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Districts May Get Wide Discretion Over Title I Money in Stimulus

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The debate over Title I setasides may be moot. One simple phrase in the stimulus law may allow districts to spend money from Title I and other federal programs as they choose, without following the rules set in NCLB or other laws. The clause says that states "may use the funds for any activity" authorized under the Elementary and Secondary Education Act and other federal laws. See Section 14003 in the law itself.

Creative lawyers are suggesting that because ESEA's Impact Aid program gives districts wide discretion in spending money under ESEA, districts may be able to rely on that program to justify spending money on just about anything they choose. They've asked the U.S. Department of Education for guidance on this and expect answers soon.

For all of the details, see the excellent reporting by Andrew Brownstein and Charles J. Edwards. And a tip of the hat to This Week in Education for highlighting it.

In a broader post on the stimulus, Eduwonk calls this issue a "big deal."

2 Comments

David,
Are you kidding me???? Good grief, can anyone say AIG????
Why do folks believe the "FAT CATS" on the top of any of the food chain are going to use Title I funds for processes that will directly affect the children?
If the federal government does not have oversight or regulate the funding, we will see Title I administrators receiving a BONUS! Then in two-three years everyone will be standing there trying to figure out...."why aren't the poor, minority, or disadvantaged kids as successful as the majority?"

As an administrator at a Bureau of Indian Affairs funded pre-k-grades 12 Tribally Controlled School, I'm concerned that the BIE and/or Department of Interior will fail to adequately support struggling schools like our school as well as many others throughout the nation - in particular the allocation of DOE American Indian set-aside Title 1 funding...As the 51st state, the BIA/BIE does not have a good track record for providing schools the kinds of support we need...instead, the BIE think tank creates programs that they "deem" successful (top down governmental management - what a surprise) and leave many of us out...examples of their efforts include Reading First (2001) and now "System of Support" (SOS)...SOS is a timely acronym...we need the Title 1 funds to support our current reading program...but I beleive the BIE has already decided how the funds will get allocated...more the same...either get in line or go without...the most needy group of learners (American Indians) deserve better...

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