Q9. May a State educational agency (SEA) delay awarding "greatest need" funds until the SEA receives its supplemental grant award?

A9. Yes. Funds for greatest need (the 30% share) are made by SEAs to LEAs on a competitive basis. Therefore, an SEA may choose to award all of these funds after receipt of the "October 1 funds." However, an SEA may also choose to award some of the 30% share in July and the remainder of the 30% share in October.

Q10. Must Governors make two sets of grant awards to their subgrantees/contractors?

A10. States received their first "installment" of FY 2000 SDFSCA funds on or about July 1, 2000. The second installment will not be awarded to States until October 1, 2000. Since the Governor's funds can be awarded on a discretionary basis, the Governor may award funds based on needs and established priorities. Therefore, the Governor may choose to make one set of awards in July and another set of awards in October. However, should the Governor choose to award some of the funds in July, he/she may not award more than the total amount made available in the July installment.

Q11. Can Governors fully fund some of their subgrantees/contractors from the July installment and defer funding to others until October?

A11. Yes. Again, the SDFSCA gives discretion to the Governor's program to establish funding periods that will meet appropriate funding priorities and needs.

Q12. What is the Reading Excellence Act (REA)?

A12. The REA is a competitive State grant program under which a State conducts two separate subgrant competitions among eligible LEAs. The REA program is subject to the Department's general administrative provisions governing direct grant programs (34 CFR Part 75).

Q13. May a State receiving REA funds distribute partial awards of funds to LEAs?

A13. As discussed in the response to question 4, a State may distribute funds to its subgrantees either in installments (following July 1 and October 1) or by fully funding only some subgrantees until the October 1 funds become available. At this time, however, the Department does not anticipate that any State receiving an FY 2000 REA award will have completed its subgrant competitions among the eligible LEAs or be prepared to issue subgrants under either REA subgrant competition prior to October 1, 2000.