Federal Funding » State Compensatory Education

State Compensatory Education

As a Result of SB702

Purpose of SCE:

Increase Student Achievement & Reduce the Drop-Out Rate for Students At-Risk of Dropping Out of School

Section 29.081
Compensatory Intensive and Accelerated Instruction

New Requirements

Design and implement appropriate compensatory, intensive, or accelerated instructional services for students at-risk of dropping out of school based on performance data


The effectiveness of the SCE Program must be evaluated and documented by school districts in two ways:

  • Reducing the disparity in performance on assessment instructions
  • Reducing the disparity rates of high school completion.

State Criteria for Identification of Students At Risk of Dropping Out of School State Criteria for Identification of Students At Risk of Dropping Out of School

Section 29.081 of the Texas Education code defines the State criteria used to identify students at risk of dropping out of school.

A student at risk of dropping out of school includes each student who is under 21 years of age and who:
1. Is in pre-kindergarten, kindergarten or grade 1, 2, or 3, and did not perform satisfactorily on a readiness test or assessment instrument administered during the current school year;
2. Is in grade 7, 8, 9, 10, 11, or 12, and did not maintain an average equivalent to 70 on a scale of 100 in two or more subjects in the foundation curriculum during a semester in the preceding or current school year or is not maintaining such an average in two or more subjects in the foundation curriculum in the current semester;
3. Was not advanced from one grade level to the next for one or more school years;
4. Did not perform satisfactorily on an assessment instrument administered to the student under Subchapter B, Chapter 39, and who has not in the previous or current school year subsequently performed on that instrument or another appropriate instrument at a level equal to at least 110 percent of the level of satisfactory performance on that instrument;
5. Is pregnant or is a parent;
6. Has been placed in an alternative education program in accordance with Section 37.006 during the preceding or current school year;
7. Has been expelled in accordance with Section 37.007 during the preceding or current school year.
8. Is currently on parole, probation, deferred prosecution, or other conditional release;
9. Was previously reported through the Public Education Information Management System (PEIMS) to have dropped out of school;
10. Is a student of limited English proficiency, as defined by Section 29.052;
11. Is in the custody or care of the Department of Protective and Regulatory Services or has, during the current school year, been referred to the department by a school official, officer of the juvenile court, or law enforcement official;
12. Is homeless, as defined by the McKinney-Vento Homeless Education Assistance Improvement Act of 2001, Section 725; or
13. Resided in the preceding school year or resides in the current school year in a residential placement facility in the district, including a detention facility, substance abuse treatment facility, emergency.

Make certain that students who are identified as at risk have folders that are properly coded, listing the reason(s) why they have been identified as at risk. These folders must be placed and maintained in a secure, yet easily accessible place on campus for viewing.

Also make certain to place students’ folders who have withdrawn in inactive files that contain proper school related documents

Use of Funds

Compensatory Education funds may be used only to meet the cost of providing:
a supplemental compensatory, intensive or accelerated instruction program under Section 29.081; or
an alternative education program established under Section 37.008; or
support to a program eligible under Title I, Part A Program at a campus at with least 40% poverty

Funding Restriction

The amount a district may use to fund disciplinary Alternative Education Programs (AEP) is limited to 18% of the district’s State Compensatory Education allotment.

Please note that school districts follow the A-87 column

Campus Improvement Plan

The district and/or campus improvement plan must include the following:

  • Total amount of SCE funds allocated for resources and staff
  • Comprehensive needs assessment
  • Identified strategies
  • Supplemental financial resources for SCE
  • Supplemental FTEs for SCE
  • Measurable Performance Objectives
  • Timelines for monitoring strategies
  • Formative and summative evaluation criteria

Law requires the DIP/CIP and it serves as the primary record supporting expenditures attributed to the State Compensatory Education program.

Program Intent Codes

24 - Accelerated Education
26 - Nondisciplinary Alternative Education Programs - AEP Basic Services
27 - Nondisciplinary Alternative Education Programs - AEP Supplemental SCE costs
28 - Disciplinary Alternative Education Programs DEAP Supplemental SCE costs
29 - Disciplinary Alternative Education Programs DEAP Supplemental SCE costs
30 - Title I Schoolwide Activities related to SCE & other costs on Campuses with 40% or more low-income poverty percentage