A r c h i v e d I n f o r m a t i o n

U.S. Department of Education FY 1999 Annual Plan - February 27, 1998

Impact Aid

Impact Aid -- $696,000,000 (FY 99)

Goal: To provide appropriate financial assistance for federally connected children who present a genuine burden to their school districts.

Objectives Indicators Source and Next Update Strategies

Basic payments

1. Provide payments on behalf of federally connected children that closely approximate the actual local cost of educating children in the district, including federally connected children. 1.1 Payment amounts. For at least 90% of all LEAs, actual payments will be within 10% of the target payment (the payment the LEA would receive at the level appropriated by Congress using the formula proposed in the President's FY 1999 budget). In 1998, approximately 8% of all payments to LEAs will be within 10% of the ideal target payment.
1.2 Per-pupil expenditures. Recipient LEAs' per-pupil expenditures, after receipt of Basic Payment, will be within 90% and 110% of the state average per-pupil expenditures.
1.1 Annual application, National Center for Education Statistics (NCES), and payment simulations, 1999.
1.2 Annual application, NCES, and payment data, 1997.
• Propose formula changes through legislation and appropriations language to ensure that funds are directed to districts serving federally connected children for whom the federal government has a primary obligation.

2. Make payments in a timely manner. 2.1 Timeliness of payments. 90% of eligible applicants will receive an initial payment within 60 days following the enactment of an appropriation. 2.1 Annual application and payment files, 1997. Data will be provided by program staff. • Improve review procedures.
• Increase use of technology.

3. Make accurate payments. 3.1 Overpayment forgiveness requests. The number of overpayment forgiveness requests received will not exceed 10 in a given fiscal year, beginning with FY 1998. 3.1 Data will be provided by program staff. • Continue quality control processes to minimize payment errors.

Payments for heavily impacted districts

4. Provide payments that support adequate current expenditures. 4.1 Per-pupil expenditures. Heavily impacted payments will provide sufficient funds so that the per-pupil expenditures of eligible LEAs shall be between 90% and 110% of the state average per pupil expenditure. Preliminary data indicate that in 1995, 5 LEAs were within this range, 9 were above it, and 1 was below it. 4.1 Annual application and payment data, 1996. • Propose formula changes through legislation and appropriations language to ensure that funds are directed to districts serving high concentrations of federally connected children for whom the federal government has a primary obligation.

Facilities

5. Continue to maintain, repair, renovate, and transfer ED-owned school facilities. 5.1 Facility transfers. At least 6 school facilities will be transferred to LEAs or relinquished annually. All ED-owned facilities will be transferred or relinquished by 2005. In 1996, 4 facilities were transferred. 5.1 Program files, 1997. • The Department has requested funding to maintain ED-owned school buildings in a safe condition and fund a limited number of renovation and transfer projects in the FY 1999 budget.
• Continue negotiations with LEAs to ensure timely transfer of facilities.
• Continue cooperative efforts with the Department of Defense to encourage the transfer of facilities to school districts.

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[Education for the Disadvantaged]

[Class Size Reduction and Teacher Financing]

Impact Aid -- $696,000,000 (FY 99)
Goal: To provide appropriate financial assistance for federally connected children who present a genuine burden to their school districts.
Objectives	Indicators	Source and Next Update	Strategies
Basic payments
1. Provide payments on behalf of federally connected children that closely approximate the actual local cost of educating children in the district, including federally connected children.	1.1 Payment amounts. For at least 90% of all LEAs, actual payments will be within 10% of the target payment (the payment the LEA would receive at the level appropriated by Congress using the formula proposed in the President's FY 1999 budget). In 1998, approximately 8% of all payments to LEAs will be within 10% of the ideal target payment. 1.2 Per-pupil expenditures. Recipient LEAs' per-pupil expenditures, after receipt of Basic Payment, will be within 90% and 110% of the state average per-pupil expenditures.	1.1 Annual application, National Center for Education Statistics (NCES), and payment simulations, 1999. 1.2 Annual application, NCES, and payment data, 1997.	• Propose formula changes through legislation and appropriations language to ensure that funds are directed to districts serving federally connected children for whom the federal government has a primary obligation.
2. Make payments in a timely manner.	2.1 Timeliness of payments. 90% of eligible applicants will receive an initial payment within 60 days following the enactment of an appropriation.	2.1 Annual application and payment files, 1997. Data will be provided by program staff.	• Improve review procedures. • Increase use of technology.
3. Make accurate payments.	3.1 Overpayment forgiveness requests. The number of overpayment forgiveness requests received will not exceed 10 in a given fiscal year, beginning with FY 1998.	3.1 Data will be provided by program staff.	• Continue quality control processes to minimize payment errors.
Payments for heavily impacted districts
4. Provide payments that support adequate current expenditures.	4.1 Per-pupil expenditures. Heavily impacted payments will provide sufficient funds so that the per-pupil expenditures of eligible LEAs shall be between 90% and 110% of the state average per pupil expenditure. Preliminary data indicate that in 1995, 5 LEAs were within this range, 9 were above it, and 1 was below it.	4.1 Annual application and payment data, 1996.	• Propose formula changes through legislation and appropriations language to ensure that funds are directed to districts serving high concentrations of federally connected children for whom the federal government has a primary obligation.
Facilities
5. Continue to maintain, repair, renovate, and transfer ED-owned school facilities.	5.1 Facility transfers. At least 6 school facilities will be transferred to LEAs or relinquished annually. All ED-owned facilities will be transferred or relinquished by 2005. In 1996, 4 facilities were transferred.	5.1 Program files, 1997.	• The Department has requested funding to maintain ED-owned school buildings in a safe condition and fund a limited number of renovation and transfer projects in the FY 1999 budget. • Continue negotiations with LEAs to ensure timely transfer of facilities. • Continue cooperative efforts with the Department of Defense to encourage the transfer of facilities to school districts.