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Title I, Part A Carryover and Waiver

Local educational agencies (LEAs) are authorized to carry over 15 percent (or less) of the Title I, Part A funds to the succeeding fiscal year (FY) without applying for a waiver.

Title I, Part A LEA Carryover Limitation | Title I, Part A Funds: Period of Availability | LEA Carryover Limitation Exclusion | Reporting Expenditures and Calculating Carryover | Carryover Funds | Allocating Carryover Funds | How to Request a Carryover Waiver | Carryover Waiver Request Criteria | CDE Review of a Carryover Waiver Request | Resources

Title I, Part A LEA Carryover Limitation

The General Education Provisions Act Section 421(b)(1) and the Elementary and Secondary Education Act (ESEA) of 1965, as reauthorized by the Every Student Succeeds Act (ESSA) Section 1127(a), state that not more than 15 percent of the funds allocated to an LEA for any FY (but not including funds received through any reallocation), may remain available for obligation and expenditure for one additional FY. All remaining funds not expended or obligated by September 30 of the succeeding FY shall be returned to the California Department of Education (CDE).

The federal FY ends September 30. Unspent Title I, Part A funds become carryover funds on October 1 each FY.

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Title I, Part A Funds: Period of Availability

Title I, Part A funds are available for a full 15-month period (until September 30) before the limitation on carryover funds applies.

Title I, Part A LEA Allocation Carryover Period
Funding Year One additional year
July 1 through September 30 October 1 through September 30
15 months 12 months

The CDE recommends that the LEA expend or obligate the entire Title I, Part A allocation within each FY. LEAs are authorized to carry over up to 15 percent of Title I, Part A funds to the succeeding FY without applying for a waiver.

  • Note: The percentage limitation is applied to the amount of Title I, Part A funds allocated to the LEA, plus any funds the LEA transferred into Title I, Part A from other ESEA programs.

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LEA Carryover Limitation Exclusion

The 15 percent carryover limitation does not apply, if the LEA allocation (including funds transferred-in from other federal education programs) is less than $50,000 for the FY (ESSA Section 1127[c]).

Sample Waiver of Carryover Limitation Eligibility Timeline:

Waiver Status Fiscal Year
Waiver Approved FY 2021−22
Not Eligible for Waiver FY 2022−23
Not Eligible for Waiver FY 2023−24
Eligible to Apply for a Waiver FY 2024−25

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Reporting Expenditures and Calculating Carryover

LEAs complete the Title I, Part A LEA Carryover data collection form in the Consolidated Application and Reporting System (CARS/ConApp) during the winter release (which opens in January) to report expenditures and obligations through September 30. Once the expenditures and obligations amount is entered into the form and the form is saved, the system calculates the carryover dollar amount and percentage (if any). If the LEA has carryover greater than 15 percent and is eligible to apply for a waiver, the waiver request section will display in the Title I, Part A LEA Carryover form when the form is saved.

IMPORTANT: The Title I, Part A LEA Carryover data collection form must be completed during the CARS Winter Release by the dates published by the CARS office.

According to the ESSA Section 1127(b), a State Educational Agency may waive the 15 percent limitation only once every three years.

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Carryover Funds

Unspent Title I, Part A carryover funds, at or below the allowable 15 percent, from the prior year, remain available for obligation by the LEA for one additional fiscal year (ESSA Section 1127[a]). Unspent Title I, Part A funds from the prior year may include funds:

  • Reserved for a specific purpose but were not spent.
  • Retained for LEA-wide direct student services.
  • Allocated to a school(s).

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Allocating Carryover Funds

Before allocating carryover funds, the LEA must ensure that any Title I, Part A funds, originally required to be reserved for specific activities (e.g., parent and family engagement, equitable services), that were not spent should be used for those specific activities in the subsequent fiscal year.

