Tex. Educ. Code Section 48.104
Compensatory Education Allotment


(a)

For each student who does not have a disability and resides in a residential placement facility in a district in which the student’s parent or legal guardian does not reside, a district is entitled to an annual allotment equal to the basic allotment multiplied by 0.2 or, if the student is educationally disadvantaged, 0.275. For each full-time equivalent student who is in a remedial and support program under Section 29.081 (Compensatory, Intensive, and Accelerated Instruction) because the student is pregnant, a district is entitled to an annual allotment equal to the basic allotment multiplied by 2.41.

(b)

For each student who is educationally disadvantaged and resides in an economically disadvantaged census block group as determined by the commissioner under Subsection (c), a district is entitled to an annual allotment equal to the basic allotment multiplied by the weight assigned to the student’s census block group under Subsection (d).

(c)

For purposes of the allotment under Subsection (b), the commissioner shall establish an index for economically disadvantaged census block groups in the state that provides criteria for determining which census block groups are economically disadvantaged and categorizes economically disadvantaged census block groups in five tiers according to relative severity of economic disadvantage. In determining the severity of economic disadvantage in a census block group, the commissioner shall consider:

(1)

the median household income;

(2)

the average educational attainment of the population;

(3)

the percentage of single-parent households;

(4)

the rate of homeownership; and

(5)

other economic criteria the commissioner determines likely to disadvantage a student’s preparedness and ability to learn.

(d)

The weights assigned to the five tiers of the index established under Subsection (c) are, from least to most severe economic disadvantage, 0.225, 0.2375, 0.25, 0.2625, and 0.275.

(e)

If insufficient data is available for any school year to evaluate the level of economic disadvantage in a census block group, a school district is entitled to an annual allotment equal to the basic allotment multiplied by 0.225 for each student who is educationally disadvantaged and resides in that census block group.

(e-1)

For each student who is a homeless child or youth as defined by 42 U.S.C. Section 11434a, a school district is entitled to an annual allotment equal to the basic allotment multiplied by the highest weight provided under Subsection (d).

(f)

A student receiving a full-time virtual education through the state virtual school network may be included in determining the number of students who are educationally disadvantaged and reside in an economically disadvantaged census block group under Subsection (b) or (e), as applicable, if the school district submits to the commissioner a plan detailing the enhanced services that will be provided to the student and the commissioner approves the plan.

(g)

Not later than March 1 of each year, the commissioner shall:

(1)

review and, if necessary, update the index established under Subsection (c) to be used for the following school year, based on the most recent estimates published by the United States Census Bureau; and

(2)

notify each school district of any changes to the index.

(h)

The state demographer, the Department of Agriculture, and any other state agency with relevant information shall assist the commissioner in performing the commissioner’s duties under this section.

(i)

On a schedule determined by the commissioner, each school district shall report to the agency the census block group in which each student enrolled in the district who is educationally disadvantaged resides. The agency shall provide to school districts a resource for use in determining the census block group in which a student resides.

(j)

The commissioner shall adopt rules for the method of determining the number of students who qualify for an allotment under this section at a campus that participates in the Community Eligibility Provision administered by the United States Department of Agriculture, as provided by the Healthy, Hunger-Free Kids Act of 2010 (Pub. L. No. 111-296).

(j-1)

In addition to other purposes for which funds allocated under this section may be used, those funds may also be used to:

(1)

provide child-care services or assistance with child-care expenses for students at risk of dropping out of school, as described by Section 29.081 (Compensatory, Intensive, and Accelerated Instruction)(d)(5);

(2)

pay the costs associated with services provided through a life skills program in accordance with Sections 29.085 (Life Skills Program for Student Parents)(b)(1) and (3)-(7);

(3)

pay costs for services provided by an instructional coach to raise student achievement at a campus in which educationally disadvantaged students are enrolled; or

(4)

pay expenses related to reducing the dropout rate and increasing the rate of high school completion, including expenses related to:

(A)

duties performed by attendance officers to support educationally disadvantaged students; and

(B)

programs that build skills related to managing emotions, establishing and maintaining positive relationships, and making responsible decisions.

