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

**OFFICE OF ELEMENTARY AND SECONDARY EDUCATION**

**WASHINGTON, DC 20202-6132**

##### Archived Information

### ESEA, TITLE I

### PROGRAM DIRECTIVE

+------------------------------------+---------------------------------+
| #                                  | #                               |
|                                    |                                 |
| # SUBJECT                          | # TYPE AND                      |
|                                    | NUMBER OF DIRECTIVE OR GUIDANCE |
| Allocations of School Year         |                                 |
| 2001-2002                          | FM-34                           |
|                                    |                                 |
| Funds for Programs Authorized by   |                                 |
| Title I of the                     |                                 |
|                                    |                                 |
| Elementary and Secondary Education |                                 |
| Act                                |                                 |
+------------------------------------+---------------------------------+
|                                    | #                               |
|                                    |                                 |
|                                    | # DATE SIGNED                   |
|                                    |                                 |
|                                    | April 27 , 2001                 |
+------------------------------------+---------------------------------+
|                                    | #                               |
|                                    |                                 |
|                                    | # ISSUING OFFICE                |
|                                    |                                 |
|                                    | OESE/CEP/MEP                    |
+------------------------------------+---------------------------------+
| #                                  |                                 |
|                                    |                                 |
| # REFERENCE: Public Law 106-5      |                                 |
| 54, Department of Education Approp |                                 |
| riations Act for Fiscal Year 2001  |                                 |
+------------------------------------+---------------------------------+

#### TO : State Title I Directors

PURPOSE: To Announce ESEA Title I Allocations for School Year (SY)
2001-2002

Enclosed are allocations of SY 2001-2002 funds for programs authorized
by Title I of the Elementary and Secondary Education Act. We based these
allocations on action taken by Congress in the Department of Education
Appropriations Act for Fiscal Year (FY) 2001, Public Law (PL) 106-554.
Except where noted, Title I funds will become available for obligation
on July 1, 2001 and will remain available for obligation and expenditure
at the State and local levels until September 30, 2003. Approximately 22
percent of the FY 2001 Title I, Part A funds allocated to States will
become available on July 1, 2001, and the remainder will become
available on October 1, 2001.

The amount provided for each Title I program under PL 106-554 is as
follows:

+----------------------------------+-----------+-----------+----------+
| #                                | ##        | Amount    | Amount   |
|                                  |           |           |          |
| #                                | ## Tot    | Available | A        |
|                                  | al Amount | on        | vailable |
| # [Program]{.underline}          |           |           | on       |
|                                  | [Avai     | [July 1,  |          |
|                                  | lable]{.u | 2001]{.u  | [October |
|                                  | nderline} | nderline} | 1,       |
|                                  |           |           | 2        |
|                                  |           |           | 001]{.un |
|                                  |           |           | derline} |
+==================================+===========+===========+==========+
| Grants to LEAs:                  |           |           |          |
+----------------------------------+-----------+-----------+----------+
| Basic Grants to States(Part A,   | \$6,93    | \$1,52    | \$5,407  |
| section 1124)                    | 7,670,790 | 9,730,790 | ,940,000 |
|                                  | [^1]      |           |          |
+----------------------------------+-----------+-----------+----------+
| Census set-aside                 | 2,700,000 | 2,700,000 |          |
+----------------------------------+-----------+-----------+----------+
| Concentration Grants to States   | 1,35      |           | 1,350    |
| (Part A, section 1124A)          | 0,360,000 |           | ,360,000 |
+----------------------------------+-----------+-----------+----------+
| Set-aside for the Department of  | 8         | 8         |          |
| the Interior                     | 5,990,210 | 5,990,210 |          |
|                                  |           |           |          |
| and the Outlying Areas           |           |           |          |
+----------------------------------+-----------+-----------+----------+
| Title I Accountability Grants    | 22        | 22        |          |
|                                  | 5,000,000 | 5,000,000 |          |
+----------------------------------+-----------+-----------+----------+
| Capital Expenses (Part A,        | 6,000,000 | 6,000,000 |          |
| section 1120(e))                 |           |           |          |
+----------------------------------+-----------+-----------+----------+
| Even Start Family Literacy (Part | 25        | 25        |          |
| B)                               | 0,000,000 | 0,000,000 |          |
+----------------------------------+-----------+-----------+----------+
| Migrant Education (Part C)       | 38        | 38        |          |
|                                  | 0,000,000 | 0,000,000 |          |
+----------------------------------+-----------+-----------+----------+
| State Agency Neglected or        | 4         | 4         |          |
| Delinquent program (Part D,      | 6,000,000 | 6,000,000 |          |
| subpart 1)                       |           |           |          |
+----------------------------------+-----------+-----------+----------+

Please see the Congressional Notification of SY 2001-2002 Title I
Allocations (enclosed) for more detail on the formulas we used to
determine State and LEA allocations. The FY 2001 Appropriations Act
requires us to derive a Basic and Concentration Grant hold-harmless
amount for each LEA that is the greater of---

1.  The Basic and Concentration Grant amount ED allocated to it in SY
    2000-01; or

2.  The amount an LEA would receive if ED allocated \$8 billion (\$6.9
    billion for Basic Grants and \$1.2 billion for Concentration Grants)
    to LEAs based on the statutory formulas for those two programs and
    using updated 1997 census estimates.

To the extent that there are insufficient funds available in the FY 2001
appropriation to provide fully for the hold-harmless amounts, we ratably
reduced the hold-harmless amounts for each LEA to the amount made
available. In certain cases, this will result in some LEAs receiving a
Basic or Concentration Grant allocation that is slightly less than the
amounts allocated to them in SY 2000-01.

The Appropriations Act further provides that an LEA receiving a
Concentration Grant in SY 2000-2001 is entitled to a Concentration Grant
for SY 2001-2002 even if it does not meet the statutory eligibility
thresholds. For Basic Grants, however, an LEA must continue to meet the
statutory eligibility criteria in order to be protected by the 100
percent hold-harmless provisions. The Appropriations Act also requires
us to base State allocations for other programs whose formulas are tied
to Title I State shares on Title I amounts distributed to the States in
accordance with the statutory formula, without the 100 percent
hold-harmless provision.

Any questions regarding the attached Title I allocations for the Migrant
Education Program should be referred to Francisco Garcia, Director,
Office of Migrant Education, at (202) 260-1164. For the other Title I
programs, please refer questions to Sandy Brown on my staff at (202)
260-0976.

Joseph F. Johnson, Jr.

Director

Compensatory Education Programs

Enclosures

A.  Congressional Notification of SY 2001-2002 Title I Allocations

#### LEA allocations for Basic Grants

#### LEA allocations for Concentration Grants

B.  State allocations for Basic Grants, Concentration Grants, Title I
    Accountability Grants, Capital Expenses, Even Start, Migrant
    Education, and the State Agency Neglected or Delinquent program

[^1]: These allocations assume correction, through a technical amendment
    passed by Congress and signed by the President, of an error in the
    Fiscal Year 2001 Department of Education Appropriations Act that
    overstated the amount to be allocated through the Title I Basic
    Grant formula by \$95 million.