Texas Education Code - Section 42.152. Compensatory Education Allotment
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§ 42.152. COMPENSATORY EDUCATION ALLOTMENT. (a) For each
student who is educationally disadvantaged or who is a student who
does not have a disability and resides in a residential placement
facility in a district in which the student's parent or legal
guardian does not reside, a district is entitled to an annual
allotment equal to the adjusted basic allotment multiplied by 0.2,
and by 2.41 for each full-time equivalent student who is in a
remedial and support program under Section 29.081 because the
student is pregnant.
(b) For purposes of this section, the number of
educationally disadvantaged students is determined:
(1) by averaging the best six months' enrollment in the
national school lunch program of free or reduced-price lunches for
the preceding school year; or
(2) in the manner provided by commissioner rule, if no
campus in the district participated in the national school lunch
program of free or reduced-price lunches during the preceding
school year.
(c) Funds allocated under this section shall be used to fund
supplemental programs and services designed to eliminate any
disparity in performance on assessment instruments administered
under Subchapter B, Chapter 39, or disparity in the rates of high
school completion between students at risk of dropping out of
school, as defined by Section 29.081, and all other students.
Specifically, the funds, other than an indirect cost allotment
established under State Board of Education rule, which may not
exceed 15 percent, may be used to meet the costs of providing a
compensatory, intensive, or accelerated instruction program under
Section 29.081 or an alternative education program established
under Section 37.008 or to support a program eligible under Title I
of the Elementary and Secondary Education Act of 1965, as provided
by Pub. L. No. 103-382 and its subsequent amendments, and by federal
regulations implementing that Act, at a campus at which at least 40
percent of the students are educationally disadvantaged. In
meeting the costs of providing a compensatory, intensive, or
accelerated instruction program under Section 29.081, a district's
compensatory education allotment shall be used for costs
supplementary to the regular education program, such as costs for
program and student evaluation, instructional materials and
equipment and other supplies required for quality instruction,
supplemental staff expenses, salary for teachers of at-risk
students, smaller class size, and individualized instruction. A
home-rule school district or an open-enrollment charter school must
use funds allocated under Subsection (a) for a purpose authorized
in this subsection but is not otherwise subject to Subchapter C,
Chapter 29. Notwithstanding any other provisions of this section:
(1) to ensure that a sufficient amount of the funds
allotted under this section are available to supplement
instructional programs and services, no more than 18 percent of the
funds allotted under this section may be used to fund disciplinary
alternative education programs established under Section 37.008;
(2) the commissioner may waive the limitations of
Subdivision (1) upon an annual petition, by a district's board and a
district's site-based decision making committee, presenting the
reason for the need to spend supplemental compensatory education
funds on disciplinary alternative education programs under Section
37.008, provided that:
(A) the district in its petition reports the
number of students in each grade level, by demographic subgroup,
not making satisfactory progress under the state's assessment
system; and
(B) the commissioner makes the waiver request
information available annually to the public on the agency's
website; and
(3) for purposes of this subsection, a program
specifically designed to serve students at risk of dropping out of
school, as defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education allotment for such a program.
(c-1) Notwithstanding Subsection (c), funds allocated under
this section may be used to fund in proportion to the percentage of
students served by the program that meet the criteria in Section
29.081(d) or (g):
(1) an accelerated reading instruction program under
Section 28.006(g); or
(2) a program for treatment of students who have
dyslexia or a related disorder as required by Section 38.003.
(c-2) Notwithstanding Subsection (c), funds allocated under
this section may be used to fund a district's mentoring services
program under Section 29.089.
(d) The agency shall evaluate the effectiveness of
accelerated instruction and support programs provided under
Section 29.081 for students at risk of dropping out of school.
(e) The commissioner may:
(1) retain a portion of the total amount allotted
under Subsection (a) that the commissioner considers appropriate to
finance intensive accelerated instruction programs and study
guides provided under Sections 39.024(b) and (c); and
(2) reduce each district's tier one allotments in the
same manner described for a reduction in allotments under Section
42.253.
(f) From the total amount of funds appropriated for
allotments under this section, the commissioner shall, each fiscal
year, withhold an amount to be determined by the commissioner, but
not less than $10,000,000, and distribute that amount for programs
under Section 29.085. In distributing those funds, preference
shall be given to a school district that received funds for a
program under Section 29.085 for the preceding school year. The
program established under that section is required only in school
districts in which the program is financed by funds distributed
under this section and any other funds available for the program.
(g) The commissioner shall coordinate the funds withheld
under Subsection (f) and any other funds available for the program
and shall distribute those funds. To receive funds for the program,
a school district must apply to the commissioner. The commissioner
shall give a preference to the districts that apply that have the
highest concentration of students who are pregnant or who are
parents.
(h) After deducting the amount withheld under Subsection
(f) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's tier
one allotments in the same manner described for a reduction in
allotments under Section 42.253 and shall allocate funds to each
district accordingly.
(i) From the total amount of funds appropriated for
allotments under this section, the commissioner shall, each fiscal
year, withhold $7,500,000 or a greater amount as determined in the
General Appropriations Act and distribute that amount for programs
under Subchapter A, Chapter 33. A program established under that
subchapter is required only in school districts in which the
program is financed by funds distributed under this section or
other funds distributed by the commissioner for a program under
that subchapter. In distributing those funds, preference shall be
given to a school district that received funds for a program under
this subsection for the preceding school year.
