Funding

Allocation of the Title I Award

Grants to Local Educational Agencies
Title I Grants to local school districts are authorized under the No Child Left Behind legislation of 2002.  It is intended to ensure that the most financially and socially disadvantaged children have a fair, equal and significant opportunity to obtain a high quality education and reach proficiency on challenging state academic standards and assessments.

Title I, Part A Allocation to Districts

The No Child Left Behind law authorizes allocation of Title I, Part A funds to local educational agencies (LEAs) that meet the requirements of four separate funding formulas: Basic Grants, Concentration Grants, Targeted Grants, and Education Finance Incentive Grants. Allocations are based primarily on the number of poor children in each school district.  These allocations are calculated initially by the United States Department of Education (USDE) and for each district on record, based on census population and enrollment and poverty counts of children age 5-17.  States must use allocations calculated by the USDE for districts with resident populations of 20,000 persons or greater.  For districts with populations of less than 20,000 persons, the regulations allow reallocation of funds using state data.  New Jersey has chosen to exercise this option using state enrollment and free lunch data submitted on the Application for State School Aide (ASSA) report each fall.

All districts are protected from severe loss of Title I funding through hold-harmless provisions of the legislation which mandates that eligible districts receive no less than 85 percent of the amount they received in the previous year. 

The USDE does not have certain districts in their database.  These districts include vocational/technical high schools and charter schools.  New Jersey is, however, required to provide Title I funding to these districts if they are eligible.  To accomplish this task, we first determine from which resident district students are drawn to make up the enrollment of the voc-techs and charters.  We then adjust resident district allocations and redistribute funding to the voc-techs and charter schools.

New Jersey must also set aside from their Title I LEA Grant awards the amounts generated by the annual counts of delinquent children in local institutions in order to support projects in districts that serve children in local correctional facilities.

Title I State Administrative Funds

The No Child Left Behind law allows New Jersey to reserve one percent of the award to carry out state administrative duties. 

The law also requires that New Jersey reserve two percent of the award (rising to four percent in fiscal year 2004) to carry out state and local school improvement activities.  The state then must allocate 95 percent of this school improvement reserve directly to districts that are identified for improvement.

Title I Allocation to Schools

Once a district receives the Title I award, they must allocate the funds to the most needy schools in the district, that is the schools with the largest proportion of children in poverty (for full details on how districts determine how much money each of their schools receive, please see the Consolidated Program Plan Guidelines).

Schools are eligible for funds if:

  • 35 percent or more of their enrolled students are poor children; or
  • The percent of poor children in the school is equal to or greater than the percent of poverty children district wide.

To review Title I allocations distributed to public schools in the state of New Jersey please click on the following link:

2003 New Jersey Title I Allocation Chart

2004 New Jersey Title I Allocation Chart