American Recovery and Reinvestment Act of 2009 (ARRA); Title I, Part A of the Elementary and Secondary Education Act of 1965, as Amended (ESEA); Part B, Section 611 of the Individuals With Disabilities Education Act (IDEA), 55215-55220 [E9-25839]

Agencies

• DEPARTMENT OF EDUCATION

[Federal Register Volume 74, Number 206 (Tuesday, October 27, 2009)]
[Notices]
[Pages 55215-55220]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25839]



[[Page 55215]]

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DEPARTMENT OF EDUCATION

[Docket ID ED-2009-OESE-0011]
RIN 1810-AB05


American Recovery and Reinvestment Act of 2009 (ARRA); Title I, 
Part A of the Elementary and Secondary Education Act of 1965, as 
Amended (ESEA); Part B, Section 611 of the Individuals With 
Disabilities Education Act (IDEA)

AGENCY: Office of Elementary and Secondary Education; Office of Special 
Education and Rehabilitative Services, U.S. Department of Education.

ACTION: Final notice of adjustments to Title I, Part A and IDEA, 
section 611 statutory caps on State administration for Federal fiscal 
year (FY) 2009.

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SUMMARY: The U.S. Secretary of Education (Secretary) adjusts the 
statutory caps on State administration under Title I, Part A of the 
Elementary and Secondary Education Act of 1965, as amended (Title I, 
Part A), and Part B, section 611 of the Individuals with Disabilities 
Education Act (IDEA, section 611) with respect to data collection 
requirements pertaining to these two programs under the American 
Recovery and Reinvestment Act of 2009 (ARRA), Public Law 111-5. The 
adjustments allow a State educational agency (SEA) to reserve 
additional State administrative funds from its FY 2009 allocations 
under Title I, Part A and IDEA, section 611 to help defray the costs of 
data collections that are specifically related to ARRA funding for 
these programs (including, for Title I, Part A, data collection related 
to waivers). An SEA may use administrative funds from its regular Title 
I, Part A and IDEA, section 611 appropriations; the additional 
administrative funds allowed by the adjustments in this notice; or a 
combination of these funds to meet the costs of ARRA-related data 
collection requirements for the Title I, Part A and IDEA, section 611 
programs, respectively. For costs associated with ARRA data collections 
unrelated to Title I, Part A or IDEA, section 611, an SEA may use the 
State's Government Services grant under the State Fiscal Stabilization 
Fund (SFSF or Stabilization) program or funds allowable for that 
purpose under other ARRA programs.

DATES: The adjustments are effective November 27, 2009.

FOR FURTHER INFORMATION CONTACT: 
    For Title I, Part A: Dr. Zollie Stevenson, Jr., U.S. Department of 
Education, Office of Elementary and Secondary Education, 400 Maryland 
Avenue, SW., room 3W320, Washington, DC 20202. Telephone: (202) 260-
0826 or by e-mail: Zollie.Stevenson@ed.gov.
    For IDEA, section 611: Dr. Andrew J. Pepin, U.S. Department of 
Education, Office of Special Education and Rehabilitative Services, 400 
Maryland Avenue, SW., Potomac Center Plaza, room 5106, Washington, DC 
20202. Telephone: (202) 245-7605 or by e-mail: Andrew.Pepin@ed.gov.
    If you use a telecommunications device for the deaf (TDD), call the 
Federal Relay Service (FRS), toll free, at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: 
    Purpose of Programs: The ARRA provides billions of dollars in new 
funding for education in order to ``jump start'' school reform efforts 
and serve special populations while also saving and creating jobs and 
stimulating the economy. In particular, the ARRA provides $10 billion 
in new funding under Title I, Part A and $11.3 billion in new funding 
under IDEA, section 611. Title I, Part A provides assistance through 
SEAs to local educational agencies (LEAs) and schools with high 
concentrations of students from families that live in poverty to 
strengthen teaching and learning for students at risk of failing to 
meet State academic achievement standards and to close the achievement 
gap. Section 611 of IDEA provides funds through SEAs to LEAs to help 
them ensure that children with disabilities, from ages three through 
21, have access to a free appropriate public education to meet each 
child's unique needs and prepare each child for further education, 
employment, and independent living.
    Program Authority: Division A, Title XV, section 1552 of the 
American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5; 20 
U.S.C. 6301 et seq. (Title I, Part A); 20 U.S.C. 1400 et seq. (IDEA, 
section 611).

