Archived Information

##### ![](media/image1.wmf){width="1.6965277777777779in" height="1.4569444444444444in"}UNITED STATES DEPARTMENT OF EDUCATION

**OFFICE OF ELEMENTARY AND SECONDARY EDUCATION**

**WASHINGTON, DC 20202-6132**

###  ESEA, TITLE I

###  PROGRAM GUIDANCE

+------------------------------------+---------------------------------+
| #                                  | #                               |
|                                    |                                 |
| # SUBJECT                          | # TYPE AND                      |
|                                    | NUMBER OF DIRECTIVE OR GUIDANCE |
| Use of an alternative method to    |                                 |
| distribute Title I basic and       | FM-27                           |
| concentration grants to local      |                                 |
| educational agencies with fewer    |                                 |
| than 20,000 total residents        |                                 |
+------------------------------------+---------------------------------+
|                                    | #                               |
|                                    |                                 |
|                                    | # DATE SIGNED                   |
|                                    |                                 |
|                                    | # March 22, 1999                |
+------------------------------------+---------------------------------+
|                                    | #                               |
|                                    |                                 |
|                                    | # ISSUING OFFICE                |
|                                    |                                 |
|                                    | OESE/CEP                        |
+------------------------------------+---------------------------------+
| #                                  |                                 |
|                                    |                                 |
| # REFERENCE: Title I,              |                                 |
|  Part A of the Elementary and Seco |                                 |
| ndary Education Act, as amended, S |                                 |
| ections 1124(a)(2) and 1124A(a)(4) |                                 |
+------------------------------------+---------------------------------+

#### TO : State Title I Coordinators

PURPOSE: To provide guidance to State educational agencies seeking to
use an alternative method to distribute Title I basic and concentration
grants to local educational agencies with fewer than 20,000 total
residents.

Beginning with fiscal year 1999 funds available for the 1999-2000 school
year under Part A of Title I of the Elementary and Secondary Education
Act (Title I), the Secretary will make allocations of basic and
concentration grants to eligible local educational agencies (LEAs).
Eligibility and allocations will reflect the number of formula children
under section 1124(c) of Title I. These include the 1995 poverty
estimates produced by the Census Bureau; children above poverty in
families receiving Temporary Assistance for Needy Families (TANF);
foster children; and children living in locally operated institutions
for neglected or delinquent children. For eligible LEAs serving an area
with a total population of at least 20,000 persons, sections 1124(a)(2)
and 1124A(a)(4) of Title I require that an LEA's grant(s) be the amount
determined by the Secretary, consistent with guidance to be issued by
the Department in the near future. For eligible LEAs serving an area
with a total population of fewer than 20,000 persons ("small" LEAs), a
State educational agency (SEA) may also distribute the amounts
determined by the Secretary. The Title I statute, however, permits an
SEA to use an alternative method, if approved by the Secretary, to
distribute basic and concentration grants to eligible "small" LEAs. This
guidance addresses use of an alternative method.

[Alternative poverty data]{.underline}: An alternative method must be
based upon population data that the SEA determines best reflect the
current distribution of children from low-income families among the
State's "small" LEAs. Examples of alternative poverty data include, but
are not limited to, children in families receiving Medicaid assistance,
food stamps, TANF, and free/reduced price lunches. These or other
appropriate poverty data, alone or in combination, may be used for
redistribution of both basic and concentration grant funds to eligible
"small" LEAs. Consistent with 200.21(b)(1) of the Title I regulations,
the SEA must use the same measure(s) of poverty for all its "small"
LEAs.

[Redetermining eligibility]{.underline}: Using alternative poverty data,
the SEA redetermines eligibility of its LEAs for both basic and
concentration grants. Eligibility is based on the count of formula
children: that is, poor children ages 5-17, inclusive, and the count of
children living in local institutions for neglected children in each
LEA. Even if alternative poverty data are used, an LEA must still meet
the statutory eligibility requirements. Please note that under 200.25(c)
of the Title I regulations, an LEA must be eligible for a basic grant or
concentration grant in order to receive the benefits of the
hold-harmless provisions.

[Funds available for redistribution]{.underline}: The amount of basic
grant funds available for redistribution under an alternative method is
the aggregate of the basic grants allocated by the Secretary to eligible
"small" LEAs, less the SEA's reservations for State administration and
school improvement. Similarly, the amount of concentration grant funds
available for redistribution is the aggregate of the concentration
grants allocated by the Secretary to eligible "small" LEAs, less the
SEA's reservations. In the near future, we will provide additional
guidance on suballocating Title I funds.

[Committee of Practitioners]{.underline}: An SEA proposing to use an
alternative method for redistributing Title I funds to "small" LEAs must
seek the advice of its Committee of Practitioners before applying to the
Secretary for approval.

[Approval by the Secretary]{.underline}: Before an SEA may redistribute
Title I basic and concentration grant funds to "small" LEAs, the SEA
must receive approval from the Secretary. In seeking that approval, the
SEA should provide the following information:

1.  The poverty source(s) the SEA intends to use to allocate funds and
    the SEA's reasons for selecting that source(s). Population data and
    poverty data used to determine poverty percentages must be
    consistent with respect to the time period they cover.

2.  A brief explanation of the SEA's alternative method.

3.  An assurance that the SEA's proposal has been reviewed by the
    Committee of Practitioners, along with any written comments of the
    Committee.

Any SEA proposing to use an alternative method for distributing Title I
basic and concentration grants to "small" LEAs should send its request
as soon as it can to:

> Judith Johnson
>
> Acting Assistant Secretary
>
> Office of Elementary and Secondary Education
>
> U.S. Department of Education
>
> 400 Maryland Avenue, SW
>
> Washington, D.C. 20202-6100
>
> ATTN: Mr. Sandy Brown

[Appeal by an LEA]{.underline}: If a "small" LEA is dissatisfied with
the determination of its grant by the SEA under an alternative method,
the Title I statute allows the LEA to appeal that determination directly
to the Secretary.

If you have any questions or need additional information, please contact
Mr. Sandy Brown of my staff at (202) 260-0976 or Paul_Brown@ed.gov.

Mary Jean LeTendre

Director

Compensatory Education Programs

cc: Chief State School Officers

Form Approved

OMB No. 1810-0620

Expiration Date: 9/30/1999

CEP/OGC/3/7/98/KRigling/SBrown/401-6453 or 260-0976/PDFM27 small LEAs

cc:: Hunkin/State/writer