Purpose

This program provides additional formula funds and flexibility in the use of certain federal funds to small, rural districts.

WHAT'S NEW--The No Child Left Behind Act

Reduces Bureaucracy and Increases Flexibility

• Provides participating districts with additional flexibility. Eligible districts are authorized to consolidate certain federal funds.
• Increases eligibility options. Additional options may be used to make districts eligible.

Increases Accountability for Student Performance

• Districts required to make annual yearly progress. State education agencies (SEAs) are required to determine, after the third year, if a school district has to meet adequate yearly progress requirements. If the district has, it may continue to participate. If not, it may participate only if it moves the applicable funds from school from school improvement activities.

How It Works

This formula grant program provides funds directly to eligible school districts based on the number of students in average daily attendance in the schools served by the district and the amount that the district received under certain federal programs in the previous fiscal year. To be eligible for this program, a district must: (1) have an average daily attendance of fewer than 600 students or serve only schools located in counties with a population density of fewer than 10 persons per square mile and (2) serve only schools located in an area defined by the U.S. Department of Education as being rural or rural near an urban area (or the LEA can demonstrate that is located in an area defined as rural by a state government agency).

Districts are authorized to combine their allocations under the Improving Teacher Quality, State Grants for Innovative Programs (formerly Title VI), Safe and Drug-Free Schools and Communities, 21st Century Community Learning Centers, and Educational Technology State Grants programs. Districts are authorized to use their consolidated funds to carry out activities authorized under the Title I, Teacher Quality, Educational Technology, Bilingual Education, Innovative Programs, and Safe and Drug-Free Schools programs.

Key Requirements

Each participating district must administer an assessment that is consistent with the assessment required under Title I. State education agencies are required to determine, after the third year that a district participates, whether the district met the state's definition of adequate yearly progress. SEAs may permit districts that met the definition of adequate yearly progress to continue to participate and permit a district that did not meet the definition of adequate yearly progress to continue to participate only if it agrees to use its consolidated funds for Title I school improvement activities.

How Performance Is Measured

Districts must meet adequate yearly progress to continue to participate and have maximum flexibility in the use of funds. If a district fails to meet adequate yearly progress, it may continue to participate only if it uses its funds for Title I school improvement activities.