State Compensatory Education

Under Chapter §29.081 of the Texas Education Code (TEC), compensatory education is defined as programs or services designed to supplement the regular education program for students identified as being at risk of dropping out of school. The purpose is to increase academic achievement and reduce the drop out rate of these students.

The goal of state compensatory education is to reduce any disparity in performance on assessment instruments administered under Subchapter B, Chapter 39 TEC or disparity in the rates of high school completion between students at risk of dropping out of school and all other LEA (Local Educational Agencies) students (TEC Chapter §29.081).

State compensatory education funds authorized by the legislature provide financial support for programs or services designed by LEAs to increase the achievement of students at risk of dropping out of school. State law requires LEAs to use student performance data from assessment tests to provide accelerated intensive instruction to students who have not performed satisfactorily or who are at risk of dropping out of school. The assessment tests used for this purpose include the state’s legislatively-mandated assessment tests and any other achievement tests administered under Subchapter B, Chapter 39 of the Texas Education Code, including norm-referenced tests approved by the State Board of Education.


Under House Bill 5 high school students are required to pass five State of Texas Assessments of Academic Readiness (STAAR®) end-of-course exams to meet the new graduation requirements. Ten additional end-of-course exams are no longer required; therefore, some classified at-risk students assessments are not in use.

A student identified as at-risk based on this category last year continues to be identified as at-risk this school year, but the at-risk status should be removed at the end of this school year.

The LEA should determine whether the student meets any of the other criteria under TEC §29.081(d). An LEA should review local eligibility criteria adopted by the board of trustees in accordance with TEC §29.081(g) to determine whether the student is eligible for services/supports. 

Note: There are changes in the naming conventions for the electronic submission of the SCE District/Campus Improvement Plans in the PDF.   The list of revised naming conventions can be found in the Electronic Reports Submission Standards manual.

Additional information can be found in the State Compensatory Education (SCE) module in the Financial Accountability System Resource Guide (FASRG).

Frequently Asked Questions (PDF, 295KB)

Contact Us

For more information, contact:

Christine McCormick
(512) 463-2334  

Division of Federal and State Education Policy
Phone: (512) 463-6060