Q: What is the
A: In 1995, the
Texas Legislature created the Public Education Grant (PEG) program
[TEC §§29.201 - 29.205]. The PEG program permits parents
whose children attend schools on the PEG list to request that
their children transfer to schools in other districts. A list
of PEG-designated schools is provided to districts annually.
By February 1, districts must notify each parent of a student
in the district assigned to attend a school on the PEG list.
Based on the February list, parents may request a transfer
for the following school year. (For example, the list provided
to parents by February 1, 2014 allows for transfer requests
for the 2014-15 school year.)
Through the PEG program, districts receive a slightly higher
allocation of funding from the state for each PEG-transferred
student. (The additional funding is equal to 10% of the adjusted
basic allotment, which varies by school.)
Q: What schools
are on the current PEG List?
A: See the most
List (a PDF download).
Q: Why does a school
appear on the PEG list?
A: A school at
which 50 percent or more of the students did not pass any of the state assessment*
subjects in any two of the preceding three years (2013, 2012,
or 2011), or a school that was rated Improvement Required in 2013 or Academically Unacceptable
in 2011, is included on the PEG List.
Examples where schools would appear on the current PEG list:
- A school that was Academically Unacceptable in 2011;
- A school with fewer than 50% of its students passing reading
in 2011 and 2012;
- A school with fewer than 50% of its students passing ELA
in 2012 and fewer than 50% passing science in 2011.
For more details on how schools are identified, please see the
and Explanation (a PDF download).
Q: No accountability ratings were assigned to schools in 2012. How does that affect the PEG list for this year?
A: The Public Education Grant program was not affected by the changes made by the Texas Legislature in House Bill 3 in 2009; the program remains unchanged in statute. The following table shows the anticipated transition to the new assessment and the new accountability system:
|Released by end of
||Applies to School Year
||Identifying Criteria for a School to be Placed on Public Education Grant List
||TAKS/STAAR* passing rate ≤ 50% in two of the three preceding years (TAKS: 2010, 2011, TAKS/STAAR*: 2012) OR rated Academically Unacceptable in 2010 or 2011.
||TAKS/STAAR passing rate ≤ 50% in two of the three preceding years (TAKS: 2011, STAAR: 2012, 2013) OR rated Academically Unacceptable in 2011 or Improvement Required in 2013.
||STAAR passing rate ≤ 50% in two of the three preceding years (STAAR: 2012, 2013, 2014) OR rated Improvement Required in 2013 or 2014.
||STAAR passing rate ≤ 50% in two of the three preceding years (STAAR: 2013, 2014, 2015) OR rated Improvement Required in 2013, 2014, or 2015.
Q: How can a school that was rated Met Standard for 2013 be on the PEG list?
A: A school can
remain on the PEG list for up to three years, even if their
subsequent rating is Met Standard.
Q: Why aren't
charters on the PEG list?
A: Charter school
campuses are not included on the PEG list (even if their performance
meets the eligibility criteria) because charters are schools of
choice and students at a charter school are eligible to “transfer”
back to their home school district whenever they desire.
Q: Do PEG calculations
use the same accountability subset as is used for state accountability
Q: Are student
groups evaluated for PEG or “all students” only?
A: PEG identification
due to the state assessment* criteria is based on the performance of “all
students” only. However, schools that are PEG-listed
due to having an Academically Unacceptable (or Improvement Required) rating
may have been rated Academically Unacceptable (or Improvement Required) due
to the performance of a student group on any of the three
base indicators (for 2011) or within one of the 4 indexes (for 2013).
Q: Why can't the standard state
accountability ratings and the PEG list be aligned?
A: The PEG statute
has been in place since 1995. The standards for the last accountability
system (re-designed for 2013) increase in rigor each year, and
do not correlate with the PEG statute.
Q: How does a
parent obtain a transfer?
A: The parent
obtains a transfer by contacting the district the student wants
to transfer to, in writing. Either the PEG notification letter from the
home district or the PEG
List provide adequate justification
for the transfer request.
Q: Can a PEG-listed
school deny a student the right to request a transfer to another
A: No. The purpose
of the letter the PEG-listed school sends every parent is to alert
them that they can request a transfer under the PEG program.
