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| Under this program, funds will be distributed to States and school districts taking into account poverty, school-age population, and enrollment. Many of the provisions governing distribution of funds at both levels are consistent with legislation for programs that States and LEAs are already administering. |
The Department of Education will distribute 100 percent of the funding for this initiative ($1.3 billion) directly to the 50 States, the District of Columbia, Puerto Rico, the Bureau of Indian Affairs, and the Outlying Areas. Each State will receive the same proportion of the funds available for State grants for FY 2000 as it received of FY 1999 funds; the BIA and the Outlying Areas will receive the same amount as in FY 1999. An estimated FY 2000 State allocation table is attached.
No, States must allocate all of their funds to local school districts. They may, however, use funds appropriated for Title VI and reserved for State administration costs to help pay for administrative costs associated with this program.
States will allocate 100 percent of the funds they receive to eligible LEAs. Within each State, the funds distributed to school districts will be based on poverty (80 percent) and school enrollment (20 percent). See example below:
Sample Calculation for Class-Size Reduction Allocations to LEAsIf State X is awarded $100 million: $80 million (80% of $100 million) must be distributed based on poverty data
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States will distribute 80 percent of the Class-Size Reduction funds to school districts in proportion to the district's share of children, ages 5 to 17, from families with incomes below the poverty line (as defined by the Office of Management and Budget and revised annually in accordance with section 673(2) of the Community Services Block Grant Act) applicable to a family of the size involved for the most recent fiscal year for which satisfactory data are available. This is the same poverty definition that the Department has used in determining Title I county allocations. Further, the Census Bureau uses this definition in calculating the decennial "census mapping" data provided to States by the Department of Education and used by many States to calculate their Title I within-county allocations.
The Census Bureau has developed a model for updating LEA poverty data to 1995 and, using that model, has produced updated LEA-level estimates. Pursuant to the Title I statute, the National Academy of Sciences reviewed the new data and model for validity and appropriateness, and has now recommended that the Department use them for Title I allocations beginning with the 1999-2000 school year. Therefore, the Department of Education will use the updated data to make Title I allocations directly to LEAs rather than to counties as has been done in the past. The Department is providing these data to all States for use in making within-State allocations for Title I and Class-Size Reduction.
No. Title I explicitly allows the use of alternative data for determining poverty among children in the LEA because there may be data that are more current. The Class-Size Reduction statute does not.
Yes, States may make adjustments to take into account changes in LEA boundaries and definitions, including the creation of charter school LEAs. States may request assistance from the Department in making these adjustments.
These funds will be distributed by each State to participating LEAs based on each LEA's relative share of children, ages 5 to 17, who were enrolled in the previous year in public and private nonprofit elementary and secondary schools within the boundaries of the LEA. For fiscal year 2000, States should use 1999-2000 enrollment data.
Each State should choose the best available source of data for determining school enrollment within the State. One source would be the set of enrollment data the State reported in the fall to the Department of Education's National Center for Education Statistics for use in the Common Core of Data Survey.
In order to make sound hiring decisions, LEAs must know as soon as possible what their share of the funds will be. Therefore, each State is encouraged to: (1) notify all LEAs in the State of the amount to which they would be entitled should they all choose to participate, and (2) set a deadline well in advance of July 1 of each year for LEA applications. If necessary, when the deadline has passed, the State can recompute the amounts that will go to participating LEAs. In making these computations and notifications, the State should keep in mind its obligations to charter schools, as noted below.
LEAs that do not serve kindergarten through grade three are eligible to apply for funding under this program. In their applications for funding, these LEAs will need to specify the grade(s) and/or subject(s) for which they propose to use these funds to reduce class size. When they have achieved the class-size reduction goals specified in their applications, they may use Class-Size Reduction funds to further reduce class size in those same grades, reduce class size in other grades, or conduct activities to improve teacher quality.
A charter school must be included in calculations for the State distribution of funds if the charter school is an LEA. In addition, the "Charter School Expansion Act of 1998" requires States to take "such measures ... as are necessary to ensure that every charter school receives the Federal funding for which the charter school is eligible [under Federal-to-State formula grant programs] not later than 5 months after the charter school first opens ...." This requirement applies "notwithstanding the fact that the identity and characteristics of the students enrolling in that charter school are not fully and completely determined until that charter school actually opens." See 20 U.S.C. 8065a. States must also ensure that charter schools that expand enrollment during subsequent years receive the Federal-to-State formula funding for which they are eligible within five months of such expansion.
The Department has issued final regulations to assist States in implementing these requirements. Generally, for elementary or secondary education formula grant programs, including the Class-Size Reduction Program, States and LEAs must implement procedures to ensure that each charter school LEA opening for the first time or significantly expanding its enrollment on or before November 1 of an academic year receives the proportionate amount of funds for which it is eligible within five months of the date the charter school LEA opens or significantly expands its enrollment. For a charter school LEA opening or significantly expanding enrollment after November 1 but before February 1 of an academic year, States and LEAs must implement procedures to ensure that the charter school LEA receives at least a pro rata portion of the proportionate amount of funds for which it is eligible on or before the date the SEA or LEA makes allocations to other LEAs and public schools under the applicable program for the succeeding academic year. Finally, for a charter school LEA opening or significantly expanding its enrollment on or after February 1, States and LEAs may, but are not required to, implement procedures to provide the charter school LEA with a pro rata portion of the proportionate amount of funds for which it is eligible. See 34 C.F.R. 76.785-76.799, 64 Fed. Reg. 71964-71972 for the complete text of the regulations. The Department will be issuing additional guidance on this requirement in the near future.
[Section E. Applying for Funds]