate in the *Title II, Part A* program?
>
> G-2. What is meant by "equitable participation"?
>
> G-3. For the purposes of equitable participation, which institutions
> are considered "private schools"?
>
> G-4. How does an LEA determine the minimum amount required for
> equitable services to private school teachers and other educational
> personnel?
>
> G-5. If a school district exercises *Title VI* transferability
> authority and moves funds from *Title II, Part A* to another covered
> program, is the district required to provide the "hold harmless"
> amount for private school teachers' professional development?
>
> G-6. What are the obligations of the LEA regarding the participation
> of private school teachers in professional development programs funded
> under this program?
>
> G-7. What happens if an LEA chooses not to participate in the *Title
> II, Part A* program and a private school in that LEA expresses a
> desire to do so?

#### ***Eligible Activities***

> G-8. What are some of the eligible activities under this program in
> which private school teachers and other educational personnel may
> participate?
>
> G-9. Must the expenditures that the LEA provides for professional
> development for private school teachers be equal on a per-pupil basis?
>
> G-10. How does the LEA ensure that it is providing equitable services?
>
> G-11. Does the professional development program for private school
> teachers have to be the same as the professional development program
> for public school teachers?
>
> G-12. May *Title II, Part A* funds be used to pay for a private school
> teacher's attendance at a professional conference sponsored or
> conducted by a faith-based organization?
>
> G-13. May funds be used to pay stipends to private school teachers
> participating in a *Title II, Part A* professional development
> program?
>
> G-14. May *Title II, Part A* funds be used to pay any portion of a
> private school teacher's salary or benefits?
>
> G-15. May *Title II, Part A* funds be used to pay for substitute
> teachers who replace teachers from private schools while they attend
> professional development activities?
>
> G-16. May administrative costs be considered in determining the
> per-teacher expenditures for private school teachers?
>
> G-17. Are third-party contractors who deliver services under
> subcontract to private schools permitted to charge administrative
> costs as part of their contract? Off the top administrative costs are
> currently reserved for LEA administration of the program; can these
> costs also include the internal administrative costs of a third-party
> provider?
>
> G-18. If a private school requires and annually provides, as part of
> its teacher contract, four days of professional development, may the
> LEA provide, on these same days, professional development supported by
> *Title II, Part A* funds?**  **

#### ***LEAs and Private Schools***

> G-19. When must an LEA consult with appropriate private school
> officials?
>
> G-20. Must an LEA contact the officials of all private schools every
> year, even when there have been no recent indications of a desire to
> participate in the *Title II, Part A* program?
>
> G-21. May an LEA require private school representatives to submit an
> application in order to receive services for the teachers in a private
> school with *Title II, Part A* funds?
>
> G-22. What kinds of records should an LEA maintain in order to show
> that it has met its responsibilities for equitable participation of
> private school teachers?
>
> G-23. Must the LEAs administer and retain control over the *Title II,
> Part A* funds used to serve private school teachers?
>
> G-24. May professional development be conducted within private
> schools?
>
> G-25. Does the law require that LEAs provide equitable services with
> *Title II, Part A* funding only to private "nonprofit" schools?
>
> G-26. Are teachers employed with Title I funds who provide services to
> eligible private school children required to meet the highly qualified
> requirements?
>
> G-27. Must an LEA count all the students in participating private
> schools even if some of the students enrolled in the private schools
> reside in other districts?

#### ***SEAs, SAHEs, and Private Schools***

> G-28. If a public school district does not use *Title II, Part A*
> funds to support course, degree or credential acquisition, is the
> district obligated to offer these services to the private schools? 
>
> G-29. Must an SEA provide equitable services to private school
> teachers if it uses its Title II, Part A funds reserved for State
> activities to provide professional development?
>
> G-30. Do the ESEA *Title IX* requirements regarding services to
> private school teachers apply to activities conducted under the
> competitive awards made under SAHE-administered partnerships program?

[appendix a-definitions, acronyms, and abbreviations](#AppendixA) A-1

[appendix b-*Title II*, *part a* Statute](#AppendixB) B-1

####### **[A. Professional Development]{.underline}**

**A-1. What is meant by "high-quality professional development"?**

> The term "high-quality professional development" means professional
> development that meets the criteria contained in the definition of
> professional development in *Title IX*, Section 9101(34) of ESEA.
> Professional development includes, but is not limited to, activities
> that:
>
> • Improve and increase teachers' knowledge of academic subjects and
> enable teachers to become highly qualified;
>
> • Are an integral part of broad schoolwide and districtwide
> educational improvement plans;
>
> • Give teachers and principals the knowledge and skills to help
> students meet challenging State academic standards;
>
> • Improve classroom management skills;
>
> • Are sustained, intensive, and classroom-focused and are not one-day
> or short-term workshops;
>
> • Advance teacher understanding of effective instruction strategies
> that are based on scientifically based research; and
>
> • Are developed with extensive participation of teachers, principals,
> parents, and administrators.

**A-2. What strategies can States use to help LEAs adopt and implement
more effective teacher professional development activities?**

> States can, for example: (1) develop guidance on effective strategies
> for improving teacher quality and provide that guidance to the LEAs;
> (2) adopt a formal statement of State priorities; (3) improve
> technical assistance and monitoring for LEAs; (4) sponsor conferences
> and other meetings that address issues related to improving teacher
> performance; and (5) disseminate information about successful programs
> and practices.
>
> In providing this assistance, States should consider the needs of all
> teachers - whether they are regular classroom teachers, special
> education teachers, or teachers of English language learners - so that
> a unified, comprehensive system of professional development is
> available to all who need to be highly qualified. States might also
> provide guidance to LEAs on effective ways of coordinating resources
> available for professional development from programs such as *Title I*
> and *Title III* of the ESEA and IDEA, Part B.

**A-3. The statute authorizes LEAs to use program funds for "teacher
advancement initiatives that promote professional growth and emphasize
multiple career paths, such as paths to becoming a career teacher,
mentor teacher, or exemplary teacher..." \[Section 2113(c)(14)\]. What
are some options by which LEAs can implement these activities?**

> Too often, the best career advancement option currently available for
> teachers is to become school principals or LEA administrators. This
> leaves fewer excellent, experienced teachers working directly with
> children in the classroom. Teacher advancement initiatives that offer
> multiple career paths can provide professional opportunities without
> having teachers leave the classroom. For example, an LEA could
> establish a system whereby teachers could opt to pursue various career
> paths, such as:
>
> • becoming a career teacher, staying in the classroom with traditional
> instructional duties;
>
> • becoming a mentor teacher, staying in the classroom but taking on
> additional duties such as mentoring first-year teachers and receiving
> additional pay for these duties; or
>
> • becoming an exemplary teacher, based on a distinguished record of
> increasing student academic achievement, and training other teachers
> to do the same while receiving additional pay for these duties.

[]{#FederalAwardsToSEA .anchor}**[B. FEDERAL AWARDS TO THE STATE
EDUCATIONAL AGENCY]{.underline}**

**B-1. What is the purpose of the *Title II, Part A* program?**

> The purpose of *Title II, Part A* is to increase the academic
> achievement of all students by helping schools and districts improve
> teacher and principal quality and ensure that all teachers are highly
> qualified. Through the program, State and local educational agencies
> (SEAs and LEAs), and State agencies for higher education (SAHEs)
> receive funds on a formula basis. Eligible partnerships consisting of
> high-need LEAs and institutions of higher education (IHEs) receive
> funds that are competitively awarded by the SAHE ([see Section
> F](#f.-federal-awards-to-the-state-agency-for-higher-education)).
>
> In exchange, agencies that receive funds are held accountable to the
> public for improvements in academic achievement. *Title II, Part A*
> provides these agencies with the flexibility to use these funds
> creatively to address challenges to teacher quality, whether they
> concern teacher preparation and qualifications of new teachers,
> recruitment and hiring, induction, professional development, teacher
> retention, or the need for more capable principals and assistant
> principals to serve as effective school leaders.

**B-2. Did this program exist prior to *No Child Left Behind* (NCLB)?**

> *Title II, Part A* replaced the Eisenhower Professional Development
> and the Class-Size Reduction programs. The Eisenhower program mostly
> focused on professional development in mathematics and science, while
> *Title II, Part A* can support teacher professional development across
> all core academic subjects. The importance of professional development
> in mathematics and science remains a high priority, but many other
> activities are now allowed as well.

**B-3. How do the flexibility and transferability provisions of NCLB
affect the**

> ***Title II, Part A* program?**
>
> The flexibility and transferability provisions, described in greater
> detail on the Department's website at
> <http://www.ed.gov/nclb/freedom/local/flexibility/index.html>, affect
> the *Title II, Part A* program as follows:
>
> [State-Flex (ESEA Sections 6141 through 6144)]{.underline}
>
> An SEA with State-Flex authority may consolidate *Title II, Part A*
> funds that are available for State-level activities and State
> administration with State-level funds available under certain other
> programs. The SEA may then use the combined funding for any ESEA
> purpose in order to make adequate yearly progress and advance the
> educational priorities of the State and the LEAs with which the State
> enters into performance agreements.
>
> Within a State-Flex State, an LEA that enters into a performance
> agreement with its SEA may similarly consolidate *Title II, Part A*
> funds with certain other Federal funds. The LEA can then use those
> funds for any ESEA purpose consistent with the SEA's State-Flex plan
> in order to meet the State's definition of adequate yearly progress,
> improve student academic achievement, and narrow achievement gaps.
>
> The SEA, and the LEAs with which the SEA enters into performance
> agreements, must provide for the equitable participation of students
> and professional staff in private schools consistent with Section ESEA
> 9501**.** ESEA Sections 9502, 9503, and 9504 apply to all services and
> assistance provided with the consolidated funds. Additional
> information about State-Flex can be found at
> [www.ed.gov/programs/stateflex/index.html](http://www.ed.gov/programs/stateflex/index.html).
>
> [Local-Flex (ESEA Sections 6151 through 6156)]{.underline}
>
> An LEA that enters into a Local-Flex agreement with the Secretary may
> consolidate *Title II, Part A* funds with certain other Federal funds
> and, consistent with the purposes of the Local-Flex program, it may
> then use those funds for any ESEA purpose in order to meet the State's
> definition of adequate yearly progress, improve student academic
> achievement, and narrow achievement gaps.

The local flexibility demonstration agreement must contain an assurance
that the LEA agrees that in consolidating and using funds under the
agreement, the LEA will provide for the equitable participation of
students and professional staff in private schools consistent with
Section 9501. Sections 9502, 9503, and 9504 apply to all services and
assistance provided with the consolidated funds. Additional information
about Local-Flex can be found at
[www.ed.gov/programs/localflex/index.html](http://www.ed.gov/programs/localflex/index.html).

> [Transferability (ESEA Sections 6121 through 6123)]{.underline}
>
> Under this flexibility authority, an SEA may transfer up to 50 percent
> of the non-administrative funds that it receives under certain Federal
> programs to other specified programs that address more effectively its
> unique needs, or it may transfer those funds to *Title I, Part A*.
> This authority allows a portion of an SEA's State-level
> non-administrative funds to be transferred into or out of the *Title
> II, Part A* program.
>
> Likewise, an LEA (except an LEA identified for improvement or subject
> to corrective action under Section 1116(c)(9)) may transfer up to 50
> percent of the funds awarded to it by formula under certain programs
> to its *Title II, Part A* allocation (or to other specified
> allocations) or to its allocation under Part A of *Title I*. An LEA
> may also transfer up to 50 percent of its *Title II, Part A* funds to
> certain other programs. (There are special transferability rules
> governing LEAs identified for improvement or corrective action.)
>
> Each SEA or LEA that transfers funds under these sections must consult
> with private school officials, in accordance with Section 9501, if
> such a transfer would move funds from a program that provides for the
> participation of private school students, teachers, or other
> educational personnel \[Section 6123(e)(2)\]. Additional information
> on the transferability authority can be found at
> [www.ed.gov/programs/transferability/index.html](http://www.ed.gov/programs/transferability/index.html).

**B-4. What is scientifically based research and how does it apply to
this program?**

> Section 9101(37) of ESEA, as amended by *NCLB,* defines scientifically
> based research as "research that involves the application of rigorous,
> systematic, and objective procedures to obtain reliable and valid
> knowledge relevant to education activities and programs." The statute
> then explains that this kind of research:
>
> 1\. Employs systematic, empirical methods that draw on observation or
> experiment;
>
> 2\. Involves rigorous data analyses that are adequate to test the
> stated hypotheses and justify the general conclusions drawn;
>
> 3\. Relies on measurements or observational methods that provide
> reliable and valid data across evaluators and observers, across
> multiple measurements and observations, and across studies by the same
> or different investigators;
>
> 4\. Is evaluated using experimental or quasi-experimental designs in
> which individuals, entities, programs, or activities are assigned to
> different conditions and with appropriate controls to evaluate the
> effects of the condition of interest, with a preference for
> random-assignment experiments, or other designs to the extent that
> those designs contain within-condition or across-condition controls;
>
> 5\. Ensures that experimental studies are presented in sufficient
> detail and clarity to allow for replication or, at a minimum, offer
> the opportunity to build systematically on their findings; and
>
> 6\. Has been accepted by a peer-reviewed journal or approved by a
> panel of independent experts through a comparably rigorous, objective,
> and scientific review. (Note: practitioner journals or education
> magazines are *not* the same as peer-reviewed academic journals.)
>
> The statute also requires that all SEA activities supported with
> program funds must be based on a review of scientifically based
> research, and the SEA must maintain documentation that explains why it
> expects those activities to improve student academic achievement.

**B-5. What general statutory and regulatory provisions apply to *Title
II, Part A*?**

> *Title IX* of the ESEA contains general provisions that apply to
> *Title II, Part A*, as well as to other ESEA programs.
>
>  Part A of *Title IX* contains definitions of many terms used in the
> ESEA.
>
>  Part B contains provisions regarding the consolidation of
> administrative funds.
>
>  Part C contains provisions regarding consolidated State and local
> plans and applications.
>
>  Part D contains provisions regarding waivers of statutory and
> regulatory requirements.
>
>  Finally, Part E contains certain uniform provisions.
>
> The General Education Provisions Act (GEPA), 20 U.S.C. 1221-1234i,
> also contains general statutory requirements applicable to most
> programs administered by the Department, including *Title II, Part A*.
> For instance, GEPA contains the "Tydings amendment," which provides
> grantees an additional year to obligate funds under certain programs,
> including *Title II, Part A*. GEPA also includes provisions addressing
> matters such as forward funding, protection of students' and parents'
> privacy rights under the Family Educational Rights and Privacy Act
> (FERPA), and various administrative appeal procedures.
>
> The *Title II, Part A* program does not have program-specific
> regulations; however, both the general ESEA regulations in Title 34 of
> the Code of Federal Regulations (CFR) Part 299 and the following parts
> of the Education Department General Administrative Regulations (EDGAR)
> apply to the program: 34 CFR Parts 74, 76, 77, 80, 81, 82, 85, 97, 98,
> and 99. SEAs and LEAs should become particularly familiar with Parts
> 76 and 80, as they address a range of matters important to the
> everyday administration of the *Title II, Part A* program.

**B-6. Can funds from other programs authorized in *NCLB* be used to
improve teacher quality?**

> Yes, other key programs authorized in NCLB provide funds that can, or
> in some cases must, be used to improve teacher quality. These include,
> but are not limited to:
>
> • *Title I, Part A*, which requires that LEAs use at least 5 percent
> of their *Title I* funds for professional development activities to
> ensure that teachers who are not currently highly qualified meet that
> standard \[Section 1119(l)\]*.* In addition, any school identified as
> in need of improvement for failing to make adequate yearly progress
> must spend 10 percent of its *Title I, Part A* funds on professional
> development, including teacher mentoring programs \[Section
> 1116(c)(7)(A)(iii)\].
>
> *• Title I, Part B*, the *Reading First* program, which requires
> grantees to build on scientifically based reading research to
> implement comprehensive instruction for children in kindergarten
> through third grade. From the 20 percent State set-aside funds, 65
> percent may be spent in preparing teachers through professional
> development activities so the teachers have tools to effectively help
> their students learn to read \[Section 1202(d)(3)\].
>
> • *Title II, Part B*, the *Mathematics and Science Partnerships*
> program, which provides funding to SEAs to competitively establish
> IHE-LEA partnerships to enhance teacher subject-matter knowledge and
> the quality of teaching in mathematics and science \[Section
> 2201(a)\].
>
> • *Title II, Part C*, the *Troops-to-Teachers* and *Transition to
> Teaching* programs, which support efforts to help school districts
> hire, train, and retain individuals from other careers and backgrounds
> as teachers in high-need schools \[Sections 2303 and 2313\].
>
> • *Title II, Part D*, the *Enhancing Education Through Technology*
> program, under which each local recipient of funds must use at least
> 25 percent of those funds for ongoing, sustained, and high-quality
> professional development on the integration of advanced technologies
> into curriculum and instruction and on the use of those technologies
> to create new learning environments \[Section 2416(a)\].
>
> **•** *Title III, Part A*, which authorizes LEAs to use formula grant
> funds for professional development of teachers providing instruction
> to students needing English language acquisition and language
> enhancement \[Section 3111(a)(2)(A)\].
>
> • *Title V, Part A*, which authorizes LEAs to use formula grant funds
> to provide professional development activities carried out in
> accordance with *Title II, Part A*, as well as to recruit, train, and
> hire highly qualified teachers to reduce class size \[Section
> 5131(a)(1)\].
>
> • *Title VII, Part A*, the *Indian, Native Hawaiian, and Alaska Native
> Education* program, which requires a comprehensive program for meeting
> the needs of Indian children that, among other things, calls for
> professional development opportunities to ensure that teachers and
> other school professionals have been properly trained \[Section
> 7114(b)(5)\].

**B-7. Who is eligible to receive a *Title II, Part A* State
allocation?**

> All States (i.e., each of the 50 States, the District of Columbia, and
> Puerto Rico), the Outlying Areas (United States Virgin Islands, Guam,
> American Samoa, and the Commonwealth of the Northern Mariana Islands),
> and the Bureau of Indian Affairs (BIA) are eligible to receive *Title
> II, Part A* State allocations. The Freely Associated States (the
> Federated States of Micronesia, the Republic of the Marshall Islands,
> and the Republic of Palau) are not eligible to receive *Title II, Part
> A* funds.

**B-8. How does the Department determine each State's *Title II, Part A*
allocation?**

> [Allocations to the Outlying Areas and BIA\
> ]{.underline}Prior to calculating State allocations, the Secretary
> reserves one-half of one percent of the *Title II, Part A*
> appropriation for awards to the Outlying Areas (United States Virgin
> Islands, Guam, American Samoa, and the Commonwealth of the Northern
> Mariana Islands) and one-half of one percent for an award to the BIA.
>
> [Allocations to States]{.underline}\
> In determining the amount of each State's allocation, the Department
> first allots to each State the amount the State received for FY 2001
> under the former Eisenhower Professional Development and Class-Size
> Reduction programs. (In any fiscal year, if the *Title II, Part A*
> appropriation is too small to permit allocations that equal at least
> the amounts that States received under these programs in FY 2001, the
> Department will ratably reduce each State's allocation for that fiscal
> year.)

The Department distributes any remaining funds based on the following
formula:

> • 35 percent based on each State's relative population of children
> ages 5 through 17; and
>
> • 65 percent based on each State's relative numbers of individuals
> ages 5 through 17 from families with incomes below the poverty line.
>
> At a minimum, each State receives at least one-half of one percent of
> the additional funds allocated under this formula (i.e., the money
> appropriated above the FY 2001 base level).

B-9. How much of the State's allocation must the SEA reserve for
subgrants to LEAs, and how much do the SEA and SAHE retain for
State-level activities and competitive grants, respectively?

> Under this program, the SEA must provide 95 percent of the State's
> *Title II, Part A* funds (after reserving up to one percent for SEA
> and SAHE administration) for subgrants to LEAs. The SEA retains 2.5
> percent of the funds for State-level activities described in Section
> 2113(c). The SAHE receives 2.5 percent of the funds (up to \$125
> million among all SAHEs) to make competitive subgrants to eligible
> IHE-LEA partnerships as described in Section I of this document
> \[Sections 2131-2134\]. See the table below for a visual
> representation of the allocations.

#  

# [*Title II, Part A* Within-State Allocations]{.smallcaps}

# **ESEA of 1965 as amended by *No Child Left Behind* *Act of 2001***

+-------------------------------------------------------------+--------+
| 2.5% of 99% for SEA-administered State activities           | > 1%   |
|                                                             | > of   |
|                                                             | > 100% |
|                                                             | > for  |
|                                                             | >      |
|                                                             | > SEA  |
|                                                             | > and  |
|                                                             | > SAHE |
|                                                             | > ad   |
|                                                             | minist |
|                                                             | ration |
+-------------------------------------------------------------+--------+
| 2.5% of 99% for competitive subgrants to eligible           |        |
| partnerships^1^ (SAHE portion)                              |        |
+-------------------------------------------------------------+--------+
| 95% of 99% reserved to make subgrants to local educational  |        |
| agencies                                                    |        |
+-------------------------------------------------------------+--------+

^1^ Up to a maximum of \$125 million total for all SAHEs

**B-10. What portion of the State's total allocation is available for
SEA and SAHE administration?**

> As noted above, up to one percent of the State allocation can be
> reserved for administration and must be shared by the SEA and SAHE.
> Absent an agreement between the SEA and SAHE to the contrary, the
> Department will provide the SAHE the greater of:
>
> 1\. The amount the FY 2001 funds it had received for administration
> under the predecessor *Title II*, ESEA Eisenhower Professional
> Development Program, or
>
> 2\. Five percent of the amount available each year for subgrants to
> partnerships under Section 2113(a)(2) of the ESEA, as amended by NCLB.
>
> The Department will award the remainder of the one percent to the SEA
> for its costs of administration and planning.

**B-11. If an SEA and SAHE cannot use all of the Title II, Part A funds
allocated to the State for administration, for what may the unneeded
administrative funds be used?**

> Under Title II, Part A, the U.S. Department of Education reserves one
> percent of the State allocation for administration, divided between
> the SEA and the SAHE.  Of the remaining allocation, the State must use
> 95 percent for LEA subgrants, 2.5 percent for SAHE grants, and the
> State shall \"use the remainder of the funds for State activities
> described in subsection (c).\" (Section 2113(a)(3)).  Therefore, if
> there are administrative funds not needed either by the SEA or the
> SAHE, these funds should be used for additional State-level activities
> authorized by section 2123 of the ESEA. 
>
> One percent of the total Title II, Part A allocation is available
> for SEA and SAHE administration If, for example, the SEA is the agency
> that cannot use all of its allotment of the administrative funds,
> it should consult with the SAHE to determine whether the SAHE needs
> some of these funds for reasonable and necessary administration of the
> SAHE-funded subgrants before any administrative funds are shifted to
> State level activities.

