GUIDANCE
for
Title V, Part A
of the
Elementary and Secondary Education Act,
as reauthorized by the
No Child Left Behind (NCLB) Act
(State Grants for Innovative Programs)
U.S. DEPARTMENT OF EDUCATION
WASHINGTON, DC
August 2002
TABLE OF CONTENTS
INTRODUCTION AND PURPOSE
A. STATE AND LOCAL ROLES
A-1.What is the role of SEAs in implementing Title V-A?
A-2. What is the role of LEAs in implementing Title V-A?
A-3.May SEAs require LEAs to use Title V-A funds for a particular program or activity?
B. STATE APPLICATIONS
B-1.May a State include Title V-A in a consolidated application?
B-2.May a State file a single application for Title V-A?
C. ALLOCATION OF FUNDS
C-1. How are funds distributed to LEAs?
C-2.Must an LEA use the additional funds generated by children whose education creates a higher than average cost to provide Title V-A services only to those children?
C-3. May an LEA reallocate local funds?
C-4. How may an SEA or LEA use remaining carryover funds allocated under Title VI?
D. USES OF FUNDS BY SEAs
D-1.How may an SEA use funds reserved for State use?
D-2.Is there a limitation on the amount a State may use for administration?
E. USES OF FUNDS BY LEAs
E-1.How may LEAs use Title V-A funds?
E-2.What must an LEA do to receive funds?
E-3.What must an LEA include in a Title V-A application?
E-4.What must an LEA include in a consolidated local application that includes the Title V-A program?
E-5. May an SEA or LEA use Title V-A funds to award grants and contracts?
E-6.May an SEA or LEA use funds for personnel?
E-7.May an LEA use funds for direct administrative costs?
F. PARTICIPATION OF CHILDREN ENROLLED IN
PRIVATE NONPROFIT SCHOOLS
F-1.How may private school children receive services under Title V-A?
F-2.What administrative requirements apply regarding the provision of services to private school children?
F-3.How may an LEA ensure that Title V-A services are provided in a proper manner for the benefit of private school students and personnel?
F-4.May private school children and personnel receive services under any Title V-A innovative program area?
F-5.How does an SEA calculate the amount of funds to be distributed to the LEAs?
F-6.What are the obligations of LEAs to private schools that did not participate in Title V-A programs in the preceding year?
F-7.What happens if an LEA chooses not to participate in the Title V-A program?
F-8.Would it be beneficial for SEAs and LEAs, in working with private school officials in implementing Title V-A, to create Non-Public School Working Groups?
G. REPORTING REQUIREMENTS
G-1. What reporting responsibilities do LEAs have under Title V-A?
G-2. What reporting responsibilities do SEAs have under Title V-A?
H. FISCAL REQUIREMENTS
H-1.Is there a non-supplanting requirement under Title V-A?
H-2.May Title V-A funds be used for State-mandated activities?
H-3.What should an SEA or LEA consider to ensure that its use of Title V-A funds does not result in supplanting?
H-4.Does a maintenance-of-effort requirement apply to the Title V-A program?
I. OTHER APPLICABLE STATUTES AND REGULATIONS
I-1.What general statutory and regulatory provisions apply to Title V-A?
J. FLEXIBILITY
J-1.How do the principal flexibility provisions of the NCLB Act affect the Title V-A program?
INTRODUCTION AND PURPOSE
The No Child Left Behind Act (NCLB Act), Public Law 107-110, reauthorized former Title VI of the Elementary and Secondary Education Act of 1965 (ESEA), as Title V, Part A – State Grants for Innovative Programs (Title V-A). Title V-A provides formula grants to State and local educational agencies (SEAs and LEAs) and is designed to increase the academic achievement of, and improve the quality of education for, all students. Under Title V-A, SEAs and LEAs may use funds in a variety of ways. The driving focus, however, is to increase student academic achievement.
The statutory purposes of the program are:
(1)To support local education reform efforts that are consistent with and support statewide education reform efforts.
(2)To implement promising educational reform programs and school improvement programs based on scientifically based research.
(3)To provide a continuing source of innovation and educational improvement, including support for programs to provide library services and instructional and media materials.
(4)To meet the educational needs of all students, including at-risk youth.
(5)To develop and implement education programs to improve school, student, and teacher performance, including professional development activities and class size reduction programs.
These purposes should serve as the starting point for SEAs and LEAs in designing and implementing programs under Title V-A.
This document is intended to answer questions and provide guidance for carrying out programs under Title V-A. This document does not impose any requirements beyond those in the Title V-A statute and other applicable Federal statutes and regulations. State and local recipients that follow the guidance in this document will be deemed in compliance with Title V-A and other applicable Federal statutes and regulations by U.S. Department of Education officials, including the Inspector General. The Department will update the Guidance as new questions are presented, if there is a change in the program statute that requires modification, or when the Department determines that more information would be helpful. Thus, the Guidance should be viewed as a living document that will be amended as needed. The Department welcomes suggestions by those who use the Guidance.
