Title IHelping Disadvantaged Children Meet High Standards

SUMMARY: The U. S. Secretary of Education (Secretary) proposes to amend

the regulations implementing programs under Title I of the Elementary

and Secondary Education Act (ESEA) of 1965, as amended by the Improving

America's Schools Act of 1994. These proposed amendments would provide

additional flexibility to local educational agencies (LEAs) operating

Title I programs.

DATES: Written comments must be received on or before June 1, 1998.

ADDRESSES: All comments concerning these proposed regulations should be

addressed to Mary Jean LeTendre, Director, Compensatory Education

Programs, Office of Elementary and Secondary Education, U.S. Department

of Education, 600 Independence Avenue, SW, Portals Building, room 4400,

Washington, DC 20202-6132.

Comments may also be sent through the Internet: comments Title

[email protected]

FOR FURTHER INFORMATION CONTACT: Wendy Jo New, Compensatory Education

Programs, Office of Elementary and Secondary Education, U.S. Department

of Education, 600 Independence Avenue, SW., Portals Building, room

4400, Washington, DC 20202-6132. Telephone: (202)260-0982. Individuals

who use a telecommunications device for the deaf (TDD) may call the

Federal Information Relay Services (FIRS) at 1-800-877-8339 between 8

a.m. and 8 p.m., Eastern time, Monday through Friday.

Individuals with disabilities may obtain this document in an

alternate format (e.g., Braille, large print, audiotape, or computer

diskette) on request to the contact person listed in the preceding

paragraph.

SUPPLEMENTARY INFORMATION: On July 3, 1995, the Secretary published

final regulations under Title I of the Elementary and Secondary

Education Act of 1965, as amended by the Improving America's Schools

Act. The following are the specific provisions for which the Secretary

is proposing regulatory amendments.

Schoolwide Programs and the Individuals With Disabilities Education

Act

Under Sec. 1114 of Title I, Title I schoolwide program schools may

combine funds from most other Federal education programs in their

schoolwide programs. If they do, the schools are exempt from most of

the statutory and regulatory provisions of these programs as long as

they meet the intent and purposes of the programs. Section 1114

specifically prohibits an exemption for programs under the Individuals

with Disabilities Education Act (IDEA). The recent reauthorization of

the IDEA, however, provides additional flexibility regarding IDEA

funds. It allows a percentage of the Part B IDEA funds received by an

LEA to be combined with other Federal, State, and local education funds

to carry out any activities in a schoolwide program. However, it does

not exempt a schoolwide program school from meeting the other

requirements of IDEA. In other words, a schoolwide program school

combining IDEA funds must comply with all other requirements of IDEA to

the same extent it would if it did not combine IDEA funds in its

schoolwide program. In addition, LEAs and SEAs are not relieved of

their obligations under IDEA to ensure that children with disabilities

in schoolwide program schools have all of the rights they would have if

they were in a non-schoolwide school.

No-wide Variance

Under prior legislation and regulations, LEAs had the discretion,

in selecting school attendance areas or schools to receive Chapter 1

(Title I's predecessor) funding, to designate as eligible and serve all

attendance areas and schools within a grade span grouping or in the

entire LEA if all attendance areas and schools fell within a range that

was no more than 5 percentage points above and 5 percentage points

below the grade span or LEA poverty average. This option, referred to

as the ``no-wide variance'' provision, recognized that in LEAs with a

uniform distribution of children from low-income families, making a

selection of only those areas or schools above the districtwide average

of poverty has a less meaningful distinction than in other LEAs. The

Title I statute does not contain this option. However, upon reflection,

the Secretary has decided to propose reinstituting this flexibility

through regulations because it makes little educational sense to

differentiate among areas or schools that fall within a close span of

poverty. Therefore, the Secretary proposes to amend Sec. 200.28 to

include a ``no-wide variance'' provision. Under the proposed

regulations, an LEA may designate as eligible and serve all areas and

schools within a grade span or the entire LEA if the poverty rates of

all areas and schools do not vary more than 10 percentage points.

