The Kentucky Department of Education has received numerous calls regarding Title I district allocations. In response to questions received, I would like to share with you information that the U. S. Department of Education has shared with us on how they figure the allocations for every school district in the nation.
Federal funds are currently allocated through four statutory formulas that are based primarily on
census poverty estimates and the cost of education in each state. (1) Basic Grants provide funds to LEAs in which the number of children counted in the formula is at least 10 and exceeds 2 percent of an LEA's school-age population. (2) Concentration Grants flow to LEAs where the number of formula children exceeds 6,500 or 15 percent of the total school-age population. (3) Targeted Grants are based on the same data used for Basic and Concentration Grants except that the data are weighted so that LEAs with higher numbers or higher percentages of poor children receive more funds. Targeted Grants flow to LEAs where the number of schoolchildren counted in the formula (without application of the formula weights) is at least 10 and at least 5 percent of the LEA's school-age population. (4) Education Finance Incentive Grants (EFIGs) distribute funds to states based on factors that measure: (a) a state's effort to provide financial support for education compared to its relative wealth as measured by its per capita income and (b) the degree to which education expenditures among LEAs within the state are equalized. Once a state's EFIG allocation is determined, funds are allocated (using a weighted count formula that is similar to Targeted Grants) to LEAs in which the number of poor children is at least 10 and at least 5 percent of the LEA's school-age population.
The previous legislation [Improving America’s Schools Act (IASA)] contained the same formulas as NCLB but money was not appropriated for funding Targeted Grants and the Education Finance Incentive Grant. Kentucky has benefited by these two formulas being applied.
The USDOE is using updated 2005 Census data to calculate FY 2008 (SY-2008-2009) Title I allocations (NCLB initiated the requirement that census data be updated annually). The 2005 Census updates incorporate data from the American Community Survey (ACS) for the first time. This data replaces data from the Current Population Survey (CPS) as one of the data elements used in developing earlier LEA poverty estimates. ACS has a larger sample size. An impact of the 2005 Census estimates was that on the national level the number of poor children ages 5 – 17 increased by roughly 340,000 (4%) in 2005 to 9.2 million. The updated 2005 national poverty rate went to 17%--up from 16.4% in 2004 and 2003. How these numbers are distributed across the nation has an impact on every district in the nation. In some cases a district’s numbers may increase but they may not have increased as much as another district in the country; therefore, its allocation may be less. Kentucky was one of forty states that showed an increase in the number of poor children with the percent ranging from 0.5% to 28%.
Other factors that affect the 2008-2009 allocations are non-census data elements (children in local neglected or delinquent institutions, children in foster homes, and children in families above poverty receiving TANF assistance) state per-pupil expenditures, amount appropriated, hold-harmless guarantee and small state minimums.
The impact of the Title I allocation is reflected in the amount of Perkins funds a district receives because a portion of the Perkins formula uses the same census data as is used in determining Title I allocations.
We understand the frustration your district may be having if Title I dollars have been decreased or if the increase is minimal. We have checked with the federal government and there just isn’t any flexibility in how the USDOE determines allocations for every school district in the nation. The formula is in statute. We will continue to work with our federal contacts on recommended changes to NCLB. If you are unhappy with the formulas or want to recommend changes, we can use your support in contacting your congressional representatives.
Thank you for all the work you continue to do for our children.
Jon E. Draud, Commissioner