A. STATE AND LOCAL ROLES
A-1. What is the role of SEAs in implementing Title V-A?
Under Title V-A, the SEA bears the basic responsibility for the administration and supervision of Title V-A programs in the State. This includes allocating funds to the LEAs, ensuring compliance with the Title V-A statutory provisions, preparing an annual statewide summary on Title V-A programs, and carrying out State-level projects and activities.
A-2. What is the role of LEAs in implementing Title V-A?
The primary role of LEAs under Title V-A is to carry out programs under one or more of the 27 authorized innovative assistance program areas listed in the statute. Title V-A provides LEAs with flexibility in carrying out this role. LEAs have complete discretion in determining how to divide funds among one or more of the 27 innovative assistance program areas in a manner that meets both the purposes of Title V-A and the needs of the students within the LEAs [Section 5133(d)]. Moreover, LEAs and school personnel have the primary responsibility for the design and implementation of programs [Section 5101(b)].
A-3. May SEAs require LEAs to use Title V-A funds for a particular program or activity?
No. Title V-A specifically requires SEAs to refrain from exercising any influence in the decisionmaking processes of LEAs concerning their expenditures among the innovative assistance program areas [Section 5122(a)(5)]. Thus, an SEA or a State legislature may not establish -- whether through the budget approval process, legislation, or other means -- binding requirements on an LEA with respect to the division of funds among the innovative assistance program areas. However, in keeping with its administrative role, an SEA may issue rules relating to the administration and operation of Title V-A, so long as they are issued pursuant to State law, do not conflict with the provisions of Title V-A, and do not limit the discretion of LEAs regarding allocation of expenditures among the program areas. There is one exception, however. SEAs that receive State-Flex authority under the new State-Flex program may specify how LEAs use their Title V-A allocations [Sections 6141 through 6144].
B. STATE APPLICATIONS
B-1. May a State include Title V-A in a consolidated application?
Yes. An SEA wishing to receive Title V-A funds may include the Title V-A program in a consolidated application.
Sections 9301 and 9302 of the reauthorized ESEA allow SEAs to submit a consolidated State application to the Secretary for specific programs, including Title V-A. By
submitting a consolidated application, an SEA may obtain funds under many ESEA programs through a single application, rather than through separate program applications.
SEAs must meet all statutory requirements for each program included in the consolidated State application, but are not required to submit to the Department much of the information required in separate applications. Consolidation is intended to improve teaching and learning by encouraging greater cross-program coordination, planning, and service delivery, and enhancing integration of programs with educational activities carried out with State and local funds. Program coordination can strengthen the promotion of the State's educational goals for all students while effectively meeting the needs of the programs' intended beneficiaries.
B-2. May a State file a program-specific application for Title V-A?
Yes. A State may receive Title V-A funds by filing an application for assistance with the Secretary that satisfies the application requirements stipulated in section 5122(a) of the program statute. The Department will make available to SEAs instructions for the Title V-A State application, but a standard State application form is not required. The SEA may submit its Title V-A application in any format it deems appropriate, so long as it contains the information required by the statute.
The State may file a Title V-A application for a period of up to three years. If the application meets the requirements of Title V-A, the Secretary awards the State its Title V-A grant. By statute, a Title V-A program application must include the following:
- Designation of the State educational agency as the State agency responsible for the administration and supervision of Title V-A programs.
- An assurance that the SEA will submit to the Department an annual statewide summary of how assistance under Title V-A is contributing toward improving student academic achievement or improving the quality of education for students.
- Information setting forth the allocation of funds required to implement the statutory requirements for the participation of students enrolled in private schools.
- An assurance that the SEA will keep such records, and provide such information to the
Secretary, as may be required for fiscal audit and program evaluation.
- An assurance that, apart from providing technical and advisory assistance and monitoring compliance with Title V-A, the SEA has not exercised, and will not exercise, any influence in the decisionmaking processes of LEAs concerning their expenditures under the program.
- An assurance that the State is in compliance with the specific requirements of Title V-A.
- An assurance that the State will provide for timely public notice and public dissemination of the information regarding the allocation of funds required for the participation of students enrolled in private schools.
The State may amend its application annually to reflect changes.
In the development of program-specific plans under Title V-A, the Department encourages SEAs to consider ways of coordinating activities across ESEA programs to promote greater flexibility and achieve optimum benefit for all students.
C. ALLOCATION OF FUNDS
C-1. How are funds distributed to LEAs?
The first responsibility of the State in administering Title V-A is to develop the formula for allocating at least 85 percent of the Title V-A funds to its LEAs. This formula must be based upon the relative enrollments in public and private nonprofit schools, adjusted to provide higher per-pupil allocations only to those LEAs with children whose education imposes a higher than average cost per child. The calculation of the relative enrollments must be based on the number of children currently enrolled in (1) public schools and (2) those private schools that participated in Title V-A programs during the preceding fiscal year. (For FY 2002 LEA allocations, the State will include in the calculation enrollment data for those private schools that participated in the former Title VI program during the FY 2001 fiscal year.) SEAs may therefore include only those figures for the private schools that participated in the program during the preceding fiscal year.
