Section 1127 of the ESEA Title I, Part A, allows LEAs to carryover up to 15% of their allocations for any fiscal year. If the carryover amount exceeds 15%, the LEAs may file a request with the CDE to waive that limit. The fifteen percent carryover limit does not apply if an LEA’s entitlement (including funds transferred-in from other Federal education programs) is less than $50,000 for the fiscal year. Please visit the U.S. Department of Education's website to view the education code section regarding Carryover and Waiver information (Outside Source).
Transferability and Title I Carryover:
If an LEA transfers funds from another Federal education program into Title I, Part A under the transferability provision in section 6123 of ESEA, then the additional amount transferred is added to the LEA’s Title I, Part A allocation, and the combined amount becomes the base for calculating the 15 percent carryover limitation.
The Availability Period for Fiscal Year 2009-10 Funds:
Fiscal year 2009-10 Title I, Part A funds must be obligated by September 30, 2011 and the obligations must be liquidated by December 30, 2011. Any unobligated 2009-10 funds must be returned to CDE.
Change to the Once-In-Three Year Approval Restriction:
The Elementary and Secondary Education Act, Title I, Part A Section 1127 allows a local educational agency (LEA) to carry over up to 15 percent of a fiscal year’s Title I, Part A allocation. The law allows a state educational agency (SEA) to grant an LEA a waiver of this carryover limit if: (1) the LEA’s request is reasonable and necessary, or (2) a supplemental Title I, Part A appropriation becomes available. The SEA may grant such a waiver once in three years.
According to non-regulatory guidance regarding Title I, Part A waivers, the U.S. Department of Education (ED) approved a waiver to allow the California Department of Education to waive the once-in-three-year restriction and to grant a waiver to LEAs that need the additional waiver due to the American Recovery and Reinvestment Act (ARRA) supplemental funds. This receipt of the one-time waiver allowed LEAs that received a carryover waiver in either of the previous two years to be eligible to apply for a waiver to carry over 2009–10 funds to fiscal year 2010–11, providing an LEA received ARRA funds.
The ED waiver also lifts the once-in-three-year restriction for Title I, Part A carryover waivers for the fiscal year 2010–11 allocation. LEAs with carryover waivers in the last two years will again be eligible to apply for a waiver to carry over the 2010–11 funds exceeding the 15 percent carryover limit into the fiscal year 2011–12, providing an LEA received the one-time supplemental allocation of 2009–10 ARRA funds.
Eligible LEAs that apply for and receive a waiver for 2010–11 funds in the 2011–12 Consolidated Application (ConApp) will be subject to the once-in-three-year limit and will not be eligible to apply for a waiver to carry over 2011–12 funds to fiscal year 2012–13 or 2012–13 funds to fiscal year 2013–14.
LEAs with an approved waiver to carry over fiscal year 2009–10 funds to fiscal year 2010–11 (2011–12 ConApp) and not applying to carry over fiscal year 2010–11 funds to fiscal year 2011–12 (2012–13 ConApp) will be eligible to apply to carry over fiscal year 2012–13 funds (2013–14 ConApp).Carryover Waiver Request:
A request to waive the 15 percent carryover limit is embedded in Title I, Part A Carryover Calculation and Waiver Request page of the Consolidated Application, Part II.
The LEAs without the ARRA funds will apply for a carryover waiver request by completing Section C of the Title I, Part A, Carryover Calculation and Waiver Request. If the LEA received a waiver in the last two years and did not receive ARRA funds, the LEA is not allowed to carry over funds exceeding the 15 percent limit and therefore, is not eligible to apply for a waiver request in the ConApp. The CDE will bill the LEA for the amount exceeding the 15 percent carryover limit.
The instructions for completing the carryover page are included with the Con App. The filing of the waiver request in the Con App is not an automatic approval of the waiver request. The CDE will review the LEA’s request and issue a formal approval or denial of the waiver request.
February, 2008 – Fiscal Issues: Title I, Part A, Non-regulatory Guidance (Outside Source)
