State Compensatory Education

The goal of the State Compensatory Education Program (SCE) is to provide funding to reduce disparity in performance on assessment instruments or disparity in the rates of high school completion between educationally disadvantaged students, at-risk students, and all other students. The purpose of the SCE program is to increase academic achievement and reduce the dropout rate for these students by providing supplemental programs and services.  

Statutes and correspondence related to the SCE program are listed below. Updated links and legislation information can be found on TEA's House Bill 3 web page and the Texas Legislature Online Statute Lookup page.

  • The Texas Education Code (TEC) §28.0217, relates to satisfactory performance on state assessment instruments and providing accelerated instruction to certain students.
  • The TEC, §29.081, defines the purpose of the SCE program and the statutory criteria for determining if a student is at risk of dropping out of high school.
  • The TEC §29.089, allows school districts and charter schools to fund mentoring programs with SCE funds.
  • The TEC §48.104, provides the method for TEA to calculate school district and charter school allotments and establishes certain additional uses for SCE funds.
  • 19 Texas Administrative Code (TAC) §61.1027 is related to the eligible student count for the compensatory education allotment.

Campus and District Improvement Plans

School districts and charter schools with an annual SCE allotment of $750,000 or greater must submit district and campus improvement plans to TEA on or before the date that falls 150 days after the final Texas Education Data Standards Web-Enabled Data Standards (TWEDS) midyear resubmission date.

Expenditures of SCE funds must do all of the following:

  • support the intent and purpose of the program
  • be allowable under statute and guidance
  • 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 the TEC §11.251, for district-level planning and the TEC §11.253, for campus-level planning.

Plans for the 2018-2019 school year must be submitted through the AUDIT application in the TEA Login (TEAL) system on or before Friday, July 31, 2020.

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 (FASRG) Module 6, Section 6.2.2 for more detailed information about the campus and district improvement plans and charter instructional plans.


Financial Accountability System Resource Guide (FASRG)

PEIMS Data Standards webpage

Contact Information

Dahlinda Alaniz

(512) 463-9366

Financial Compliance Division

Phone: (512) 463-9095

Fax: (512) 463-1777


Other Contacts and Resources

For questions about


uploading district and campus improvement plans in TEAL's AUDIT

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

annual allotments

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

free and reduced school lunch or community eligibility provision

Web: Texas Department of Agriculture, Food and Nutrition Division

federal fiscal and program requirements

Web:   Department of Grants and Financial Administration Email: