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The 2004-05 Title I, Part A allocations provided to local educational agencies (LEAs) contained substantial reductions for many LEAs from their 2003-04 allocations.  Part of the reason for these reductions was that the proportion of eligible children in the State residing in these LEAs declined.  In addition, we have also determined that the Department made a miscalculation in the application of the hold-harmless computation. This miscalculation caused many LEAs that were reduced to their hold-harmless levels to receive less than they were due and, consequently, some LEAs to receive more than their correct amount of funding.

We are required by federal law to correct the 2004-05 Title I allocations (both Parts A and D).  As a result, we must revise the 2004-05 Title I allocations of all public school LEAs and charter school LEAs.  Some allocations will be increased and others will be decreased.  A summary chart of original and revised 2004-05 allocations is available at http://www.emsc.nysed.gov/funding/cladcep/0405/titleIallocs0405rev3-06.htm.  Please also review your detailed 2004-05 NCLB Allocation Report for Title I at http://www.nysed.gov/cafe/ctytxt95.htm to determine the impact on your LEA's carryover amount.

If an LEA’s 2004-05 Title I allocation has increased:

• The increase will be reflected in the carryover amount for use in 2005-06.  For purposes of this correction ONLY, the 15 percent limit on carryover into 2005-06 will not apply;

or

• The increase may be used in the 2004-05 budget year by transferring allowable expenditures made in 2004-05 from local funds to Title I funds.  In this situation, an LEA must submit to the Department a Proposed Amendment (FS-10-A) and a revised Final Expenditure Report (FS-10-F) that includes the transferred expenditures.

If an LEA’s 2004-05 Title I allocation has decreased:

• If the decreased amount results in insufficient funds to cover 2004-05 Title I expenditures, 2004-05 Title I expenditures must be reduced.  In this situation, the LEA must submit a revised 2004-05 Title I Final Expenditure Report (FS-10-F) to the Department’s Grants Finance Office.  Upon processing the revised FS-10-F, Grants Finance will either offset the overpayment amount from future grant payments (transfer overpayment) or will request a refund check made payable to the “Treasury of the State of New York.”  We request that LEAs resolve this overpayment issue as soon as possible in order to avoid any disruption in future grant payments.

or

• If the decrease amount does not result in insufficient funds to cover the 2004-05 Title I expenditures, the decrease will be reflected in the carryover amount for use in 2005-06.

Thank you for your attention to this matter.  Please direct questions to the Title I School and Community Services office at emscpir@mail.nysed.gov.

03/16/2006