Background

    Section 1552 of the ARRA authorizes the Secretary, after following 
the notice and comment rulemaking requirements under the Administrative 
Procedure Act (5 U.S.C. 500), to ``reasonably adjust applicable limits 
on administrative expenditures for Federal awards to help [States] 
defray the costs of data collection requirements initiated pursuant to 
[the ARRA].'' The Title I, Part A and IDEA, section 611 programs, which 
received significant funding increases through the ARRA, have caps on 
the amount of funds for State administration that an SEA may reserve 
from its allocations for these programs.
    Specifically, section 1004(b) of the ESEA restricts the amount of 
funds an SEA may reserve for State administration from its Title I, 
Part A allocation to no more than one percent of the amount the SEA 
would receive under Title I, Part A, if $14 billion were appropriated 
for Parts A, C, and D of Title I (with any SEA whose amount under 
section 1004(b) would be less than $400,000 permitted to reserve up to 
$400,000). The total amount appropriated in FY 2009 exceeds $14 
billion, triggering this cap. Similarly, section 611(e)(1) of IDEA 
restricts the amount of funds an SEA may reserve for administration of 
the IDEA, Part B program to not more than the maximum amount the SEA 
was eligible to reserve for FY 2004 or $800,000 (adjusted annually for 
inflation), whichever is greater. (The Secretary is not adjusting the 
cap on State administration contained in section 619(e) of IDEA because 
the Department has concluded that the ARRA appropriation for section 
619 results in a sufficient increase in the amount an SEA may reserve 
for State administration under that program.)
    The ARRA imposes a number of specific data collection and reporting 
requirements on an SEA that substantially increase its data burden in 
administering Title I, Part A and IDEA, section 611. Specifically, the 
ARRA data collection requirements affecting Title I, Part A include, 
but are not limited to, the following:
     Each LEA that receives Title I, Part A ARRA funds must 
provide to its SEA, by December 1, 2009, a school-by-school listing of 
per-pupil education expenditures from State and local sources during 
school year 2008-2009. The SEA, in turn, must submit this information 
to the Department by March 31, 2010. This is a new data collection, as 
many SEAs do not currently collect this school-level information from 
their LEAs.
     Under section 1512 of the ARRA, an SEA must report, on a 
quarterly basis, specific information regarding its obligation and use 
of Title I, Part A ARRA funds.
     Under 2 CFR 176.210, an SEA and its LEAs must track Title 
I, Part A ARRA funds separately from their regular FY 2009 allocations, 
which will necessitate increased management and collection of data.
     An SEA will likely assume increased administrative 
responsibilities in a number of other areas related to ARRA data 
collection activities, including the following:
    [cir] Providing guidance to LEAs regarding ARRA data quality, and

[[Page 55216]]

