Basics of State Compensatory Education Funds

Basics of State Compensatory Education Funds

December 15, 2022 | Grants Management

Very likely, your charter is receiving a special allocation of state funds to assist with the educational needs of your students who qualify as At-Risk based on state-defined criteria. Like most the other special state allotments, these funds come with special guidelines and requirements.

HB 3 in the 2019 legislature changed the formula for allocation of these special funds know as State Compensatory Education (SCE) Funds.  The physical address of your educationally disadvantaged students (aka economically-disadvantaged) impacts the per pupil amount of SCE generated for use with your At-Risk students.

The CSS Federal team assists its clients with identifying allowable activities for SCE funds and monitoring compliance with the 55% requirement throughout the year.

The purpose of State Compensatory Education (SCE) funds is to provide supplemental programs and services designed to eliminate any disparity in performance on the state assessment instrument (STAAR) or the disparity in their rates of high school completion between students identified as “At Risk” for dropping out of school and all other students.

Register now for the State Compensatory Education Funds Online Course!

At least 55% of your charter’s allocation must be spent on direct services to accelerate these students. Furthermore, they are to directly serve students who meet one of the following 15 At-Risk criteria:

15 criteria for identifying At-Risk students:

  1. Did not advance from one grade level to the next for one or more years (does not include students retained in PreK or K due to parent request)
  2. Failing two or more core subject classes in grades 7-12 in the preceding school year, previous semester, or is failing to maintain a passing average in the current semester.
  3. Did not perform satisfactorily on the state assessment in the previous school year and who has not passed with a score equal to 110 % of the level of satisfactory performance on that instrument.
  4. Failure to perform satisfactorily on a current-year readiness assessment in grades PK – 3.
  5. Pregnant or parent
  6. Placed in a DAEP during the preceding or current school year.
  7. Expelled during the preceding or current school year.
  8. On parole, probation or in custody of juvenile justice system
  9. Previously reported in PEIMS as having dropped out of school
  10. Limited English proficiency per state statute
  11. In custody or care of DFPS or has been referred to the department during the current school year.
  12. Homeless
  13. Residential placement during the previous school year or current school year.
  14. Student has been incarcerated or has a parent or guardian who has been incarcerated within the lifetime of the student, in a penal institution as defined by the Texas Penal Code, 1.07.
  15. Student is enrolled in a school district or open-enrollment charter school that is designated as a dropout recovery school under Section 39.0548.

Other requirements include providing accelerated instruction for those students who did not perform satisfactorily on required EOC.  The accelerated instruction program must be funded before any other SCE activities can be budgeted.

Some of the “Must Do’s” for using these funds are listed below.

  1. Annually, complete a Comprehensive Needs Assessment, develop a Campus Improvement Plan and complete an Evaluation of the use of funds.
  2. Provide accelerated instruction in the applicable subject each time a student fails to perform satisfactorily on a required EOC.
  3. Provide accelerated instruction for students who are identified as At-Risk.
  4. Clearly identify SCE-funded activities in the CIP/DIP for the LEA.
  5. Support SCE-funded positions with appropriate job descriptions.
  6. Submit Campus and District Improvement Plans to the state if you receive $750,000 or more in your SCE allotment for the prior year.

Budgeting Requirements

  • 55% of the funds must be used for direct services to support identified At-Risk students.
  • SCE funds are considered supplemental and are not intended to replace state or local funding.
  • SCE funding activities should also be identified in your district budget using the appropriate Program Intent Code.
  • SCE funds can be used to support a Title I program

The CSS webinar on State Compensatory Funds will provide you with a basic understanding of this special state program.  Click to register now!

Have questions or need assistance? Please contact:

Ask questions, get answers and discuss this topic on the Charter School Success Roundtable now!