**B-12. What is the period of availability for *Title II, Part A*
funds?**

> *Title II, Part A*, like most of the ESEA formula programs, is
> "forward funded." The first day that the Department may award funds
> for obligation to States with approved plans is July 1 following the
> appropriation. The Department tries to make funds available as close
> to that date as possible. Funds remain available for obligation,
> whether they are available to the State, the LEAs, or the SAHE, for a
> period of 27 months after July 1. This 27-month period includes an
> initial 15-month period of availability and an automatic 12-month
> extension permitted under the "Tydings Amendment." As an example,
> funds appropriated for Federal fiscal year (FY) 2005 first become
> available to the States on July 1, 2005, and remain available for
> obligation through September 30, 2007.
>
> When the period of availability for obligations ends, grantees may not
> incur any further obligations, but they do have an additional 90-day
> liquidation period during which all outstanding obligations must be
> paid. Continuing the example above, FY 2005 funds can be drawn down
> and spent through December 31, 2007, to cover remaining unpaid
> obligations. On January 1, 2008, the Department will make the account
> unavailable for further transactions.

**B-13. What are the SEAs' reporting responsibilities?**

> Under NCLB, the SEA is required to prepare and submit to the Secretary
> the information the Department requests in the consolidated State
> performance report, the annual State report to the Secretary described
> in Section 1111(h)(1), and the State report required under Section
> 1119(b). The Department will work with the States to help them meet
> these requirements, as well as to meet any other data collection or
> reporting requirements that the Department may establish in the future
> to ensure it has the information necessary to effectively manage the
> *Title II, Part A* program.

[]{#C13 .anchor}**B-14.     When and how must an SEA or SAHE monitor
subgrant activities?**

The Education Department General Administrative Regulations (EDGAR)
govern the administration of subgrants.  General requirements for
provision of technical assistance, monitoring, assisting in project
evaluations (to the extent that they are required), and developing
procedures and rules to ensure the proper expenditure of program funds
are enumerated in Section 76.772.  Furthermore, Section 80.40(a)
requires that States "\...monitor grant and subgrant supported
activities to assure compliance with applicable Federal requirements and
that performance goals are being achieved."

Under these provisions, SEAs and SAHEs must monitor subgrantees for
compliance with Federal statutes and regulations, applicable State rules
and policies, and the approved State and subgrant application.  They are
encouraged to conduct a regular, systematic review of all *Improving
Teacher Quality State Grants* activities, using monitoring instruments
sufficiently comprehensive to determine that subgrantees comply with
program requirements and make progress toward meeting all objectives of
their applications. Simply reviewing audit or annual reports is not
acceptable.  If an SEA or SAHE has reason to believe that a subgrantee
is not adequately implementing its projects, it should monitor more
carefully and frequently and take action to correct problems.

An SEA or SAHE may monitor in any manner that ensures compliance with
program requirements.  For some *Improving Teacher Quality State Grants*
requirements, such as a subgrantee's use of program funds in ways that
reflect its approved application, the State may find that on-site
monitoring is the most suitable method. On-site monitoring should take
place as often as necessary to ensure that subgrant activities comply
with program requirements. 

In addition to on-site visits, either agency may require periodic
reports, conduct telephone interviews, hold subgrantee conferences, and
use other strategies to promote and ensure adherence to applicable
requirements.  Whatever the method selected, it is important that it be
used systematically and that the results be documented.  An SEA and SAHE
should maintain a system for reporting problems and recommending
corrective actions to subgrantees, and for any follow-up that may be
necessary.

# **[C. STATE USE OF FUNDS]{.underline}**

*Title II, Part A* provides "State Activities" funds to SEAs to support
improvements in the recruitment, hiring, training, and retention of
their teaching force. Consistent with State law, SEAs and other State
agencies can exercise significant discretion and authority in how LEAs
improve the overall quality of their teachers. All activities pursued,
however, must be grounded in scientifically based research.

For example, States may use *Title II, Part A* funds to promote periodic
teacher recertification, establish the standards for recertification,
require schools to develop school improvement plans that build on the
importance of high-quality professional development, and assist LEAs in
developing financial incentive programs to encourage highly qualified
and effective teachers to teach in high-need schools. An SEA also may
work with its LEAs to ensure that the proposed activities described in
their program applications reflect proper consideration of these State
priorities and initiatives.

Even where a State chooses not to mandate that LEAs and teachers adopt
certain practices, the SEA still has a significant role to play in
ensuring that LEAs propose sound uses of their *Title II, Part A* funds.
The flexibility (in exchange for accountability) that the law now offers
LEAs is flexibility to make sound, informed decisions, not \-- as
evidenced by the comprehensive set of LEA application requirements in
Section 2122 \-- flexibility to make easy decisions. SEAs should take
seriously their statutory responsibility to "review and approve" these
applications to ensure that the LEAs are not simply funding what is
easiest.

For example, an SEA may feel strongly that an LEA will shortchange the
professional development needs of its teachers if it spends
disproportionate amounts of its *Title II, Part A* funds on the salaries
of teachers hired to reduce class size. Both activities are allowable
uses of an LEA's *Title II, Part A* funds. However, using program funds
to reduce class size at the expense of promoting improved teaching
quality may not, for example, help the LEA to ensure either that all of
its teachers are highly qualified or that its teaching staff is
effective. Where an SEA finds that an LEA application fails to reflect
either the required application content or answers to basic questions
such as these, the SEA may postpone awarding funds until it is satisfied
with the LEA's proposal.

**C-1. How may an SEA use its "State Activities" funds?**

> Consistent with the requirements of an individual State application
> \[Section 2112(b)\], an SEA must use these funds for one or more of
> the activities summarized below \[Section 2113(c)\]:
>
> 1\. Reforming teacher and principal certification (including
> recertification) and licensure to ensure that teachers have the
> necessary subject-matter knowledge and teaching skills in subjects in
> which they teach, that certification or licensing requirements are
> aligned with challenging State academic content standards, and that
> principals have instructional leadership skills to help teachers teach
> and students learn;
>
> 2\. Providing support for teachers new and not new to the profession
> and for principals through such activities as mentoring, team
> teaching, reduced class schedules, intensive professional development,
> and using standards or assessments to guide beginning teachers;
>
> 3\. Carrying out programs to establish, expand, or improve alternative
> routes for State certification for teachers and principals (especially
> in the areas of mathematics and science) that will encourage entry
> into the teaching profession for highly qualified individuals with at
> least a baccalaureate degree, including mid-career professionals,
> military personnel, paraprofessionals, and recent college graduates
> with records of academic distinction;
>
> 4\. Developing and implementing effective mechanisms for helping LEAs
> and schools to recruit and retain highly qualified teachers,
> principals, and pupil services personnel;
>
> 5\. Reforming tenure systems, implementing teacher testing for
> subject-matter knowledge, and implementing teacher testing for State
> certification or licensure, consistent with *Title II* of the Higher
> Education Act (HEA);
>
> 6\. Providing professional development for teachers and principals
> (and for pupil services personnel when the SEA determines their
> participation to be appropriate);
>
> 7\. Developing systems to measure the effectiveness of specific
> professional development programs and activities in order to document
> gains in student academic achievement or increases in teacher mastery
> of academic subjects teachers teach;
>
> 8\. Fulfilling the SEA's responsibilities for proper and efficient
> administration of *Title II, Part A*, including provision of technical
> assistance to LEAs;
>
> 9\. Funding projects to promote interstate certification or licensing
> reciprocity for teachers and principals, provided that the reciprocity
> agreement does not lead to a weakening of State certification or
> licensing requirements;
>
> 10\. Developing or assisting LEAs in the development of proven,
> innovative strategies to deliver intensive professional development
> activities that are both cost-effective and easily accessible, such as
> strategies that involve delivery through the use of technology, peer
> networks, and distance learning;
>
> 11\. Supporting the training of teachers and administrators in
> effectively integrating technology into curricula and instruction;
>
> 12\. Developing, or assisting LEAs in developing, merit-based
> performance systems and strategies that provide differential and bonus
> pay for teachers in high-need academic subjects and for teachers in
> high-poverty areas;
>
> 13\. Assisting LEAs in developing and implementing professional
> development programs for principals that enable them to be effective
> school leaders and to prepare all students to meet challenging State
> content and student academic achievement standards, which may include
> the development and support of school leadership academies;
>
> 14\. Developing, or assisting LEAs in developing, teacher advancement
> initiatives that promote professional growth and that emphasize
> multiple career paths and pay differentiation;
>
> 15\. Providing assistance to teachers to enable them to meet
> certification, licensing, or other requirements in order to become
> highly qualified;
>
> 16\. Supporting activities to ensure that teachers are able to use
> State academic content and achievement standards and State assessments
> to improve instructional practices and student academic achievement;
>
> 17\. Funding projects and carrying out programs to encourage men to
> become elementary school teachers; and
>
> 18\. Establishing and operating a center that serves as a statewide
> clearinghouse for the recruitment and placement of K-12 teachers and
> establishes and carries out programs to improve teacher recruitment.
>
> SEAs have the flexibility to (1) select those strategies and
> activities that will contribute most to the recruitment, hiring,
> training, and retention of highly qualified teachers and principals,
> and (2) use *Title II, Part A* funds in ways that will have the
> greatest impact on increased student achievement for all students and
> on meeting the SEAs' responsibilities for overall accountability
> \[Section 2141\].

**C-2. Does the law restrict the amount of *Title II, Part A* funds that
an SEA may spend on activities to recruit and hire teachers?**

> No. However, in considering how much of its State-level funds it will
> spend on these or other allowable activities, the SEA should balance
> these needs against the need to ensure that all teachers of core
> academic subjects are highly qualified.

**C-3. States are authorized to assist LEAs in developing merit-based
performance or differential pay systems in "high-poverty schools and
districts" \[Section 2113(c)(12)\]. How is "high-poverty" defined for
this purpose?**

> The ESEA does not define the term "high poverty" for purposes of
> Section 2113(c)(12). Therefore each SEA is free to adopt a reasonable
> definition that reflects the demographics of the State.
>
> A State may wish to consider whether to adopt the definition of
> "high-poverty" used in the *Title I, Part A* statute with regard to
> the requirement that the SEA include in its annual report card
> information on the qualifications of teachers, broken down by high-
> and low-poverty schools. This provision defines high-poverty to
> include schools in the top quartile of poverty in the State \[Section
> 1111(h)(1)(C)(viii)\].

\[Note: For information on requirements for ***Maintenance of Effort***
and ***Supplement not Supplant***[, see Section E.](#LocalUseOfFunds)\]

**C-4. Does the law contain any restrictions on the amount of *Title II,
Part A* funds that an SEA may spend on professional development?**

> No. However, in considering how to spend its State-level funds, the
> SEA should focus on its need to ensure that all teachers its LEAs
> employ who teach in core academic subjects meet the highly qualified
> teacher requirements.

[]{#StateAwardstotheLEA .anchor}**[D. STATE AWARDS TO THE LOCAL
EDUCATIONAL AGENCY]{.underline}**

***Administration***

**D-1. How does the SEA distribute funds to LEAs?**

> The amount the SEA distributes for each LEA's allocation reflects (1)
> a "hold harmless" based on the amount of funds the LEA received in FY
> 2001 under the former Eisenhower Professional Development and
> Class-Size Reduction programs, and (2) the LEA's share of any funds
> still remaining.
>
> In any year in which the amount available in the State for LEA grants
> exceeds the sum of the "hold harmless" amounts for LEAs in the State,
> the SEA distributes the excess funds based on the following formula:
>
> • 20 percent of the excess funds must be distributed to LEAs based on
> the relative number of individuals ages 5 through 17 who reside in the
> area the LEA serves (using data that is determined by the Secretary to
> be the most current); and
>
> • 80 percent of the excess funds must be distributed to LEAs based on
> the relative numbers of individuals ages 5 through 17 who reside in
> the area the LEA serves and who are from families with incomes below
> the poverty line (also using data determined by the Secretary to be
> the most current).
>
> (Note: in any year in which there are insufficient funds to provide
> the districts with their hold harmless amount, the SEA will ratably
> reduce each district allocation.)

[]{#G2 .anchor}**D-2. What data should an SEA use for determining the
portion of an LEA's program allocation that is attributable to the
number of children who reside in the LEA?**

> The SEA must use the most recent available Census data, as determined
> by the Secretary, on the number of children age 5-17 who reside in the
> area served by the LEA. The most recent data on the number of children
> age 5-17 in each school district can be found at:
> <http://www.census.gov/hhes/www/saipe/district.html>.

**D-3. What data should an SEA use for determining the portion of an
LEA's program allocation that is attributable to the number of children
in poverty?**

> As in question [D-2](#G2), the SEA must use the most recent available
> Census data, as determined by the Secretary, on the number of children
> age 5-17 from families with incomes below the poverty line. The most
> recent family poverty data can be found at:
> <http://www.census.gov/hhes/www/saipe/district.html>. This site
> reports the most recent data on the number of children in poverty for
> nearly every school district in the United States. (Note: the Census
> Bureau data does not include poverty data for newly created districts
> or charter schools. See question [D-5](#E5) for guidance in
> determining adjusted counts.)

D-4. How does the LEA apply for funds from the SEA, and what should be
included in this application?

> An LEA may receive a *Title II, Part A* subgrant by submitting to the
> SEA either a consolidated application or a program-specific
> application. The SEA determines the content of a consolidated local
> application and the procedure for submitting it \[Section 9305\]. A
> program-specific application must be based on a needs assessment and
> contain the appropriate descriptions and assurances \[Sections 2122
> (b) and (c)\]. Whichever application an LEA submits, it must meet, and
> keep records to confirm that it has met, all statutory and regulatory
> requirements for *Title II, Part A*. Hence, the LEA should have
> records that describe:
>
> 1\. Results of the local needs assessment;
>
> 2\. The activities that the LEA will carry out with program funds,
> including the professional development provided to teachers and
> principals and how these activities will align with challenging State
> academic content standards, student academic achievement standards,
> State assessments, and the curricula and programs tied to those
> standards;
>
> 3\. How the proposed activities are based on a review of
> scientifically based research and how the activities will have a
> substantial, measurable, and positive impact on student academic
> achievement, and how the activities will be used as part of a broader
> strategy to eliminate the achievement gap that separates the
> performance of low-income and minority students from other students;
>
> 4\. How the LEA will coordinate professional development activities
> authorized under *Title II, Part A* with professional development
> activities provided through other Federal, State, and local programs;
>
> 5\. How the LEA will ensure that the professional development needs of
> teachers (including teacher mentoring) and principals will be met with
> the LEA's *Title II, Part A* funds;
>
> 6\. How the LEA will integrate *Title II, Part A* funds with funds the
> LEA receives through the Enhancing Education Through Technology
> program (*Title II, Part D*) to train teachers to integrate technology
> into curricula and instruction to improve teaching, learning, and
> technology literacy;
>
> 7\. How the LEA's teachers, paraprofessionals, principals, other
> relevant school personnel, and parents have collaborated in preparing
> the local plan and will collaborate in the activities to be
> undertaken;
>
> 8\. How the LEA will provide training to enable teachers to (1) teach
> to the needs of students with different learning styles - particularly
> students with disabilities, students with special learning needs
> (including those who are gifted and talented), and those with limited
> English proficiency; (2) improve student behavior in the classroom;
> (3) involve parents in their child's education; and (4) understand and
> use data and assessments to improve classroom practice and student
> learning; and
>
> 9\. How the LEA will use *Title II, Part A* funds to meet the
> requirements of *Title I*, Section 1119 of ESEA for teachers and
> paraprofessionals. That section requires an SEA to establish annual
> measurable objectives for each LEA and school that ensure that all
> teachers of core academic subjects are highly qualified. It also
> includes a requirement for the LEA's plan to include an annual
> increase in the percentage of teachers who receive high-quality
> professional development \[Section 2122\].
>
> An LEA must also maintain records that, consistent with the assurances
> that were submitted in its *Title II, Part A* program applications,
> describe how it will: (1) target program funds to schools that have
> the lowest proportion of highly qualified teachers, have the largest
> average class size, or are identified for school improvement under
> *Title I*, Section 1116(b); and (2) comply with *Title IX*, Section
> 9501 of ESEA regarding participation of private school teachers.

[]{#E5 .anchor}**D-5. If the number of districts within a State
decreases or increases through consolidation or division of a district
into new LEAs, how can the SEA determine the amount of *Title II, Part
A* funds the newly created districts and the districts affected by the
creation of the new districts should receive?**

