This is an alert regarding important information concerning 2004-05 Title I basic grant allocations for New York State and its schools districts.  Based on SED’s analysis of the USDOE’s preliminary Title I allocations for 2004-05, we have determined that New York has experienced population declines among the age 5-17 poverty cohort that may result in significant reductions in basic Title I grant funding for many of New York school districts, particularly large and mid size cities with the exception of New York City. For example, the national average population decline in the age 5-17 poverty cohort is 8 percent. New York’s 10.2 percent exceeded the national average thereby resulting in a reduction in New York’s basic Title I grant allocation. The other three grant components were increased or maintained resulting in an overall increase in the State’s Title I allocation of $27+ million after required set-a-sides are removed.

Our analysis suggests that with the exception of Staten Island, the basic Title I grant allocation to New York City boroughs will increase.  In the rest of the State, the anticipated reduction for districts in the Title I basic grant ranges from three to fifteen percent. Because of the save harmless provision of the statue, districts with 15 percent poverty or less may not have their basic allocation reduced more than 15 percent.  For districts with poverty percentages between 16 and 35 percent the maximum reduction is 10 percent and for districts with poverty rates above 35 percent the maximum reduction is 5 percent. District may also experience similar reductions in their concentration, targeted or education incentive grants and could lose all funding for these components of Title I should their poverty rates and numbers fall below the required thresholds.  In those instances, the loss of funding among the four grant components may exceed 15 percent.

This analysis is subject to revision as we receive more information from the United States Department of Education or in the event that there is action by Congress in regard to funding formulas.  As soon as we have more details, we shall share them with affected districts.