State Compensatory Education

For information about changes in the State Compensatory Education allotment, visit TEA's House Bill 3 web page. 

The purpose of the State Compensatory Education (SCE) allotment is to provide supplemental programs and services designed to eliminate any disparity in performance on assessment instruments or disparity in the rates of high school completion between educationally disadvantaged students and all other students and at-risk students and all other students.  

Statutes and correspondence related to the SCE program are listed below.  - Look for updated links and legislation on TEA's House Bill 3 web page or visit the Texas Legislature Online Statute Lookup page. 

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 and establishes certain additional uses for the funds. 
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 2017-2018 school year must be submitted through the AUDIT application in the TEA Login (TEAL) system on or before Monday, July 8, 2019. 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 pages 6-7 in 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.


Financial Accountability System Resource Guide (FASRG)  (TEA is revising and repealing modules in the FASRG to align the content with current governmental accounting and auditing standards, remove obsolete requirements, and delete descriptions and discussions of best practices and other nonmandatory elements. The modules are available on the TEA website here: Discussion of Proposed Amendment to 19 Texas Administrative Code §109.41, Financial Accountability System Resource Guide.)  

SCE Frequently Asked Questions

State Compensatory Education - One Page Description (TEA State Funding Division)

PEIMS Data Standards Website  

 Contact Us

For more information, contact

Other Contacts and Resources

For questions about…


Uploading district and campus improvement plans in TEAL's AUDITS

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

Annual allotments

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

Free and Reduced School Lunch or Community Eligibility Provision

Federal fiscal and program requirements

Web:   TEA Department of Contracts, Grants and Financial Administration