Section 1127 of the ESEA Title I, Part A, allows LEAs to carryover up to 15% of their allocations for any fiscal year. If the carryover amount exceeds 15%, the LEAs may file a request with the CDE to waive that limit. The fifteen percent carryover limit does not apply if an LEA’s entitlement (including Title I, Part A, ARRA and funds transferred-in from other Federal education programs) is less than $50,000 for the fiscal year. Please visit the U.S. Department of Education's website to view the education code section regarding Carryover and Waiver information (Outside Source).
Transferability and Title I Carryover
If an LEA transfers funds from another Federal education program into Title I, Part A under the transferability provision in section 6123 of ESEA, then the additional amount transferred is added to the LEA’s Title I, Part A allocation, and the combined amount becomes the base for calculating the 15 percent carryover limitation.
Title funds allocated under the American Recovery and Reinvestment Act (ARRA):
The 15 percent carryover limit is calculated on the total amount received under Title I, Part A regular and ARRA funds. For example, if the LEA received $65,000 of Title I, Part A regular allocation, and $50,000 in ARRA funds, the LEA is allowed to carry over up to 15 percent, or $17,250, of the 2009-10 funds to 2010-11.
In 2009-10 most of the LEAs received allocations of ARRA funds. These ARRA funds must be included in the calculation to determine the amount of carryover and the need for a carryover waiver request. The Title I, Part A, Carryover Calculation and Waiver Request page of the Consolidated Application (ConApp), Part II, has been modified to include ARRA entitlement and carryover information.
Change to the once-in-three year approval restriction:
The ESEA (Title I, Part A Section 1127) allows an LEA to carry over up to 15 percent of a fiscal year’s Title I, Part A allocation if: (1) the LEA’s request is reasonable and necessary or (2) a supplemental Title I, Part A appropriation becomes available. The law allows a state education agency (SEA) to grant an LEA a waiver of this carryover limit, but limits the granting of such a waiver to only once in three years.
Under the non-regulatory guidance on Title I, Part A waivers, the California Department of Education (CDE) received a waiver from the U.S. Department of Education (ED) for the once in three year restriction on granting waivers to the LEAs that need the additional waivers because of the ARRA supplemental funds. Therefore, the LEAs that received waivers in the last two years are eligible to apply for a carryover waiver request in the ConApp, Part II, as long as these LEAs received ARRA funds.
Carryover Waiver Request:
A request to waive the 15 percent carryover limit is embedded in Title I, Part A Carryover Calculation and Waiver Request page of the Con App, Part II.
The LEAs without the ARRA funds will apply for a carryover waiver request by completing Section C of the Title I, Part A, Carryover Calculation and Waiver Request. If the LEA received a waiver in the last two years and did not receive ARRA funds, the LEA is not allowed to carry over funds exceeding the 15 percent limit and therefore, is not eligible to apply for a waiver request in the ConApp. The CDE will bill the LEA for the amount exceeding the 15 percent carryover limit.
The instructions for completing the carryover page are included with the Con App. The filing of the waiver request in the Con App is not an automatic approval of the waiver request. The CDE will review the LEA’s request and issue a formal approval or denial of the waiver request.
February, 2008 – Fiscal Issues: Title I, Part A, Non-regulatory Guidance (Outside Source)
ARRA Carryover Guidance: March 2010 Non-regulatory Guidance (including carryover) (Outside Source): Funds under Title I, Part A of the Elementary and Secondary Education Act of 1965 Made Available under the American Recovery and Reinvestment Act of 2009..