Alteration or Renovation

Section 76.533 of the Education Department General Administrative

Regulations prohibits a State or subgrantee from using its grant for

construction or acquisition of real property unless specifically

permitted by the authorizing statute or implementing regulations for

the program. Although construction and acquisition of real property

were previously authorized by statute under Chapter 1 of Title I of the

ESEA, they are not specifically authorized now, and thus are prohibited

under Sec. 76.533. Yet, the Secretary has been made aware of situations

where the prohibition against construction, which was defined under

previous law to include alteration and remodeling of real property, has

constrained LEAs from providing cost effective Title I services. For

example, an LEA was offered a building to house a Title I preschool

program because existing facilities were inadequate. Because of the

renovation necessary to make the donated building meet the

architectural guidelines for serving young children and the lack of

local funding to make such renovations, the LEA could not accept the

donation. A similar situation occurred in another LEA that was donated

a building for a Title I parent resource center. The Even Start Family

Literacy Program has experienced similar situations, where donated

facilities did not meet architectural guidelines for serving young

children. The Secretary is proposing to allow, through regulations, the

authority to alter or remodel real property if such alteration or

remodeling is reasonable and necessary to carry out a Title I program.

Exclusion From Supplement, Not Supplant and Comparability

Determinations

The Omnibus Consolidated Rescissions and Appropriations Act of 1996

(Pub. L. 104-134) amended section 1120A of Title I to allow a State or

LEA to exclude supplemental State and local funds that are expended in

any school attendance area or school from both supplement, not supplant

and comparability determinations under Parts A and C, as long as the

supplemental State and local expenditures are for programs that meet

the intent and purposes of Part A.

[[Page 15695]]

Section 200.63(c)(1) of these proposed regulations would implement this

provision and clarify the characteristics of State and local programs

that would enable them to meet the intent and purposes of Part A.

Executive Order 12866

1. Assessment of Costs and Benefits

These proposed regulations have been reviewed in accordance with

Executive Order 12866. Under the terms of the order, the Secretary has

assessed the potential costs and benefits of this regulatory action.

The potential benefits associated with the proposed regulations are

clear. The proposed regulations would provide additional flexibility

for SEAs and LEAs to implement their Title I programs. Moreover, the

potential costs associated with these proposed regulations would be

minimal; they would result from specific statutory requirements or have

been determined by the Secretary to be necessary for administering

Title I programs effectively and efficiently.

There are no additional burdens specifically associated with

information collection requirements that were addressed in the Title I

regulations published on July 3, 1995. The Secretary has also

determined that this regulatory action does not interfere unduly with

State and local governments in the exercise of their governmental

functions.

To assist the Department in complying with the specific

requirements of Executive Order 12866, the Secretary invites comments

on whether there may be further opportunities to reduce any potential

costs or increase potential benefits resulting from these proposed

regulations without impeding the effective and efficient administration

of the program.

2. Clarity of the Regulations

Executive Order 12866 requires each Federal agency to write

regulations that are easy to understand.

The Secretary invites comment on how to make these regulations

easier to understand, including answers to the following: (1) Are the

requirements in the regulations clearly stated? (2) Do the regulations

contain technical terms or other wording that interfere with the

clarity? (3) Does the format of the regulations (grouping and order of

sections, use of headings, paragraphing, etc.) aid or reduce their

clarity? Would the regulations be easier to understand if they were

divided into more (but shorter) sections? (A ``section'' is preceded by

the symbol ``Sec. '' and a numbered heading; for example ``Sec. 200.68

Schoolwide program requirements.'') (4) Is the description of the

proposed regulations in the ``Supplementary Information'' section of

this preamble helpful in understanding the proposed regulations? How

could this description be more helpful in making the proposed

regulations easier to understand? (5) What else could the Department do

to make the regulations easier to understand?

A copy of any comments that concern whether these proposed

regulations are easy to understand should also be sent to Stanley

Cohen, Regulations Quality Officer, U.S. Department of Education, 600

Independence Avenue, SW. (room 5121, FOB-10), Washington, DC 20202-

2241.

