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TEA Correspondence

A Microsoft Word version of this letter is available for download and PRINTING.

March 25, 2008
Subject: Texas Education Code (TEC), §33.109, and State Compensatory Education Funding


The purpose of this letter is to inform all school districts and charter school administrators that TEC, §33.901, mandates that all school districts and open-enrollment charter schools with more than 10 percent of students eligible for free or reduced-priced meals under federal income guidelines participate in the School Breakfast Program (SBP) through the Texas Department of Agriculture and report the number of educationally disadvantaged students through the Child Nutrition Program Information Management System (CNPIMS). State compensatory education (SCE) funding is based on the highest six months' average of educationally disadvantaged students reported through the CNPIMS during the prior federal fiscal year.

Although school districts and charter schools that do not meet the 10 percent threshold are eligible to provide an alternative funding count for SCE funding, school districts and charter schools that do meet the threshold are disqualified from doing so. As a result, school districts and charter schools that meet the threshold but do not participate in the SBP, whether voluntarily or involuntarily, will lose their SCE funding beginning with the 2008–09 school year. Additionally, since CNPIMS data from the prior federal fiscal year are not available to the Division of State Funding until March of the current school year, these school districts and charter schools also risk being overfunded through March based on the prior year data, and could experience a reduction in remaining payments for the school year when the updated data become available. The table below illustrates the data used to calculate the SCE allotment for the current school year and the next two years. 

           SCE Funding Year

          CNPIMS Data Reported

           Summary of Finances Report


          October 2006 through September 2007

             March 2008


          October 2007 through September 2008

             March 2009


          October 2008 through September 2009

             March 2010

If you have any questions regarding this letter or the compensatory education allotment, please contact Kimberley Rife at (512) 463-9238.


Lisa Dawn-Fisher, Ph.D.
Deputy Associate Commissioner
School Finance

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