State Compensatory Education

The purpose of the State Compensatory Education (SCE) program is to supplement the regular – or basic – education program with compensatory, intensive, and/or accelerated instruction. The program requires Texas public school districts and charter schools to offer additional accelerated instruction to each student who meets one or more statutory or locally-defined eligibility criteria in order 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 students. 

Statutes and correspondence related to the SCE program are listed below.

Texas Education Code §28.0217 relates to satisfactory performance on state assessment instruments and providing accelerated instruction to certain students.
Texas Education Code §29.081 defines the purpose of the program and the statutory criteria for determining whether a student is at risk of dropping out of high school.
Texas Education Code §29.089 allows school districts and charter schools to fund mentoring programs with state compensatory education funds.
Texas Education Code §42.152 provides the method for TEA to calculate school district and charter school allotments.
2015–2016 State Compensatory Education Funding and Implementation of the Community Eligibility Provision (To the Administrator Addressed Letter dated April 4, 2014)
Student Success Initiative and Accelerated Instruction (To the Administrator Addressed Letter dated April 9, 2014)
Texas Administrative Code Title 19, Part 2, Rule §61.1027 related to the eligible student count for the compensatory education allotment.
Texas Administrative Code Title 19, Part 2, Rule §105.11 related to maximum allowable indirect cost.

Campus and District Improvement Plans


School districts and charter schools with an annual state compensatory allotment of $500,000 or greater must submit district and campus improvement plans to TEA on or before the date that falls 150 days after the final PEIMS midyear resubmission date.

Expenditures of state compensatory education funds must: 1) support the intent and purpose of the program, 2) be allowable under statute and guidance, and 3) be directly related to specific interventions identified in the appropriate district and campus improvement plans.

District and campus improvement plans must be reviewed and revised annually. Requirements for plans, including who should be included in the planning process, are found in TEC §11.251 for district-level planning and in TEC §11.253 for campus-level planning.

Plans for the 2016-2017 school year must be submitted through the AUDIT application in the TEA Login (TEAL) system on or before Monday, July 9, 2018. Please see the FASRG, Module 9, Pages 6-7 for specific instructions on the number and types of plans to submit.

Access to the TEA Login (TEAL) system’s AUDIT application is required to upload plans. For technical assistance, contact TEA’s Financial Compliance Division at

Refer to the Financial Accountability System Resource Guide, Section 9.2.3 for more detailed information about the campus and district improvement plans and charter instructional plans.

House Bill 5, 83rd Texas Legislature

Under House Bill 5 passed in 2013, the number of State of Texas Assessments of Academic Readiness (STAAR®) end-of-course exams that high school students are required to pass in order to graduate was reduced to five. Students who failed an assessment that is no longer required should have been removed from at risk status by the end of school year 2013-2014. Prior to removing any student from services, the district should determine whether that student meets any other criteria under Texas Education Code §29.081(d) or any local eligibility criteria adopted by the board of trustees in accordance with Texas Education Code §29.081(g).


Financial Accountability System Resource Guide (FASRG)

  • Module Compliance Monitoring – Program Intent Codes and
  • Module 9 Compensatory Education Guidelines, Financial Accounting Treatment, and Auditing and Reporting System

SCE Frequently Asked Questions
State Compensatory Education - One Page Description (TEA State Funding Division)
PEIMS Data Standards Website  

 Contact Us

For more information, contact:

Christine McCormick
Division of Federal and State Education Policy 
(512) 463-2334  

Division of Federal and State Education Policy
Phone: (512) 936-6060

Other Contacts and Resources

For questions about…


Uploading district and campus improvement plans in the TEASE system

Web:    TEA Division of Financial Compliance
Phone: (512) 463-9095

Tiffany Martin, (512) 936-1776,
Alma Obregon, (512) 475-1993,
Paul Moreno, (512) 475-2228,

Annual allotments

Web:   TEA State Funding Division
Phone: (512) 463-9238

Free and Reduced School Lunch or Community Eligibility Provision

Title I, Part A, or other NCLB requirements

Web:    TEA Title I Part A Programs