Paperwork Reduction Act of 1995

These proposed regulations have been examined under the Paperwork

Reduction Act of 1995 and have been found to contain no information

collection requirements.

Regulatory Flexibility Act Certification

The Secretary certifies that these proposed regulations would not

have a significant economic impact on a substantial number of small

entities.

The small entities that would be affected by these proposed

regulations are small LEAs, institutions of higher education, and

public or nonprofit private agencies receiving Federal funds under the

Title I programs. The proposed regulations would not have a significant

economic impact on the small entities affected because the proposed

regulations would not impose excessive regulatory burden or require

unnecessary Federal supervision. The proposed regulations would impose

minimal requirements to ensure the proper expenditure of program funds.

Invitation to Comment

Interested persons are invited to submit comments and

recommendations regarding these proposed regulations. All comments

submitted in response to these proposed regulations will be available

for public inspection, during and after the comment period, in room

4400, Portals Building, 1250 Maryland Avenue, SW., Washington, DC,

between the hours of 8:30 a.m. and 4:00 p.m., Eastern time, Monday

through Friday of each week except Federal holidays.

On request the Department supplies an appropriate aid, such as a

reader or print magnifier, to an individual with a disability who needs

assistance to review the comments or other documents in the public

rulemaking docket for these proposed regulations. An individual with a

disability who wants to schedule an appointment for this type of aid

may call (202)205-8113 or (202)260-9895. An individual who uses a TDD

may call the Federal Information Relay Service at 1-800-877-8339

between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

To assist the Department in complying with the specific requirement

of Executive Order 12866 and its overall requirement of reducing

regulatory burden, the Secretary invites comments on whether there may

be further opportunities to reduce any regulatory burdens found in

these proposed regulations.

Electronic Access to This Document

Anyone may view this document, as well as all other Department of

Education documents published in the Federal Register, in text or

portable document format (pdf) on the World Wide Web at either of the

following sites:

http://ocfo.ed.gov/fedreg.html

http://www.ed.gov/news.html

To use the pdf you must have the Adobe Acrobat Reader Program with

Search, which is available free at either of the previous sites. If you

have questions about using the pdf, call the U.S. Government Printing

Office toll free at 1-888-293-6498.

Anyone may also view these documents in text copy only on an

electronic bulletin board of the Department. Telephone: (202) 219-1511

or, toll free, 1-800-222-4922. The documents are located under Option

G--Files/Announcements, Bulletins and Press Releases.

Note: The official version of this document is the document

published in the Federal Register.

List of Subjects in 34 CFR Part 200

Administrative practice and procedure, Adult education, Children,

Coordination, Education, Education of disadvantaged children, Education

of individuals with disabilities, Elementary and secondary education,

Eligibility, Family, Family-centered education, Grant programs--

education, Indians--education, Institutions of higher education,

Interstate coordination, Intrastate coordination, Juvenile delinquency,

Local educational agencies, Migratory children, Migratory workers,

Neglected, Nonprofit private agencies, Private schools, Public

agencies, Reporting and recordkeeping requirements, State-administered

programs, State educational agencies, Subgrants.

[[Page 15696]]

Dated: March 24, 1998.

Richard W. Riley,

Secretary of Education.

(Catalog of Federal Domestic Assistance Numbers: 84:010, Improving

Programs Operated by Local Educational Agencies: 84.011, Migrant

Education Basic State Formula Grant Programs; 84.013, Prevention and

Intervention Programs for Children and Youth Who Are Neglected,

Delinquent, or At-Risk of Dropping Out; 84.144, Migrant Education

Coordination Program; 84.213, Even Start Family Literacy Program)

The Secretary proposes to amend part 200 of Title 34 of the Code of

Federal Regulations as follows:

PART 200--TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH

STANDARDS

2. The authority citation for part 200 continues to read as

follows:

Authority: 20 U.S.C. 6301-6514, unless otherwise noted.

3. In Sec. 200.8, paragraph (c)(1) is revised and paragraph

(c)(3)(ii)(B)(3) is added to read as follows:

Sec. 200.8 Schoolwide program requirements.

