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Ltr5-09: ARRA, Title I, Part A

Letter Head: Tom Torlakson, State Superintendent of Public Instruction, California Department of Education

April 20, 2011

Dear County Superintendents of Schools:

NOTICE OF THE FIFTH APPORTIONMENT
FOR TITLE I, PART A, OF THE NO CHILD LEFT BEHIND ACT OF 2001
FROM THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
FISCAL YEAR 2009-10

This apportionment, in the amount of $109,028,421, is made from federal funds provided to the state under the American Recovery and Reinvestment Act (ARRA) of 2009 (Public Law (PL) 111-5) and designated for the Title I, Part A program under the Elementary and Secondary Education Act (ESEA) of 1965, as amended by the No Child Left Behind Act (NCLB) of 2001 (PL 107-110). ARRA funding for the Title I program is in addition to the regular Title I federal appropriation, which is intended to assist local educational agencies (LEAs) and schools that have a high concentration of students from families that live in poverty, in order to improve teaching and learning for students most at risk of failing to meet state standards. The additional ARRA funding is designed to enable LEAs to serve more students and boost the quality of the services provided.

A total of $1.125 billion was made available for the ARRA Title I program. Fifty percent of this amount ($562.5 million) was awarded to the state in April 2009 and appropriated in Item 6110-134-0890, Schedule (10) of the Budget Act of 2008 (Chapters 268 and 269, Statutes of 2008) as amended pursuant to Section 28.00 of that act. The remaining 50 percent was awarded in August 2009 and appropriated in the Budget Act of 2009. After mandated set-asides, the total amount available for allocation to LEAs is $540.0 million in each of the two fiscal years. For fiscal year 2009-10, $526.5 million is for Title I, Part A, and $13.5 million is for Title I, Part D.

The amount paid to each LEA in this apportionment was determined based on information reported by the LEA in the ARRA Section 1512 March 2011 Quarterly Report. In order to reduce the time elapsing between the receipt and disbursement of federal funds, as required by federal statute and regulations, the federal cash management threshold was then applied to the information that LEAs reported in March. As such, each LEA’s payment is equal to 25 percent of its total ARRA Title I, Part A entitlement for fiscal years 2008-09 and 2009-10 minus its cash balance. Its cash balance was calculated by the California Department of Education (CDE) by subtracting the LEA’s reported expenditures and obligations, from the effective date of the 2008-09 grant through March 31, 2011, from the total paid in previous apportionments for the 2008-09 and 2009-10 grants. Any amount payable in excess of the unpaid balance of an LEA’s fiscal year 2008-09 entitlement is being paid in this apportionment from 2009-10 funds.

Newly eligible charter schools, which were not apportioned ARRA funds previously and thus were not required to submit the ARRA Section 1512 March 2011 Quarterly Report, are also included in this apportionment.

Eligibility

An LEA is eligible for ARRA funding if it "has at least 10 formula children and in which those formula children comprise at least 5 percent of the LEA's school-aged population." For additional details, see Items A-5 and A-6 of the April 2009 guidance issued by the United States Department of Education (ED), located at http://www.ed.gov/policy/gen/leg/recovery/guidance/title-i.pdf External link opens in new window or tab..

Use of Funds

These funds must be “used consistent with the Title I, Part A statutory and regulatory requirements, including the requirements to provide equitable services to eligible private school students. Uses should be aligned with the core goals of the ARRA to save and create jobs and to advance reforms consistent with the requirements of Title I.” Examples of possible uses of ARRA Title I, Part A funds consistent with ARRA principles are listed in the ED Web site at http://www.ed.gov/policy/gen/leg/recovery/factsheet/title-i.html External link opens in new window or tab.. Additional federal guidance on allowable uses of ARRA Title I, Part A funds is available at http://www.ed.gov/policy/gen/leg/recovery/guidance/titlei-reform.pdf External link opens in new window or tab..

Federal guidance notes that ARRA funds are one time and will likely not be available at the same level, if at all, beyond September 30, 2011. Use of funds on short-term investments with potential long-term benefits is encouraged.

