Funding

NCLB requires that a school district must spend an amount equal to 20 percent of its Title I, Part A allocation on a combination of the following:
Choice related transportation
 
Supplemental Education Services
 
A combination of the above
However, guidance from the US Department of Education requires that an amount equal to 5 percent of the Title I, Part A allocation MUST be set aside for SES. This means that if a district is in danger of spending more than 15 percent of the allocation on choice transportation, not all of the children who wish to choose may be provided transportation. In this case, the district will give priority to the lowest-achieving students from low-income families.
Transportation for SES may be provided by the school district, but cannot be counted toward the 5% required to be spent on SES.
However, if the district does not incur any choice related transportation costs, it may use its entire 20 percent for SES.
The school district may use other federal monies to pay for SES including: school improvement funds under Section 1003 or Local Innovative Education program funds from Title V, Part A; Improving Teacher Quality State Grants Title II, Part A; Educational Technology State Grants Title II, Part D; and Safe and Drug Free Schools and Communities State Grants, Title IV, Part A.
A district may offer SES to students who are at risk of failing to meet the State’s standards, but who are not low-income. However, the district may NOT count funds spent for non low-income students toward meeting its 20 percent expenditure requirements.
A school district may use other non-Title I resources from Federal, State, local and private sectors to meet the “equal to” provision of the law.