> All LEAs in a state are entitled to *Title II, Part A* program funding
> on the basis of the ESEA's in-state allocation formula. SEAs may not
> exclude LEAs that did not exist in the prior year, including charter
> schools that the State identifies as LEAs.
>
> As discussed in question D-1, the *Title II, Part A* LEA subgrant
> formula has two components:
>
> 1\. A hold-harmless that depends upon the LEA's FY 2001 allocations
> under the former Eisenhower Professional Development and Class-Size
> Reduction programs, and
>
> 2\. A supplement that depends upon the most current district
> enrollment data and poverty data gathered by the U.S. Census Bureau.
>
> The *Title II, Part A* in-state allocation formula builds on a
> hold-harmless that relies upon data from years prior to when new LEAs
> were created or old LEAs were made smaller or eliminated, but the ESEA
> is silent on how an SEA should calculate the amount of the
> hold-harmless for such LEAs. While there may be other reasonable ways
> to calculate Title II, Part A allocations for newly created LEAs and
> the LEAs affected by their creation, the U.S. Department of Education
> suggests that SEAs use the procedures below to calculate Title II,
> Part A allocations for these districts. (See question [D-6](#E6) for
> procedures for calculating allocations to schools, such as charter
> schools, which have LEA status but lack distinct geographic
> boundaries.)
>
> *A. A new LEA created by combining two or more previously existing
> LEAs, each of which was on the Census Bureau list*
>
> The SEA may calculate the hold-harmless portion of a newly created
> LEA's *Title II, Part A* allocation~~s~~ by aggregating the
> hold-harmless amounts (i.e., the FY 2001 Eisenhower and Class-Size
> reduction program funds) that the combining LEAs received in the year
> before they merged.
>
> Similarly, the SEA may calculate the supplemental portion of a newly
> created LEA's allocation by combining the most current poverty data
> and district residence data for individuals 5-17 in the consolidating
> districts, and then using these new figures to determine the newly
> created LEA's relative share of the supplemental *Title II, Part A*
> funds that the SEA has available for allocation to all LEAs in the
> state. In this regard, the number of children ages 5-17 in poverty in
> the newly created LEA is equal to the sum of the total number of
> children ages 5-17 in the consolidating LEAs. In the same way, the
> individuals 5-17 residing in the newly created LEA is equal to the sum
> of the individuals 5-17 residing in the consolidating LEAs.
>
> *B. A new LEA created from part of one or more LEAs previously on the
> Census Bureau list*
>
> **1. [Calculating the Hold-Harmless]{.underline}**
>
> Under section 2121(a)(2) of the ESEA, an LEA's *Title II, Part A*
> hold-harmless is the total of its FY 2001 allocation under the former
> Eisenhower Professional Development (Eisenhower) and Class-Size
> Reduction programs. For each program, the in-state allocation formula
> includes both a student-enrollment and poverty component. For the
> poverty component, the Eisenhower program relied on the LEA's prior
> year *Title I, Part A* allocation, which itself relied partly on
> Census Bureau poverty data, although a few States relied instead on
> alternative poverty data such as free and reduced lunch eligibility.
> The Class-Size Reduction program relied upon the most recent Census
> Bureau data on the numbers of children from families in poverty in the
> LEA.
>
> Except when existing districts consolidate, these provisions do not
> work when LEAs are created or district boundaries change because it is
> impossible to determine the number or proportion of children who,
> years ago, lived in poverty in the area that a newly created LEA
> serves. It is, however, important to fund newly created LEAs in the
> way that most closely approximate the statutory formula.
>
> In the absence of data that reflect a more precise way to establish
> the hold-harmless amounts, an SEA may calculate the portion of the FY
> 2001 hold-harmless of the "sending LEA(s)" (i.e., LEA(s) from which
> the new LEA is formed) that the SEA would transfer to the newly
> created LEA by
>
> 1\. Determining the percentage of the Eisenhower Professional
> Development and Class-Size Reduction funds from the sending LEA(s)
> that would be attributable to the newly created LEA if one used
> *current* data on both student enrollment and poverty, and
>
> 2\. Multiplying this percentage by the hold-harmless of the sending
> LEA(s).
>
> The result is the newly created LEA's hold-harmless. Deducting a
> sending LEA's contribution from its existing hold-harmless yields the
> sending LEA's revised hold-harmless.
>
> Of course, given the complexity of the Eisenhower and Class-Size
> Reduction program formulas, the steps needed to perform this
> calculation of hold-harmless for each LEA are a bit more complicated.
>
> ***a. Eisenhower Professional Development***
>
> Under the former Eisenhower program an LEA received 50 percent of its
> allocation based on the relative size of student enrollment in public
> and private schools within its boundaries, and 50 percent based on the
> relative amount of the district's *Title I, Part A* allocation for the
> preceding fiscal year.
>
> •  [Relative Student Enrollment]{.underline}: The SEA determines the
> student enrollment of the newly created LEA and adds to it the student
> enrollment of all private schools within the boundaries of that LEA.
> The SEA also determines student enrollment of the sending LEA(s) and
> adds to it the student enrollment of the private schools within
> its/their boundaries, all at a date the SEA chooses. The SEA then
> divides the total public and private student enrollment of the newly
> created LEA by the total public and private student enrollment of all
> LEAs in the State. This yields the newly created LEA's relative
> student enrollment, i.e., the proportion of the total of its public
> and private student enrollment as a percentage of the total public and
> private school student enrollment of all LEAs in the State. The SEA
> does the same for each sending LEA to determine its/their revised
> relative student enrollment.
>
> *NOTE: The SEA allocates funds to LEAs under both the Safe and
> Drug-Free Schools and Communities program and Innovative Programs
> (Titles IV-A and V-A of the ESEA) on the basis, in part, of the
> relative share of enrollment of public and private schools within the
> area the LEA serves. Hence, the SEA will have these enrollment data
> for other LEAs in the State.*
>
> • [*Title I, Part A* allocation]{.underline}: States use different
> data sources to determine the relative share of districts' *Title I*
> allocations. Because a newly created LEA is likely entitled to an
> allocation of *Title I, Part A* funds, the SEA's *Title I, Part A*
> coordinator should be consulted about how the newly created and
> sending LEAs' relative amounts of *Title I* allocations are
> calculated. For additional information, see ED's guidance on
> allocation of *Title I, Part A* funds to newly created LEAs at
> [http://www.ed.gov/programs/titleiparta/seaguidanceforadjustingallocations.doc]{.underline}.
>
> []{.mark}
>
> [Calculating the hold-harmless attributable to the former Eisenhower
> program]{.underline}: The SEA multiplies the relative student
> enrollment for the newly created LEA by one half of the FY 2001
> Eisenhower funds the SEA received for allocation to all LEAs in the
> state. The SEA then multiplies the newly-created LEA\'s relative share
> of the newly created *Title I, Part A* allocation by one half of the
> FY 2001 Eisenhower funds the SEA received for allocation to all LEAs
> in the state. Adding these two results yields the amount of the *Title
> II, Part A* hold-harmless for the newly created LEA that is
> attributable to the former Eisenhower program.
>
> The SEA then repeats this procedure for each of the sending LEAs to
> yield the revised hold-harmless amount attributable to the former
> Eisenhower program for each of these LEAs.
>
> ***b. Class-Size Reduction***
>
> Under the former Class-Size Reduction program, an LEA received 20
> percent of its allocation based on the relative size of student
> enrollment in public and private schools within its boundaries, the
> same factor used in the Eisenhower program allocation. Eighty percent
> of the allocation was based on the relative number of children ages 5
> to 17 from families with incomes below the poverty line.
>
> • [Relative Student Enrollment]{.underline}: The SEA should calculate
> this factor for newly created and sending LEAs in the same way it did
> for the Eisenhower Program.
>
> • [Students in Poverty]{.underline}: The Census Bureau does not
> collect data on the number of people ages 5-17 from families with
> incomes below the poverty line for newly created LEAs. The Department
> of Education is not aware of any data source other than the Census
> Bureau that can provide data that reflect the statutory requirement
> that children ages 5-17 be from families with incomes below the
> "poverty line," a term defined in section 9101(33) of the ESEA.
> Therefore, the SEA must obtain the best possible estimate of the
> numbers of children from families in poverty for each newly created
> LEA, and then subtract these counts, as appropriate, from each sending
> LEA.
>
> If the SEA can readily obtain the number of such children who now
> attend the newly created LEA from both the newly created and sending
> LEAs, it must use these data. In most cases, however, the SEA will not
> know how many children from families with incomes below the poverty
> line attend schools in LEAs for which the Census Bureau does not
> collect these data. Where this is the case, the SEA may estimate the
> number of these children in each affected district by using
> alternative data sources, as described below.
>
> *[Determining the Number of Poor Children Enrolled in the
> LEAs]{.underline}*
>
> To estimate the number of children from families living below the
> poverty line in newly created and sending LEAs, SEAs may use the
> following procedures as long as the alternative data used are
> available for *all* LEAs in the State.
>
> *Step 1.* The newly created LEA and each sending LEA report to the SEA
> a count of poor children enrolled in the LEA's schools using
> alternative poverty data, such as children eligible for free- and
> reduced-price lunches, from the same time period.
>
> *Step 2.* The SEA calculates, on a statewide basis, a "State-equating
> factor":
>
> The total number of children in poverty ages 5-17 as
>
> [\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_reported by the Census
> Bureau\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> The total number of poor children enrolled in schools operated by LEAs
>
> on the basis of the alternative poverty data.
>
> *Step 3.* The SEA multiplies the number of poor children reported by
> the newly created LEA and each sending LEA on the basis of alternative
> poverty data by the State-equating factor. The result is the Census
> poverty estimate for the newly created and sending LEAs, i.e., the
> estimated number of children ages 5-17 in these LEAs from families
> with incomes below the poverty line.
>
> [Factoring in Private School Enrollment:]{.underline} The Census
> Bureau count of children ages 5-17 from families with incomes below
> the poverty line includes children who attend both public and private
> schools. Because each LEA must provide equitable services to children
> attending private schools, it is important to include an estimate of
> the number of children enrolled in private schools in the count of
> children in poverty. Absent better information that the SEA may have
> available, we assume in steps 4-7 that both the residence of children
> enrolled in private schools, and the percentages of poor children
> enrolled in private schools, are evenly distributed across each
> sending LEA.
>
> *Step 4.* The newly created LEA reports to the SEA its total 5-17
> enrollment and identifies the LEAs from which those children came. The
> SEA also obtains the 5-17 enrollment from the sending LEA(s), and, if
> they are not already adjusted, adjusts these enrollments to reflect
> the enrollment of the newly created LEA. For each sending LEA, the SEA
> determines the proportion of enrolled students who have and have not
> moved to the newly created LEA.
>
> *Step 5.* The SEA obtains the number of poor children enrolled in
> private schools in the area each sending LEA serves, based on the
> State's alternative poverty data. If these data are unavailable, the
> SEA obtains the number of children enrolled in private schools in the
> area each sending LEA serves.
>
> *Step 6*. The SEA multiples the number(s) from Step 5 by the
> proportions from each sending LEA of students who have and who have
> not moved to the newly created LEA (from Step 4). These calculations
> yield the estimated number of private school students who reside in
> the area served by the newly created LEA, and the estimated number of
> private school children who still reside in the area each sending LEA
> serves.
>
> *Step 7.* The SEA multiplies the results from Step 6 by the
> State-equating factor from Step 2. The result is the estimated number
> of children ages 5-17 enrolled in private schools in each newly
> created and sending LEA who are from families with incomes below the
> poverty line.
>
> [Determining the Total Relative Number of Poor Children]{.underline}
>
> *Step 8.* For each newly created LEA and sending LEA, the SEA adds the
> estimated number of public school children in poverty from Step 3 to
> the estimated number of private school children in poverty from Step
> 7.
>
> *Step 9.* The SEA compares the results from Step 8 to the statewide
> total number of children in all LEAs from families with incomes below
> the poverty line. The resulting proportions are the estimated relative
> number of children ages 5-17 from families with incomes below the
> poverty line in each newly created and sending LEA.
>
> [Calculating the Share of the *Title II, Part A* Hold-Harmless for
> Each Sending LEA and Newly Created LEA]{.underline}
>
> *Step 10.* The SEA applies the relative weightings of these two
> proportions-20 percent for relative student enrollment and 80 percent
> for relative number of children in poverty-to determine the total
> amount of the hold-harmless attributable to Class Size Reduction for
> both the newly created LEA and each sending LEA.
>
> *[Note:]{.underline} If the SEA does not have common, alternative
> poverty data for all LEAs in the State, it must determine the relative
> numbers of children ages 5-17 from families with incomes below the
> poverty line for each newly created LEA and sending LEA that affect
> it. The SEA would do this by modifying Steps 4-9 so that the data on
> both student enrollments and the numbers of poor children using
> alternative poverty data are based only on information from the newly
> created and sending LEAs, not from the whole State.*
>
> *The SEA [should not pursue alternative procedures when statewide
> alternative poverty data for all LEAs are available]{.underline}.
> Among other things, the income levels used for determining the number
> of poor children by alternative poverty data, such as free- and
> reduced-lunch subsidies, are much higher than income levels used for
> determining the number of children ages 5-17 from incomes below the
> poverty line. Therefore, calculating a State-equating factor based on
> a statewide average will be more reliable, district-by-district, than
> calculating an equating factor based on data from only a newly created
> LEA and the sending LEAs that affect it.*
>
> **c. Determining the Total Hold-Harmless**
>
> The total hold-harmless of each newly created and sending LEA is
> calculated by adding the hold-harmless adjustments for the former
> Eisenhower and Class-Size Reduction programs.
>
> **2. [Calculation of *Title II, Part A* Supplemental
> Funds]{.underline}**
>
> As discussed in D-1, 20 percent of the portion of any LEA's *Title II,
> Part A* allocation in excess of the hold-harmless is based on the
> LEA's population ages 5-17, and 80 percent is based on the LEA's
> population ages 5-17 from families with incomes below the poverty
> line, as taken from Census Bureau data for districts for which it
> provides data. The SEA calculates the supplemental portion of the
> newly created and sending LEA's *Title II, Part A* allocation in the
> same way that it does under the hold-harmless portion for the former
> Class-Size Reduction program.

[]{#E6 .anchor}**D-6. If charter school-LEAs or other types of special
LEAs without geographic boundaries are created, how should the SEA
determine the amount of *Title II, Part A* funds that these newly
created districts receive?**

> The Census Bureau does not collect poverty data for charter
> school-LEAs or other types of LEA without geographic boundaries (e.g.,
> a regional vocational/technical school with LEA status). As in the
> case of LEAs with geographic boundaries (see D-5), for each of these
> "special LEAs" the SEA obtains a best estimate of the numbers of
> children ages 5-17 and children ages 5-17 from families with incomes
> below the poverty line for the special LEA and subtracts these counts
> from each sending LEA.
>
> (With respect to charter schools, section 76.791(b) of EDGAR, which
> derives from the Charter School Expansion Act of 1998, Pub. L.105-278,
> specifically provides that "\[f\]or the year the charter school LEA
> opens or significantly expands its enrollment, the \[SEA's\]
> eligibility determination may not be based on enrollment or
> eligibility data from a prior year, even if the SEA makes eligibility
> determinations for other LEAs under the program based on such data.")
>
> Because Census poverty data are not available for special LEAs, the
> SEA must derive an estimate of Census poverty children for each
> special LEA and determine from which LEAs these children came.
>
> ***A. If the SEA has the information to track children transferring
> from sending LEAs to special LEAs:***
>
> The SEA uses the same process it used for newly created LEAs with
> geographic boundaries (see D-5) except that the proportions of student
> enrollment and students in poverty used to calculate the *Title II,
> Part A* allocations for those LEAs would *not* be adjusted to include
> students enrolled in private schools. Since each sending LEA retains
> responsibility for serving these students, it would continue to
> receive *Title II, Part A* funds for that purpose.
>
> ***B. If the SEA does not have the information to track children
> transferring from sending LEAs to special LEAs:***
>
> The SEA may use the following method to determine the estimated number
> of children in each special LEA.
>
> *Step 1.* The SEA identifies an alternative poverty factor, such as
> free and reduced price lunch, that is available for the entire State
> and for each special LEA.
>
> *Step 2.* The SEA develops an equating factor for the State that
> represents the following proportion:
>
> Total number of Census poverty children in the State
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Total number of poverty children in the State using the alternative
>
> poverty factor
>
> *Step 3.* The SEA multiplies the equating factor by the number of
> poverty children reported by the special LEA, as calculated using the
> alternative poverty factor, to obtain an estimate of the number of
> Census poverty children in the special LEA.
>
> The SEA then uses the number from Step 3 to determine the special
> LEA's *Title II, Part A* allocation.
>
> [Note]{.underline}: If the SEA allocates funds to new or expanding
> charter schools based on estimated data (such as school enrollment)
> for which it later will have actual data, section 76.796 of EDGAR
> requires the SEA to subsequently adjust these allocations to reflect
> the actual data. Additional guidance regarding allocating ESEA program
> funds to new or expanding charter schools may be found in Department
> guidance available on the Internet at
> <http://www.ed.gov/policy/elsec/guid/cschools/cguidedec2000.doc>.

**D-7. Can charter schools apply for *Title II, Part A* funds?**

> It depends. Those charter schools that are LEAs can apply to their SEA
> in the same manner as other LEAs. However, those charter schools that
> are *not* LEAs cannot apply to the SEA for these funds. They are
> treated like the other schools within their particular LEA, and
> teachers and other school staff may participate in program activities
> on the same basis as personnel in any other school.

**D-8. What are the LEAs' reporting responsibilities?**

> *Title II, Part A* does not contain any specific LEA reporting or
> evaluation requirements. However, under *Title I, Part A* \[Section
> 1119(b)(1)(A)\], each LEA receiving *Title I* funds must publicly
> report annually on its progress, both at the district and school
> level, in meeting the State-established annual measurable objectives
> for ensuring that all teachers are highly qualified. In addition, LEAs
> must report to the SEA information the SEA needs to meet its own
> reporting responsibilities.

**D-9. What corrective steps must occur if an LEA fails to make adequate
yearly progress (AYP) or fails to meet the annual measurable objectives
for teacher quality?**

> Section 2141 of the statute describes what States and districts must
> do if an LEA fails to make AYP or meet its annual measurable
> objectives for teacher quality. If the SEA determines, based on LEA
> reports submitted under Section 1119(b), that an LEA failed to make
> progress toward meeting its annual measurable objectives for two
> consecutive years, the LEA must develop an improvement plan that will
> enable it to meet such objectives and that directly addresses the
> issues that prevented it from meeting its objectives. During the
> development and throughout implementation of the plan, the SEA must
> provide technical assistance to the LEA and to schools served by the
> LEA that need assistance to enable them to meet the annual measurable
> objectives described in section 1119(a)(2).
>
> If an LEA has failed to make AYP for three consecutive years under
> Section 1111(b)(2)(B) of *Title I, Part A*, and has failed for three
> years to make progress toward meeting its annual measurable objectives
> established under Section 1119(b)(1), the SEA must enter into an
> agreement with the LEA on its use of *Title II, Part A* funds under
> which the SEA will:
>
> 1\. Develop (in conjunction with the LEA, teachers, and principals)
> professional development strategies and activities based on
> scientifically based research that the LEA will use to meet the
> State's annual measurable objectives for improving teacher quality;
>
> 2\. Require the LEA to use these professional development strategies
> and activities; and
>
> 3\. Prohibit LEAs from using *Title I, Part A* funds to fund any new
> paraprofessionals, except under certain limited instances.

**D-10. How may the SEA distribute any unclaimed LEA funds?**

> *Title II, Part A* funds available for LEA use are considered
> unclaimed if or when one or more LEAs decide not to participate in the
> program, or agree that they cannot use all or a portion of the funds
> they receive. The SEA must distribute these funds to other LEAs, but
> it has the flexibility to determine how this redistribution will
> occur. It may, but is not required, to proportionally increase the
> subgrant amount provided to all participating LEAs. Alternately, an
> SEA could establish special procedural and distribution criteria
> (e.g., LEAs with high proportions of teachers who are not highly
> qualified and need additional professional development) and make these
> funds available to those LEAs that meet these criteria. However, an
> SEA may not reserve for itself any portion of these LEA funds to
> augment either its State Activities or its administrative funds.

***Needs Assessment***

**D-11. What is the purpose of the LEA needs assessment and how does the
LEA use it?**

The purpose of the needs assessment is to determine the needs of the
LEA's teaching force in order to be able to have all students meet
challenging State content and academic achievement standards. An LEA may
want to use information such as student achievement data, information
about numbers of teachers (disaggregated by subject taught and grade
level) who lack full teacher certification or licensure, assessments by
administrators and mentor teachers who evaluate teacher and student
performance, and teacher self-evaluations.

> The LEA uses the needs assessment to identify local teacher quality
> needs. Among other things, the assessment should identify those needs
> that must be addressed if the LEA does not have all teachers highly
> qualified. The assessment should take into account:
>
> 1\. The activities that the LEA must conduct in order to give teachers
> the means to provide all students with the opportunity to meet
> challenging State content and academic achievement standards; and
>
> 2\. The activities that the LEA needs to conduct in order to give
> principals the instructional leadership skills to help teachers
> provide all students with the opportunity to meet challenging State
> content and academic achievement standards \[Section 2122(c)(2)\].
>
> A needs assessment also identifies those areas that an LEA should
> strengthen, such as areas of weakness in student academic achievement,
> as part of a meaningful plan for professional development and hiring.
> The LEA uses the results of this assessment to plan its *Title II,
> Part A* activities, keeping in mind its student achievement goals and
> its plan for ensuring that all teachers in core academic areas meet
> the "highly qualified" requirements.

**D-12. Who must be involved in the needs assessment process?**

> The LEA must carry out the needs assessment with the involvement of
> the district's teachers, including those in schools receiving
> assistance under the *Title I, Part A* program.

**D-13. What data should the LEA use when conducting a needs
assessment?**

> The law provides that the LEA's needs assessment "shall take into
> account the activities that need to be conducted in order to give
> teachers the means, including subject-matter knowledge and teaching
> skills, and to give principals the instructional leadership skills to
> help teachers to provide students with the opportunity to meet
> challenging State and local student academic achievement standards"
> \[Section 2122(c)(2)\]. However, the law does not prescribe the data
> an LEA must use in conducting its needs assessment.
>
> The data necessary for determining teacher needs might include
> information such as: student achievement data, information on national
> and State initiatives, projections of the professional development
> necessary to ensure that all teachers of core academic subjects meet
> the highly qualified requirements in Section 9101(23), scientifically
> based research on proposed programs and strategies, projections of
> teacher supply in critical areas, student enrollment data, program
> assessment data, and community and business input.

**D-14. After conducting its needs assessment, must the LEA target its
use of *Title II, Part A* funds?**

> Yes. The LEA must target funds to schools that (1) have the lowest
> proportion of highly qualified teachers, (2) have the largest average
> class size, or (3) are identified for school improvement under Section
> 1116(b) of *Title I, Part A* \[Section 2122 (b)(3)\].
>
> In addition, in considering its best use of *Title II, Part A* funds,
> an LEA should consider whether to target *Title II, Part A* funds to
> help it meet its responsibilities under *Title I*. These include
> providing assurances that the LEA will: (1) work in consultation with
> schools as the schools develop and implement their plans or activities
> under Section 1119 \[Section 1112(c)(1)(H)\]; (2) comply with the
> requirements of Section 1119 regarding the qualifications of teachers
> and paraprofessionals and professional development \[Section
> 1112(c)(1)(I)\]; and (3) ensure, through incentives for voluntary
> transfers, professional development, recruitment programs, or other
> effective strategies, that low-income students and minority students
> are not taught at higher rates than other students by unqualified,
> out-of-field, or inexperienced teachers \[Section 1112(c)(1)(L)\].

**D-15. If a need is mentioned in the LEA needs assessment, must it be
addressed in the district plan?**

> No. The LEA's needs assessment focuses on "local needs for
> professional development and hiring as identified by the LEA and
> school staff." The local assessment is likely to reflect a wide array
> of needs, not all of which the LEA may be able to address with limited
> fiscal and non-fiscal resources. Rather than try to address all of
> these identified needs, consistent with the content requirements for
> local applications in Section 2122(b), the district must plan its uses
> of *Title II, Part A* funds in those ways most likely to produce
> positive results in teaching practice and the achievement of all of
> the district's students.

**D-16. Must staff at individual schools be involved in developing an
LEA's needs assessment?**

> Yes. The law states that the needs assessment must reflect the needs
> for professional development "as identified by the \[LEA\] and school
> staff," and requires the LEA to conduct its needs assessment "with the
> involvement of teachers, including teachers participating in programs
> under part A of Title I" \[Section 2122(c)(1) and (2)\]. Therefore,
> the LEA needs to involve teachers at individual schools in the needs
> assessment process. How it does so (e.g., through surveys, focus
> groups, and other means of collecting data) is left to the LEA and its
> staff to decide.

**D-17. Should an LEA needs assessment examine strategies for
eliminating the achievement gap that separates low-income and minority
students from other students?**

> Yes. Since the law requires each LEA to develop a strategy for closing
> this achievement gap \[Section 2122(b)(2)\], the LEA presumably will
> want to use the needs assessment process to engage teachers,
> principals, and other staff in identifying key professional
> development and hiring needs in this critical area.

**D-18. How can the SEA ensure that those activities an LEA proposes to
implement with *Title II, Part A* funds are, in fact, consistent with
the required local needs assessment?**

> If an LEA submits a program-specific application under Section 2122,
> the alignment of the proposed activities with the needs identified in
> the needs assessment should be evident from the content of the
> application itself. An LEA\'s program-specific application must
> contain a description of the results of its needs assessment \[Section
> 2122(b)(8) and (c)\]. The remainder of the application contains
> information on how the LEA\'s use of *Title II, Part A* funds will
> meet its identified needs. For example, the application must include a
> description of the professional development activities to be carried
> out with *Title II, Part A* funds, how these activities will have a
> substantial, measurable, and positive impact on student academic
> achievement, and how the activities will be used as part of a broader
> strategy to eliminate the achievement gap that separates low-income
> and minority students from other students \[Section 2122((b)(2)\].
>
> If, instead, an LEA receives funding on the basis of a consolidated
> local plan or application, the SEA has flexibility, in consultation
> with the LEAs and the State's governor, to adopt any application
> content requirements it wants provided these criteria relate to the
> objectives of the consolidated plan or application. For example,
> requirements may include improvement of teaching and learning through
> greater coordination of the Federal programs and their integration
> into State and local-funded activities. Hence, the SEA is free to
> tailor the application in any reasonable way to ensure that Federal
> funds are supporting teacher-training activities that flow from the
> local needs assessment. In addition, SEAs are strongly encouraged to
> implement monitoring procedures to ensure that district *Title II,
> Part A* funds are being used consistent with the findings of the local
> needs assessment.

[]{#LocalUseOfFunds .anchor}**[E. LOCAL USE OF FUNDS]{.underline}**

While State (and Federal) leadership is important, LEA officials play
the most immediate and critical role in promoting the effective teaching
that is needed to facilitate increased academic achievement of all
students. Their schools, after all, are where teaching and learning
occur. LEA officials can exercise needed leadership in such key ways as:

> 1\. Ensuring that the LEA conducts an effective assessment of the
> district's needs for professional development and hiring, through
> meaningful consultation with teachers of all grades and subject areas,
> particularly teachers in high-need schools, and others;
>
> 2\. Ensuring that the results of this needs assessment drive the
> development of sound multi-year program plans that (a) include teacher
> mentoring and incentives, as well as provision of professional
> development in subject-matter content and effective instructional
> strategies (i.e., those that are likely to have a positive impact on
> student achievement) that are based on a review of scientifically
> based research, and (b) focus particular attention on addressing the
> needs of students who are at highest risk of failing to meet the
> State's academic standards;
>
> 3\. Incorporating objective benchmarks for success and clear
> statements of desired outcomes into the LEA's multiyear plan;
>
> 4\. Continuously examining standards, assessments, curricula, and
> teaching practices to ensure that they fit together;
>
> 5\. Instituting merit pay programs, tenure reform, financial
> incentives, special mentoring help, and other means to: (a) make
> teaching in the district attractive to mid-career professionals and
> others with special knowledge, skills, and enthusiasm, and (b)
> encourage the district's most effective teachers not only to stay in
> the district, but to teach in its highest-need schools;
>
> 6\. Instilling a strong commitment to professionalism among teachers,
> principals, and other school and district staff and actively promoting
> the importance of strong school leaders; and
>
> 7\. Creating a strong community expectation that the students and
> their schools can succeed, and a strong expectation among all school
> and district staff that all teachers will have the subject-matter
> knowledge and teaching skills they need to enable each of their
> students to succeed.

