Subpart E-What Fiscal Requirements Apply to the Chapter 1 LEA Program?

200.40 What is the prohibition against using funds under this part to provide general aid?

200.41 What maintenance of effort requirements apply to this program? 200.42 Under what circumstances may an SEA waive the maintenance of effort requirement?

200.43 What comparability of services requirements apply to this program? 200.44 What supplement, not supplant requirement applies to this program? 200.45 How may an LEA exclude special State and local funds from comparability and supplement, not supplant determinations?

200.46 What is the maximum amount of funds an LEA may carry over?

200.47 What is the prohibition against considering payments under this part in determining State aid? 200.48-200.49

[Reserved.]

SOURCE: 54 FR 21756, May 19, 1989, unless otherwise noted.

Subpart A-General

8200.1 What is the Chapter 1 Program in Local Educational Agencies?

(a) Under the Chapter 1 Program in Local Educational Agencies (LEAs)— referred to in this part as the Chapter 1 LEA Program-the Secretary provides Federal financial assistance for projects designed to meet the special educational needs of

(1) Educationally deprived children in LEAS;

(2) Children in local institutions for neglected or delinquent children, including children in local correctional institutions; and

(3) Educationally deprived Indian children under section 1005(d) of the Act.

(b)(1) The purpose of assistance under this part is to improve the educational opportunities of educationally deprived children by helping these children

(i) Succeed in the regular program of the LEA;

(ii) Attain grade-level proficiency; and

(iii) Improve achievement in basic and more advanced skills.

(2) The purpose is accomplished through means such as supplemental education programs, schoolwide programs, and the increased involvement of parents in their children's education.

(Authority: 20 U.S.C. 2701)

§ 200.2 Who is eligible for a grant?

The Secretary provides funds under the Chapter 1 LEA Program to—

(a) States, through their respective State educational agencies (SEAs); and (b) The Secretary of the Interior for Indian children referred to in § 200.1(a)(3).

(Authority: 20 U.S.C. 2711-2712)

§ 200.3 Who is eligible for a subgrant?

(a) General rule. (1) Except as provided in paragraph (d) of this section, an LEA that qualifies under paragraph (b) or (c) of this section is eligi

ble for a subgrant under the chapter 1 LEA Program.

(2) An SEA provides two types of subgrants-basic grants and concentration grants-to qualifying LEAS.

(b) Basic grants. An LEA is eligible for a basic grant if—

(1) There are at least 10 children counted under section 1005(c) of the Act in the school district of the LEA; or

(2) Satisfactory data on a school district basis are not available but the school district served by the LEA is located, in whole or in part, in a county in which there are at least 10 children counted under section 1005(c) of the Act.

(c) Concentration grants. (1) An LEA is eligible for a concentration grant if

(i) The LEA is eligible for a basic grant under paragraph (b) of this section;

(ii) The school district of the LEA is located, in whole or in part, in a county in which the number of children counted under section 1005(c) of the Act in the school districts of LEAS in the county in the preceding fiscal year exceeds

(A) 6,500; or

(B) 15 percent of the total number of children aged 5 to 17, inclusive, in the school districts of LEAS in the county in the preceding fiscal year; and

(iii) The number of children counted for purposes of § 200.23 or § 200.24 in the preceding fiscal year in the school district of the LEA exceeds

(A) 6,500; or

(B) 15 percent of the total number of children aged 5 to 17, inclusive in the school district of the LEA in the preceding fiscal year.

(2) An LEA that does not qualify for a concentration grant under paragraph (c)(1) of this section may receive a concentration grant under § 200.25(b).

(d) Exception. This section does not apply to Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, and the Secretary of the Interior.

(Authority: 20 U.S.C. 2711-2712)

§ 200.4 What kind of activities may an LEA conduct?

(a) Under the Chapter 1 LEA Program, an LEA may conduct only projects that are designed to provide supplemental services to meet the special educational needs of educationally deprived children at the preschool, elementary, and secondary school levels. (b) An LEA is encouraged to—

(1) Develop programs to assist participating children to improve achievement in basic and more advanced skills; and

(2) Consider year-round services and activities, including intensive summer school programs.

(c) Authorized activities to meet the special educational needs of educationally deprived children include

(1) Acquisition of equipment and instructional materials;

(2) Acquisition of books and school library resources;

(3) Employment of special instructional personnel, school counselors, and other pupil services personnel;

(4) Employment and training of education aides;

(5) Payments to teachers of amounts in excess of regular salary schedules as a bonus for service in schools serving project areas;

(6) Training of teachers, librarians, other instructional and pupil services personnel, and, as appropriate, early childhood education professionals;

(7) Construction, if necessary, of school facilities;

(8) Parental involvement activities; (9) Planning for and evaluation of Chapter 1 projects; and

(10) Other allowable activities.

(d)(1) With the approval of the SEA, an LEA may use up to and including five percent of the funds the LEA receives under §§ 200.22 through 200.26 for innovation projects to promote quality in the Chapter 1 LEA Program.

(2) Innovation projects may include only the following:

(i) Notwithstanding § 200.31(a), the continuation of services to children who received Chapter 1 services in any preceding year for a period sufficient to maintain progress made during the