monitoring the quality of the ARRA data that LEAs must provide.
    [cir] Monitoring and auditing LEAs' use of Title I, Part A ARRA 
funds.
    [cir] Submitting requests for waivers of Title I, Part A 
requirements related to ARRA funds.
    [cir] Collecting data to address the criteria involving Title I, 
Part A for ``Race to the Top'' submissions and other activities.
    [cir] Supporting data collection activities affecting Title I, Part 
A ARRA funds and ARRA School Improvement Grants under section 1003(g) 
of the ESEA.
    [cir] Addressing additional data collection requirements that could 
affect Title I, Part A ARRA funds.
    Similarly, the ARRA data collection requirements affecting the 
programs funded through section 611 of IDEA include, but are not 
limited to, the following:
     Under section 1512 of the ARRA, an SEA must report, on a 
quarterly basis, specific information regarding its obligation and use 
of IDEA, section 611 ARRA funds.
     Under 2 CFR 176.210, an SEA and its LEAs must track IDEA, 
section 611 ARRA funds separately from their regular FY 2009 
allocations, which will necessitate increased management and collection 
of data.
     An SEA will likely assume increased administrative 
responsibilities in a number of other areas related to ARRA data 
collection activities, including the following:
    [cir] Providing guidance to LEAs regarding ARRA data quality and 
monitoring the quality of the ARRA data that LEAs must provide.
    [cir] Monitoring and auditing LEAs' use of IDEA, section 611 ARRA 
funds.
    [cir] Addressing additional data collection requirements that could 
affect the programs funded under IDEA, section 611.
    We do not believe that Congress could have contemplated these 
additional data-related requirements that an SEA must implement under 
Title I, Part A and IDEA, section 611 when initially establishing the 
administrative caps for both programs. Accordingly, to provide States 
with some assistance in defraying the costs of meeting these additional 
requirements related to data collection under the ARRA, on August 17, 
2009, we published a notice of proposed adjustments (NPA) to statutory 
caps on State administration in the Federal Register (74 FR 41402). 
There is one significant clarification between the NPA and this final 
notice, which we explain in the Analysis of Comments and Changes 
section.
    Analysis of Comments and Changes: In response to our invitation in 
the NPA, 18 parties submitted comments. An analysis of the comments and 
of changes since publication of the NPA follows. Generally, we do not 
address technical and other minor changes.
    Comment: Many commenters supported the proposed adjustments to the 
statutory caps on State administration under Title I, Part A and IDEA, 
section 611 with respect to the funds available under the ARRA. These 
commenters acknowledged that the ARRA data collection requirements 
impose increased costs at the State level and, therefore, expressed 
appreciation for the option to reserve additional State administrative 
funds from their FY 2009 allocations under Title I, Part A and IDEA, 
section 611 to help defray the costs of these new requirements. Some 
commenters suggested that the adjustments to the caps will assist SEAs 
in ensuring that LEAs use their Title I, Part A and IDEA, section 611 
funds in an appropriate manner.
    A few of the commenters who supported the proposed adjustments 
expressed concern that some SEAs will be unable to take advantage of 
these adjustments because they have already allocated ARRA funds to 
their LEAs. Those commenters were concerned that reserving funds at 
this point in time would require SEAs to recalculate LEA allocations, 
which, in turn, would cause LEAS to make extensive budget adjustments.
    Discussion: The Secretary appreciates the support expressed by the 
commenters. In the course of considering these comments, we realized 
that the NPA inadvertently restricted an SEA's ability to take the 
increased administrative funds from its regular FY 2009 allocations. 
Although the amount of the increase in the administrative caps is based 
on the funds available through the ARRA, an SEA may reserve the 
increase in administrative funds from its Title I, Part A and IDEA, 
section 611 ARRA funds, its regular FY 2009 appropriations under those 
programs, or a combination of both. The ``Final Adjustments'' section 
below includes new language explicitly permitting an SEA to reserve the 
additional funds from its regular FY 2009 allocations and/or its ARRA 
allocations for Title I, Part A and IDEA, section 611. It also 
specifies that an SEA may exercise the options in 34 CFR 200.100(d) 
with respect to consideration of the applicable hold-harmless 
provisions under Title I, Part A. By clarifying these points, we intend 
to provide an SEA with additional flexibility in reserving State 
administrative funds that are the subject of this notice without unduly 
affecting its LEAs.
    For example, with respect to Title I, Part A, at the same time an 
SEA reduces its LEAs' FY 2009 allocations to reserve additional State 
administrative funds, the SEA may have unused FY 2009 funds reserved 
under section 1003(a) or FY 2008 carryover funds that it can allocate 
to its LEAs under section 1126(c) of the ESEA. Likewise, under 34 CFR 
300.705(c), if an SEA determines that an LEA is adequately providing a 
free appropriate public education (FAPE) with State and local funds to 
all children with disabilities residing in the area served by the LEA, 
the SEA may reallocate any portion of IDEA, section 611 funds to LEAs 
not adequately providing special education and related services to all 
children with disabilities or retain those IDEA funds that are not 
needed by that LEA if the SEA has not reserved the maximum amount for 
State-level activities, which in this year includes the adjustment to 
the administrative cap. An SEA also may retain IDEA funds that have not 
been obligated by an eligible LEA that is not serving any children with 
disabilities, up to the maximum amount for State-level activities, 
which in this year includes the adjustment to the administrative cap.
    Changes: We have added language immediately prior to Table 1 and 
Table 2 in the adjustments, and revised the Note following Tables 1 and 
2 to clarify that an SEA may reserve administrative funds, up to the 
caps as adjusted by this notice, from its funds for Title I, Part A and 
IDEA, section 611 available through the ARRA, the regular FY 2009 
appropriations for those programs, or a combination of both. We also 
have included language before Table 1 noting that an SEA may exercise 
the options in 34 CFR 200.100(d) with respect to consideration of the 
applicable hold-harmless provisions.
    Comment: A few commenters expressed concern that allowing an SEA to 
reserve additional funds for State administrative costs would decrease 
the amount of funds available to LEAs for programs for disadvantaged 
children, low-performing schools, and students with disabilities.
    Discussion: With the enactment of the ARRA, Congress appropriated 
an additional $10 billion in Title I, Part A funds and an additional 
$11.3 billion in IDEA, section 611 funds for FY 2009. The ARRA imposed 
a number of specific data collection and reporting requirements on SEAs 
that significantly increase SEAs' data burden in administering Title I, 
Part A and IDEA,