***Allowable Costs***

**E-1. For what activities may an LEA use *Title II, Part A* funds?**

> Consistent with local planning requirements and its needs assessment,
> the *Title II, Part A* program offers an LEA the flexibility to design
> and implement a wide variety of activities that can promote a teaching
> staff that is highly qualified and able to help all students \--
> regardless of individual learning needs \-- achieve challenging State
> content and academic achievement standards. Funds can also be used to
> provide school principals with the knowledge and skills necessary to
> lead their schools' efforts in increasing student academic
> achievement. For example, the statute specifically authorizes the
> following types of activities:
>
> 1\. Developing and implementing mechanisms to assist schools to
> effectively recruit and retain highly qualified teachers, principals,
> and specialists in core academic areas (and other pupil services
> personnel in special circumstances, [as noted in question E-6](#H6) of
> this document).
>
> 2\. Developing and implementing strategies and activities to recruit,
> hire, and retain highly qualified teachers and principals. These
> strategies may include (a) providing monetary incentives such as
> scholarships, signing bonuses, or differential pay for teachers in
> academic subjects or schools in which the LEA has shortages; (b)
> reducing class size; (c) recruiting teachers to teach special needs
> children, including students with disabilities, and (d) recruiting
> qualified paraprofessionals and teachers from populations
> underrepresented in the teaching profession, and providing those
> paraprofessionals with alternate routes to obtaining teacher
> certification.
>
> 3\. Providing professional development activities that improve the
> knowledge of teachers and principals and, in appropriate cases,
> paraprofessionals, in:
>
> a\. [Content knowledge.]{.underline} Providing training in one or more
> of the core academic subjects that the teachers teach; and
>
> b\. [Classroom practices]{.underline}. Providing training to improve
> teaching practices and student academic achievement through (a)
> effective instructional strategies, methods, and skills, and (b) the
> use of challenging State academic content standards and student
> academic achievement standards in preparing students for the State
> assessments.
>
> 4\. Providing professional development activities that improve the
> knowledge of teachers and principals and, in appropriate cases,
> paraprofessionals, regarding effective instructional practices that:
>
> a\. Involve collaborative groups of teachers and administrators;
>
> b\. Address the needs of students with different learning styles,
> particularly students with disabilities, students with special needs
> (including students who are gifted and talented), and students with
> limited English proficiency;
>
> c\. Provide training in improving student behavior in the classroom
> and identifying early and appropriate interventions to help students
> with special needs;
>
> d\. Provide training to enable teachers and principals to involve
> parents in their children's education, especially parents of limited
> English proficient and immigrant children; and
>
> e\. Provide training on how to use data and assessments to improve
> classroom practice and student learning.
>
> 5\. Developing and implementing initiatives to promote retention of
> highly qualified teachers and principals, particularly in schools with
> a high percentage of low-achieving students, including programs that
> provide teacher mentoring from exemplary teachers and administrators,
> induction, and support for new teachers and principals during their
> first three years; and financial incentives to retain teachers and
> principals with a record of helping students to achieve academic
> success.
>
> 6\. Carrying out programs and activities that are designed to improve
> the quality of the teaching force, such as innovative professional
> development programs that focus on technology literacy, tenure reform,
> testing teachers in the academic subject in which teachers teach, and
> merit pay programs.
>
> 7\. Carrying out professional development programs that are designed
> to improve the quality of principals and superintendents, including
> the development and support of academies to help them become
> outstanding managers and educational leaders.
>
> 8\. Hiring highly qualified teachers, including teachers who become
> highly qualified through State and local alternate routes to
> certification, and special education teachers, in order to reduce
> class size, particularly in the early grades.
>
> 9\. Carrying out teacher advancement initiatives that promote
> professional growth and emphasize multiple career paths (such as paths
> to becoming a mentor teacher, career teacher, or exemplary teacher)
> and pay differentiation.

**E-2. What amount of program funds may an LEA reserve for
administrative and indirect costs?**

> The statute is silent on the amount of program funds an LEA may spend
> for administrative costs. Therefore, the amount of funds that an LEA
> may spend for this category of expenses is subject to requirements in
> the cost principles in the Office of Management and Budget (OMB)
> Circular A-87 \-- including the principle that, among other things,
> all costs must be necessary, reasonable, and allocable to the program.
> To access the relevant information in OMB Circular A-87, visit
> <http://www.whitehouse.gov/omb/circulars/a087/a87_2004.html>.
>
> In addition, because LEA expenditures are subject to "supplement not
> supplant" provisions, by virtue of Section 76.563 of EDGAR an LEA\'s
> indirect costs are limited to its approved "restricted indirect cost
> rate."[^1]

**E-3. May an LEA use *Title II, Part A* funds to: (a) pay the costs of
State tests required of new teachers to determine whether they have
subject-matter competence, and (b) assist them in meeting State
certification requirements?**

Yes. An LEA may use *Title II, Part A* funds to develop and administer
rigorous State tests required of teachers new to the profession (and
available to teachers not new to the profession) to determine whether
they have subject-matter competence, and to assist them in meeting State
certification requirements, e.g., by paying for the costs of additional
required courses.

**E-4. When can *Title II, Part A* funds be used to pay teacher
salaries?**

> *Title II, Part A* funds can be used only to pay the salaries of
> highly qualified teachers hired for the purpose of reducing class
> size.
>
> *Title II, Part A* funds can also, as part of an overall strategy to
> improve teacher quality, be used for teacher incentives (e.g., as
> stipends for teachers recruited to fill hard-to-fill positions or to
> retain teachers who have been effective in helping low-achieving
> students succeed) or to pay the salaries of master teachers who
> provide or coordinate professional development services for other
> teachers.
>
> In addition, as reasonable and necessary, *Title II, Part A* funds may
> be used to pay for substitute teachers if, and only if, (a) those
> regular classroom teachers they are replacing were hired with *Title
> II, Part A* funds to reduce class size, or (b) the teachers are
> participating in *Title II*-funded "programs and activities that are
> designed to improve the quality of the teacher force, such
> as...innovative professional development programs..." \[Section
> 2123(a)(5)(A)\]. LEAs also must ensure that the hiring of these
> substitutes supplements, and does not supplant, the use of local and
> State funds they would otherwise be spending for such substitutes.

**E-5. May an LEA use *Title II, Part A* funds to pay out-of-area
recruitment costs and moving expenses that may be needed in order to
recruit and relocate new teachers?**

> Yes. There are circumstances in which the use of *Title II, Part A*
> funds to pay out-of-area travel and relocation costs would be
> reasonable and necessary to recruit individuals that the LEA would
> want to hire to meet its teacher shortage needs. To the extent that
> out-of-area recruitment itself is reasonable and necessary, relocation
> costs may be paid as a stipend or other financial incentive if, as
> with any cost the program would assume, the incentives are reasonable
> and necessary.

[]{#H6 .anchor}**E-6. When may an LEA use *Title II, Part A* funds for
programs to recruit and retain pupil services personnel (e.g., guidance
counselors)?**

> An LEA may use *Title II, Part A* funds for these activities, but only
> if the LEA is making progress toward meeting the annual measurable
> objectives described in *Title I*, Section 1119(a)(2) of ESEA, and in
> a manner consistent with mechanisms to assist schools in effectively
> recruiting and retaining highly qualified teachers and principals.

**E-7. May an LEA use program funds to provide increased opportunities
for minorities, individuals with disabilities, and other individuals
underrepresented in the teaching profession?**

Yes. Funds may be used to pay reasonable and necessary expenses to
recruit these teachers and parapro­fessionals, and can be used to assist
them in obtaining certification through alternate route programs.

**E-8. May an LEA use *Title II, Part A* funds to assist
paraprofessionals to become highly qualified and meet the requirements
for *Title I* paraprofessionals in Section 1119 of ESEA?**

Yes, but only if the training or support given to the paraprofessionals
is consistent with the allowable activities under *Title II. Part A*. To
the extent that helping paraprofessionals meet the required
qualifications is consistent with the professional development goals
listed below, then *Title II, Part A* funds may be used for that
purpose.

The law allows LEAs to use these funds to provide professional
development activities "that improve the knowledge of teachers and
principals, and, in appropriate cases, paraprofessionals" concerning:

-   One or more core academic subjects that teachers teach \[Section
    2123(a)(3)(A)(i)\];

-   Effective instructional strategies, methods, and skills, and use of
    challenging content and academic achievement standards and State
    assessments to improve teaching practices and student academic
    achievement \[Section 2123(a)(3)(A)(ii)\];

-   Training in how to teach and address the needs of students with
    different learning styles, particularly students with disabilities,
    students with special learning needs (including students who are
    gifted and talented), and students with limited English proficiency
    \[Section 2123(a)(3)(B)(ii)\];

-   Training in methods of improving student behavior in the classroom
    and identifying early and appropriate interventions to help
    special-needs children learn \[Section 2123(a)(3)(B)(iii)\];

-   Training in how to understand and use data and assessments to
    improve classroom practice and student learning \[Section
    2123(a)(3)(B)(v)\].

> LEAs also may use their *Title I* funds "to support ongoing training
> and professional development to assist teachers and paraprofessionals"
> in order to meet the teacher quality and paraprofessional requirements
> of Section 1119(h). Provided that an LEA maintains records of the
> amount of *Title I* and *Title II, Part A* funds used for these
> professional development activities, and the *Title I* funds are used
> as permitted in the *Title I* statute and regulations, *Title I* and
> *Title II, Part A* funds may be used jointly for this purpose.
>
> Funding for training of paraprofessionals is also available under
> *Title VII*, *Part A, Subpart 1*, Indian Education Formula Grants to
> LEAs program \[Section 7114(b)(5)\].

**E-9. May LEAs use *Title II, Part A* funds to provide training to
enhance the involvement of parents in their child's education?**

> Yes, LEAs may use program funds to provide training to enhance the
> involvement of parents in their child's education.
>
> Parental involvement is best encouraged through regular, two-way, and
> meaningful communications about student learning and other school
> activities. Effective strategies may include (1) promoting the
> understanding that parents are true partners in their children's
> education and communicating the need for parents to help their
> children succeed in school, and (2) providing parents with specific
> suggestions, on an ongoing basis, about ways to encourage learning at
> home and ways to be actively involved in their child's education at
> school.

**E-10. May LEAs use *Title II, Part A* funds to purchase supplies or
instructional materials that are used as part of professional
development activities?**

> Yes, but only if the expenditures, like any costs paid for by Federal
> program funds, are reasonable and necessary to carry out these
> activities. *Title II, Part A* funds may be used to purchase materials
> and supplies used in professional development activities, including
> the materials (such as graphing calculators) that a teacher will need
> in order to apply the professional development in a classroom setting.
> However, *Title II, Part A* does not permit the use of program funds
> to purchase materials and supplies (e.g., graphing calculators) that,
> although they may benefit students, are not directly connected to the
> teachers' professional development. Other ESEA funds, most notably
> *Title V, Part A* funds, may be used to purchase instructional
> materials or technology for students if the purchases are part of an
> "innovative assistance program" as this term is used in *Title V*.

**E-11. Are LEAs required to spend a portion of their allocation on math
and science activities?**

> No, but there are widespread shortages of highly qualified mathematics
> and science teachers, particularly in middle schools and in
> high-poverty urban and rural areas. Therefore, in preparing their
> needs assessments, LEAs are strongly encouraged to look closely at
> their needs for recruiting, training, and retaining high-quality
> mathematics and science teachers, particularly in light of their
> students' academic achievement in math and science.

**E-12. In many rural areas, offering high-quality professional
development activities can be challenging because there may not be a
critical mass of teachers who need help in the same subject. How can
rural districts address this situation?**

One possible way that rural districts can provide teachers with
professional development activities is by offering distance-learning
opportunities. Many State colleges and universities currently offer
distance learning. Through distance learning a teacher in a rural area
can take professional development courses that meet his/her specific
needs. For example, the Department recently awarded a grant to the
Western Governors University (WGU) to develop and implement teacher
training and certification courses. WGU is currently seeking State
approvals for its teacher licensure and certification programs. WGU's
website, at <http://www.wgu.edu/index.asp>, explains how teachers from
any location can access services.

***Maintenance of Effort***

**E-13. Do maintenance of effort requirements apply to the *Title II,
Part A* program?**

> Yes. LEAs are required to maintain fiscal effort in order to receive
> their full allocation of *Title II, Part A* funds for any fiscal year.
> An LEA has maintained effort when either the combined fiscal effort
> per student, or the aggregate expenditures of the LEA and the State
> with respect to the provision of free public education for the
> preceding fiscal year, was not less than 90 percent of the combined
> fiscal effort or aggregate expenditures for the second preceding
> fiscal year. \"Preceding fiscal year\" means either the Federal fiscal
> year or the twelve-month fiscal period most commonly used in a State
> for official reporting purposes prior to the beginning of the Federal
> fiscal year in which funds are available.
>
> Both State and local expenditures for free public education within the
> State must be considered in determining whether a State has maintained
> effort under *Title II, Part A*. "Aggregate expenditures for free
> public education" includes expenditures such as those for
> administration, instruction, attendance, health services, pupil
> transportation, plant operation and maintenance, fixed charges, and
> net expenditures to cover deficits for food service and student body
> activities. States may include in the maintenance of effort
> calculation expenditures of Federal funds for which no accountability
> to the Federal government is required. (Note: there are no
> accountability requirements for some Impact Aid program funds;
> however, certain Impact Aid funds, such as those received for children
> with disabilities, do have accountability provisions.)
>
> States must be consistent in the manner in which they calculate
> maintenance of effort from year to year in order to ensure that the
> annual comparisons are on the same basis (e.g., calculations must from
> year to year consistently either include or exclude expenditures of
> Federal funds for which accountability to the Federal government is
> not required). Moreover, States that choose to include expenditures of
> Federal funds for which accountability to the Federal government is
> not required must do so with the understanding that future years\'
> maintenance of effort calculations may be affected by fluctuating
> Federal appropriations over which neither the Department, nor a State,
> has any control.
>
> Finally, expenditures not to be considered in determining maintenance
> of effort are those for community services, capital outlay, debt
> service, or any expenditures of Federal funds for which accountability
> to the Federal government is required.

**E-14. What happens if the LEA fails to meet the requirements for
maintenance of effort?**

> If the LEA fails to meet the requirements for maintenance of effort,
> the SEA reduces the LEA\'s allocation of *Title II, Part A* funds in
> any fiscal year in the exact proportion by which an LEA fails to meet
> the 90 percent test mentioned in the preceding answer, using the
> measure most favorable to the LEA.

***Supplement not Supplant***

**E-15. Does *Title II, Part A* have a supplement not supplant
requirement?**

> Yes. Sections 2123(b) (for LEAs) and 2113(f) (for the SEA and SAHE)
> provide that *Title II, Part A* funds must be used to supplement, and
> not supplant, any non-Federal funds that would otherwise be used for
> authorized *Title II, Part A* activities.

**E-16. May *Title II, Part A* funds be used for State-mandated
activities?**

> The ability of an SEA or LEA to use *Title II, Part A* funds to carry
> out activities mandated by a State depends upon whether non-Federal
> funds are available to carry out those activities. Presumably, in the
> absence of *Title II, Part A* funds, the SEA or LEA would use State or
> local funds to implement any laws enacted by the State legislature or
> rules mandated by the State Board of Education or the SEA. If that is
> the case, using *Title II, Part A* funds for those activities would
> violate the non-supplanting requirement, because the SEA or LEA would
> be using Federal funds for activities that it would otherwise support
> with other funds.
>
> However, in certain instances, an SEA or LEA may be able to overcome
> the presumption that supplanting will result if *Title II, Part A*
> funds are used for a State-mandated program or activity. In order to
> make such a case, the SEA or LEA should have available written
> documentation (e.g., budget information, planning documents, or other
> materials) demonstrating that it would not be able to meet State
> mandates without the use of *Title II, Part A* funds. An agency must
> be able to reasonably document that the activities funded under *Title
> II, Part A* are, in fact, supplemental, even though some of them are
> mandated by the State.
>
> In general, an SEA or LEA must determine what educational activities
> it would support if no *Title II, Part A* funds were available. If it
> is clear that no State or local funds remain available to fund certain
> activities that previously were funded with State or local resources,
> then the SEA or LEA may be able to use *Title II, Part A* funds for
> those activities. In no event, however, may an SEA or LEA decrease
> State or local funds for particular activities simply because *Title
> II, Part A* funds are available.

***Class-Size Reduction***

**E-17. What are some ways in which LEAs may use highly qualified
teachers hired with *Title II, Part A* funds to reduce class size?**

> LEAs may reduce class sizes by creating additional classes in a
> particular grade or subject and placing highly qualified teachers
> hired with program funds in those classes. However, because of space
> constraints and other concerns, this is not always feasible. There are
> other methods of reducing class size that are effective in assisting
> students in increasing their level of achievement. For instance, the
> benefits of smaller class size can be provided by the creation of
> smaller instructional groups served by highly qualified teachers for
> sustained blocks of time on a regular basis. Some examples of how LEAs
> might use this approach to reduce class size include but are not
> limited to:
>
> 1\. Having two highly qualified teachers team teach in a single
> classroom for either part of the school day or the entire day.
>
> 2\. Hiring an additional highly qualified teacher for a grade level
> (e.g., providing three teachers for two 3^rd^ grade classes) and
> dividing the students among the teachers for sustained periods of
> instruction each day in core academic subjects, such as reading and
> math.
>
> 3\. Hiring an additional highly qualified teacher who works with half
> the students in a class for reading or math instruction, while the
> other half remains with the regular classroom teacher.
>
> LEAs have the flexibility to explore these and other alternatives for
> reducing class sizes, provided that highly qualified teachers are
> used. Generally, the manner in which LEAs reduce class size should
> result in a meaningful reduction for all of the students in the class
> on a regular basis. Research shows that "pull-out" programs involving
> reducing class size by only a handful of students, or sporadic
> reduction of class size, are less likely than other methods of
> class-size reduction to result in increased achievement for students.

# **[F. FEDERAL AWARDS TO THE STATE AGENCY FOR HIGHER EDUCATION]{.underline}** 

The State agencies for higher education (SAHEs) develop criteria for
awarding subgrants to eligible partnerships comprised of at least (1)
one institution of higher education (IHE), including its division that
prepares teachers and principals, (2) one school of arts and sciences,
and (3) one high-need LEA. The partnerships use the funds to conduct
professional development activities in core academic subjects to ensure
that teachers, highly qualified paraprofessionals, and (if appropriate)
principals have subject-matter knowledge in the academic subjects they
teach, including computer-related technology to enhance instruction.
SAHEs should demonstrate leadership in identifying for grantees and
prospective applicants scientifically based professional development
that is effective in increasing student academic achievement. The thrust
of SAHE partnerships should be the implementation of strategies based
upon this body of research.

> A SAHE may also exercise leadership by:
>
> • Conditioning a partnership's receipt of a subgrant on its submission
> of specific information confirming that the school of education (or
> entity that administers the IHE's teacher preparation program) and the
> school of arts and sciences will embed the professional development
> into the teacher preparation program.
>
> • Requiring partnerships applying for subgrants to offer a work plan
> and commitment of IHE funds (or provide a competitive preference to
> those that do) for improving specific aspects of the teacher
> preparation program. For example, subgrantees could ensure that
> teaching candidates demonstrate content knowledge of the subject(s)
> they intend to teach, as well as show how such content knowledge
> supports the State's academic content standards.

**F-1. Does the Department make separate grant awards to SAHEs?**

> Yes. ED issues two awards for the *Title II, Part A* State
> allocations, one to the SEA and one to the SAHE. The SEA award
> includes funds for State activities and administration and LEA
> subgrants; the SAHE award includes funds for eligible partnerships and
> SAHE administration.

**F-2. How is the amount of funds a SAHE receives for competitive grant
awards to partnerships and for administration of the program
determined?**

> After one percent of the State's allocation is set aside for SEA and
> SAHE administration and planning, the SAHE receives an award for
> competitive grants that is 2.5 percent of the State's remaining
> allocation. The SAHE's portion of the one percent administrative
> set-aside is, absent an agreement with the SEA to the contrary, the
> greater of (1) the amount of FY 2001 funds it received for
> administration under the former Eisenhower programs, or (2) five
> percent of the funds available each year for competitive subgrants.

#### 

#### ***Competitive Process***

**F-3. How does the SAHE administer the competitive portion of the
*Title II, Part A* program?**

> The SAHE administers its portion of *Title II, Part A* funds by
> working in conjunction with the SEA to identify priorities and
> criteria for funding competitive applications, publishing an
> application package that describes the rules and requirements of the
> competition, managing the competition and peer review process used to
> select grantees, disbursing funds to grantees, and monitoring and
> providing technical assistance to help ensure the success of the
> partner­ship grants. The SAHE's priorities are guided by the "State
> plan," developed under Section 2112 of the ESEA, which identifies
> Statewide professional development needs and priorities for
> developing, supporting, and retaining a high-quality teaching force
> ([also see F-8](#I8)).

**F-4. Who is eligible to receive a competitive award from the SAHE?**

> Eligibility is limited to partnerships comprised at a minimum of: (1)
> a private or State IHE and the division of the institution that
> prepares teachers and principals; (2) a school of arts and sciences;
> and (3) a high-need LEA ([see F-5 below](#I5)). \[Note: for purposes
> of this Guidance, the statutorily required partners will be referred
> to as "principal partners."\] An eligible partnership also may include
> another LEA, a public charter school, an elementary school or
> secondary school, an educational service agency, a nonprofit
> educational organization, another IHE, a school of arts and sciences
> within that IHE, the division of that IHE that prepares teachers and
> principals, a nonprofit cultural organization, an entity carrying out
> a pre-kindergarten program, a teacher organization, a principal
> organization, or a business.

