Clarification of Eligibility for State Compensatory Education (SCE) Funding

It has come to our attention that some school districts and charter schools are receiving misinformation regarding eligibility for state compensatory education (SCE) funding. We believe that the confusion may have occurred when the Texas Department of Agriculture began collecting campus-level data on participation in the national school lunch program (NSLP) along with Texas Education Agency staff, who were new to administration of the alternative reporting for the SCE program, providing incorrect information. This message provides the correct information so that you can share it with your personnel who provide financial consultation to school districts and charter schools.

 

The Texas Education Code, §42.152, provides SCE funding based on the number of educationally disadvantaged students that the school districts and charter schools serve. The statute offers two methods for districts to report their eligible students:

 

     42.152(b) For purposes of this section, the number of educationally disadvantaged students is determined:
        (1)  by averaging the best six months' enrollment in the national school lunch program of free or reduced-price lunches for the preceding school year;  or
        (2)  in the manner provided by commissioner rule, if no campus in the district participated in the national school lunch program of free or reduced-price lunches during the preceding school year.

 

Because of these statutory provisions, districts with any campuses participating in the NSLP may NOT claim SCE funding for any students who are not participating in the NSLP.

 

During a recent review of SCE program participation, we learned that there are districts submitting claims through our alternative SCE reporting system and through campuses participating in the NSLP, which is prohibited by law. We will be working with these districts to make the necessary corrections to their submitted data and to their SCE funding. If you have any questions, please contact Amy Copeland at (512) 463-8732 or Amanda Brownson at (512) 463-0986.