Q: I can't find the parent notification letter from our home school, I'm not even sure the school sent me one. Can I still request a transfer?
A: Yes. Simply show the district you want to transfer to the PEG
List and point out that your home school is listed.
Q: Must a district
accept all students who request to transfer into it under the
A: No, but districts
must follow the same protocols they follow for evaluating non-PEG
requests for transfers from other districts. For example, they
may restrict transfers by using a first-come-first-served system,
and deny further requests for lack of space.
Q: My daughter
attends a very low-performing school that is now on the PEG list.
I would like to transfer her to a high-performing school in another
district. They have refused her transfer even though other students
have been allowed to transfer under PEG. They tell me their district
has a policy of only accepting PEG transfers of students who perform
well on the STAAR. Is this legal?
A: No, districts
may not discriminate based on a student's academic performance.
According to TEC §29.203 (d):
A school district chosen by a student's parent under Section
29.201 is entitled to accept or reject the application for the
student to attend school in that district but may not use criteria
that discriminate on the basis of a student's race, ethnicity,
academic achievement, athletic abilities, language proficiency,
sex, or socioeconomic status.
Q: Can a district refuse to accept a transfer because they do
not wish to incur the additional special education expenses for
A: A district
cannot discriminate based on special education needs.
Can a district accept PEG transfers only for the children of staff but not any others?
Q: Are 5th graders eligible to request a transfer if the middle
school they will attend as 6th graders is on the PEG list?
Q: My child attends school in a district that is rated Improvement Required. Her school is rated Met Standard, but can I still request a PEG transfer?
A: No. PEG transfers are specifically for schools with the Improvement Required rating. District ratings are not a consideration.
Q: Does the ability
to transfer last the duration of the 2014-15 school year?
A: Yes. Parents
may request a transfer under the PEG program any time during
the 2014-15 school year.
Q: Can students
transfer before the beginning of the upcoming school year, once
the PEG list is published in February?
A: No. Because the
list refers to the upcoming school year, PEG-funded transfers
are not allowed until the designated school year begins.
Q: Can a student
transfer from one PEG-listed campus to another PEG-listed campus
under the PEG program?
A: No. Under
the PEG program criteria, a student may not transfer from a
PEG-identified campus to another PEG-identified campus under
the PEG program. However, district-to-district transfers exist
outside of the PEG program, and can begin, end, or continue
regardless of the PEG status of the schools.
Q: What happens
to students who transferred to a district under the PEG program,
if in a subsequent year the campus they attend becomes a PEG-listed
campus? Do they remain eligible to stay at the school?
A: The conditions
of their original transfer are no longer in effect. They may
still request to transfer during 2014-15, but only as a non-PEG
Q: In the situation
above, is funding sustained?
A: The receiving
district can no longer receive PEG funding for transfers to a
school that has become a PEG-listed campus.
Q: In the situation
above, do the PEG-transferred students get the same notification
as all other enrolled students?
A: Yes, all students
attending the school that is PEG-identified must be notified that
the school they are attending is on the PEG List.
Q: Please explain
continued student eligibility in cases where a school is no longer
PEG-listed, or the student's attendance zone changes.
A: Student eligibility
for PEG transfers is based on assignment to attend a PEG-listed
campus in their district of residence. Student eligibility expires
upon any of the following conditions:
- Completion of all grades on the campus upon which eligibility
was originally based (the PEG-listed campus);
- Removal of the campus from the PEG List; or
- Assignment of the student to a campus that is not on the
PEG List as a result of redrawn attendance boundaries or the
student moves into a different attendance area.
However, even if any of the above conditions are true, a receiving
district is permitted to continue to treat a student as PEG eligible
if the student has not yet completed all grades on the campus
to which the student transferred during the eligibility period.
This means the receiving district can continue to receive PEG
funding for this student, if the student chooses to continue attending
his/her new school.
Q: In the case
of larger districts with multiple schools that are not on the
PEG List, can students request a transfer to another school
that is within the district?
Q: Are districts
required to allow those transfers?
must follow the same protocols they follow in allowing any requests
for transfer. For example, they may deny a request because of
lack of space.