(k)

At least 55 percent of the funds allocated under this section must be used to:

(1)

fund supplemental programs and services, including services provided by an instructional coach, designed to eliminate any disparity in performance on assessment instruments administered under Subchapter B (Essential Skills and Knowledge), Chapter 39 (Public School System Accountability), or disparity in the rates of high school completion between:

(A)

students who are educationally disadvantaged and students who are not educationally disadvantaged; and

(B)

students at risk of dropping out of school, as defined by Section 29.081 (Compensatory, Intensive, and Accelerated Instruction), and all other students; or

(2)

support a program eligible under Title I of the Elementary and Secondary Education Act of 1965, as provided by Pub. L. No. 103-382 and its subsequent amendments, and by federal regulations implementing that Act.

(l)

The commissioner shall adopt rules regarding the use of funds described by Subsection (k). The rules:

(1)

must:

(A)

permit a school district to use those funds for programs and services that reflect the needs of students at each campus in the district; and

(B)

provide for streamlined reporting on the use of those funds; and

(2)

may not prohibit the use of those funds for any purpose for which the use of those funds was authorized under former Section 42.152 as that section existed on September 1, 2018.

(m)

The State Board of Education shall adopt rules requiring a report on the use of funds under Subsection (k) as part of the annual audit under Section 44.008 (Annual Audit; Report) and shall develop minimum requirements for that report.

(n)

The commissioner annually shall review each report required under Subsection (m) for the preceding school year and:

(1)

identify each school district that was not in compliance with Subsection (k) during that school year; and

(2)

provide each district identified under Subdivision (1) a reasonable opportunity to comply with Subsection (k).

(o)

The commissioner, in the year following a determination under Subsection (n) that a school district was not in compliance with Subsection (k) for the 2021-2022 school year or a subsequent school year, shall withhold from the district’s foundation school fund payment an amount equal to the amount of compensatory education funds the commissioner determines were not used in compliance with Subsection (k). The commissioner shall release to a district funds withheld under this subsection when the district provides to the commissioner a detailed plan to spend those funds in compliance with Subsection (k). In determining whether a school district is subject to the withholding of funding required under this subsection, the commissioner may consider the district’s average use of funds for the three preceding school years.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1071, Sec. 16, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 396, Sec. 1.13, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 725, Sec. 11, eff. June 13, 2001; Acts 2001, 77th Leg., ch. 1156, Sec. 4, 12, eff; Sept. 1, 2001; Acts 2003, 78th Leg., ch. 201, Sec. 30, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 253, Sec. 1, eff. sept. 1, 2003; Acts 2003, 78th Leg., ch. 783, Sec. 2, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 785, Sec. 57, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 903, Sec. 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 6.009, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 23.001(17), eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 1204 (H.B. 1609), Sec. 3, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 52, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 53, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 105(a)(6), eff. September 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 57.12, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 1250 (H.B. 1305), Sec. 2, eff. June 20, 2015.
Transferred, redesignated and amended from Education Code, Section 42.152 by Acts 2019, 86th Leg., R.S., Ch. 943 (H.B. 3), Sec. 1.028, eff. September 1, 2019.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 806 (H.B. 1525), Sec. 24, eff. September 1, 2021.

Source: Section 48.104 — Compensatory Education Allotment, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­48.­htm#48.­104 (accessed Apr. 20, 2024).