If a State does not have current enrollment data, either for public or private schools, it may use the preceding fiscal year’s enrollment data. (Note: SEAs should be aware that the Title V-A statute does not provide for any adjustments to the calculation based on the number of private schools that actually decide to participate during the fiscal year for which funds are being distributed.)
In any fiscal year in which a State’s Title V-A allocation is larger than its FY 2002 Title V-A allocation, it must distribute the entire excess amount to its LEAs, using the above formula. In such a year, the SEA must view its allocation in two “parts.” The first part is the “base amount” – the amount of its FY 2002 allocation. The SEA may still retain up to 15 percent of this amount for State use. The second part is that portion of the allocation that is greater than the State’s FY 2002 allocation. The SEA must distribute this entire amount to its LEAs. The result is that the maximum amount that an SEA may reserve for State use will be the same every year – 15 percent of the amount of its FY 2002 allocation (so long as the amount appropriated for the Title V-A program in subsequent years is equal to the amount appropriated in FY 2002 or greater).
*Percentages are calculated against the FY 2002 “base amount.”
For small States – those receiving a minimum allocation of one-half of one percent of the amount available for allocation to the States under section 5111(a) – the rule is different. In any year in which the allocation to a small State exceeds the amount that it received in FY 2002, it must distribute at least 50 percent of the excess amount to its LEAs. The maximum amount that a small State may reserve for State use in such a year, then, is 15 percent of its FY 2002 allocation and 50 percent of the additional amount that it received in excess of its FY 2002 allocation (i.e., 15% x (FY 2002 allocation) + 50% of the excess over the FY 2002 allocation) [Section 5112(a)(2)].
The Department must approve each State’s criteria for adjusting allocations to provide higher allocations to those districts serving children whose education imposes a higher than average cost. The statute includes three factors that an SEA may use in developing criteria for adjusting the per-pupil allocations: 1) children living in areas with high concentrations of economically disadvantaged families; 2) children from economically disadvantaged families; and 3) children living in sparsely populated areas. No other factors may be used for the adjustment. The purpose of the adjustment is to provide higher allocations only to those districts serving the greatest numbers or percentages of children falling within any of these factors. It is not intended to provide relative allocations to all districts based on poverty or sparsity. Therefore, in developing criteria for the adjustments, States must establish a “cut-off,” so that LEAs that have lower percentages or numbers of children falling within the statutory factors for adjustment do not receive any adjustments in their allocations. [Section 5112(c)(3)].
C-2. Must an LEA use the additional funds generated by children whose education creates a higher than average cost to provide Title V-A services only to those children?
No, an LEA does not have to use the additional Title V-A funds that it receives under its adjusted allocation to provide services only to the children who generated those funds. It may use the additional funds generated by these children to provide services to any children in public and private, nonprofit schools within the LEA without regard to whether those children generated the additional funds [Section 5112(d)(2)(C)]. LEAs should note that,
in such a case, they may not take into account the extent to which the number of children in private, nonprofit schools have generated a portion of the adjusted allocation in providing services to private school children. Rather, as generally required under the equitable participation provisions of Title V-A, the LEA must spend equal per-pupil amounts for services to public and private school students.
However, an LEA does have the discretion to use the additional funds generated by children whose education imposes a higher cost to provide services only to children enrolled in those schools -- both public and private -- in which children who generated the additional funds are enrolled [Section 5112(d)(2)(A)]. Under this option, the LEA must use all funds received under its adjusted allocation (i.e., all of the additional funds generated by the "high-cost" children) in this manner and must use in each school the amount generated by the "high-cost" children enrolled in that school [Section 5112(d)(2)(B)].
C-3. May an LEA reallocate local funds?
From time to time, an LEA may accumulate unobligated Title V-A funds for a variety of reasons. When these funds exceed the amount that the LEA needs to provide a prudent and justifiable reserve for operating its Title V-A projects effectively during the succeeding fiscal year, the LEA should return these funds to the SEA. The SEA may then distribute these funds to all LEAs or to a particular group of LEAs. If the SEA chooses the latter option, it must have an objective basis for the selection of the LEAs, which the SEA should publicly disseminate before reallocating the Title V-A funds. Reallocated funds need to be obligated during the period of availability established when the funds were initially allocated.
C-4. How may an SEA or LEA use remaining carryover funds allocated under
Title VI?
An SEA or LEA may have unobligated balances of funds that were allocated under the former Title VI program. The manner in which an SEA or LEA uses these funds depends upon whether the funds were part of its FY 2000 or FY 2001 allocation.
FY 2000 Title VI funds first became available on July 1, 2000, and, if not completely obligated by September 30, 2001, they became carryover funds as of October 1, 2001. As of that date, the Title VI statute was still in effect. SEAs and LEAs may therefore continue to use any unobligated FY 2000 funds in accordance with the provisions of the Title VI