Under Section 5103 (b)(2) of ESEA, districts may transfer funds they receive by formula under certain programs to other programs to better address local needs.
ESEA outlines that a district may transfer up to 100 percent of its
- Title II, Part A − Supporting effective instruction state grants, and/or
- Title IV, Part A − Student support and academic enrichment grants
allocation for a given fiscal year into:
- Title I, Part A – Improving basic programs operated by LEAs
- Title I, Part C – Education of migratory children
- Title I, Part D – Prevention and intervention programs for children and youth who are neglected, delinquent, or at risk
- Title II, Part A − Supporting effective instruction state grants
- Title III, Part A – State grants for English language acquisition and language enhancement
- Title IV, Part A − Student support and academic enrichment grants
- Title V, Part B − Rural education
The district indicates this request during the “Intent to Apply for Federal Funding.” This must be submitted and approved prior to transferring funds.
Before a district transfers funds from Title II or IV, it must engage in timely and meaningful consultation with private school officials (ESEA 5103(e)(2)). This must be documented in the district’s Affirmation of Consultation.
When funds are transferred, they become funding of the program to which they are transferred. These funds are then subject to all the rules and requirements of the programs to which they are transferred. Below are the programs to which North Dakota districts most commonly transfer.
What is transferability?
Transferability is a flexibility in federal statute that permits districts to transfer a portion of the funding they receive by formula under certain Federal programs to their allocations under other programs so they can address more effectively their unique needs.
Why is transferability important?
Transferability provides districts with unprecedented flexibility in targeting Federal resources to meet the needs of all children. It can be a powerful tool in assisting districts in pursuing their own strategies for raising student achievement. This flexibility supports the development and implementation of integrated approaches for addressing local educational needs and priorities.
Which programs can formula funds be transferred out of?
Programs from which a district can transfer funds FROM include:
- Title II, Part A – Supporting effective instruction state grants
- Title IV, Part A – Student support and academic enrichment grants
A district may not transfer funds it receives under any other ESEA program.
Which programs can funds be transferred to?
Programs to which a district may transfer funds TO include:
- Title I, Part A – Improving basic programs operated by LEAs
- Title I, Part C – Education of migratory children
- Title I, Part D – Prevention and intervention programs for children and youth who are neglected, delinquent, or at risk
- Title II, Part A − Supporting effective instruction state grants
- Title III, Part A – State grants for English language acquisition and language enhancement
- Title IV, Part A − Student support and academic enrichment grants
- Title V, Part B − Rural education
Does transferability provide the district with additional Federal funding?
No, transferability does not affect the overall amount of funds the district generates through formula programs but does provide greater flexibility in using certain Federal funds.
Can a district transfer funds to a program with a $0.00 allocation?
A district may only transfer funds into a program for which that district is receiving an allocation.
What rules and requirements govern funds that a district transfers from one program to another?
Transferred funds become funds of the program to which they are transferred and are subject to all the rules and requirements of the programs to which the funds are transferred.
May a district transfer only those funds that are to be used for equitable services to private school students or teachers?
No. A district may not transfer funds to a particular program solely to provide equitable services for private school students or teachers. For example, if a district chooses to transfer its Title II, Part A to Title I, Part A, the district may not retain a portion of those funds solely to provide equitable services under Title II, Part A. Rather, a district, after consulting with appropriate private school officials, must provide equitable services to private school students and teachers based on the rules of each program and the total amount of funds available to each program after a transfer. (See ESEA section 5103(e))