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The new law allows states and districts to transfer up to 50% of funds received for specific programs, either among those programs or into Title I.
The new law also authorizes two "flexibility demonstration projects," one for states and the other for districts. In the first, up to seven states will be selected to consolidate all state-administration and state-activity funding under several major ESEA programs, including Title I. In the other project, up to 150 school districts may enter into performance agreements with the U.S. Department of Education that will allow them to consolidate all aid under several major ESEA programs, excluding Title I.
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State
and Local Transferability Act Mandated Participation is voluntary. Timeline No specific timeline indicated Funding Level Compliance Unspecified
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Requirements or Provisions State options This provision allows a state to transfer up to 50% of the funds it receives for state-level activities among the following programs:
The law also allows a state to transfer up to 50% of the funds it receives from these programs to Title I, Part A, activities. The law requires each state transferring funds to notify the U.S. Department of Education in advance of the transfer(s), to modify its state plan to reflect the transfer(s) and submit a copy of the modified plan within 30 days of the transfer(s). Funds may not be taken out of Title I, Part A. District options A district identified as in need of improvement under Title I may transfer up to 30% of its allocation among the following programs: teacher quality state grants, educational technology state grants, innovative programs, and safe and drug-free schools. The district, however, must transfer the funds to either supplement its school improvement allocation or carry out Title I district improvement activities. Allocation of Funds While money is appropriated for each of the programs within the scope of this law (for example, teacher quality state grants), no money is specifically appropriated to carry out these provisions of the law. Status of the States No information available. Policy Questions for State Leaders To Consider
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State
and Local Flexibility Demonstration Mandated Participation is voluntary. Timeline No specific timeline indicated Funding Level While funds are appropriated for each of the programs within the scope of this law (for example, teacher quality state grants), no money is specifically appropriated to carry out these provisions. Compliance Voluntary for states and school districts. If, however, one of the seven states or 80 districts selected by the secretary fails to meet adequate yearly progress for two consecutive years or fails to comply with the terms of the application, the secretary must terminate the application. |
Requirements or Provisions State Flexibility Demonstration Program
The selected states may use consolidated funds for any educational purpose authorized under the ESEA. Each of the seven states must enter into performance agreements with at least four (and up to 10) school districts, at least half of which must have poverty rates of at least 20%. Each of the districts must consolidate their money from these programs in the same way as the state. To be eligible, a state must submit an application to the secretary that includes, among other things, a five-year plan describing how the state will use the consolidated funds to meet adequate yearly progress and advance the education priorities of the state. Local Flexibility Demonstration Program
A district may use consolidated funds for any educational purpose under the ESEA. The secretary is prohibited from entering into performance agreements with more than three school districts from any single state. Districts are prohibited from using more than 4% of the consolidated funds for administrative purposes. To be eligible, a district must submit an agreement to the secretary that includes, among other things, a five-year plan describing how it intends to consolidate and use the funds to advance its education priorities, meet the general purposes of the included programs, improve student achievement and narrow the achievement gap. Allocation of Funds While funds are appropriated for each of the programs within the scope of this law (for example, teacher quality state grants), no money is specifically appropriated to carry out these provisions. Status of the States No information available. Policy Questions for State Leaders To Consider
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Rural Education
Initiative Mandated Participation is voluntary. Timeline No specific timeline indicated Funding Level FY02 - $162 million Compliance Unspecified
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Requirements or Provisions Small, Rural School Achievement Program This provision allows small, rural school districts to consolidate their allocations under the following programs:
Districts will be allowed to use their consolidated funds to carry out activities authorized under the programs listed above, plus Title I and language-acquisition state grants. Participating school districts must administer a student assessment consistent with Title I requirements. After a district's third year of participation in the program, the state must determine whether the district met the state's definition of adequate yearly progress, permit districts that met the definition to continue to participate, and permit a district that did not meet the definition to continue to participate only if it agrees to use its consolidated funds for Title I school-improvement activities. These requirements also apply to the Rural and Low-Income School Program listed below. The term "rural" applies to people living outside urbanized areas in the open country or in communities of less than 2,500 inhabitants; it also includes those living in areas of extended cities with a population density of less than 1,000 inhabitants per square mile. Rural and Low-Income School Program Funds are to be allocated to states, which then must determine a formula for allocating the money to school districts. In states that do not participate in the program, eligible districts may apply directly to the U.S. secretary of education. The law requires each state or eligible district that has applied directly to the secretary of education to establish, at a minimum, specific education goals and objectives related to increased student achievement, decreased student dropout rates and other factors that the state or district may choose to measure. State departments of education may not use more than 5% of the grant for administrative costs or technical assistance to eligible districts. Allocation of Funds For the Small, Rural School Achievement Program, funds will be distributed to districts in the following way:
For the Rural and Low-Income School Program, funds are to be distributed to states based on each state's share of students in average daily attendance in eligible districts. Participating states then have the option to allocate funds through:
For eligible districts that apply directly to the secretary, funds are to be distributed through a formula based on a district's share of the number of students in average daily attendance in eligible districts within the state, or through a competitive process. See Appendix H for state-by-state appropriations for rural school programs. Status of the States No information available. Policy Questions for State Leaders To Consider
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