* * * * *

(c) Availability of other Federal funds. (1) In addition to funds

under this subpart, a school may use in its schoolwide program Federal

funds under any program administered by the Secretary that is included

in the most recent notice published by the Secretary in the Federal

Register or is addressed in paragraph (c)(3) (ii)(B)(3) of this

section.

* * * * *

(3) * * *

(ii) * * *

(B) * * *

(3) Special Education. (i) A school may combine funds received

under Part B of the Individuals with Disabilities Education Act (IDEA)

in a schoolwide program, except that the amount so used in any

schoolwide program may not exceed the amount received by the LEA under

Part B of IDEA for that fiscal year; divided by the number of children

with disabilities in the jurisdiction of the LEA; and multiplied by the

number of children with disabilities participating in the schoolwide

program.

(ii) A school may also combine funds received under section 8003(d)

of the Act (Impact Aid funds for children with disabilities) in a

schoolwide program.

(iii) A school that combines funds under Part B of IDEA or section

8003(d) of the Act in its schoolwide program may use those funds for

any activities under its schoolwide program plan but shall comply with

all other requirements of Part B of IDEA to the same extent it would if

it did not combine funds under Part B of IDEA or section 8003(d) of the

Act in its schoolwide program.

* * * * *

4. Section 200.28 is amended by removing paragraph (a)(2)(iii) and

adding a new paragraph (a)(4) to read as follows:

Sec. 200.28 Allocation of funds to school attendance areas and

schools.

(a) * * *

(4) An LEA may designate as eligible and serve all school

attendance areas or schools within a grade span grouping or within the

entire LEA if within the grade span or LEA, as applicable, the

variation between the percentage of children from low-income families

in the attendance area or school with the highest concentration of such

children and the percentage of children from low-income families in the

attendance area or school with the lowest concentration of such

children does not exceed 10 percentage points.

* * * * *

5. Section 200.62 is added to read as follows.

Sec. 200.62 Use of funds for construction of real property.

(a) Title I funds may be used to construct real property if

reasonable and necessary to carry out a Title I program.

(b) The term construction means the alteration or renovation of a

building, structure, or facility, including--

(1) The concurrent installation of equipment; and

(2) The complete or partial replacement of an existing facility,

but only if such replacement is less expensive and more cost-effective

than alteration, renovation, or repair of the facility.

(Authority: 20 U.S.C. 6511(a))

6. Section 200.63 is revised to read as follows:

Sec. 200.63 Exclusion of supplemental State and local funds from

supplement, not supplant and comparability determinations.

(a) For purposes of determining compliance with the comparability

requirement in section 1120A(c) and the supplement, not supplant

requirement in section 1120A(b) of the Act, a grantee or subgrantee

under parts A or C of Title I may exclude supplemental State and local

funds spent in any school attendance area or school for programs that

meet the intent and purposes of Title I.

(b) A program meets the intent and purposes of Title I if the

program--

(1)(i) Is implemented in a school in which the percentage of

children from low-income families is not less than 50 percent;

(ii) Is designed to upgrade the entire educational program in the

school to support students in their achievement toward meeting the

State's challenging student performance standards;

(iii) Is designed to meet the educational needs of all children in

the school, particularly the needs of children who are failing, or most

at risk of failing, to meet the State's challenging student performance

standards; and

(iv) Uses the State's system of assessment to review the

effectiveness of the program; or

(2)(i) Serves only children who are failing, or most at risk of

failing, to meet the State's challenging student performance standards;

(ii) Provides supplementary services designed to meet the special

educational needs of the children who are participating to support

their achievement toward meeting the State's student performance

standards that all children are expected to meet; and

(iii) Uses the State's system of assessment to review the

effectiveness of the program.

(c) The conditions in paragraph (b) of this section also apply to

supplemental State and local funds expended under sections

1113(b)(1)(C) and 1113(c)(2)(B) of the Act.

(Authority: 20 U.S.C. 6322(d))

[FR Doc. 98-8252 Filed 3-30-98; 8:45 am]

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