(j) The commissioner shall coordinate the funds withheld
under Subsection (i) and any other funds available for the program
and shall distribute those funds. To receive funds for the program,
a school district must apply to the commissioner. The commissioner
shall give a preference to the districts that apply that have the
highest concentration of at-risk students. For each school year
that a school district receives funds under this section, the
district shall allocate an amount of local funds for school
guidance and counseling programs that is equal to or greater than
the amount of local funds that the school district allocated for
that purpose during the preceding school year.
(k) After deducting the amount withheld under Subsection
(i) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's tier
one allotments in the same manner described for a reduction in
allotments under Section 42.253.
(l) From the total amount of funds appropriated for
allotments under this section, the commissioner shall, each fiscal
year, withhold the amount of $2.5 million for transfer to the
investment capital fund under Section 7.024.
(m) From the total amount of funds appropriated for
allotments under this section, the commissioner may withhold an
amount not exceeding $1 million each fiscal year and distribute the
funds to school districts that incur unanticipated expenditures
resulting from a significant increase in the enrollment of students
who do not have disabilities and who reside in residential
placement facilities.
(n) After deducting the amount withheld under Subsection
(l) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's
allotment under Subsection (a) proportionately and shall allocate
funds to each district accordingly.
(o) After deducting the amount withheld under Subsection
(m) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's
allotment under Subsection (a) proportionately.
(p) The commissioner shall:
(1) withhold, from the total amount of funds
appropriated for allotments under this section, an amount
sufficient to finance extended year programs under Section 29.082
not to exceed five percent of the amounts allocated under this
section; and
(2) give priority to applications for extended year
programs to districts with high concentrations of educationally
disadvantaged students.
(q) The State Board of Education, with the assistance of the
comptroller, shall develop and implement by rule reporting and
auditing systems for district and campus expenditures of
compensatory education funds to ensure that compensatory education
funds, other than the indirect cost allotment, are spent only to
supplement the regular education program as required by Subsection
(c). The reporting requirements shall be managed electronically to
minimize local administrative costs. A district shall submit the
report required by this subsection not later than the 150th day
after the last day permissible for resubmission of information
required under Section 42.006.
(q-1) The commissioner shall develop a system to identify
school districts that are at high risk of having used compensatory
education funds other than in compliance with Subsection (c) or of
having inadequately reported compensatory education expenditures.
If a review of the report submitted under Subsection (q), using the
risk-based system, indicates that a district is not at high risk of
having misused compensatory education funds or of having
inadequately reported compensatory education expenditures, the
district may not be required to perform a local audit of
compensatory education expenditures and is not subject to on-site
monitoring under this section.
(q-2) If a review of the report submitted under Subsection
(q), using the risk-based system, indicates that a district is at
high risk of having misused compensatory education funds, the
commissioner shall notify the district of that determination. The
district must respond to the commissioner not later than the 30th
day after the date the commissioner notifies the district of the
commissioner's determination. If the district's response does not
change the commissioner's determination that the district is at
high risk of having misused compensatory education funds or if the
district does not respond in a timely manner, the commissioner
shall:
(1) require the district to conduct a local audit of
compensatory education expenditures for the current or preceding
school year;
(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures; or
(3) both require a local audit and order on-site
monitoring.
(q-3) If a review of the report submitted under Subsection
(q), using the risk-based system, indicates that a district is at
high risk of having inadequately reported compensatory education
expenditures, the commissioner may require agency staff to assist
the district in following the proper reporting methods or amending
a district or campus improvement plan under Subchapter F, Chapter
11. If the district does not take appropriate corrective action
before the 45th day after the date the agency staff notifies the
district of the action the district is expected to take, the
commissioner may:
(1) require the district to conduct a local audit of
the district's compensatory education expenditures; or
(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures.
(q-4) The commissioner, in the year following a local audit
of compensatory education expenditures, shall withhold from a
district's foundation school fund payment an amount equal to the
amount of compensatory education funds the agency determines were
not used in compliance with Subsection (c). The commissioner shall
release to a district funds withheld under this subsection when the
district provides to the commissioner a detailed plan to spend
those funds in compliance with Subsection (c).
(r) The commissioner shall grant a one-year exemption from
the requirements of Subsections (q)-(q-4) to a school district in
which the group of students who have failed to perform
satisfactorily in the preceding school year on an assessment
instrument required under Section 39.023(a), (c), or (l)
subsequently performs on those assessment instruments at a level
that meets or exceeds a level prescribed by commissioner rule. Each
year the commissioner, based on the most recent information
available, shall determine if a school district is entitled to an
exemption for the following school year and notify the district of
that determination.
(s) Expired.
(t) A reduction made under this section or the General
Appropriations Act in the allotment under this section does not
affect the computation of students in weighted average daily
attendance for purposes of Subchapter F.
(u), (v) Expired.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 16, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 1.13, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 725, § 11, eff. June 13, 2001; Acts
2001, 77th Leg., ch. 1156, § 4, 12, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 201, § 30, eff. Sept. 1, 2003; Acts 2003,
78th Leg., ch. 253, § 1, eff. Sept. 1, 2003; Acts 2003, 78th
Leg., ch. 783, § 2, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch.
785, § 57, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 903,
§ 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, §
6.009, eff. Sept. 1, 2003; Acts 2005, 79th Leg., ch. 728, §
23.001(17), eff. Sept. 1, 2005.
Section: 42.101 42.102 42.103 42.104 42.105 42.106 42.151 42.152 42.153 42.154 42.155 42.156 42.157 42.158 42.251
Last modified: August 10, 2007
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