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### Archived Information

**UNITED STATES DEPARTMENT OF EDUCATION**

## OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

**WASHINGTON, DC 20202-6132**

# ESEA, TITLE I

# PROGRAM DIRECTIVE

+------------------------------------+---------------------------------+
| **SUBJECT**                        | **TYPE AND NUMBER OF            |
|                                    | DIRECTIVE**                     |
| Allocation of School Year 1998-99  |                                 |
| Funds for Programs Authorized by   | FM-23                           |
| Title I of the Elementary and      |                                 |
| Secondary Education Act (ESEA)     |                                 |
+------------------------------------+---------------------------------+
|                                    | **DATE SIGNED**                 |
|                                    |                                 |
|                                    | April 9, 1998                   |
+------------------------------------+---------------------------------+
|                                    | **ISSUING OFFICE**              |
|                                    |                                 |
|                                    | OESE/CEP/MEP                    |
+------------------------------------+---------------------------------+
| **REFERENCE:** Public Law 105-78,  |                                 |
| Department of Education            |                                 |
| Appropriations Act, 1998           |                                 |
+------------------------------------+---------------------------------+

TO : Chief State School Officers

PURPOSE: To Announce ESEA, Title I Allocations for School Year (SY)
1998-99.

I am pleased to announce Title I allocations for SY 1998-99. These
allocations are based on action taken by Congress in the fiscal year
(FY) 1998 Department of Education Appropriations Act, Public Law (P.L.)
105-78. Except where noted, Title I funds will become available for
obligation on July 1, 1998, and will remain available for obligation and
expenditure until September 30, 2000. Like last year, approximately 79
percent of the FY 1998 funds appropriated for Title I, Part A will
become available on July 1, 1998, and the remainder will become
available on October 1, 1998.

In allocating SY 1998-99 Title I LEA grant funds, we followed the
recommendation contained in "Interim Report 2\" ([Evaluation of Revised
1993 County Estimates for Title I Allocations]{.underline}) published in
January by the National Academy of Sciences (NAS) that "the Census
Bureau's revised 1993 county estimates of poor school-aged children
\[collected in 1994\] be used in the

Title I allocations for the 1998-99 school year." Thus, the Title I LEA
grant allocations for SY 1998-99 reflect the full use of the updated
1994 census poverty estimates rather than an average of the updated 1994
estimates and the 1990 census data that the Department used to allocate
SY 1997-98 funds. This recommendation is the outgrowth of work begun by
the Census Bureau under Section 1124(c)(3) of ESEA, which requires that
the Department use updated poverty estimates every two years to allocate
Title I, Part A funds beginning in 1997-98, unless use of these data
would be inappropriate or unreliable.

The total amount provided for each Title I program under P.L. 105-78 is
as follows:

+------------------------+--------------+--------------+-------------+
| [Program]{.underline}  | Total Amount | Amount       | Amount      |
|                        |              |              |             |
|                        | [Available]  | Available on | Available   |
|                        | {.underline} |              | on          |
|                        |              | [July 1,     |             |
|                        |              | 1998]        | [October 1, |
|                        |              | {.underline} | 1998]{      |
|                        |              |              | .underline} |
+========================+==============+==============+=============+
| Basic programs         | \$7          | \$5          | \$1,        |
| operated by local      | ,375,232,000 | ,849,628,680 | 448,386,000 |
| educational agencies   | [^1]         |              |             |
| (LEAs)                 |              |              |             |
+------------------------+--------------+--------------+-------------+
| > Basic grants (Part   | (\$6,        | (\$4,        | (\$1,4      |
| > A, section 1124)     | 207,014,880) | 758,628,880) | 48,386,000) |
+------------------------+--------------+--------------+-------------+
| > Concentration grants | (1,          | (1,          |             |
| > (Part A, section     | 090,999,800) | 090,999,800) |             |
| > 1124A)               |              |              |             |
+------------------------+--------------+--------------+-------------+
| > Set-aside for the    | (73,717,320) | (73,717,320) |             |
| > Department of the    |              |              |             |
| > Interior and the     |              |              |             |
| > Outlying Areas (Part |              |              |             |
| > A, section 1121)     |              |              |             |
+------------------------+--------------+--------------+-------------+
| Capital expenses (Part | 41,119,000   | 41,119,000   |             |
| A, section 1120(e))    |              |              |             |
+------------------------+--------------+--------------+-------------+
| Even Start Family      | 124,000,000  | 124,000,000  |             |
| Literacy (Part B)      |              |              |             |
+------------------------+--------------+--------------+-------------+
| Migrant education      | 305,473,000  | 305,473,000  |             |
| program (Part C)       |              |              |             |
+------------------------+--------------+--------------+-------------+
| State agency program   | 39,311,000   | 39,311,000   |             |
| for neglected or       |              |              |             |
| delinquent children    |              |              |             |
| (Part D, Subpart 1)    |              |              |             |
+------------------------+--------------+--------------+-------------+
|                        |              |              |             |
+------------------------+--------------+--------------+-------------+