Q: Does the No Child Left Behind Act of 2001 (NCLB) include a provision that allows students the right to transfer
to another school?
A: That was the case through the 2012-13 school year. This past September the federal government granted a conditional waiver to the state of Texas from the requirements of the NCLB. Districts are no longer required to grant transfers from schools on a list of Schools in Need of Improvement. For additional information see TEA seeks waiver of NCLB provisions.
Q: If a student transfers
under the PEG program, does that affect their athletic eligibility?
A: Possibly. Rules
regarding UIL eligibility are governed by the University Interscholastic
League, not by TEA or by the school district. Please see the
Side by Side. Pages 8 and
9 address PEG transfers.
Q: Are districts
responsible for providing transportation to the school the student
transfers to, if the school is in another district?
A: No, districts
are not required to provide transportation for students who transfer
to another district under the PEG program.
According to TEC 29.203 (f):
The school district in which a student resides shall provide
each student attending a school in another district under this
subchapter transportation free of charge to and from the school
the student would otherwise attend.
The phrase, “to and from the school the student would
otherwise attend” means that the district is not required
to provide transportation beyond what it would normally provide—to
and from the students' homes and their regularly assigned
Q: Is there an
overview of district responsibilities?
Correspondence To Superintendents was sent via email to superintendents of districts
with at least one campus on the PEG List. The letter addresses district
Q: Districts are
instructed to provide a clear, concise explanation of PEG when
they notify parents. Can TEA provide such an explanation or provide
a sample letter that could be used to send to parents?
A: Because each school's
situation for being on the PEG List is unique, the school
needs to write its own letter, addressing its specific situation.
In writing this letter, it is recommended that local administrators:
- state the basic situation (that the school is on the PEG
list for the 2014-15 school year);
- describe what the PEG program is (see the answer to the first
question in this FAQ);
- explain how the school came to be on the list;
- address how the school plans to remedy any problems; and,
- state the district's policy regarding in-district transfers, if that is an option for parents.
Q: The TEA letter
instructs districts to inform parents how to obtain a transfer.
What should be said?
A: The letter
should clearly state that parents may request a transfer by contacting
the district the student desires to transfer to, in writing. The
letter they have received from the home district, as well as the
PEG List, provide adequate justification for the transfer request.
Q: Must districts
document all requests they get for transfers, especially if the
district denies them?
A: While there
is no requirement for such documentation, it is sensible for a
district to document the disposition of all requests, including
reasons and/or justifications for denial.
Q: Do we need
to send letters to parents of 5th graders? Our school is K-5,
and these kids will be gone next year.
A: Yes, according
to statute, you are required to send the notice to all students.
There is a possibility that some 5th graders will be retained
in the following year, and attend the school again. Such retained
students are eligible to be transferred under PEG guidelines.
However, only students who would otherwise attend the K-5 campus
in 2014-15 are eligible for PEG transfers from that school.
Q: Must we notify
the parents of incoming freshman for a high school that is identified
on the list? Or, similarly, must we notify the parents of incoming
kindergarten students for an elementary school that is identified
on the list?
A: No. While
those students also have the right to request a transfer, statute
specifies that notification by February 1 of each year to parents
of students currently assigned to the PEG-listed campus is sufficient.
Q: The school that
appears on the PEG List has closed and will not be in operation for the 2014-15 school year. Does the district still need
to notify any parents?
Q: If a student
moves into a PEG-listed school after the notification has been
sent out, must the school provide them notification?
is not required beyond the February 1, 2014 deadline specified
in statute; however, all students who would be attending a PEG-listed
campus during the 2014-15 school year must be given the opportunity
to transfer if they wish.
Q: Do districts
need to contact other districts to let them know they have a PEG-listed
Q: Do districts
need to make the application for a transfer for the parent?
A: No, the student's
parent or guardian needs to apply for the transfer.
Q: Is there an
A: No. However,
if a district feels extenuating circumstances exist that invalidate
the listing of one of its campuses on the list, the district may
write a letter to TEA addressing the concerns and requesting exceptions
to the PEG requirements.
