Title I, Part A Carryover and Waiver

Coronavirus Aid, Relief, and Economic Security Act: Title I, Part A Federal Funding Flexibility

FY 2019–20 Title I, Part A Funds

On April 21, 2020, the U.S. Department of Education (ED) has granted the State of California approval of their Federal Funding Flexibility Waiver Request.

1. General waiver approved to waive the 15 percent limitation once every three years for FY 2019–20 funds.

All LEAs with remaining carryover funds 15 percent or greater as of September 30, 2020 must apply for a waiver in the Consolidated Application and Reporting System (CARS) in the Winter Release of 2021.

For more information about Federal Funding Flexibility Waiver, please refer to the Coronavirus (COVID-19) Federal Funding Flexibility web page.

Below is the updated timeline in response to the Federal Funding Flexibilities Waiver under the Coronavirus Aid, Relief, and Economic Security Act.

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 an 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

Note: The Federal Funding Flexibility Waiver under the Coronavirus Aid, Relief, and Economic Security Act states:

1. General waiver approved to waive the 15 percent limitation once every three years for FY 2019–20 funds.
   
2. Apply for a waiver in the Consolidated Application and Reporting System (CARS) in the Winter Release of 2021.

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

All unspent Title I, Part A carryover funds from the prior year regardless of reservation or allocation 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:

• Those funds retained for LEA-wide direct student services,
• Funds allocated to the schools, and
• Funds allocated for equitable services.

When determining how to distribute carryover funds, the LEA may:

• Retain the carryover funds at the LEA level for LEA-wide direct student services; and/or
• Reallocate carryover funds to eligible and served schools.
  • If the LEA reallocates some or all carryover funds to eligible and served schools, the LEA must ensure the pupil allocation is calculated in accordance with 34 CFR 200.78(c).

To find more information on rank and serve eligibility, please refer to the Title I, Part A School Allocations web page.

Resources

Coronavirus (COVID-19) Federal Funding Flexibility

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: 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)

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)