Title I, Part A Carryover and Waiver

The California Department of Education (CDE) recommends that the LEA obligate or expend the entire Title I, Part A allocation within each fiscal year (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.

The General Education Provisions Act Section 421(b)(1) and the Elementary and Secondary Education Act 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 LEA for any fiscal year (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 CDE.

According to ESSA Section 1127(b), a State Educational Agency (SEA) may waive the 15 percent carryover limitation, only once every three years. Please refer to the waiver eligibility section.

Carryover Exclusion

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

Waiver Eligibility

According to ESSA Section 1127(b), a SEA may waive the 15 percent carryover limitation, only once every three years, if:

1. The LEA's request is reasonable and necessary; or
2. Supplemental appropriations become available.

Sample carryover waiver eligibility timeline:

How to Request a Waiver

Prior to requesting a carryover waiver, consider the following questions:

• Why does the LEA have the excess carryover?
• Are there steps in place to prevent excess carryover funds in the future? 

The LEA may request a carryover waiver by completing the Title I, Part A Carryover form in the Consolidated Application and Reporting System (CARS) during the winter release (opening in January each year).

When requesting a carryover waiver, the LEA shall provide the following:

• A description of how the LEA plans to expend the carryover funds
• An assurance that the planned activities/expenditures comply with the Title I, Part A Authorized Use of Funds

The CDE will review the LEA’s Title I, Part A carryover waiver request to determine if it is reasonable and necessary, and issue a formal approval or denial letter. If the LEA is not granted a carryover waiver, the CDE will invoice the LEA for all funds over the allowable 15 percent limitation.

Reallocating Carryover Funds

Title I, Part A carryover funds are LEA funds to obligate and expend as they determine appropriate which may include centralized services for improving academic achievement pursuant to ESSA Section 1112(b)(13). Such services may include activities and/or expenditures that comply with the general criteria provided on the Title I, Part A Authorized Use of Funds web page.

The LEA's have discretion how carryover (unspent) funds are re-allocated during the succeeding FY. Unspent Title I, Part A funds from the prior year include: centralized services, funds allocated to the schools, and funds allocated for equitable services. Carryover funds may be re-allocated to eligible schools. To find more information on rank and serve eligibility, please refer to the Title I, Part A School Allocations web page.

Resources

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 21, 2016) (PDF)

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)