48.001
State Policy
48.002
Purposes of Foundation School Program
48.003
Student Eligibility
48.004
Administration of the Program
48.005
Average Daily Attendance
48.006
Average Daily Attendance for Districts in Disaster Area
48.007
Off-campus Programs Approved for Purposes of Average Daily Attendance
48.009
Required Peims Reporting
48.010
Determination of Funding Levels
48.0051
Incentive for Additional Instructional Days
48.051
Basic Allotment
48.052
Sparsity Adjustment
48.053
Allotment for Certain Special-purpose School Districts
48.101
Small and Mid-sized District Allotment
48.102
Special Education
48.103
Allotment for Student with Dyslexia or Related Disorder
48.104
Compensatory Education Allotment
48.105
Bilingual Education Allotment
48.106
Career and Technology Education Allotment
48.107
Public Education Grant Allotment
48.108
Early Education Allotment
48.109
Gifted and Talented Student Allotment
48.110
College, Career, or Military Readiness Outcomes Bonus
48.111
Fast Growth Allotment
48.112
Teacher Incentive Allotment
48.114
Mentor Program Allotment
48.115
School Safety Allotment
48.151
Transportation Allotment
48.152
New Instructional Facility Allotment
48.153
Dropout Recovery School and Residential Placement Facility Allotment
48.154
Tuition Allotment for Districts Not Offering All Grade Levels
48.155
College Preparation Assessment Reimbursement
48.156
Certification Examination Reimbursement
48.201
Purpose
48.202
Tier Two Allotment
48.203
Limitation on Enrichment Tax Rate
48.204
Computation of Aid for District on Military Reservation or at State School
48.251
Financing
48.252
School District Entitlement for Certain Students
48.253
Additional State Aid for Tax Increment Financing Payments
48.254
Additional State Aid for Ad Valorem Tax Credits Under Texas Economic Development Act
48.255
State Compression Percentage
48.257
Local Revenue Level in Excess of Entitlement
48.258
Adjustment for Rapid Decline in Taxable Value of Property
48.259
Adjustment for Optional Homestead Exemption
48.260
Adjustment for Property Value Affected by State of Disaster
48.261
Reimbursement for Disaster Remediation Costs
48.262
Adjustments for Certain Districts Receiving Federal Impact Aid
48.265
Excess Funds for Video Surveillance of Special Education Settings
48.266
Distribution of Foundation School Fund
48.267
Adjustment by Commissioner
48.268
Adjustment for Resolution of Dispute or Error Resulting in Taxation of Same Property by Multiple School Districts
48.269
Estimates Required
48.270
Falsification of Records
48.271
Effect of Appraisal Appeal
48.272
Recovery of Overallocated Funds
48.273
Foundation School Fund Transfers
48.274
Foundation School Fund Transfers to Certain Charter Schools
48.275
Use of Certain Funds
48.277
Formula Transition Grant
48.278
Equalized Wealth Transition Grant
48.279
Maintenance of State Financial Support for Special Education
48.283
Additional State Aid for Certain Districts Impacted by Compression
48.301
Additional Assistance for Districts with Students Using Public Education Grants
48.302
Subsidy for High School Equivalency Examination for Certain Individuals
48.303
Additional State Aid for Regional Education Service Center Staff Salary Increases
48.305
Allotment for Non-enrolled Students Participating in University Interscholastic League Activities
48.307
Additional State Aid for State-approved Instructional Materials
48.308
Additional State Aid for Open Education Resource Instructional Material
48.1041
Compensatory Education Allotment Advisory Committee
48.2541
Additional State Aid for Certain Ad Valorem Tax Refunds
48.2542
Additional State Aid for Adjustment of Limitation on Tax Increases on Homestead of Elderly or Disabled
48.2543
Additional State Aid for Homestead Exemption
48.2551
Maximum Compressed Tax Rate
48.2552
Limitation on Maximum Compressed Rate
48.2556
Posting on Agency Website of Information Related to Reduction of Limitation of Tax on Homesteads of Elderly or Disabled
48.2642
Adjustments for Texas First Early High School Completion Program Graduates
48.2721
Recovery of Funds from Excessive Taxation

Accessed:
Apr. 20, 2024

§ 48.104’s source at texas​.gov