In addition, on March 13, 1998, we announced allocations for the new
comprehensive school reform demonstration program, \$120,000,000 of
which was appropriated under section 1502 of Title I (demonstrations of
innovative practices) and \$25,000,000 was appropriated under Title X,
Part A of ESEA (Fund for the Improvement of Education).

The Department allocates basic and concentration grant funds to
counties. State educational agencies (SEAs) then suballocate county
amounts to LEAs in accordance with the requirements

in sections 1124 and 1124A of Title I and regulations issued by the
Department on July 3, 1995. We will issue further guidance to SEAs on
suballocating 1998-99 Title I basic and concentration grants to LEAs.

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

An SEA may reserve for State administration no more than 1 percent from
each of the amounts allocated to the State under Part A (LEA
grants\--except Capital Expenses authorized in Section 1120(e)), Part C
(Migrant Education), and Part D, Subpart 1 (State agency neglected or
delinquent program) or \$400,000, whichever is greater. An SEA may also
reserve 0.5 percent or less from each of the amounts allocated to the
State under Part A (except Capital Expenses), Part C, and Part D
(Subpart 1) of Title I to carry out activities authorized under sections
1116 and 1117 of Title I. However, because Congress appropriated no
funds for school improvement purposes under section 1002(f) of Title I,
an SEA must reserve at least \$200,000 from its Title I, Parts A, C, and
D (Subpart 1) allocations for this purpose. In addition, an SEA may
reserve for

State administration and technical assistance 5 percent or less from
funds allocated to the State under Part B of Title I (Even Start).

Please provide the Department a copy of your State's final 1998-99 LEA
allocations for both basic and concentration grants under Title I,
PartA. Each LEA should be identified by school district number and
official name. Do not include carryover, reallocation, or Part D,
Subpart 2 funds in the LEA allocations. We need these allocations in
order for the Department to establish a hold-harmless base to use if we
allocate Title I, Part A funds directly to LEAs for SY 1999-2000 as
required by Section 1124(a)(2) of ESEA. This information should be sent
to:

Ms. Mary Jean LeTendre

Director, Compensatory Education Programs

U.S. Department of Education

600 Independence Avenue, SW

(Portals-Room 4400)

Washington, DC 20202-6132

In the alternative, the information may be e-mailed directly to Mr. Paul
(Sandy) Brown on the Compensatory Education Program staff at:
"paul_brown@ed.gov".

Please refer any questions regarding the attached Title I allocations
for the Migrant Education Program to Francisco Garcia, Acting Director,
Office of Migrant Education, at (202) 260-1164. Questions about the
other Title I programs referenced in this program directive may be
referred to Mary Jean LeTendre, Director, Compensatory Education
Programs, at (202) 260-0826.

Gerald N. Tirozzi

Assistant Secretary for

Elementary and Secondary Education

Enclosures

> A. County allocations for basic grants
>
> B. County allocations for concentration grants
>
> C. Count of children used for county allocations
>
> D. State allocations for basic grants, concentration grants, capital
> expenses, Even Start, migrant education, and the State agency
> neglected or delinquent program

cc: State Title I Coordinators

> State Title I Migrant Coordinators
>
> Even Start State Coordinators

CEP\\PST\\BROWN\\4\\2\\98\\260-0976\\PDFM2398.ALL

cc:Hunkin\\State\\writer\\chron

[^1]: ^?^ Excludes \$3,500,000 set aside for updating census poverty
    data.