[]{#I5 .anchor}**F-5. What is a high-need LEA?**

A high-need LEA is defined as an LEA:

> \(A\) (i) that serves not fewer than 10,000 children from families
> with incomes below the poverty line; **or**
>
> \(ii\) for which not less than 20 percent of the children served by
> the agency are from families with incomes below the poverty line;
> **and**
>
> \(B\) (i) for which there is a high percentage of teachers not
> teaching in the academic subjects or grade levels that the teachers
> were trained to teach; **or**
>
> \(ii\) for which there is a high percentage of teachers with
> emergency, provisional, or temporary certification or licensing
> \[Section 2102(3)\].

F-6. How can an SEA or LEA determine whether an LEA meets the poverty
criterion in the definition of a high-need LEA?

The Department has determined that the only uniform and consistent data
that reflect the number or percentage of children served by the agency
from families with incomes below the poverty line, a term which is
defined in section 9101(33) of the ESEA, are data periodically collected
and reported by the U.S. Census Bureau. The Census Bureau's poverty data
reflect an estimate of the number of these children for nearly every
school district in the United States that has geographic boundaries. The
Census Bureau's most current poverty data may be found on its website
at: <http://www.census.gov/hhes/www/saipe/district.html>. The Census
Bureau generally updates this data every two years.

> LEAs with geographic boundaries should use the most current Census
> Bureau poverty data to determine which LEAs meet the definition of a
> high-need LEA.
>
> Because of the lag time between its collection and the reporting of
> poverty data, the Census Bureau does not report poverty data for newly
> created LEAs. It also neither collects nor reports poverty data for
> charter schools that operate as LEAs and other LEAs that do not serve
> a distinct geographic area. For newly created districts, the SAHE may
> use the procedures discussed in question [D-5](#E5) to determine their
> poverty rate. To determine the poverty rate of charter school-LEAs or
> other LEAs without a geographic service area, the SAHE may use the
> calculation method discussed in question [D-6](#E6). In either case,
> if this number is at least 20 percent, the LEA satisfies the poverty
> criterion of the definition of a high-need LEA.
>
> Once established as a high-need-LEA partner in a SAHE subgrant, the
> LEA may continue to be considered a high-need LEA for the duration of
> the project without regard to subsequent changes in the LEA's reported
> poverty rate.

**F-7. If a SAHE finds that the use of Census Bureau data to determine
the numbers or percentages of children from families with incomes below
the poverty line generates only a very small number of LEAs that meet
the definition of "high-need," may other methods be used to determine
which districts qualify as a high-need LEA?**

No. Census Bureau data reflect the only available information that is
consistent with the statutory requirement that districts eligible as
high-need LEAs have the requisite percentage or number of children from
families with incomes below the poverty line. However, a SAHE-funded
partnership that includes the required IHE and at least one high-need
LEA may also include other LEAs, whether or not they are high-need LEAs
under the statutory definition.

> Alternative methods for defining a high-need LEA may be employed only
> if it is literally impossible to award subgrants to projects with at
> least one partner that is a high-need LEA that meets the statutory
> definition. The determination that no LEA is legally eligible and the
> development of alternative procedures for defining a high-need LEA
> should be made in consultation with the Department.

[]{#I8 .anchor}**F-8. How does the SAHE determine its priorities for
soliciting subgrant applications?**

> A SAHE determines priorities for the *Title II, Part A* subgrant
> competition and awards based on a review of the State plan developed
> under ESEA Section 2112, as well as discussions with the SEA \[Section
> 2132(a)\]. These discussions presumably will center on how the SAHE
> can support projects that will have the greatest impact on helping
> LEAs - and particularly high-need LEAs - ensure that all teachers are
> highly qualified and have the knowledge and teaching skills they need
> to help all students achieve to high standards.
>
> A SAHE may solicit applications that respond to defined areas of need,
> such as professional development for mathematics or science. In
> designing its competitive subgrant procedures, consistent with State
> law the SAHE also can propose to give additional weight to those
> applications that address the stated funding priorities, or reject any
> applications that do not address particular areas of focus. Provided
> that all information is available to each potential applicant, the
> SAHE may want to provide technical assistance to prospective
> applicants in developing applications that address these needs. This
> assistance might take the form of workshops, review of pre-proposal
> submissions, information on effective models, and clarification of
> assessment and anticipated outcomes for projects.

**F-9. Does the SAHE competition for IHE-LEA partnerships need to ensure
that services are offered on an equitable basis to public and private
school teachers?**

Yes, as required by Section 9501, which describes the applicable
requirements for equitable services for private school students and
teachers under *Title II, Part A*.

F-10. Are there any Federal requirements that govern how SAHEs must
conduct the competition?

> The statute requires the State to award subgrants that are equitably
> distributed by geographic area within a State, and to ensure that
> eligible partnerships in all geographic areas within the State are
> served through the subgrants \[Section 2132(a)\]. Otherwise, State law
> generally determines the procedures for announcing and publicizing the
> competition and for reviewing and awarding program funds \[Sections
> 76.770 and 76.400(c) of EDGAR\].

#### ***Eligible Partnerships***

**F-11. Section 2132(b) requires the SAHE to ensure that its subgrants
are either "equitably distributed by geographic area within a State" or
that "eligible partnerships in all geographic areas within the State are
served through the subgrants." What do these phrases mean?**

The meaning of these phrases is left to reasonable SAHE interpretation.

**F-12. Does the definition of an "eligible partnership" permit a
community college to be part of a partnership that is eligible to
receive a *Title II, Part A* subgrant?**

> Yes, but it may be considered as one of the statutorily required
> principal partners only if the community college has a division that
> prepares teachers and principals \[Section 2131(1)\]. The community
> college may be the subgrantee (i.e., fiscal agent) if allowed by the
> rules and procedures of the subgrant competition. In any case, a
> community college may be an additional, non-principal member of any
> partnership.

**F-13. May a regional educational service agency, intermediate
educational unit, or similar public agency participate in a partnership
as a high-need LEA?**

> In general, no. These agencies may be considered LEAs, as the term is
> defined in Section 9101(26), because they are public authorities
> "legally constituted within a State for either administrative control,
> or direction of, or to perform a service for, public \[schools\] in a
> city, county, township, school district, or other political
> subdivision of a state, or for a combination of school districts or
> counties that is recognized in a State as an administrative agency for
> its public schools." However, these agencies will rarely be
> "high-need" LEAs within the meaning of Section 2102(3) as they are
> unlikely to have a high percentage of out-of-field teachers or those
> who hold emergency, provisional, or temporary certification.

**F-14. May teachers or principals in low-performing schools that are
not located in a high-need LEA participate in a SAHE project?**

> Yes. As long as a high-need LEA is a principal partner, low-performing
> schools in districts that do not meet the definition of "high need"
> may be additional partners \[Section 2131(1)(B)\], and their teachers
> and principals may participate in the project.

**F-15. Does the law require partnerships that receive subgrants from
*Title II, Part A* and another program to coordinate activities
conducted under the two awards?**

> The law requires any partnership receiving both a subgrant from a SAHE
> and an award under the Partnership Program for improving teacher
> preparation authorized in Section 203 of *Title II* of the Higher
> Education Act (HEA) to coordinate activities under the two awards.

***Activities***

**F-16. What activities may a SAHE fund with its share of *Title II,
Part A* funds?**

> Consistent with the priorities and criteria it has announced for
> selection of grant recipients, a SAHE makes awards of *Title II, Part
> A* funds to support one or more of the following types of activities
> to enhance student achievement in LEAs and schools participating in
> the partnerships:
>
> • Professional development activities in core academic subjects to
> ensure that:

-   teachers, highly qualified paraprofessionals (as defined in Section
    1119), and, if appropriate, principals have subject-matter knowledge
    in the academic subjects that the teachers teach (including
    knowledge of computer-related technology to enhance student
    learning); and

-   principals have the instructional leadership skills to help them
    work most effectively with teachers to help students master core
    academic subjects.

> • Development and provision of assistance to LEAs and to their
> teachers, highly qualified paraprofessionals, or school principals, in
> providing sustained, high-quality professional development activities
> that:

-   ensure that those individuals can use challenging State academic
    content standards, student academic achievement standards, and State
    assessments to improve instructional practices and student academic
    achievement;

-   may include intensive programs designed to prepare individuals who
    will return to a school to provide instruction related to the
    professional development described in the preceding paragraph to
    others in their schools; and

-   may include activities of partnerships between one or more LEAs, one
    or more of the LEAs' schools, and one or more IHEs for the purpose
    of improving teaching and learning at low-performing schools.

**F-17. What is an "institution of higher education" for the purposes of
the SAHE program?**

> The Higher Education Act \[HEA, Section 101(a)\] defines an
> "institution of higher education" as an educational institution in any
> State that:
>
> • Admits as regular students only persons having a certificate of
> graduation from a school providing secondary education, or the
> recognized equivalent of such a certificate;
>
> • Is legally authorized within such State to provide a program of
> education beyond secondary education;
>
> • Provides an educational program for which the institution awards a
> bachelor's degree or provides not less than a 2-year program that is
> acceptable for full credit toward such a degree;
>
> • Is a public or other nonprofit institution; and
>
> • Is accredited by a nationally recognized accrediting agency or
> association or, if not so accredited, is an institution that has been
> granted pre-accreditation status by such an agency or association that
> has been recognized by the Secretary for the granting of
> pre-accreditation status, and the Secretary has determined that there
> is a satisfactory assurance that the institution will meet the
> accreditation standards of such an agency or association within a
> reasonable time.
>
> *Title IX*, Section 9101(24) adopts this definition for ESEA programs,
> including the SAHE program in *Title II, Part A*.

**F-18. May a SAHE grant support pre-service teacher training?**

> Yes. According to section 2134 of the statute, SAHE-funded
> partnerships may use Title II, Part A funds to provide highly
> qualified paraprofessionals with professional development (see F-16
> for the types of professional development allowable under the statute)
> in core academic subjects, including pre-service training that can
> lead to a B.A. degree or teacher certification.

***Administration***

**F-19. What kinds of costs may a SAHE pay with its administration and
planning funds?**

The SAHE may use funds to pay the costs it incurs related to such
activities as helping to conduct an assessment of State needs for the
overall State plan, designing the application package, paneling those
who will review grant applications, and administering, monitoring, and
providing technical assistance to, and evaluation of, SAHE-funded
projects. As appropriate, these services may be provided through
contracts with public or private agencies, provided that the SAHE
retains overall responsibility for the administration of these projects.

**F-20. If a portion of the SAHE's administrative funds is not needed,
can the SAHE fund additional partnership grants or must the funds be
returned to the SEA?**

> The funds a SAHE has available for administration are part of the one
> percent available to the State to pay for the administration of both
> the SEA and SAHE components of the *Title II, Part A* program. If the
> SAHE does not need its entire administrative portion, the remaining
> funds must be provided to the SEA if the SEA uses these funds for its
> costs of administration and planning. This transfer would not affect
> the 2.5 percent of the State's allocation (after one percent of the
> allocation is reserved for SEA and SAHE administration) the SAHE
> receives to fund partnership grants.

**F-21. Must members of the partnership receiving a SAHE subgrant use a
"restricted indirect cost rate" in calculating the maximum amount of
indirect costs that may be charged to their awards?**

> No. The *Title II, Part A* program does not require these partnerships
> to use program funds only to supplement and not supplant non-Federal
> funds that otherwise would be used for funded activities. Because the
> restricted indirect cost rate (see EDGAR Section 76.563) applies only
> where a "supplement not supplant" requirement is in effect,
> partnership members may apply a larger, unrestricted indirect cost
> rate. (On the other hand, the SAHE itself, as well as the SEA, must
> use the restricted indirect cost rate because Section 2113(f) of the
> ESEA provides that a supplement, not supplant requirement applies to
> funds that they receive.)

**F-22. In establishing application selection criteria or funding
priorities, may the SAHE preclude members of the partnership from
charging any indirect costs to the subgrant?**

> No. EDGAR and applicable Office of Management and Budget (OMB) cost
> principles permit grant recipients to charge indirect costs to their
> grants. However, should it desire to limit the amount of funds that
> members of a partnership may charge to indirect costs in order to have
> more project funds to pay for direct services, a SAHE may (1) adopt
> selection criteria that focus on an IHE\'s willingness (or that of any
> other partner) to reduce the indirect costs that it otherwise might
> claim, or (2) by rule (pursuant to State law), limit the amount of its
> indirect costs or the indirect cost rate to a reasonable amount.

**F-23. May the SAHE establish, as a selection criterion to be used in
reviewing subgrant applications, the willingness of the partnership
members to limit the amount of their administrative costs?**

> Yes. As with the case of limiting charges for a partner's indirect
> costs, the SAHE may establish selection criteria that give preference
> to applicants that agree to charge lower levels of administrative
> costs. Moreover, as with every other aspect of the IHE\'s proposed use
> of funds, the SAHE should, when it negotiates budgets with prospective
> subgrantees, ensure that administrative costs are reasonable and
> necessary for the proper implementation of the grant.

**F-24. Is there a maximum project period for SAHE grants?**

No, although the project period cannot be longer than the period for
which the ESEA is currently authorized. Moreover, project periods, which
are established by the SAHE when it awards subgrants, may vary depending
on the kind of activity a subgrant award is funding. Eligible
partnerships must obligate funds before the end of the Federal fiscal
year following the fiscal year in which the SAHE receives its allocation
from the Department. For instance, FY 2003 funds became available to the
SAHE on July 1, 2003, and must be obligated by the subgrantees no later
than September 30, 2005.

**F-25. May a high-need charter school that is an LEA qualify as the
high-need LEA principal partner required for a SAHE grant?**

> Yes. If, under State law, a public charter school is considered to be
> an LEA and otherwise meets the definition in Section 2102(3) of a
> "high-need LEA," it is eligible to be the high-need LEA principal
> partner. Otherwise, a public charter school could still be a
> non-principal partner in an eligible partnership (or be a part of an
> LEA that is a component of the partnership).

**F-26. May a SAHE use *Title II, Part A* funds reserved for partnership
subgrants to support a separate evaluation of subgrantee projects?**

No. Evaluation activities of this type may be supported by the *Title
II, Part A* program only with funds retained for program administration.
However, a SAHE could require partnerships applying for subgrants to
include provisions for program assessment or evaluations and then budget
for such evaluations in their applications.

***Recordkeeping and Reports***

**F-27. What kinds of records must partnership members keep under the
*Title II, Part A* program?**

> Grantees and subgrantees must keep records that fully show:
>
> • The amount of funds under the grant or subgrant;
>
> • How the grantee or subgrantee uses the funds;
>
> • The total cost of project activities;
>
> • The share of the cost provided from other sources; and
>
> • Other records to facilitate an effective audit.
>
> In addition, all grantees and subgrantees are required to keep records
> to show their compliance with program requirements. Record keeping
> should permit an "audit trail" that clearly documents that all funds
> were used for activities that were reasonable, allowable, and
> allocable to the program \[EDGAR Sections 76.730 and 76.731\].

**F-28. What are the SAHEs' reporting responsibilities?**

> The law does not create separate SAHE reporting requirements. However,
> the Department may, following appropriate procedures for establishing
> information collections, establish evaluation or data reporting
> requirements as necessary to monitor the program effectively. For SAHE
> responsibilities regarding monitoring sub-grantees, see question
> [B-1](#C13)[4]{.underline}.

***Special Rule***

**F-29. What is the meaning of Section 2132(c) (the "special rule") that
states "no single participant in an eligible partnership may use more
than 50 percent of the *Title II, Part A* funds made available to the
partnership"?**

> Section 2132(c) of the law requires that no single participant in an
> eligible partnership, (i.e., no single high-need LEA, no single IHE
> and its division that prepares teachers and principals, no single
> school of arts and sciences, and no other single partner), may "use"
> more than 50 percent of the subgrant. The provision focuses not on
> which partner receives the funds, but on which partner directly
> benefits from them.
>
> **[Example: Correct Use of Funds]{.underline}**
>
> Jefferson University, its College of Education, and its College of
> Arts and Sciences partner with the Lincoln high-need school district
> to provide professional development in instructional leadership for 20
> principals. Jefferson University's grants office receives **100
> percent** of the *Title II, Part A* funds for the partnership. The
> Grants Office gives:
>
> • the College of Education **25 percent** of the funds to use to pay
> its faculty to deliver professional development in instructional
> leadership methodologies for 20 principals at Lincoln school district;
>
> • the College of Arts and Sciences **25 percent** of the funds to use
> to pay its faculty to deliver professional development content
> knowledge in instructional leadership for 20 principals at Lincoln
> School District;
>
> • Lincoln School District **50 percent** of the funds to use to pay
> stipends for its principals to participate in the professional
> development offered by faculty from the College of Education and
> College of Arts and Sciences at Jefferson University.
>
> In this example no partner uses more that 50 percent of the funds for
> its own benefit.

## **[Example: Incorrect Use of Funds]{.underline}**

> Jefferson University, its College of Education, and its College of
> Arts and Sciences partner with the Lincoln high-need school district
> to provide professional development in instructional leadership for 20
> principals. Jefferson University's Grants Office receives **100
> percent** of the *Title II, Part A* funds for the partnership. The
> Grants Office gives:
>
> • the College of Education **20 percent** of the funds to use to pay
> its faculty to deliver a professional development summer course in
> instructional leadership methodologies for 20 principals at Lincoln
> school district;
>
> • the College of Arts and Sciences **10 percent** of the funds to use
> to pay its faculty to deliver a professional development summer course
> in instructional leadership content knowledge for 20 principals at
> Lincoln school district;
>
> • a mentor principal **10 percent** of the funds to work with the 20
> Lincoln school district principals, in their buildings, applying what
> they learned in the professional development summer courses;
>
> • Lincoln school district **60 percent** of the funds to pay stipends
> to the 20 principals attending the professional development summer
> courses.
>
> In this example one partner uses more than 50 percent of the funds for
> its own benefit.

**F-30. May two principal partners (e.g., a school of education and a
department of arts and sciences) each receive 50 percent of the subgrant
funds?**

> Yes. However, under Section 2132(c), the issue is not the amount of
> funds that each partner "receives" but the amount of funds that each
> partner "uses." Hence, so long as each of the two divisions of the IHE
> "use" 50 percent of the subgrant funds for activities over which it
> has responsibility (and so directly benefits from the subgrant funds)
> an IHE fiscal office would not actually need to disburse grant funds
> to each IHE division (unless, of course, this were the IHE's normal
> fiscal procedures).

**F-31. If an IHE receives program funds that teachers would otherwise
pay for IHE-sponsored professional development, would those funds figure
in as part of the funds "used" by the IHE partner?**

> Not necessarily. Since the tuition assistance is for a teacher's
> professional development, the funds also may reasonably be
> attributable to use by the LEA partner that employs the teacher. Costs
> associated with developing professional development materials, IHE
> faculty time, and other expenses that the IHE incurs to conduct the
> professional development may be treated as funds used by the division
> of the IHE that bears these costs.

**F-32. If IHE faculty are full-time employees of the IHE, but a
percentage of their time and services go to the LEA, which partner is
deemed to "use" *Title II, Part A* funds? Similarly, if IHE faculty
members receive "release time" to serve LEAs, are their salaries
attributable to the IHE or to the LEA partner?**

> Since the Department has not issued regulations in this area, the
> subgrantee may attribute these salary costs to the partners in any
> manner that is reasonable. However, if the subgrant is paying for
> salary costs that otherwise would be paid by the IHE, it would seem to
> make sense to view the subgrant used to pay this salary as used by the
> division of the IHE in which the individuals are employed. Moreover,
> while faculty release time (i.e., a reduced IHE teaching load) may
> permit faculty members to provide services to the LEA and its
> teachers, program funds are still paying for a portion of faculty
> members' salaries. Therefore, here too, it seems reasonable that these
> *Title II, Part A* funds are best attributable to the division of the
> IHE that employs the faculty.

**F-33. Are the salaries of teachers hired under a SAHE subgrant to work
as mentors to other teachers attributable to the LEA or to the IHE, if
the IHE pays these salaries?**

> While the IHE (should it be the partnership's fiscal agent) may pay
> the salaries of these mentor teachers, these individuals presumably
> are working at, and for, the LEA. Therefore, the *Title II, Part, A*
> funds used to pay these salaries may reasonably be considered to have
> been "used" by the LEA.

**F-34. Are indirect costs of the partnership's fiscal agent treated as
part of the maximum allowable 50 percent of *Title II, Part A* funds
that the partner may use?**

> In general, indirect costs reflect general administration and overhead
> that cannot easily be charged as direct program costs of the programs
> or activities they benefit, and that are borne by a party as a result
> of activities it charges as direct costs. While a portion of one
> partner's direct costs (e.g., salaries of mentor teachers paid by the
> IHE fiscal agent) may be considered as used by another partner (in
> this case, the LEA), the IHE and not the LEA is benefiting from being
> able to charge the indirect costs. Hence, subgrant funds used to pay
> indirect costs are best attributable to the partner that "uses" the
> corresponding funds as direct costs.

[]{#PrivateSchoolParticipation .anchor}**[G. PRIVATE SCHOOL
PARTICIPATION]{.underline}**

Under the *Title II, Part A* program, private school teachers,
principals, and other educational personnel are eligible to participate
to the extent that the LEA uses funds to provide for professional
development for teachers and other school personnel.

###### ***General Issues***

**G-1. Are private school teachers, principals, and other educational
personnel eligible to participate in the *Title II, Part A* program?**

> Yes. Private school teachers, principals, and other educational
> personnel are eligible to participate in *Title II, Part A*, to the
> extent that the LEA uses funds to provide for professional development
> for teachers and others. Funds awarded to SEAs and LEAs under *Title
> II, Part A* are subject to the uniform provisions of Section 9501 of
> the ESEA (*Participation by Private School Children and Teachers*).
> The statute requires LEAs to provide private school children, their
> teachers, and other educational personnel with educational services on
> an equitable basis and in a timely manner.
>
> The requirement for the equitable participation of private school
> teachers and other educational personnel applies only to the LEA's
> *Title II, Part A* funds to the extent that the LEA uses these funds
> for professional development of its teachers and other staff. However,
> this flexibility is constrained by the requirement [described below in
> G-](#J3)[4]{.underline}.

