State Education Grants
Foundation School Program (FSP) Special Allotments
Each school district receives FSP special allotments under the Texas Education Code, Chapter 42, Subchapter C, for the following programs: special education, career and technology, gifted and talented, compensatory education, and bilingual education.
Districts are required to budget and spend a certain percentage of each program on direct instruction. A minimum of 52% of the allotments must be spent for special education, compensatory education, and bilingual education.

Compensatory Education Allotment: TEC 42.152
Funds from this program may be used only to meet the costs of providing (1) a supplemental compensatory, intensive, or accelerated instruction program; (2) an alternative education program; (3) support to a program eligible under Title I at a campus at which at least 40 percent of the students are educationally disadvantaged; or (4) a program specifically designed to serve students at risk of dropping out of school. Students who are served must meet the at-risk eligibility criteria outlined in Section 29.081 of the Texas Education Code. The purpose of these programs is to increase academic achievement and decrease the drop-out rate of at-risk students.
Funds can be used for costs for program and student evaluation, instructional materials and equipment and other supplies required for quality instruction, supplemental staff expenses, salary for teachers of at-risk students, smaller class size, and individualized instruction.

Bilingual Education Allotment:
TEC 42.153
A district's bilingual education or special language allocation must be used in providing bilingual education or special language programs. The funds may be used only for program and student evaluation, instructional materials and equipment, staff development, supplemental staff expenses, salary supplements for teachers, and other supplies required for quality instruction and smaller class size.

Career and Technology Allotment:
TEC 42.154
Funds allocated under this section, other than an indirect cost allotment established under State Board of Education rule, must be used in providing career and technology education programs in grades nine through twelve or career and technology education programs for students with disabilities in grades seven through twelve. The program incorporates competencies leading to academic and technical skill attainment, leads to certificates or post secondary degrees, and includes opportunities for students to earn college credit for coursework.
Gifted and Talented Adjusted Allotment: TEC 42.156
Funds allocated under this section, other than the amount that represents the program's share of general administrative costs, must be used in providing programs for gifted and talented students under Subchapter D, Chapter 29, including programs sanctioned by International Baccalaureate and Advanced Placement, or in developing programs for gifted and talented students.
Special Education Adjusted Allotment: TAC 89.1125
Funds allotted under this section may be spent on personnel costs, including instructional and support duties; special materials such as assistive technology and audiovisual equipment; contracted services for staff development, instruction, assessments and related services; and staff travel to perform services related to education of students with disabilities.
High School Allotment:
TAC 61.1093
Funds under this section must be used to provide programs that provide underachieving students study skill for success in college level work, support in college preparatory classes, and information about college and financial aid.
Funds can be used for tuition, instructional materials, technology, personnel costs, and professional development.
Allowable Indirect Cost
After a district has budgeted and spent the required percentage of each fund on direct instruction, any remaining funds can be spent on indirect costs.
Indirect costs may be attributed to the following expenditure function codes:
34--Student Transportation
41--General Administration
81--Facilities Acquisition and Construction
90--Intergovernmental Charges

Function 34
This function is used for expenditures/expenses that are incurred for transporting students to and from school.
Function 41
This function is for expenditures / expenses that are for purposes of managing or governing the school district as an overall entity.
Function 81
This function is used by school districts for expenditures that are for acquiring, equipping, and/or making additions to real property and sites, including lease and capital lease transactions.
Function 90
“Intergovernmental Charges” is a classification that is appropriate where one governmental unit transfers resources to another.
For example, the transfer of students from one district to another district.
Special Needs?
Looking for something else?
Let us know....