Title I, Part A Carryover and Waiver
For each fiscal year, the Elementary and Secondary Education Act as reauthorized by the Every Student Succeeds Act limits the amount of Title I, Part A local educational agency carryover funds that may remain available for obligation or expenditure.The General Education Provisions Act (GEPA) Section 421(b)(1) and the Elementary and Secondary Education Act (ESEA) as reauthorized by the Every Student Succeeds Act (ESSA) Section 1127(a), state that not more than 15 percent of the funds allocated to a local educational agency (LEA) for any fiscal year (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 fiscal year ends September 30. Unspent Title I, Part A funds become carryover funds on October 1 each FY.
The CDE recommends that the LEA obligate or expend 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.
Carryover 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]).
- 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.
Coronavirus (COVID-19) Federal Funding Flexibility Waiver
*****Important Update*****
On September 10, 2021, the United States Department of Education (ED) granted the State of California approval of their COVID-19 Federal Funding Flexibility Waiver Request.
- Period of availability of funds in section 421(b) of the GEPA: to extend the period of availability of FY 2019−20 funds for programs in which California participates under its approved consolidated State plan until September 30, 2022.
- General waiver approved to waive the 15 percent limitation once every three years for FY 2020–21 funds.
The Federal Funding Flexibility Waiver allows the LEA to request to carry over more than 15 percent of FY 2020−21 Title I, Part A funds (i.e., the Title I, Part A funds that became carryover funds on October 1, 2021), even if the LEA received a carryover waiver from the CDE for FY 2018−19 and/or FY 2019−20. In other words, having an approved Title I, Part A LEA carryover waiver for FY 2018−19 and/or FY 2019−20 will not preclude the LEA from applying for a carryover waiver for FY 2020−21.
Below is the updated timeline regarding carryover funds expiration in response to both of the Federal Funding Flexibility Waivers under the Coronavirus Aid, Relief, and Economic Security Act:
| Title I, Part A Fiscal Year | Federal Funding Flexibility Waiver Carryover Funds Expiration Dates |
|---|---|
| FY 2018−19 | September 30, 2021 (funds expiration date change due to the Federal Funding Flexibility Waiver [granted April 21, 2020]). |
| FY 2019−20 | September 30, 2022 (funds expiration date change due to the Federal Funding Flexibility Waiver [granted September 10, 2021]). |
| FY 2020−21 | September 30, 2022 (no funds expiration date change). |
For more information about the Federal Funding Flexibility Waivers, please refer to the COVID-19 Federal Funding Flexibility web page.
Sample Carryover Waiver Eligibility Timeline:
| Waiver Status | Fiscal Year |
|---|---|
| Waiver Approved | FY 2020−21 |
| Not Eligible for Waiver | FY 2021−22 |
| Not Eligible for Waiver | FY 2022−23 |
| Eligible to Apply for a Waiver | FY 2023−24 |
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.
According to the ESSA Section 1127(b), a State Educational Agency may waive the 15 percent limitation only once every three years.
IMPORTANT: Please refer to the COVID-19 Federal Funding Flexibility Waiver eligibility information and important updates for FY 2019–20 and FY 2020–21 provided above.
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.
- Allocated/reserved for equitable services.
- Retained for LEA-wide direct student services.
- Allocated to a school(s).
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.
How to Request a Waiver
For FY 2020−21, all LEAs with remaining carryover funds 15 percent or greater as of September 30, 2021, must apply for a waiver in the CARS/ConApp during the Winter Release (beginning in January 2022) 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.
Carryover Waiver Request Criteria
When requesting a Title I, Part A carryover waiver, the LEA shall provide a reasonable and necessary justification description which includes several required elements. For detailed information, refer to the Title I, Part A Carryover Waiver Request Criteria web page.
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 carryover funds, in excess of the 15 percent limit, can be allocated, expended, and/or obligated by the LEA.
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 apply for a carryover waiver, the CDE will invoice the LEA for all funds over the allowable 15 percent limitation.
Resources
Instructions: 2020–21 Title I Part A LEA Carryover (will post link when available)
Detailed instructions regarding how to complete the 2020−21 LEA Carryover form.
Instructions: 2019–20 Title I, Part A LEA Carryover
Detailed instructions regarding how to complete the 2019-20 LEA Carryover form.
CARS/ConApp
Link to the CDE’s CARS/ConApp web page.
Title I, Part A Authorized Use of Funds
Link to the CDE’s Title I, Part A Authorized Use of Funds web page.
COVID-19 Federal Funding Flexibility
Link to the COVID-19 Federal Funding Flexibility web page (Waivers granted September 10, 2021 for FY 2019–20 and FY 2020–21; Waivers granted April 21, 2020 for FY 2018–19 and FY 2019–20).
Title I, Part A Flexibility Response Letter (September 10, 2021) - Elementary and Secondary Education Act (PDF)
Link to ED's Waiver Approval Letter dated September 10, 2021.
Title I, Part A Flexibility Response Letter (April 21, 2020) - Elementary and Secondary Education Act (PDF)
Link to ED's Waiver Approval Letter dated April 21, 2020.
Non-Regulatory Guidance: Title I Fiscal Issues: Maintenance of Effort Comparability Supplement, not Supplant Carryover Consolidating Funds in Schoolwide Programs Grantback Requirements (February 2008)
(DOC)
Link to ED's Non-Regulatory Guidance -- Title I Fiscal Issues dated February 2008.
Non-Regulatory Guidance: Fiscal Changes and Equitable Services Requirements Under the Elementary and Secondary Education Act of 1965 (ESEA), as Amended by the Every Student Succeeds Act (ESSA) (November 2016)
(PDF)
Link to ED's 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 Elementary and Secondary Education Act of 1965, As Amended by the Every Student Succeeds Act (June 2019)
(PDF)
Link to ED's Non-Regulatory Guidance -- Supplement not Supplant dated June 2019.
