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AEP Online |
Blaschke on Federal FundingMany Schools to Benefit from Likely Change in Title ISince Title I reauthorization in 1994,
the "targeted funds" portion of the Title I formula
grant - which would add money so that districts can serve more
of their qualifying schools - has existed on the books, but never
has been funded by Congress. Now monies for this portion of the
formula are included in the House version of the ESEA and in
the president's budget for FY 2002. In early November, the Senate,
for the first time, approved by a vote of 81-19 an amendment
that would appropriate $1 billion for the purpose. The amendment would transfer Title I funds from the "basic"
grants, which all Title I districts receive, and from "concentration"
funds, which districts receive if more than 15 percent of their
students come from low-income families. At this writing, it remains
to be seen if this amendment survives both the House and Senate
floor votes, and if the $1 billion-dollar increase is passed in
the FY 2002 budget. If so, about 20 percent of schools with poverty
enrollments between 50 and 75 percent would receive Title I funding
for the first time, making them a good group to seek out. Indeed, changes in the Title I formula present significant opportunities for firms that sell into that market niche. For example, as the result of a new formula which basically rescinded the "hold harmless" clause (a part of the Title I formula since 1995, it guaranteed a school's funding wouldn't decrease from one year to the next), about 130 districts are receiving first-time increases of 40 percent or more in "concentration funds." But because of dual uncertainties - neither the reauthorization of Title I nor the FY 2002 budget is resolved - most of these districts are allocating more concentration funds to already-funded schools, thereby increasing those schools' funds per pupil. Under the proposed change, which would fund targeted grants for the first time, the $1 billion would be allocated to schools with high rates of poverty that are currently not served by Title I. And because the proposed funding level for Title I would increase $2 to $3 billion, this reallocation isn't likely to reduce next year's share for current Title I schools. Number of Schoolwide Title I Programs Continues to IncreaseBased on annual reports from state education agencies, the U.S.
Department of Education recently released findings that in 1998-99,
the number of schoolwide Title I programs increased to slightly
more than 19,000 of the 46,650 participating schools; this is about
2,000 more than in 1997-98. Conversely, the number of "targeted-assistance"
schools dropped from almost 30,000 to slightly more than 27,000.
(In targeted-assistance schools, only those eligible Title I students
who are served are reported. Among these, the percentage of students
receiving reading-related instruction increased from 81 percent
to 89 percent, while the percentage receiving mathematics instruction
decreased slightly.) During the same period, the total number of
Title I students increased 7 percent, to slightly more than 13 million,
largely as the result of all students in Title I schoolwide programs
being counted. Approximately 20 percent of schools participating in the Title
I program in 1998-99 were "targeted for [academic] improvement,"
which represents a 17 percent jump over 1997-98. The percentage
of schoolwide programs targeted for improvement increased from 23
to 27 percent. According to the November 2001 "Title I Report"
from Small Axe communications, the number of schools targeted for
improvement was 8,755, compared to 7,414 the prior year. However,
numbers were not available from Maine, Minnesota, New Jersey, and
Missouri. As the report indicated, 70 percent or more of Title I schools
are designated as schoolwide programs in Florida, Hawaii, Louisiana,
Maryland, Mississippi, Nevada, North Carolina, South Carolina, Tennessee,
Texas, West Virginia, and Washington, D.C. Fifty percent or more
of schoolwide programs have been targeted for improvement in Arizona,
Georgia, Hawaii, Illinois, Kentucky, Maine, Nebraska, North Dakota,
South Carolina, and Washington, D.C. In the 650 districts that Education Turnkey estimates will receive 85 to 90 percent of the overall increase in Title I funds this year, there are approximately 4,200 schoolwide programs.
Questions, ideas, or in need of more information? Please contact Stacey Pusey at 302-295-8349. |
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