**G-2. What is meant by "equitable participation"?**

> Participation is considered to be equitable if the public and private
> educational agencies and institutions: (1) assess, address, and
> evaluate the needs and progress of both groups of teachers in the same
> manner; (2) provide approximately the same amount of training and,
> where appropriate, instruction to teachers with similar needs; (3)
> spend an equal amount of funds per student to serve public and private
> school teachers; and (4) provide private school teachers with an
> opportunity to participate in *Title II, Part A* program activities
> equivalent to the opportunity provided public school teachers.
>
> Many LEAs calculate equal expenditures strictly on the basis of the
> relative enrollments of public and private school students, on the
> assumption that these numbers also accurately reflect the relative
> needs of students and teachers in public and private schools. It is
> also permissible for LEAs to use other factors relating to need and
> not base equal expenditures only on relative enrollments. For example,
> an LEA may choose poverty as an additional factor in determining equal
> expenditures and consider the relative poverty of the two groups of
> students. However, it would not be proper to base the determination
> solely on poverty (or any other factor relating only to educational
> need), because the statute requires that both the number and the
> educational needs of the public and private school students be taken
> into account. Also, if it uses poverty as a factor, the LEA would need
> to identify all the private school students from low-income families
> and not just those who reside in the district. As with other decisions
> affecting services to private school students, LEAs are to consult
> with private school officials on the method for determining equal
> expenditures, and the resulting methodology should reasonably reflect
> the relative numbers and educational needs of the public and private
> school students.

[]{#H3 .anchor}**G-3. For the purposes of equitable participation, which
institutions are considered "private schools"?**

> For the purposes of equitable participation, a private school is a
> nonprofit institutional day or residential school that is not under
> Federal or public supervision or control and that provides elementary
> and/or secondary education as determined under State law, except that
> the term does not include any education beyond grade 12.

[]{#J3 .anchor}**G-4 How does an LEA determine the minimum amount
required for equitable services to private school teachers and other
educational personnel?**

> Under *Title II, Part A*, LEAs are required to provide equitable
> services for private school teachers and other educational personnel
> only to the extent that they use the funds for professional
> development. For purposes of determining the amount of *Title II, Part
> A* funds that an LEA must make available for equitable services to
> private school teachers and other educational personnel, the statute
> has the LEA assume that it is spending at least as much for
> professional development under *Title II, Part A* as it did in FY 2001
> under the Eisenhower Professional Development and Class-Size Reduction
> programs \[*Title IX*, Section 9501(b)(3)(B)\].

**G-5. If a school district exercises *Title VI* transferability
authority and moves funds from *Title II, Part A* to another covered
program, is the district required to provide the "hold harmless" amount
for private school teachers' professional development?**

> Yes. As noted in question [G-3](#H3) above, for purposes of
> determining the amount of *Title II, Part A* funds it must reserve for
> professional development provided to private school teachers, the LEA
> must assume that it is spending at least as much *Title II, Part A*
> funds each year for professional development as it did with FY 2001
> funds under the former Eisenhower Professional Development and
> Class-Size Reduction programs. Hence, the district must provide
> equitable services based on this minimal amount to private school
> teachers and other educational personnel even if the LEA transfers
> some *Title II* funds to other programs.

**G-6. What are the obligations of the LEA regarding the participation
of private school teachers in professional development programs funded
under this program?**

> As part of the application process, LEAs must assure that they will
> comply with Section 9501 of ESEA (regarding participation by private
> school children and teachers). LEAs must consult with appropriate
> private school officials during the design, development, and
> implementation of the professional development program on such issues
> as:
>
> • how the needs of children and teachers will be identified;
>
> • what services will be offered;
>
> • how, where, and by whom the services will be provided;
>
> • how the services will be assessed and how the results of the
> assessment will be used to improve those services;
>
> • the size and scope of the equitable services;
>
> • the amount of funds available for those services; and
>
> • how and when the LEA will make decisions about the delivery of
> services.
>
> Consultation on the delivery of services must also include a thorough
> consideration and analysis of the views of the private school
> officials on the provision of contract services through potential
> third-party providers \[Section 9501\]*.*

**G-7. What happens if an LEA chooses not to participate in the *Title
II, Part A* program and a private school in that LEA expresses a desire
to do so?**

> There is no authority for allowing non-public schoolteachers to
> receive services if the LEA elects not to participate in the program,
> nor does the program statute authorize an SEA to reallocate funds to
> another LEA for the purpose of allowing participation of teachers at a
> private school located in a nonparticipating LEA.

###### ***Eligible Activities***

**G-8. What are some of the eligible activities under this program in
which private school teachers and other educational personnel may
participate?**

> As with any activity that the LEA carries out for public school
> teachers, activities supported with *Title II, Part A* funds that
> benefit private school teachers must meet the requirements of the
> statute. For example, activities to be carried out for private school
> personnel must be based on a review of scientifically based research
> and must be expected to improve student academic achievement.
> Professional development activities may include:
>
> • Improving the knowledge of teachers, principals, and other
> educational personnel in one or more of the core academic subjects and
> in effective instructional teaching strategies, methods, and skills;
>
> • Training in effectively integrating technology into curricula and
> instruction;
>
> • Training in how to teach students with different needs, including
> students with disabilities or limited English proficiency, and gifted
> and talented students;
>
> • Training in methods of improving student behavior, identifying early
> and appropriate interventions, and involving parents more effectively
> in their children's education;
>
> • Leadership development and management training to improve the
> quality of principals and superintendents; and
>
> • Training in the use of data and assessments to improve instruction
> and student outcomes.

**G-9. Must the expenditures that the LEA provides for professional
development for private school teachers be equal on a per-pupil basis?**

> *Title IX*, Section 9501 of ESEA requires that *Title II, Part A*
> services for professional development that are provided to private
> school teachers and other educational personnel be equitable in
> comparison to those provided to public school teachers. It also
> requires that funds provided for professional development for private
> school teachers be equal on a per-pupil basis.

**G-10. How does the LEA ensure that it is providing equitable
services?**

> To ensure that it is providing equitable professional development
> services to private school teachers and other educational personnel,
> the LEA should consider ways to:
>
> • Assess, address, and evaluate the needs and progress of both public
> and private school teachers;
>
> • Spend an equal amount of funds per student to serve the needs of
> public and private school teachers and their students;
>
> • Provide private school teachers with an opportunity to participate
> in *Title II* activities equivalent to the opportunity provided public
> school teachers; and
>
> • Offer educational services to private school teachers that are
> secular, neutral, and non-ideological \[Section 9501(a)(2)\].

**G-11 Does the professional development program for private school
teachers have to be the same as the professional development program for
public school teachers?**

> No. Consultation and coordination are essential to ensuring
> high-quality, sustained, intensive, and classroom-focused professional
> development activities for private school teachers. LEAs must assess
> the needs of private school teachers in designing the professional
> development program for private school teachers. If the professional
> development needs of the private school teachers are different from
> those of public school teachers, the LEA, in consultation with private
> school representatives, should develop a separate program.

**G-12. May *Title II, Part A* funds be used to pay for a private school
teacher's attendance at a professional conference sponsored or conducted
by a faith-based organization?**

> Yes. To the extent that the conference is part of a sustained and
> comprehensive secular professional development plan for the teacher,
> then *Title II, Part A* funds may be expended to pay for the portion
> of the costs of the conference that, as determined by the LEA,
> represent the secular professional development in which the teacher
> participated. In this case, the LEA would pay or reimburse the teacher
> for attendance at the conference.

**G-13. May funds be used to pay stipends to private school teachers
participating in a *Title II, Part A* professional development
program?**

> Yes. *Title II, Part A* funds may be used to pay for stipends for
> private school teachers, as reasonable and necessary. For example, if
> the professional development activity is conducted during after-school
> hours or in the summer, stipends may be needed to compensate teachers
> for their participation outside their regular employment hours.
> Stipends for private school teachers must be available on the same
> basis as those for public school teachers *and* the stipends must be
> paid directly to the private school teachers for their own use, and
> not to the private school.

**G-14. May *Title II, Part A* funds be used to pay any portion of a
private school teacher's salary or benefits?**

> No. While LEAs must set aside an amount of *Title II, Part A* funds
> for the equitable participation of private school teachers in
> professional development activities, funds may not be used to pay or
> subsidize any portion of a private school teacher's salary or
> benefits.

**G-15. May *Title II, Part A* funds be used to pay for substitute
teachers who replace teachers from private schools while they attend
professional development activities?**

> No. The *Title II, Part A* program does not authorize payments to
> private schools to be used for hiring substitute teachers.

**G-16. May administrative costs be considered in determining the
per-teacher expenditures for private school teachers?**

> No. LEAs pay the costs of administering professional development
> programs for public and private school teachers and other educational
> personnel "off the top" of their allocations. This is calculated
> before determining how much of the *Title II, Part A* funds are to be
> made available for professional development of public and private
> school teachers and other personnel.

**G-17. When an LEA provides services to private schools through a
third-party contractor, is the contractor permitted to charge
administrative costs? **

> No. Administrative costs of providing services to *both* public and
> private school students come "off the top" of a district's allocation
> before the equal expenditures are computed. Since the LEA is reserving
> its administrative costs "off the top," then the contract
> administrative costs (including any fee) must come from that
> set-aside. 

**G-18. If a private school requires and annually provides, as part of
its teacher contract, four days of professional development, may the LEA
provide, on these same days, professional development supported by
*Title II, Part A* funds?  **

> If the private school is legally bound by contract to provide a
> certain level of professional development, it would presumably provide
> those services regardless of whether Federal funds are available, and
> it would be supplanting to use Federal funds to provide professional
> development in place of those services. The law requires that all uses
> of *Title II, Part A* funds supplement non-federal funds that would
> otherwise be used for activities, and hence, the professional
> development provided with Federal funds needs to be in addition to,
> and not in place of, what the private school would otherwise provide.

###### ***LEAs and Private Schools***

**G-19. When must an LEA consult with appropriate private school
officials?**

> To ensure timely and meaningful consultation, an LEA must consult with
> appropriate private school officials during the design and development
> of the proposed programs. It is important that attention be given to
> the timing of the consultation so that decisions that affect the
> opportunities of eligible private school teachers to participate in
> *Title II, Part A* program activities are made only after discussions
> have taken place. The quality of the consultative process will likely
> have an effect on the quality of services to private school teachers
> \[Section 9501(c)(3) and (4)\].

**G-20. Must an LEA contact the officials of all private schools every
year, even when there have been no recent indications of a desire to
participate in the *Title II, Part A* program?**

> Yes. The LEA is required to contact appropriate officials of all
> private schools within the boundaries of the school district
> *annually* to determine if they want their teachers to participate in
> the *Title II, Part A* program, regardless of whether or not those
> officials have recently indicated any interest in program
> participation.

**G-21. May an LEA require private school representatives to submit an
application in order to receive services for the teachers in a private
school with *Title II, Part A* funds?**

> LEAs may request documentation, as needed, from private school
> officials that can help the LEA identify services that may be
> appropriate to the needs of private school teachers. However,
> requiring a formal application may, depending upon its form and
> content, constitute an administrative barrier that is inconsistent
> with the LEA's responsibility to ensure equitable participation of
> private school teachers.

**G-22. What kinds of records should an LEA maintain in order to show
that it has met its responsibilities for equitable participation of
private school teachers?**

> To meet its general record-keeping responsibility, an LEA should
> document that: (a) representatives of private schools were informed of
> the availability of *Title II, Part A* services; (b) the needs of
> private and public school teachers were identified as part of a
> district-wide needs assessment; (c) private school officials were
> consulted and provided an opportunity for input into the planning of
> the LEA's program activities; and (d) the LEA designed a project that
> would permit their equitable participation.
>
> The LEA also should maintain records of its efforts to resolve any
> complaints made by private school representatives that LEAs that
> should be serving their teachers are not doing so on an equitable
> basis.

**G-23. Must the LEAs administer and retain control over the *Title II,
Part A* funds used to serve private school teachers?**

> Yes. The LEAs must administer and retain control over the funds and,
> therefore, may not provide program funds directly to private schools.
> Before determining the amount of funds to be provided for services to
> private school teachers, an LEA could pay reasonable and necessary
> administrative costs of providing those services from its *Title II,
> Part A* allocation.

**G-24. May professional development be conducted within private
schools?**

> Yes, professional development activities may be conducted in the
> private school facilities.

**G-25. Does the law require that LEAs provide equitable services with
*Title II, Part A* funding only to private "nonprofit" schools?**

> Yes. Section 9501(a) requires LEAs to provide equitable services to
> teachers and students in "private elementary and secondary schools."
> NCLB defines "elementary" and "secondary" schools to mean only
> "nonprofit institutional day or residential school(s)" \[Section
> 9101(18) and (38)\].

**G-26. Are teachers employed with *Title I* funds who provide services
to eligible private school children required to meet the highly
qualified requirements?**

> Yes. If they are hired using *Title I* funds to teach core academic
> subjects they are held to the same requirements as public school
> teachers.

**G-27. Must an LEA count all the students in participating private
schools even if some of the students enrolled in the private schools
reside in other districts?**

> Yes. The LEA must provide equitable services based on the number of
> students who are enrolled in participating private schools in the
> geographical area served by the school district.

**G-28. If a public school district does not use *Title II, Part A*
funds to support courses leading to degrees or advanced credentials, is
the district nevertheless obligated to offer these services to the
private schools upon request? **

> The ESEA confers on each LEA the responsibility for determining, after
> appropriate consultation with private school officials, what services
> to provide to private school teachers, and section 9501(a)(3) of the
> ESEA requires that the district\'s provision of services to private
> school teachers must be \"equitable in comparison to services and
> other benefits for public school \... teachers participating in the
> program\....\"
>
> Department regulations in 34 CFR 299.7(c) require a district to
> examine the particular needs of private school teachers and not simply
> make available to private school teachers the kinds of services it
> makes available to public school teachers. 
>
> In implementing these provisions, each LEA is responsible for
> determining, on the basis of the consultation process, the kinds of
> professional development opportunities that private school teachers
> will have available. The LEA decision must reflect how private school
> teachers, consistent with the availability of *Title II, Part A*
> funds, can best secure the professional development they need to
> address their own identified teaching needs. How the needs of private
> school teachers will be assessed is a topic for consultation between
> the LEA and private school officials, and it may be that through the
> process of assessing the teaching needs of private school teachers,
> the needs of private school teachers will not be the same as those of
> public school teachers. As with services for public school teachers,
> any *Title II, Part A* expenditures for private school teachers must
> be reasonable and necessary to carry out the purposes of the program.
>
> In general, we believe that an LEA can (and should), in carrying out
> its responsibility to provide equitable services to private school
> teachers, establish policies that, for reasons of effectiveness,
> quality, cost, and other relevant factors, favor certain kinds of
> courses or other forms of professional development that the *Title II,
> Part A* statute authorizes over others. However, we do not believe
> that 34 CFR 299.7(c) permits a district to establish a blanket rule
> that forbids any private school teacher from receiving certain forms
> of professional development that the *Title II, Part A* statute
> otherwise authorizes and that best meet that teacher\'s identified
> teaching needs related to improving student academic achievement.

###### ***SEAs, SAHEs, and Private Schools***

**G-29. Must an SEA provide equitable services to private school
teachers if it uses its *Title II, Part A* funds reserved for State
activities to provide professional development?**

> Yes. An SEA must provide equitable services to public and private
> school teachers and other educational personnel in professional
> development activities supported by these funds.

**G-30. Do the ESEA *Title IX* requirements regarding services to
private school teachers apply to activities conducted under the
competitive awards made under SAHE-administered partnerships program?**

> Yes. The SAHE-funded grants to partnerships of IHEs and high-need LEAs
> must ensure that services are offered on an equitable basis to public
> and private school teachers since the requirements apply to grants of
> "financial assistance" provided to an LEA "or another entity"
> \[Section 9501(b)(1)\].
>
> []{#AppendixA .anchor}**APPENDIX A**
>
> **Definitions, Acronyms, and Abbreviations**

**AYP:** Adequate Yearly Progress

**ARTS AND SCIENCES:** (A) When referring to an organizational unit of
an institution of higher education, any academic unit that offers one or
more academic majors in disciplines or content areas corresponding to
the academic subjects in which teachers teach; and B) when referring to
a specific academic subject, the disciplines or content areas in which
an academic major is offered by an organizational unit \[Section
2102(1)\].

**CFR:** Code of Federal Regulations

**CHARTER SCHOOL:** The term "charter school" means its the purpose of
eligibility under the Federal Charter Schools program, a public school
that:

1\. In accordance with a specific State statute authorizing the granting
of charters to schools, is exempt from significant State or local rules
that inhibit the flexible operation and management of public schools,
but not from any rules relating to the other requirements of the
paragraph of the statute that defines "charter schools";

2\. Is created by a developer as a public school, or is adapted by a
developer from an existing public school, and is operated under public
supervision and direction;

3\. Operates in pursuit of a specific set of educational objectives
determined by the school\'s developer and agreed to by the authorized
public chartering agency;

4\. Provides a program of elementary or secondary education, or both;

5\. Is nonsectarian in its programs, admissions policies, employment
practices, and all other operations, and is not affiliated with a
sectarian school or religious institution;

6\. Does not charge tuition;

7\. Complies with the Age Discrimination Act of 1975, *Title VI* of the
Civil Rights Act of 1964, *Title IX* of the Education Amendments of
1972, Section 504 of the Rehabilitation Act of 1973, and Part B of the
Individuals with Disabilities Education Act;

8\. Is a school to which parents choose to send their children, and that
admits students on the basis of a lottery, if more students apply for
admission than can be accommodated;

9\. Agrees to comply with the same Federal and State audit requirements
as do other elementary schools and secondary schools in the State,
unless such requirements are specifically waived for the purpose of the
Charter Schools program;

10\. Meets all applicable Federal, State, and local health and safety
requirements;

11\. Operates in accordance with State law; and

12\. Has a written performance contract with the authorized public
chartering agency in the State that includes a description of how
student performance will be measured in charter schools pursuant to
State assessments that are required of other schools and pursuant to any
other assessments mutually agreeable to the authorized public chartering
agency and the charter school \[Section 5210(1)\].

**CORE ACADEMIC SUBJECTS:** The term "core academic subjects means
English, reading or language arts, mathematics, science, foreign
languages, civics and government, economics, arts, history, and
geography \[Section 9101(11)\].

**The Department:** U.S. Department of Education

**EDGAR:** Education Department General Administrative Regulations

**Eisenhower Program:** Eisenhower Professional Development Program

**ESEA:** Elementary and Secondary Education Act of 1965, as amended

**ELIGIBLE PARTNERSHIP:** This term includes a private or State
institution of higher education and the division of the institution that
prepares teachers and principals; a school of arts and sciences; and a
high-need LEA; and may include another LEA, a public charter school, an
elementary school or secondary school, an educational service agency, a
nonprofit educational organization, another institution of higher
education, a school of arts and sciences within such an institution, the
division of such an institution that prepares teachers and principals, a
nonprofit cultural organization, an entity carrying out a
pre-kindergarten program, a teacher organization, a principal
organization, or a business \[Section 2131\].

**ESL:** English as a Second Language

**FERPA:** Family Educational Rights and Privacy Act

**FY:** Fiscal Year

**HIGH-NEED LEA:** An LEA that serves not fewer than 10,000 children
from families with incomes below the poverty line; or for which not less
than 20 percent of the children served by the agency are from families
with incomes below the poverty line; and for which there is a high
percentage of teachers not teaching in the academic subjects or grade
levels that the teachers were trained to teach; or for which there is a
high percentage of teachers with emergency, provisional, or temporary
certification or licensing \[Section 2102(3)\].

**HEA:** Higher Education Act

**highly qualified PARAPROFESSIONAL:** A paraprofessional who has not
less than 2 years of experience in a classroom; and post-secondary
education or demonstrated competence in a field or academic subject for
which there is a significant shortage of qualified teachers \[Section
2102(4)\].

**highly qualified TEACHER:**

1\. When the term "highly qualified teacher" is used with respect to any
public elementary school or secondary school teacher teaching in a
State, it means that:

> a\. The teacher has obtained full State certification as a teacher
> (including certification obtained through alternate routes to
> certification) or passed the State teacher licensing examination, and
> holds a license to teach in such State, except that when the term is
> used with respect to any teacher teaching in a public charter school,
> the term means that the teacher meets the certification or licensing
> requirements set forth in the State\'s public charter school law *(see
> entry below for the definition of a highly qualified charter school
> teacher);* and
>
> i\) The teacher has not had certification or licensure requirements
> waived on an emergency, temporary, or provisional basis.

2\. When the term "highly qualified teacher" is used with respect to:

> a\. An elementary school teacher who is new to the profession, it
> means that the teacher has met the requirements of paragraph (a)
> above, and:
>
> i\) Holds at least a bachelor\'s degree; and
>
> ii\) Has demonstrated, by passing a rigorous State test, subject
> knowledge and teaching skills in reading, writing, mathematics, and
> other areas of the basic elementary school curriculum (which may
> consist of passing a State-required certification or licensing test or
> tests in reading, writing, mathematics, and other areas of basic
> elementary school curriculum); or
>
> b\. A middle school or secondary teacher who is new to the profession,
> it means that the teacher has met the requirements of paragraph (a)
> above, holds at least a bachelor\'s degree, and has demonstrated a
> high level of competency in each of the academic subjects in which the
> teacher teaches by:
>
> i\) Passing a rigorous State academic subject test in each of the
> academic subjects in which the teacher teaches (which may consist of a
> passing level of performance on a State-required certification or
> licensing test or tests in each of the academic subjects in which the
> teacher teaches); **or**
>
> ii\) Successful completion, in each of the academic subjects in which
> the teacher teaches, of an academic major, a graduate degree,
> coursework equivalent to an undergraduate academic major, or advanced
> certification or credentialing.

3\. When the term "highly qualified teacher" is used with respect to an
elementary, middle, or secondary school teacher who is not new to the
profession, it means that the teacher has met the requirements of
paragraph (a) above, holds at least a bachelor\'s degree, and:

> a\. Has met the applicable standard requirements, which includes an
> option for a test; **or**
>
> b\. Demonstrates competency in all the academic subjects in which the
> teacher teaches based on a high objective uniform State standard of
> evaluation that-
>
> i\) Is set by the State for both grade appropriate academic
> subject-matter knowledge and teaching skills;
>
> ii\) Is aligned with challenging State academic content and student
> academic achievement standards and developed in consultation with core
> content specialists, teachers, principals, and school administrators;
>
> iii\) Provides objective, coherent information about the teacher\'s
> attainment of core content knowledge in the academic subjects in which
> a teacher teaches;
>
> iv\) Is applied uniformly to all teachers in the same academic subject
> and the same grade level throughout the State;
>
> v\) Takes into consideration, but not be based primarily on, the time
> the teacher has been teaching in the academic subject;
>
> vi\) Is made available to the public upon request; and

vii) May involve multiple, objective measures of teacher competency
     \[Section 9101(23)\].