When determining how to allocate carryover funds;

  • The LEA shall:
    • Meet its obligations with respect to the statutory reservations from funds that remain available for the subsequent school year.
  • The LEA may:
    • Retain some/all of the remaining carryover funds at the LEA level for LEA-wide direct student services; and/or
    • Allocate some/all of the remaining carryover funds to eligible schools.

The LEA may only report the amount of allowable (up to 15 percent) carryover funds allocated to eligible schools in the carryover column of the Title I, Part A School Allocations data collection form in the CARS/ConApp.

IMPORTANT: Excess carryover is not reported in the Title I, Part A School Allocations data collection form.

For more information, please refer to the Title I, Part A School Allocations web page.

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How to Request a Carryover Waiver

For FY 2022−23, all LEAs with remaining carryover funds 15 percent or greater as of September 30, 2023, must apply for a waiver in the CARS/ConApp during the 2024 CARS Winter Release when completing the Title I, Part A LEA Carryover data collection form.

LEAs type the waiver request in the waiver request box in the Title I, Part A LEA Carryover data collection form in the CARS/ConApp. The system limits the waiver request response to 1,700 characters. NOTE: “Characters” refers to total characters, including spaces and punctuation, not word count.

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Carryover Waiver Request Criteria

When requesting a Title I, Part A carryover waiver, the CDE may, once every three years, waive the percentage limitation if the CDE determines the LEA waiver request is reasonable and necessary (ESSA Section 1127[a]). The LEA shall provide in the waiver request a description why the LEA has carryover funds and how the LEA plans to expend or obligate those funds, and confirmation that the planned activities/expenditures comply with the Title I, Part A Authorized Use of Funds criteria and will be expended or obligated in accordance with approved LEA and/or school plans by the end of the carryover year.

For more detailed information, refer to the  Title I, Part A Carryover Waiver Request Criteria web page.

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CDE Review of a Carryover Waiver Request

Completion of the waiver section in the Title I, Part A LEA Carryover data collection form is not an automatic approval of the carryover waiver request.

The waiver request must be approved by the CDE before the LEA may allocate, expend, and/or obligate the excess carryover funds.

CDE staff will review the Title I, Part A LEA carryover waiver request to determine if it is reasonable and necessary and includes the required elements. The CDE will issue a formal approval or denial letter to the LEA.

If the LEA is not granted a carryover waiver, the CDE will invoice the LEA for all funds over the allowable 15 percent limitation.

If the LEA has Title I, Part A carryover funds exceeding 15 percent and does not wish to apply for a carryover waiver, the LEA may enter a request to be invoiced in the waiver request box. The CDE will invoice the LEA for all funds over the allowable 15 percent limitation.

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Resources

Instructions: 2021–22 Title I Part A LEA Carryover
Detailed instructions regarding how to complete the 2021−22 LEA Carryover form.

CARS/ConApp
The CARS is a data collection system to apply for Categorical Program Funding and to report on the use of those funds.

Title I, Part A Authorized Use of Funds
Title I, Part A federal funds help to meet the educational needs of students in California.

Non-Regulatory Guidance: Title I Fiscal Issues: Maintenance of Effort Comparability Supplement, not Supplant Carryover Consolidating Funds in Schoolwide Programs Grantback Requirements External link opens in new window or tab. (DOC)
The U.S. Department of Education (ED) Non-Regulatory Guidance - Title I Fiscal Issues dated February 2008.

Non-Regulatory Guidance: Fiscal Changes and Equitable Services Requirements Under the ESEA, as Amended by the ESSA External link opens in new window or tab. (PDF)
ED Non-Regulatory Guidance - Fiscal Changes and Equitable Services Requirements dated November 2016.

Non-Regulatory Guidance: Supplement Not Supplant Under Title I, Part A of the ESEA, as Amended by the ESSA External link opens in new window or tab. (PDF)
ED Non-Regulatory Guidance - Supplement not Supplant dated June 2019.

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Questions:   Title I Policy, Program, and Support Office | RDeRose@cde.ca.gov
Last Reviewed: Tuesday, July 18, 2023
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