Reinstatement of Congressional Funding Reductions

word version

January 20, 2012

TO THE ADMINISTRATOR ADDRESSED:

SUBJECT:      Reinstatement of Congressional Funding Reductions for Selected School Year 2011–2012 Federal Grant Programs

On November 29, 2011, the Texas Education Agency (TEA) posted a letter to the TEA Correspondence page regarding a fiscal continuing resolution passed by Congress on September 30, 2011, for certain federal fiscal year (FFY) 2012 appropriations. The continuing resolution included a small (approximately 1.5%) decrease to certain FFY 2011 grant awards, and TEA’s November 29, 2011, letter described the impact of the reduction on certain federal program areas for school year (SY) 2011–2012 grants.

On December 23, 2011, Congress enacted Public Law (PL) 112-74, the Consolidated Appropriations Act of 2012. Although the US Department of Education (USDE) has not yet released final information on the reinstatement of funds, it is our understanding that PL 112-74 restores most of the reductions imposed by the continuing resolution. Thus this letter supersedes TEA’s November 29, 2011, letter. Local educational agencies (LEAs) should refer to this letter for information regarding the reinstatement of funding reductions for FFY 2011 (SY 2011–2012) grants.

Timeline for Calculating Funding Reduction Reinstatement

By late January 2012, the USDE expects to release revised allocations and supplemental grant awards for FFY 2011 (SY 2011–2012). Funding reinstatements will be calculated for each applicable grant when TEA receives the federal grant award notification. TEA will post updated maximum and reallocation entitlements to the Division of Grants Administration Federal Entitlements web page when calculations are completed. Once posted, a listserv message will be forthcoming.

Impact of Funding Reduction Reinstatement

The following table summarizes the impact to applicable SY 2011–2012 entitlements.

Grant Program

Impact of Funding Reduction Reinstatement

ESEA, Title I, Part A

Maximum entitlements will be recalculated with the reinstated funding.

ESEA, Title I, Part D, Subpart 2

Maximum entitlements will be recalculated with the reinstated funding.

ESEA, Title I School Improvement

No increase to LEA SY 2011-2012 maximum entitlements is expected as a result of the reinstated funding.

ESEA, Title II, Part A

Maximum entitlements will be recalculated with the reinstated funding.

IDEA, Part B

IDEA-B maximum entitlements were originally scheduled to be released on January 16, 2012; however, maximum entitlements will be delayed until reinstated funding can be included in the calculations.

Title I, Part C – Carl D. Perkins Career and Technical Education

Perkins reallocations were originally scheduled to be released on January 9, 2012; however, reallocations will be delayed until reinstated funding can be included in the calculations.

Process for Reinstating Reduced Allocations

TEA staff in the Division of Grants Administration will adjust LEA budgets to award the revised maximum entitlements for No Child Left Behind (NCLB) program calculations and reallocations for Perkins programs. It is anticipated that revised maximum entitlements and reallocation amounts will be calculated by the end of January 2012, and application adjustments will begin in February 2012. It is vitally important that the LEA not begin or submit any amendment to the NCLB consolidated application or Perkins application in the eGrants system while these adjustments are being processed.

Once the adjustments for NCLB and Perkins funds are completed for your LEA, you will receive revised Notice of Grant Award (NOGA) transmittal letters and NOGAs by email. At that time, you may submit an amendment to the application if your LEA chooses to make changes to the budget.

LEAs will follow the standard process of amending their IDEA consolidated application to incorporate the maximum entitlement.

If you have questions concerning the impact of the funding reinstatement, please email the Division of Grants Administration at GAFPC@tea.texas.gov.

Sincerely,

Cory Green
Chief Grants Administrator
Office for Grants and Fiscal Compliance