     4.  When the term "highly qualified teacher" is used with respect
         to any public elementary school or secondary school special
         education teacher teaching in a State, it means that:

> a\. The teacher has obtained full State certification as a special
> education teacher (including certification obtained through alternate
> routes to certification) or passed the State special education teacher
> licensing examination, and holds a license to teach in the State as a
> special education teacher, except that when the term is used with
> respect to any teacher teaching in a public charter school, the term
> means that the teacher meets the certification or licensing
> requirements set forth in the State\'s public charter school law *(see
> entry below for the definition of a highly qualified charter school
> teacher);* and

i)  The teacher has not had special education certification or licensure
    requirements waived on an emergency, temporary, or provisional
    basis; and

ii) The teacher holds at least a bachelor's degree.

**HIGHLY QUALIFIED CHARTER SCHOOL TEACHER:** Charter school teachers who
teach core academic subjects must comply with any provision in a State's
charter school law regarding certification or licensure requirements. A
teacher in a charter school does not have to be licensed or certified by
the State if the State does not require such licensure or certification.
However, teachers of core academic subjects in charter schools must meet
the other requirements that apply to public school teachers, including
holding a four-year college degree and demonstrating competency in the
subject area in which they teach. (See definition above for information
on how teachers can demonstrate subject area competence.)

**highly qualified Vocational Education Teacher:** Only vocational
education teachers who teach core academic courses are required to meet
the definition of a highly qualified teacher. The term "core academic
subjects" is defined in ESEA as "English, reading or language arts,
mathematics, science, foreign languages, civics and government,
economics, arts, history, and geography."

**HIGH QUALITY PROFESSIONAL DEVELOPMENT:** See the definition for
"professional development."

**IHE:** Institution of Higher Education

**LEA:** Local educational agency

**LOW-PERFORMING SCHOOL**: The term "low-performing school" means an
elementary school or secondary school that is identified under Section
1116 of ESEA.

**NCLB:** The *No Child Left Behind* Act of 2001

**OMB:** Office of Management and Budget

**OUT-OF-FIELD TEACHER:** A teacher who is teaching an academic subject
or a grade level for which the teacher is not highly qualified \[Section
2102(5)\].

**PARAPROFESSIONAL:** A paraprofessional is an individual with
instructional duties. Individuals who work solely in non-instructional
roles, such as food service, cafeteria or playground supervision,
personal care services, and non-instructional computer assistance are
not considered to be paraprofessionals for *Title I* purposes.

**PRINCIPAL:** The term "principal" includes an assistant principal
\[Section 2102(6)\].

**PROFESSIONAL DEVELOPMENT:** \[Section 9101(34)\] The term
"professional development":

1\. Includes activities that:

> a\. Improve and increase teachers\' knowledge of the academic subjects
> the teachers teach, and enable teachers to become highly qualified;
>
> b\. Are an integral part of broad schoolwide and districtwide
> educational improvement plans;
>
> c\. Give teachers, principals, and administrators the knowledge and
> skills to provide students with the opportunity to meet challenging
> State academic content standards and student academic achievement
> standards;
>
> d\. Improve classroom management skills;
>
> e\. Are high quality, sustained, intensive, and classroom-focused in
> order to have a positive and lasting impact on classroom instruction
> and the teacher\'s performance in the classroom and are not 1-day or
> short-term workshops or conferences;
>
> f\. Support the recruiting, hiring, and training of highly qualified
> teachers, including teachers who became highly qualified through State
> and local alternate routes to certification;
>
> g\. Advance teacher understanding of effective instructional
> strategies that are:
>
> i\) Based on scientifically based research (except that this subclause
> shall not apply to activities carried out under Part D of Title II);
> and
>
> ii\) Strategies for improving student academic achievement or
> substantially increasing the knowledge and teaching skills of
> teachers; and
>
> h\. Are aligned with and directly related to:
>
> i\) State academic content standards, student academic achievement
> standards, and assessments; and
>
> ii\) The curricula and programs tied to the standards described in
> subclause (a) \[except that this subclause shall not apply to
> activities described in clauses (ii) and (iii) of Section
> 2123(3)(B)\];
>
> i\. Are developed with extensive participation of teachers,
> principals, parents, and administrators of schools to be served under
> this Act;
>
> j\. Are designed to give teachers of limited English proficient
> children, and other teachers and instructional staff, the knowledge
> and skills to provide instruction and appropriate language and
> academic support services to those children, including the appropriate
> use of curricula and assessments;
>
> k\. To the extent appropriate, provide training for teachers and
> principals in the use of technology so that technology and technology
> applications are effectively used in the classroom to improve teaching
> and learning in the curricula and core academic subjects in which the
> teachers teach;
>
> l\. As a whole, are regularly evaluated for their impact on increased
> teacher effectiveness and improved student academic achievement, with
> the findings of the evaluations used to improve the quality of
> professional development;
>
> m\. Provide instruction in methods of teaching children with special
> needs;
>
> n\. Include instruction in the use of data and assessments to inform
> and instruct classroom practice; and
>
> o\. Include instruction in ways that teachers, principals, pupil
> services personnel, and school administrators may work more
> effectively with parents; and

2\. May include activities that:

> a\. Involve the forming of partnerships with institutions of higher
> education to establish school-based teacher training programs that
> provide prospective teachers and beginning teachers with an
> opportunity to work under the guidance of experienced teachers and
> college faculty;
>
> b\. Create programs to enable paraprofessionals (assisting teachers
> employed by a LEA receiving assistance under Part A of Title I) to
> obtain the education necessary for those paraprofessionals to become
> certified and licensed teachers; and
>
> c\. Provide follow-up training to teachers who have participated in
> activities described in subparagraph (A) or another clause of this
> subparagraph that is designed to ensure that the knowledge and skills
> learned by the teachers are implemented in the classroom \[Section
> 9101(34)\].

**PUPIL SERVICES PERSONNEL; PUPIL SERVICES:** The term "pupil services
personnel" means school counselors, school social workers, school
psychologists, and other qualified professional personnel involved in
providing assessment, diagnosis, counseling, educational, therapeutic,
and other necessary services (including related services as that term is
defined in Section 602 of the Individuals with Disabilities Education
Act) as part of a comprehensive program to meet student needs. The term
"pupil services" means the services provided by pupil services personnel
\[Section 9101(36)\].

**RFP:** Request for Proposal

**SCIENTIFICALLY BASED RESEARCH:** The term "scientifically based
research":

1\. Means research that involves the application of rigorous,
systematic, and objective procedures to obtain reliable and valid
knowledge relevant to education activities and programs; and

2\. Includes research that\--

> a\. Employs systematic, empirical methods that draw on observation or
> experiment;
>
> b\. Involves rigorous data analyses that are adequate to test the
> stated hypotheses and justify the general conclusions drawn;
>
> c\. Relies on measurements or observational methods that provide
> reliable and valid data across evaluators and observers, across
> multiple measurements and observations, and across studies by the same
> or different investigators;
>
> d\. Is evaluated using experimental or quasi-experimental designs in
> which individuals, entities, programs, or activities are assigned to
> different conditions and with appropriate controls to evaluate the
> effects of the condition of interest, with a preference for
> random-assignment experiments, or other designs to the extent that
> those designs contain within-condition or across-condition controls;
>
> e\. Ensures that experimental studies are presented in sufficient
> detail and clarity to allow for replication or, at a minimum, offer
> the opportunity to build systematically on their findings; and
>
> f\. Has been accepted by a peer-reviewed journal or approved by a
> panel of independent experts through a comparably rigorous, objective,
> and scientific review \[Section 9101(37)\].

**Secretary:** Secretary of Education, U.S. Department of Education

**SAHE:** State agency for higher education

**SEA:** State educational agency

**STATUTE:** The Elementary and Secondary Education Act of 1965 (ESEA),
as amended by the *No Child Left Behind Act of 2001*

> []{#AppendixB .anchor}**APPENDIX B**
>
> ***Title II, Part A* Statute**

## ***PART A - TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND***

### **SEC. 2101. PURPOSE.**

> The purpose of this part is to provide grants to State educational
> agencies, local educational agencies, State agencies for higher
> education, and eligible partnerships in order to -
>
> \(1\) increase student academic achievement through strategies such as
> improving teacher and principal quality and increasing the number of
> highly qualified teachers in the classroom and highly qualified
> principals and assistant principals in schools; and
>
> \(2\) hold local educational agencies and schools accountable for
> improvements in student academic achievement.

### **SEC. 2102. DEFINITIONS.**

> In this part:
>
> \(1\) ARTS AND SCIENCES- The term arts and sciences\' means -
>
> \(A\) when referring to an organizational unit of an institution of
> higher education, any academic unit that offers one or more academic
> majors in disciplines or content areas corresponding to the academic
> subjects in which teachers teach; and
>
> \(B\) when referring to a specific academic subject, the disciplines
> or content areas in which an academic major is offered by an
> organizational unit described in subparagraph (A).
>
> \(2\) CHARTER SCHOOL- The term charter school\' has the meaning given
> the term in section 5210.
>
> \(3\) HIGH-NEED LOCAL EDUCATIONAL AGENCY- The term high-need local
> educational agency\' means a local educational agency -
>
> (A)(i) that serves not fewer than 10,000 children from families with
> incomes below the poverty line; or
>
> \(ii\) for which not less than 20 percent of the children served by
> the agency are from families with incomes below the poverty line; and
>
> (B)(i) for which there is a high percentage of teachers not teaching
> in the academic subjects or grade levels that the teachers were
> trained to teach; or
>
> \(ii\) for which there is a high percentage of teachers with
> emergency, provisional, or temporary certification or licensing.
>
> \(4\) HIGHLY QUALIFIED PARAPROFESSIONAL- The term highly qualified
> paraprofessional\' means a paraprofessional who has not less than 2
> years of -
>
> \(A\) experience in a classroom; and
>
> \(B\) postsecondary education or demonstrated competence in a field or
> academic subject for which there is a significant shortage of
> qualified teachers.
>
> \(5\) OUT-OF-FIELD TEACHER- The term out-of-field teacher\' means a
> teacher who is teaching an academic subject or a grade level for which
> the teacher is not highly qualified.
>
> \(6\) PRINCIPAL- The term principal\' includes an assistant principal.

### **SEC. 2103. AUTHORIZATIONS OF APPROPRIATIONS.**

> \(a\) GRANTS TO STATES, LOCAL EDUCATIONAL AGENCIES, AND ELIGIBLE
> PARTNERSHIPS- There are authorized to be appropriated to carry out
> this part (other than subpart 5) \$3,175,000,000 for fiscal year 2002
> and such sums as may be necessary for each of the 5 succeeding fiscal
> years.

# **[Subpart 1 - Grants to States]{.underline}**

**SEC. 2111. ALLOTMENTS TO STATES.**

> \(a\) IN GENERAL- The Secretary shall make grants to States with
> applications approved under section 2112 to pay for the Federal share
> of the cost of carrying out the activities specified in section 2113.
> Each grant shall consist of the allotment determined for a State under
> subsection (b).
>
> \(b\) DETERMINATION OF ALLOTMENTS-
>
> \(1\) RESERVATION OF FUNDS-
>
> \(A\) IN GENERAL- From the total amount appropriated under section
> 2103(a) for a fiscal year, the Secretary shall reserve -
>
> \(i\) one-half of 1 percent for allotments for the United States
> Virgin Islands, Guam, American Samoa, and the Commonwealth of the
> Northern Mariana Islands, to be distributed among those outlying areas
> on the basis of their relative need, as determined by the Secretary,
> in accordance with the purpose of this part; and
>
> \(ii\) one-half of 1 percent for the Secretary of the Interior for
> programs under this part in schools operated or funded by the Bureau
> of Indian Affairs.
>
> \(2\) STATE ALLOTMENTS-
>
> \(A\) HOLD HARMLESS-
>
> \(i\) IN GENERAL- Subject to subparagraph (B), from the funds
> appropriated under section 2103(a) for any fiscal year and not
> reserved under paragraph (1), the Secretary shall allot to each of the
> 50 States, the District of Columbia, and the Commonwealth of Puerto
> Rico an amount equal to the total amount that such State received for
> fiscal year 2001 under -
>
> \(I\) section 2202(b) of this Act (as in effect on the day before the
> date of enactment of the No Child Left Behind Act of 2001); and
>
> \(II\) section 306 of the Department of Education Appropriations Act,
> 2001 (as enacted into law by section 1(a)(1) of Public Law 106-554).
>
> \(ii\) RATABLE REDUCTION- If the funds described in clause (i) are
> insufficient to pay the full amounts that all States are eligible to
> receive under clause (i) for any fiscal year, the Secretary shall
> ratably reduce those amounts for the fiscal year.
>
> \(B\) ALLOTMENT OF ADDITIONAL FUNDS-
>
> \(i\) IN GENERAL- Subject to clause (ii), for any fiscal year for
> which the funds appropriated under section 2103(a) and not reserved
> under paragraph (1) exceed the total amount required to make
> allotments under subparagraph (A), the Secretary shall allot to each
> of the States described in subparagraph (A) the sum of -
>
> \(I\) an amount that bears the same relationship to 35 percent of the
> excess amount as the number of individuals age 5 through 17 in the
> State, as determined by the Secretary on the basis of the most recent
> satisfactory data, bears to the number of those individuals in all
> such States, as so determined; and
>
> \(II\) an amount that bears the same relationship to 65 percent of the
> excess amount as the number of individuals age 5 through 17 from
> families with incomes below the poverty line, in the State, as
> determined by the Secretary on the basis of the most recent
> satisfactory data, bears to the number of those individuals in all
> such States, as so determined.
>
> \(ii\) EXCEPTION- No State receiving an allotment under clause (i) may
> receive less than one-half of 1 percent of the total excess amount
> allotted under such clause for a fiscal year.
>
> \(3\) REALLOTMENT- If any State does not apply for an allotment under
> this subsection for any fiscal year, the Secretary shall reallot the
> amount of the allotment to the remaining States in accordance with
> this subsection.

### **SEC. 2112. STATE APPLICATIONS.**

> \(a\) IN GENERAL- For a State to be eligible to receive a grant under
> this part, the State educational agency shall submit an application to
> the Secretary at such time, in such manner, and containing such
> information as the Secretary may reasonably require.
>
> \(b\) CONTENTS- Each application submitted under this section shall
> include the following:
>
> \(1\) A description of how the activities to be carried out by the
> State educational agency under this subpart will be based on a review
> of scientifically based research and an explanation of why the
> activities are expected to improve student academic achievement.
>
> \(2\) A description of how the State educational agency will ensure
> that a local educational agency receiving a subgrant to carry out
> subpart 2 will comply with the requirements of such subpart.
>
> \(3\) A description of how the State educational agency will ensure
> that activities assisted under this subpart are aligned with
> challenging State academic content and student academic achievement
> standards, State assessments, and State and local curricula.
>
> \(4\) A description of how the State educational agency will use funds
> under this part to improve the quality of the State\'s teachers and
> principals.
>
> (5)(A) A description of how the State educational agency will
> coordinate professional development activities authorized under this
> part with professional development activities provided under other
> Federal, State, and local programs.
>
> \(B\) A description of the comprehensive strategy that the State
> educational agency will use, as part of such coordination effort, to
> ensure that teachers are trained in the use of technology so that
> technology and applications of technology are effectively used in the
> classroom to improve teaching and learning in all curricula and
> academic subjects, as appropriate.
>
> \(6\) A description of how the State educational agency will encourage
> the development of proven, innovative strategies to deliver intensive
> professional development programs that are both cost-effective and
> easily accessible, such as strategies that involve delivery through
> the use of technology, peer networks, and distance learning.
>
> (7)(A) A description of how the State educational agency will ensure
> compliance with the requirements for professional development
> activities described in section 9101 and how the activities to be
> carried out under the grant will be developed collaboratively and
> based on the input of teachers, principals, parents, administrators,
> paraprofessionals, and other school personnel.
>
> \(B\) In the case of a State in which the State educational agency is
> not the entity responsible for teacher professional standards,
> certification, and licensing, an assurance that the State activities
> carried out under this subpart are carried out in conjunction with the
> entity responsible for such standards, certification, and licensing
> under State law.
>
> \(8\) A description of how the State educational agency will ensure
> that the professional development (including teacher mentoring) needs
> of teachers will be met using funds under this subpart and subpart 2.
>
> \(9\) A description of the State educational agency\'s annual
> measurable objectives under section 1119(a)(2).
>
> \(10\) A description of how the State educational agency will use
> funds under this part to meet the teacher and paraprofessional
> requirements of section 1119 and how the State educational agency will
> hold local educational agencies accountable for meeting the annual
> measurable objectives described in section 1119(a)(2).
>
> \(11\) In the case of a State that has a charter school law that
> exempts teachers from State certification and licensing requirements,
> the specific portion of the State law that provides for the exemption.
>
> \(12\) An assurance that the State educational agency will comply with
> section 9501 (regarding participation by private school children and
> teachers).
>
> \(c\) DEEMED APPROVAL- An application submitted by a State educational
> agency pursuant to subsection (a) shall be deemed to be approved by
> the Secretary unless the Secretary makes a written determination,
> prior to the expiration of the 120-day period beginning on the date on
> which the Secretary received the application, that the application is
> not in compliance with this subpart.
>
> \(d\) DISAPPROVAL- The Secretary shall not finally disapprove the
> application, except after giving the State educational agency notice
> and an opportunity for a hearing.
>
> \(e\) NOTIFICATION- If the Secretary finds that the application is not
> in compliance, in whole or in part, with this subpart, the Secretary
> shall\--
>
> \(1\) give the State educational agency notice and an opportunity for
> a hearing; and
>
> \(2\) notify the State educational agency of the finding of
> noncompliance and, in such notification, shall\--
>
> \(A\) cite the specific provisions in the application that are not in
> compliance; and
>
> \(B\) request additional information, only as to the noncompliant
> provisions, needed to make the application compliant.
>
> \(f\) RESPONSE- If the State educational agency responds to the
> Secretary\'s notification described in subsection (e)(2) during the
> 45-day period beginning on the date on which the agency received the
> notification, and resubmits the application with the requested
> information described in subsection (e)(2)(B), the Secretary shall
> approve or disapprove such application prior to the later of\--
>
> \(1\) the expiration of the 45-day period beginning on the date on
> which the application is resubmitted; or
>
> \(2\) the expiration of the 120-day period described in subsection
> (c).
>
> \(g\) FAILURE TO RESPOND- If the State educational agency does not
> respond to the Secretary\'s notification described in subsection
> (e)(2) during the 45-day period beginning on the date on which the
> agency received the notification, such application shall be deemed to
> be disapproved.

### **SEC. 2113. STATE USE OF FUNDS.**

> \(a\) IN GENERAL- A State that receives a grant under section 2111
> shall -
>
> \(1\) reserve 95 percent of the funds made available through the grant
> to make subgrants to local educational agencies as described in
> subpart 2;
>
> \(2\) reserve 2.5 percent (or, for a fiscal year described in
> subsection (b), the percentage determined under subsection (b)) of the
> funds to make subgrants to local partnerships as described in subpart
> 3; and
>
> \(3\) use the remainder of the funds for State activities described in
> subsection (c).
>
> \(b\) SPECIAL RULE- For any fiscal year for which the total amount
> that would be reserved by all States under subsection (a)(2), if the
> States applied a 2.5 percentage rate, exceeds \$125,000,000, the
> Secretary shall determine an alternative percentage that the States
> shall apply for that fiscal year under subsection (a)(2) so that the
> total amount reserved by all States under subsection (a)(2) equals
> \$125,000,000.
>
> \(c\) STATE ACTIVITIES- The State educational agency for a State that
> receives a grant under section 2111 shall use the funds described in
> subsection (a)(3) to carry out one or more of the following
> activities, which may be carried out through a grant or contract with
> a for-profit or nonprofit entity:
>
> \(1\) Reforming teacher and principal certification (including
> recertification) or licensing requirements to ensure that -
>
> (A)(i) teachers have the necessary subject-matter knowledge and
> teaching skills in the academic subjects that the teachers teach; and
>
> \(ii\) principals have the instructional leadership skills to help
> teachers teach and students learn;
>
> \(B\) teacher certification (including recertification) or licensing
> requirements are aligned with challenging State academic content
> standards; and
>
> \(C\) teachers have the subject-matter knowledge and teaching skills,
> including technology literacy, and principals have the instructional
> leadership skills, necessary to help students meet challenging State
> student academic achievement standards.
>
> \(2\) Carrying out programs that provide support to teachers or
> principals, including support for teachers and principals new to their
> profession, such as programs that -
>
> \(A\) provide teacher mentoring, team teaching, reduced class
> schedules, and intensive professional development; and
>
> \(B\) use standards or assessments for guiding beginning teachers that
> are consistent with challenging State student academic achievement
> standards and with the requirements for professional development
> activities described in section 9101.
>
> \(3\) Carrying out programs that establish, expand, or improve
> alternative routes for State certification of teachers and principals,
> especially in the areas of mathematics and science, for highly
> qualified individuals with a baccalaureate or master\'s degree,
> including mid-career professionals from other occupations,
> paraprofessionals, former military personnel, and recent college or
> university graduates with records of academic distinction who
> demonstrate the potential to become highly effective teachers or
> principals.
>
> \(4\) Developing and implementing mechanisms to assist local
> educational agencies and schools in effectively recruiting and
> retaining highly qualified teachers, including specialists in core
> academic subjects, principals, and pupil services personnel, except
> that funds made available under this paragraph may be used for pupil
> services personnel only -
>
> \(A\) if the State educational agency is making progress toward
> meeting the annual measurable objectives described in section
> 1119(a)(2); and
>
> \(B\) in a manner consistent with mechanisms to assist local
> educational agencies and schools in effectively recruiting and
> retaining highly qualified teachers and principals.
>
> \(5\) Reforming tenure systems, implementing teacher testing for
> subject-matter knowledge, and implementing teacher testing for State
> certification or licensing, consistent with title II of the Higher
> Education Act of 1965.
>
> \(6\) Providing professional development for teachers and principals
> and, in cases in which a State educational agency determines support
> to be appropriate, supporting the participation of pupil services
> personnel in the same type of professional development activities as
> are made available to teachers and principals.
>
> \(7\) Developing systems to measure the effectiveness of specific
> professional development programs and strategies to document gains in
> student academic achievement or increases in teacher mastery of the
> academic subjects the teachers teach.
>
> \(8\) Fulfilling the State educational agency\'s responsibilities
> concerning proper and efficient administration of the programs carried
> out under this part, including provision of technical assistance to
> local educational agencies.
>
> \(9\) Funding projects to promote reciprocity of teacher and principal
> certification or licensing between or among States, except that no
> reciprocity agreement developed under this paragraph or developed
> using funds provided under this part may lead to the weakening of any
> State teaching certification or licensing requirement.
>
> \(10\) Developing or assisting local educational agencies in the
> development and use of proven, innovative strategies to deliver
> intensive professional development programs that are both
> cost-effective and easily accessible, such as strategies that involve
> delivery through the use of technology, peer networks, and distance
> learning.
>
> \(11\) Encouraging and supporting the training of teachers and
> administrators to effectively integrate technology into curricula and
> instruction, including training to improve the ability to collect,
> manage, and analyze data to improve teaching, decisionmaking, school
> improvement efforts, and accountability.
>
> \(12\) Developing, or assisting local educational agencies in
> developing, merit-based performance systems, and strategies that
> provide differential and bonus pay for teachers in high-need academic
> subjects such as reading, mathematics, and science and teachers in
> high-poverty schools and districts.
>
> \(13\) Providing assistance to local educational agencies for the
> development and implementation of professional development programs
> for principals that enable the principals to be effective school
> leaders and prepare all students to meet challenging State academic
> content and student academic achievement standards, and the
> development and support of school leadership academies to help
> exceptionally talented aspiring or current principals and
> superintendents become outstanding managers and educational leaders.
>
> \(14\) Developing, or assisting local educational agencies in
> developing, teacher advancement initiatives that promote professional
> growth and emphasize multiple career paths (such as paths to becoming
> a career teacher, mentor teacher, or exemplary teacher) and pay
> differentiation.
>
> \(15\) Providing assistance to teachers to enable them to meet
> certification, licensing, or other requirements needed to become
> highly qualified by the end of the fourth year for which the State
> receives funds under this part (as amended by the No Child Left Behind
> Act of 2001).
>
> \(16\) Supporting activities that ensure that teachers are able to use
> challenging State academic content standards and student academic
> achievement standards, and State assessments, to improve instructional
> practices and improve student academic achievement.
>
> \(17\) Funding projects and carrying out programs to encourage men to
> become elementary school teachers.
>
> \(18\) Establishing and operating a center that -
>
> \(A\) serves as a statewide clearinghouse for the recruitment and
> placement of kindergarten, elementary school, and secondary school
> teachers; and
>
> \(B\) establishes and carries out programs to improve teacher
> recruitment and retention within the State.
>
> \(d\) ADMINISTRATIVE COSTS- A State educational agency or State agency
> for higher education receiving a grant under this part may use not
> more than 1 percent of the grant funds for planning and administration
> related to carrying out activities under subsection (c) and subpart 3.
>
> \(e\) COORDINATION- A State that receives a grant to carry out this
> subpart and a grant under section 202 of the Higher Education Act of
> 1965 shall coordinate the activities carried out under this subpart
> and the activities carried out under that section.
>
> \(f\) SUPPLEMENT, NOT SUPPLANT- Funds received under this subpart
> shall be used to supplement, and not supplant, non-Federal funds that
> would otherwise be used for activities authorized under this subpart.