Q: If a district
is engaged in correspondence with the agency to remove a school
from the list, does the notification letter to parents still need
to be sent by February 1?
A: Yes. Because
the outcome of the correspondence is unknown, districts must comply
with statute by notifying parents of the school's status
as of February 1. However, the notification can include a statement
that communication with the agency is in progress, and that the
school's PEG status may change.
Q: If a school
is on the PEG list but will be closed for
2014-15, is there still a requirement to send PEG notification
letters to the current students?
A: No. If a
school listed on the 2014-15 PEG list will be closed for the
2014-15 school year, districts are not required to send notification
letters to the students currently attending the school. However,
students reassigned to an existing school that is on the 2014-15
PEG list should receive notification letters.
Q: We changed our grade configuration completely, from middle school to elementary school, but kept the same campus number. We will send the required PEG notification to the parents of this new elementary, but can they request a transfer from this elementary to another elementary, even though it was performance at the middle school that put us on the PEG list?
A: Yes. If the campus
identification number remains the same, the "new" school will
still be on the PEG list, regardless of changed grade span. The
district must treat transfer requests within the district in
the manner mentioned above. Parents can request to transfer to
a school with the same grade as the grade their child is in,
in the PEG-Listed school. Parents can also request to transfer
to a similar school outside the district.
Q: Do PEG schools have other special requirements they must
meet to get off the list, such as more highly trained teachers,
or a smaller teacher-student ratio?
A: No. PEG-listed
schools must work to improve their accountability rating or increase
the percentage of students passing the state assessments to get off the PEG List.
Information on how the 2013 accountability ratings were determined
is available in the 2013
Q: Can a district
charge tuition for a student who transfers under the PEG program?
Q: Can a district
accept paid-tuition transfers, but decline to accept any PEG transfers?
A: Yes, a district
may accept paid-tuition transfers, but decline PEG transfers.
Specifically, a district may do any of the following: accept “regular”
transfers under Chapter 25; accept PEG transfers; accept both,
or accept neither. The district's policy must be consistent on
this. That is, the district cannot charge tuition from some students from
a PEG-listed school, while not charging other students from a
Q: Can they accept
a student from a PEG school but not call it a PEG transfer and
A: Yes, if district
policy is to accept transfers under Chapter 25, but not PEG, a
student from a PEG school would be treated the same as any other
transfer student under Chapter 25, including charging any tuition
permitted under Sec. 25.038.
Q: What if they
have a paid-tuition transfer student from a school that later
becomes a PEG school, can they continue to charge tuition?
A: Yes, if they
do not take PEG transfers. However, if they do take PEG transfers,
they must treat the student as a PEG transfer the school year
that the student becomes PEG eligible.
Q: If a parent
is paying tuition for a student to attend a non-PEG campus under
a tuition transfer agreement and the student's home campus
becomes a PEG-listed campus, can the parent stop paying tuition
and still have the student attend the campus of choice?
A: Yes, as long
as the receiving district agrees to accept the student under the
Q: Can a district
charge an additional "transfer fee" for accepting a student
who transferred under the PEG program?
A: No. The school district
cannot charge a transfer fee for a PEG transfer.
They can only charge fees where they have been granted statutory
authority to charge fees.
Q: If a charter
school accepts a student previously served in a PEG-listed campus,
is the charter eligible to receive additional state funding?
Q: Where can I find a PEG list from a prior year?
A: The PEG letters with attached lists and methodology are available back to 1999 from the TEA Correspondence site. Most PEG letters were sent in December of each year.
|| State assessments: For 2011, the assessment results were from the Texas Assessment of Knowledge and Skills (TAKS) for grades 3-11 (on all subjects). For 2012, the assessment results included the 2012 performance on TAKS for grades 10 and 11 (ELA and mathematics only) and performance on the State of Texas Assessments of Academic Readiness (STAAR) for grades 3-8 (reading and mathematics only) based on the TAKS-equivalency standard that was developed using the STAAR Bridge Study. For 2013, the assessments were the Texas Assessment of Knowledge and Skills (TAKS) for grade 11 (all subjects), and the State of Texas Assessments of Academic Readiness (STAAR) for grades 3-10 ( all subjects).