Reporting

Pursuant to Section 1512 of ARRA, LEAs must submit quarterly reports that cover cumulative activities from the beginning of the grant period. At a minimum, grantees report: (1) amounts of ARRA grant funds expended on or obligated to projects or activities; (2) an estimate of the number of jobs that were saved or created with the ARRA funds; and (3) for infrastructure investments, the purpose, total cost, and rationale for funding the investment and the name and contact information of the person to contact regarding the project. Reporting guidelines from the Office of Management and Budget and the ED are available at http://www.cde.ca.gov/ar/rr/ (Section 1512(c) and (f) of the ARRA).

Grant Award, Other Information

The ED award number for this apportionment is S389A090005. The Catalog of Federal Domestic Assistance subprogram number is 84.389A, Title I Grants to LEAs, Recovery Act.

This grant award is subject to the provisions of Title I and Title IX of the ESEA, as applicable, and the General Education Provisions Act (GEPA). This grant is also subject to the Title I regulations in Title 34 of the Code of Federal Regulations (CFR), Part 200, and the Education Department General Administrative Regulations in 34 CFR parts 76 (except for 76.650-76.662, Participation of Students Enrolled in Private Schools), 77, 80, 81, 82, and 85. Regulations regarding Participation of Eligible Children in Private Schools are found in 34 CFR sections 200.62–200.67.

Under the federal Tydings Amendment, Section 421(b) of GEPA, any funds that are not obligated at the end of the federal funding period, July 1, 2009, through September 30, 2010, shall remain available for obligation for an additional 12 months, through September 30, 2011, subject to the limitation in Section 1127(a) of the ESEA. That subsection allows an LEA to carry over no more than 15 percent of its Title I, Part A allocations, including ARRA Title I, but not including funds received through any reallocations under ESEA Section 1126(c), for one additional fiscal year, unless it receives a waiver from the CDE or its total allocation is less than $50,000.

Title 34 of the CFR, Section 80.21(i), requires that any interest earned by LEAs on federal dollars be returned to the ED promptly, but at least quarterly. LEAs may keep interest amounts up to $100 per year for administrative expenses. LEAs should forward interest payments for remittance to the ED to:

California Department of Education
Cashier’s Office
P.O. Box 515006
Sacramento, CA 95851

To ensure proper posting of payments, please include the program’s Project Cost Account (PCA) number (PCA 15005) and identify the payment as “Federal Interest Returned.”

Beginning in fiscal year 2010-11, letters of apportionment from the CDE’s School Fiscal Services Division are no longer being mailed to the county superintendents of schools. Instead, county superintendents will be notified of each apportionment by e-mail. Accordingly, the CDE has sent an e-mail to each county superintendent, addressed to the county’s CDEfisc e-mail address, to inform him or her of this apportionment. The e-mail contained a link to the CDE Categorical Programs Web page at http://www.cde.ca.gov/fg/aa/ca/ where, under the program name, the letter and schedule for this apportionment are posted. The CDE requested that the e-mail be forwarded to all school districts and charter schools in the county.

Warrants will be mailed to each county treasurer approximately three weeks from the date of this Notice. For standardized account code structure coding, use Resource Code 3011, NCLB: ARRA Title I, Part A, Basic Grants Low Income and Neglected, and Revenue Object Code 8290, All Other Federal Revenue.

Each recipient and subrecipient awarded funds made available under the ARRA must promptly refer to the ED’s Office of Inspector General any credible evidence that a principal officer, employee, agent, contractor, subrecipient, subcontractor, or other person has submitted a false claim under the False Claims Act or has committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving those funds. Information about the Office of Inspector General Hotline is available at http://www.ed.gov/about/offices/list/oig/hotline.html External link opens in new window or tab..

Questions

If you have any questions regarding the Title I program, please contact the Title I School Support and Title I Basic Office by phone at 916-319-0854. For questions concerning this apportionment or the ARRA entitlement amounts, please contact Leslie Sharp, Assistant Fiscal Consultant, Categorical Allocations and Management Assistance Office, by phone at 916-323-4977 or by e-mail at lsharp@cde.ca.gov.

Sincerely,

Jeannie Oropeza, Deputy Superintendent
Finance, Technology, and Administration Branch

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