Reporting Requirements for Economic Disadvantage Code

Word Version

September 2, 2014


Subject: Reporting Requirements for Economic Disadvantage Code

The implementation of the Community Eligibility Program (CEP) by the Texas Department of Agriculture (TDA) Child Nutrition Program (CNP) has prompted the Agency to restate the PEIMS reporting requirements for economically disadvantaged students.  
Within the National School Lunch Program (NSLP) and the School Breakfast Program (SBP), there are three options for accounting and claiming for meals served to students.
•    Standard accounting and claiming of NSLP and SBP
•    Provision 2 of NSLP and SBP
•    Community Eligibility Program of NSLP and SBP

As stated in the PEIMS Data Standards Section 2*, “Regardless of the level of participation in a school lunch program, LEAs determine the Economic Disadvantaged status of students each school year upon enrollment. In many cases the Economic Disadvantaged status is derived from documents used in the National School Lunch Program (NSLP). If these documents are not available to assist LEA staff in determining the Economic Disadvantaged status of students, then the LEA may need to develop its own survey instrument using the available criteria from the United States Department of Agriculture (USDA).”

In order to comply with state and federal legislative mandates, it is necessary that each school district and charter school determine the economic disadvantaged status of each student for PEIMS reporting purposes.  This PEIMS Submission guideline is necessary to meet a number of state legislative requirements, including student eligibility for prekindergarten programs and evaluation of student group performance for state accountability purposes. In addition, federal requirements mandate annual reporting by states using eligibility for free and reduced-price lunch status. Counts of students eligible for the program are required to be reported by states, and disaggregation by economic status of performance, participation, school completion, and other measures is a required component of the mandatory federal data collection.   

Please refer to TAA correspondence dated April 4, 2014 for information on the relationship between CEP participation and compensatory education funding under the Foundation School Program. As this letter indicates, we will use TDA data for the calculation of compensatory education funding. Specifically, we will use the "free claiming percentage” for CEP campuses to identify the amount of students eligible for SCE funding (the term "free claiming percentage" is used to remove potential confusion caused by language in original letter). For campuses not using the CEP, we will continue to determine SCE funding using TDA-provided prior-year counts of students eligible for free or reduced-price lunches, and counts from districts and charter schools using alternative reporting methods such as alternative basic monthly claims.  
If you have questions and/or require additional information, please contact the PEIMS Division by email at or by phone at (512) 463-9117.


Melody Parrish
Chief Information Officer/Chief Data Officer
Information Technology Services (ITS)/Statewide Education Data Systems (SEDS)
Texas Education Agency

*Data Submission Requirements on the 101 Student Demographic Record, under the Economic Disadvantaged Code Business Rules