# **[Subpart 2 - Subgrants to Local Educational Agencies]{.underline}**

### **SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.**

> \(a\) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES-
>
> \(1\) IN GENERAL- The Secretary may make a grant to a State under
> subpart 1 only if the State educational agency agrees to distribute
> the funds described in this subsection as subgrants to local
> educational agencies under this subpart.
>
> \(2\) HOLD HARMLESS-
>
> \(A\) IN GENERAL- From the funds reserved by a State under section
> 2113(a)(1), the State educational agency shall allocate to each local
> educational agency in the State an amount equal to the total amount
> that such agency received for fiscal year 2001 under -
>
> \(i\) section 2203(1)(B) of this Act (as in effect on the day before
> the date of enactment of the No Child Left Behind Act of 2001); and
>
> \(ii\) section 306 of the Department of Education Appropriations Act,
> 2001 (as enacted into law by section 1(a)(1) of Public Law 106-554).
>
> \(B\) NONPARTICIPATING AGENCIES- In the case of a local educational
> agency that did not receive any funds for fiscal year 2001 under one
> or both of the provisions referred to in clauses (i) and (ii) of
> subparagraph (A), the amount allocated to the agency under such
> subparagraph shall be the total amount that the agency would have
> received for fiscal year 2001 if the agency had elected to participate
> in all of the programs for which the agency was eligible under each of
> the provisions referred to in those clauses.
>
> \(C\) RATABLE REDUCTION- If the funds described in subparagraph (A)
> are insufficient to pay the full amounts that all local educational
> agencies in the State are eligible to receive under subparagraph (A)
> for any fiscal year, the State educational agency shall ratably reduce
> such amounts for the fiscal year.
>
> \(3\) ALLOCATION OF ADDITIONAL FUNDS- For any fiscal year for which
> the funds reserved by a State under section 2113(a)(1) exceed the
> total amount required to make allocations under paragraph (2), the
> State educational agency shall allocate to each of the eligible local
> educational agencies in the State the sum of -
>
> \(A\) an amount that bears the same relationship to 20 percent of the
> excess amount as the number of individuals age 5 through 17 in the
> geographic area served by the agency, as determined by the Secretary
> on the basis of the most recent satisfactory data, bears to the number
> of those individuals in the geographic areas served by all the local
> educational agencies in the State, as so determined; and
>
> \(B\) an amount that bears the same relationship to 80 percent of the
> excess amount as the number of individuals age 5 through 17 from
> families with incomes below the poverty line in the geographic area
> served by the agency, as determined by the Secretary on the basis of
> the most recent satisfactory data, bears to the number of those
> individuals in the geographic areas served by all the local
> educational agencies in the State, as so determined.

### **SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.**

> \(a\) IN GENERAL- To be eligible to receive a subgrant under this
> subpart, a local educational agency shall submit an application to the
> State educational agency at such time, in such manner, and containing
> such information as the State educational agency may reasonably
> require.
>
> \(b\) CONTENTS- Each application submitted under this section shall be
> based on the needs assessment required in subsection (c) and shall
> include the following:
>
> (1)(A) A description of the activities to be carried out by the local
> educational agency under this subpart and how these activities will be
> aligned with -
>
> \(i\) challenging State academic content standards and student
> academic achievement standards, and State assessments; and
>
> \(ii\) the curricula and programs tied to the standards described in
> clause (i).
>
> \(B\) A description of how the activities will be based on a review of
> scientifically based research and an explanation of why the activities
> are expected to improve student academic achievement.
>
> \(2\) A description of how the activities will have a substantial,
> measurable, and positive impact on student academic achievement and
> how the activities will be used as part of a broader strategy to
> eliminate the achievement gap that separates low-income and minority
> students from other students.
>
> \(3\) An assurance that the local educational agency will target funds
> to schools within the jurisdiction of the local educational agency
> that -
>
> \(A\) have the lowest proportion of highly qualified teachers;
>
> \(B\) have the largest average class size; or
>
> \(C\) are identified for school improvement under section 1116(b).
>
> \(4\) A description of how the local educational agency will
> coordinate professional development activities authorized under this
> subpart with professional development activities provided through
> other Federal, State, and local programs.
>
> \(5\) A description of the professional development activities that
> will be made available to teachers and principals under this subpart
> and how the local educational agency will ensure that the professional
> development (which may include teacher mentoring) needs of teachers
> and principals will be met using funds under this subpart.
>
> \(6\) A description of how the local educational agency will integrate
> funds under this subpart with funds received under part D that are
> used for professional development to train teachers to integrate
> technology into curricula and instruction to improve teaching,
> learning, and technology literacy.
>
> \(7\) A description of how the local educational agency, teachers,
> paraprofessionals, principals, other relevant school personnel, and
> parents have collaborated in the planning of activities to be carried
> out under this subpart and in the preparation of the application.
>
> \(8\) A description of the results of the needs assessment described
> in subsection (c).
>
> \(9\) A description of how the local educational agency will provide
> training to enable teachers to -
>
> \(A\) teach and address the needs of students with different learning
> styles, particularly students with disabilities, students with special
> learning needs (including students who are gifted and talented), and
> students with limited English proficiency;
>
> \(B\) improve student behavior in the classroom and identify early and
> appropriate interventions to help students described in subparagraph
> (A) learn;
>
> \(C\) involve parents in their child\'s education; and
>
> \(D\) understand and use data and assessments to improve classroom
> practice and student learning.
>
> \(10\) A description of how the local educational agency will use
> funds under this subpart to meet the requirements of section 1119.
>
> \(11\) An assurance that the local educational agency will comply with
> section 9501 (regarding participation by private school children and
> teachers).
>
> \(c\) NEEDS ASSESSMENT-
>
> \(1\) IN GENERAL- To be eligible to receive a subgrant under this
> subpart, a local educational agency shall conduct an assessment of
> local needs for professional development and hiring, as identified by
> the local educational agency and school staff.
>
> \(2\) REQUIREMENTS- Such needs assessment shall be conducted with the
> involvement of teachers, including teachers participating in programs
> under part A of title I, and shall take into account the activities
> that need to be conducted in order to give teachers the means,
> including subject-matter knowledge and teaching skills, and to give
> principals the instructional leadership skills to help teachers, to
> provide students with the opportunity to meet challenging State and
> local student academic achievement standards.

### **SEC. 2123. LOCAL USE OF FUNDS.**

> \(a\) IN GENERAL- A local educational agency that receives a subgrant
> under section 2121 shall use the funds made available through the
> subgrant to carry out one or more of the following activities,
> including carrying out the activities through a grant or contract with
> a for-profit or nonprofit entity:
>
> \(1\) Developing and implementing mechanisms to assist schools in
> effectively recruiting and retaining highly qualified teachers,
> including specialists in core academic subjects, principals, and pupil
> services personnel, except that funds made available under this
> paragraph may be used for pupil services personnel only -
>
> \(A\) if the local educational agency is making progress toward
> meeting the annual measurable objectives described in section
> 1119(a)(2); and
>
> \(B\) in a manner consistent with mechanisms to assist schools in
> effectively recruiting and retaining highly qualified teachers and
> principals.
>
> \(2\) Developing and implementing initiatives to assist in recruiting
> highly qualified teachers (particularly initiatives that have proven
> effective in retaining highly qualified teachers), and hiring highly
> qualified teachers, who will be assigned teaching positions within
> their fields, including -
>
> \(A\) providing scholarships, signing bonuses, or other financial
> incentives, such as differential pay, for teachers to teach -
>
> \(i\) in academic subjects in which there exists a shortage of highly
> qualified teachers within a school or within the local educational
> agency; and
>
> \(ii\) in schools in which there exists a shortage of highly qualified
> teachers;
>
> \(B\) recruiting and hiring highly qualified teachers to reduce class
> size, particularly in the early grades; and
>
> \(C\) establishing programs that -
>
> \(i\) train and hire regular and special education teachers (which may
> include hiring special education teachers to team-teach in classrooms
> that contain both children with disabilities and nondisabled
> children);
>
> \(ii\) train and hire highly qualified teachers of special needs
> children, as well as teaching specialists in core academic subjects
> who will provide increased individualized instruction to students;
>
> \(iii\) recruit qualified professionals from other fields, including
> highly qualified paraprofessionals, and provide such professionals
> with alternative routes to teacher certification, including developing
> and implementing hiring policies that ensure comprehensive recruitment
> efforts as a way to expand the applicant pool, such as through
> identifying teachers certified through alternative routes, and using a
> system of intensive screening designed to hire the most qualified
> applicants; and
>
> \(iv\) provide increased opportunities for minorities, individuals
> with disabilities, and other individuals underrepresented in the
> teaching profession.
>
> \(3\) Providing professional development activities\--
>
> \(A\) that improve the knowledge of teachers and principals and, in
> appropriate cases, paraprofessionals, concerning\--
>
> \(i\) one or more of the core academic subjects that the teachers
> teach; and
>
> \(ii\) effective instructional strategies, methods, and skills, and
> use of challenging State academic content standards and student
> academic achievement standards, and State assessments, to improve
> teaching practices and student academic achievement; and
>
> \(B\) that improve the knowledge of teachers and principals and, in
> appropriate cases, paraprofessionals, concerning effective
> instructional practices and that\--
>
> \(i\) involve collaborative groups of teachers and administrators;
>
> \(ii\) provide training in how to teach and address the needs of
> students with different learning styles, particularly students with
> disabilities, students with special learning needs (including students
> who are gifted and talented), and students with limited English
> proficiency;
>
> \(iii\) provide training in methods of\--
>
> \(I\) improving student behavior in the classroom; and
>
> \(II\) identifying early and appropriate interventions to help
> students described in clause (ii) learn;
>
> \(iv\) provide training to enable teachers and principals to involve
> parents in their child\'s education, especially parents of limited
> English proficient and immigrant children; and
>
> \(v\) provide training on how to understand and use data and
> assessments to improve classroom practice and student learning.
>
> \(4\) Developing and implementing initiatives to promote retention of
> highly qualified teachers and principals, particularly within
> elementary schools and secondary schools with a high percentage of
> low-achieving students, including programs that provide\--
>
> \(A\) teacher mentoring from exemplary teachers, principals, or
> superintendents;
>
> \(B\) induction and support for teachers and principals during their
> first 3 years of employment as teachers or principals, respectively;
>
> \(C\) incentives, including financial incentives, to retain teachers
> who have a record of success in helping low-achieving students improve
> their academic achievement; or
>
> \(D\) incentives, including financial incentives, to principals who
> have a record of improving the academic achievement of all students,
> but particularly students from economically disadvantaged families,
> students from racial and ethnic minority groups, and students with
> disabilities.
>
> \(5\) Carrying out programs and activities that are designed to
> improve the quality of the teacher force, such as\--
>
> \(A\) innovative professional development programs (which may be
> provided through partnerships including institutions of higher
> education), including programs that train teachers and principals to
> integrate technology into curricula and instruction to improve
> teaching, learning, and technology literacy, are consistent with the
> requirements of section 9101, and are coordinated with activities
> carried out under part D;
>
> \(B\) development and use of proven, cost-effective strategies for the
> implementation of professional development activities, such as through
> the use of technology and distance learning;
>
> \(C\) tenure reform;
>
> \(D\) merit pay programs; and
>
> \(E\) testing of elementary school and secondary school teachers in
> the academic subjects that the teachers teach.
>
> \(6\) Carrying out professional development activities designed to
> improve the quality of principals and superintendents, including the
> development and support of academies to help talented aspiring or
> current principals and superintendents become outstanding managers and
> educational leaders.
>
> \(7\) Hiring highly qualified teachers, including teachers who become
> highly qualified through State and local alternative routes to
> certification, and special education teachers, in order to reduce
> class size, particularly in the early grades.
>
> \(8\) Carrying out teacher advancement initiatives that promote
> professional growth and emphasize multiple career paths (such as paths
> to becoming a career teacher, mentor teacher, or exemplary teacher)
> and pay differentiation.
>
> \(10\) Carrying out programs and activities related to exemplary
> teachers.
>
> \(b\) SUPPLEMENT, NOT SUPPLANT- Funds received under this subpart
> shall be used to supplement, and not supplant, non-Federal funds that
> would otherwise be used for activities authorized under this subpart.

# **[Subpart 3 - Subgrants to Eligible Partnerships]{.underline}**

### **SEC. 2131. DEFINITIONS.**

> In this subpart:
>
> \(1\) ELIGIBLE PARTNERSHIP- The term eligible partnership\' means an
> entity that -
>
> \(A\) shall include -
>
> \(i\) a private or State institution of higher education and the
> division of the institution that prepares teachers and principals;
>
> \(ii\) a school of arts and sciences; and
>
> \(iii\) a high-need local educational agency; and
>
> \(B\) may include another local educational agency, a public charter
> school, an elementary school or secondary school, an educational
> service agency, a nonprofit educational organization, another
> institution of higher education, a school of arts and sciences within
> such an institution, the division of such an institution that prepares
> teachers and principals, a nonprofit cultural organization, an entity
> carrying out a prekindergarten program, a teacher organization, a
> principal organization, or a business.
>
> \(2\) LOW-PERFORMING SCHOOL- The term low-performing school\' means an
> elementary school or secondary school that is identified under section
> 1116.

### **SEC. 2132. SUBGRANTS.**

> \(a\) IN GENERAL- The State agency for higher education for a State
> that receives a grant under section 2111, working in conjunction with
> the State educational agency (if such agencies are separate), shall
> use the funds reserved under section 2113(a)(2) to make subgrants, on
> a competitive basis, to eligible partnerships to enable such
> partnerships to carry out the activities described in section 2134.
>
> \(b\) DISTRIBUTION- The State agency for higher education shall ensure
> that -
>
> \(1\) such subgrants are equitably distributed by geographic area
> within a State; or
>
> \(2\) eligible partnerships in all geographic areas within the State
> are served through the subgrants.
>
> \(c\) SPECIAL RULE- No single participant in an eligible partnership
> may use more than 50 percent of the funds made available to the
> partnership under this section.

### **SEC. 2133. APPLICATIONS.**

> To be eligible to receive a subgrant under this subpart, an eligible
> partnership shall submit an application to the State agency for higher
> education at such time, in such manner, and containing such
> information as the agency may require.

### **SEC. 2134. USE OF FUNDS.**

> \(a\) IN GENERAL- An eligible partnership that receives a subgrant
> under section 2132 shall use the subgrant funds for -
>
> \(1\) professional development activities in core academic subjects to
> ensure that -
>
> \(A\) teachers and highly qualified paraprofessionals, and, if
> appropriate, principals have subject-matter knowledge in the academic
> subjects that the teachers teach, including the use of computer
> related technology to enhance student learning; and
>
> \(B\) principals have the instructional leadership skills that will
> help such principals work most effectively with teachers to help
> students master core academic subjects; and
>
> \(2\) developing and providing assistance to local educational
> agencies and individuals who are teachers, highly qualified
> paraprofessionals, or principals of schools served by such agencies,
> for sustained, high-quality professional development activities that -
>
> \(A\) ensure that the individuals are able to use challenging State
> academic content standards and student academic achievement standards,
> and State assessments, to improve instructional practices and improve
> student academic achievement;
>
> \(B\) may include intensive programs designed to prepare such
> individuals who will return to a school to provide instruction related
> to the professional development described in subparagraph (A) to other
> such individuals within such school; and
>
> \(C\) may include activities of partnerships between one or more local
> educational agencies, one or more schools served by such local
> educational agencies, and one or more institutions of higher education
> for the purpose of improving teaching and learning at low-performing
> schools.
>
> \(b\) COORDINATION- An eligible partnership that receives a subgrant
> to carry out this subpart and a grant under section 203 of the Higher
> Education Act of 1965 shall coordinate the activities carried out
> under this subpart and the activities carried out under that section
> 203.

# **[Subpart 4 - Accountability]{.underline}**

**SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.**

> \(a\) IMPROVEMENT PLAN- After the second year of the plan described in
> section 1119(a)(2), if a State educational agency determines, based on
> the reports described in section 1119(b)(1), that a local educational
> agency in the State has failed to make progress toward meeting the
> annual measurable objectives described in section 1119(a)(2), for 2
> consecutive years, such local educational agency shall develop an
> improvement plan that will enable the agency to meet such annual
> measurable objectives and that specifically addresses issues that
> prevented the agency from meeting such annual measurable objectives.
>
> \(b\) TECHNICAL ASSISTANCE- During the development of the improvement
> plan described in subsection (a) and throughout implementation of the
> plan, the State educational agency shall -
>
> \(1\) provide technical assistance to the local educational agency;
> and
>
> \(2\) provide technical assistance, if applicable, to schools served
> by the local educational agency that need assistance to enable the
> local educational agency to meet the annual measurable objectives
> described in section 1119(a)(2).
>
> \(c\) ACCOUNTABILITY- After the third year of the plan described in
> section 1119(a)(2), if the State educational agency determines, based
> on the reports described in section 1119(b)(1), that the local
> educational agency has failed to make progress toward meeting the
> annual measurable objectives described in section 1119(a)(2), and has
> failed to make adequate yearly progress as described under section
> 1111(b)(2)(B), for 3 consecutive years, the State educational agency
> shall enter into an agreement with such local educational agency on
> the use of that agency\'s funds under this part. As part of this
> agreement, the State educational agency -
>
> \(1\) shall develop, in conjunction with the local educational agency,
> teachers, and principals, professional development strategies and
> activities, based on scientifically based research, that the local
> educational agency will use to meet the annual measurable objectives
> described in section 1119(a)(2) and require such agency to utilize
> such strategies and activities; and
>
> (2)(A) except as provided in subparagraphs (B) and (C), shall prohibit
> the use of funds received under part A of title I to fund any
> paraprofessional hired after the date such determination is made;
>
> \(B\) shall allow the use of such funds to fund a paraprofessional
> hired after that date if the local educational agency can demonstrate
> that the hiring is to fill a vacancy created by the departure of
> another paraprofessional funded under title I and such new
> paraprofessional satisfies the requirements of section 1119(c); and
>
> \(C\) may allow the use of such funds to fund a paraprofessional hired
> after that date if the local educational agency can demonstrate -
>
> \(i\) that a significant influx of population has substantially
> increased student enrollment; or
>
> \(ii\) that there is an increased need for translators or assistance
> with parental involvement activities.
>
> \(d\) SPECIAL RULE- During the development of the strategies and
> activities described in subsection (c)(1), the State educational
> agency shall, in conjunction with the local educational agency,
> provide from funds allocated to such local educational agency under
> subpart 2 directly to one or more schools served by such local
> educational agency, to enable teachers at the schools to choose, with
> continuing consultation with the principal involved, professional
> development activities that -
>
> \(1\) meet the requirements for professional development activities
> described in section 9101; and
>
> \(2\) are coordinated with other reform efforts at the schools.

[^1]: Like an LEA, the SEA and the SAHE (though not the partnership
    grants awarded by the SAHE) also must use program funds only in ways
    that supplement, but do not supplant, non-Federal funds that
    otherwise would be used for authorized activities. Therefore, the
    funds that the SEA and the SAHE reserve for administration and
    planning, and the funds reserved by the SEA for State-level
    activities, are subject not only to the same OMB cost principles,
    but also to the SEAs and SAHEs approved restricted indirect cost
    rates \[Section 2113(f)\].