State Compensatory Education (SCE)

Texas Education Code (TEC) and Texas Administrative Code (TAC)
TEC, §42.152(b); TAC §61.1027

History/Relevant Background Information

The SCE allotment was authorized by the 74th Legislature, and became effective May 30, 1996. State compensatory education funds were authorized by the legislature to provide financial support for programs and/or services designed by LEAs to increase the achievement of students at risk of dropping out of school. State law, Section 29.081, TEC, requires LEAs to use student performance data from the state’s legislatively-mandated assessment instrument known as the Texas Assessment of Knowledge and Skills (TAKS) tests and any other achievement tests administered under Subchapter B, Chapter 39, of the Texas Education Code, including norm-referenced tests approved by the State Board of Education to provide accelerated intensive instruction to students who have not performed satisfactorily or who are at risk of dropping out of school.

Description of Program

Compensatory education is defined in law as programs and/or services designed to supplement the regular education program for students identified as at risk of dropping out of school.

The goal of compensatory education programs is to reduce any disparity in performance on assessments or in rates of high school completion between students at risk of dropping out of school and all other district students.

Funding allocated for compensatory education programs and/or services is based on the number of educationally disadvantaged students in a district. The number of educationally disadvantaged students is determined by averaging the highest six months of student enrollment in the National School Lunch Program (NSLP) for free or reduced-price lunches or in the School Breakfast Program (SBP) for the prior federal fiscal year.

At Risk Eligibility Criteria

There are 13 State criteria - A student at risk of dropping out of school includes each student who is under 21 years of age and who:

  1. Is in prekindergarten, 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 (SAISD has selected the I-SIP as the assessment instrument);
  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 42 U.S.C. Section 11302, and its subsequent amendments; or
  13. resides in the preceding school year or resided in the current school year in a residential placement facility in the district, including a detention facility, substance abuse treatment facility, emergency shelter, psychiatric hospital, halfway house, or foster group home.

San Angelo ISD Student Eligibility - Local Criteria as approved by the Board on April 20, 2015

  • Students who have babies and receive 6 weeks of post-partum home instruction;
  • Students in general education with a long term illness or accident;
  • Students in special education with a long term illness, accident, or extenuating circumstances related to their disability;
  • Students who are in special education or general education and are in jail;
  • Students who are in special education and are in jail, but not enrolled in public school, and or
  • Students who are in special education and been expelled from school.

Reporting Requirements

All school districts, whose state compensatory education allotment is $500,000 or more for the previous fiscal year, are required to submit improvement plans and a state compensatory education evaluation (see criteria below). The following documents are required to be submitted through the TEASE AUDIT application:

  1. District Improvement Plan
  2. Campus Improvement/Instructional Plans - a minimum of two - for the campuses that had the highest percentage of students at risk of dropping out of school ◦At least one improvement plan for a non-Title I school wide campus, if any, that had the highest percentage of at-risk students
    1. All campuses that received low performing state academic accountability ratings for the previous school year
  3. Local evaluation of state compensatory education strategies, activities, and programs if the school district:
    1. Had any low performing campuses based on state accountability; or
    2. Reported more than 59% at-risk students during the previous school year

San Angelo ISD SCE Expenditures:

San Angelo ISD uses all SCE funds to supplement services beyond those offered through the regular education program, less 15% administrative costs and the allowable cost to provide baseline services at Carver, the district’s AEP. SCE funds do not supplant funds for the Regular Education Program, defined as those basic instructional services to which all eligible students are entitled and which consist of the required curriculum for each school district that services grades Kg – 12. SAISD supplemental expenditures include the following:

  • Alternative Education Programs;
  • Tutorials;
  • Class size reduction teachers;
  • Computer-assisted instruction;
  • Specialized staff development to train personnel who are working with students at risk of dropping out of school;
  • Specialized reading and math materials;
  • Specialized reading and math programs;
  • STAAR remediation;
  • Individualized instruction;
  • Accelerated instruction; and
  • Extended day, week, or year.

Improvement Plans

The state compensatory education program must be described in the District/Campus improvement plans. Law requires the district/campus improvement plan; it is the primary record of supporting expenditures attributed to the state compensatory education program. The improvement plans indicates coordination of SCE funds. Campuses must indicate effective strategies being implemented to meet the needs of at risk students.

In addressing the needs of students at risk of dropping out of school, the campus improvement plan must include the following:

  • Total amount of SCE funds allocated for resources and staff
  • Actual supplemental SCE dollar amounts for activities
  • Supplemental full-time equivalents (FTEs)
  • Comprehensive needs assessment
  • Identified strategies
  • Measurable performance objectives
  • Timelines for monitoring strategies
  • Formative and summative evaluation criteria

SCE Frequently Asked Questions (FAQ)

Financial Accounting System Resource Guide (FASRG) SCE Module 9 Guidance