[[Page 55217]]

section 611. Congress could not have contemplated these additional ARRA 
requirements when initially establishing the administrative caps for 
Title I, Part A and IDEA, section 611 because it established the caps 
well before the ARRA's enactment. Therefore, we believe it is 
appropriate to adjust the caps to defray the costs of implementing the 
data collection requirements associated with the ARRA.
    We do not believe the cap adjustments will substantially affect 
direct services for students under Title I, Part A or IDEA, section 
611. In FY 2009, States received their regular fiscal year awards 
allocated under those programs. In addition to these regular amounts, 
the ARRA provided billions of dollars in new funding for the Title I, 
Part A and IDEA, section 611 programs. Of the additional $10 billion in 
Title I, Part A funds available through the ARRA, the maximum 
additional amount an SEA may reserve is 0.5 percent of the State's FY 
2009 Title I, Part A ARRA allocation, or $1,000,000, whichever is less. 
Similarly, of the additional $11.3 billion in IDEA, section 611 funds 
available through the ARRA, the maximum additional amount an SEA may 
reserve is 0.1 percent of the State's FY 2009 IDEA, section 611 
allocation, or $500,000, whichever is less. If all SEAs reserved the 
maximum amounts of additional administrative funds under Title I, Part 
A and IDEA, section 611 funds allowed by this notice, the increase 
would amount to less than 0.2 percent of the combined ARRA Title I, 
Part A and IDEA, section 611 funding. Although we understand the 
commenters' concerns about reserving additional funds for State 
administration at the expense of LEAs, we believe the additional amount 
of funds that an SEA may reserve is necessary to assist the SEA in 
meeting its ARRA data reporting requirements. Moreover, LEAs also will 
benefit from an SEA's use of these funds through, for example, the 
SEA's ability to implement waivers with respect to its LEAs or assist 
its LEAs in evaluating the effectiveness of their programs funded 
through the ARRA.
    Changes: None.
    Comment: Some commenters argued that the proposed adjustments did 
not provide enough additional resources to an SEA, given the SEA's 
additional responsibilities under the ARRA, as well as reporting 
requirements for other Department ARRA programs.
    Discussion: The Secretary's intent in adjusting the State 
administrative caps for Title I, Part A and IDEA, section 611 is to 
provide SEAs with a reasonable amount of additional administrative 
resources to help defray the costs of ARRA-related data collections 
under those programs without substantially affecting LEA services to 
students. We note that an SEA may not use the additional administrative 
funds it may reserve under Title I, Part A and IDEA, section 611 
pursuant to this notice, no matter how large that amount might be, to 
comply with data collection requirements under other ARRA programs. 
Rather, the SEA may use funds available for administration under those 
other programs or its Government Services funds under the SFSF program 
to cover increased administrative costs.
    Changes: None.
    Comment: One commenter asked that the Secretary also consider 
adjusting Federal caps on administrative expenses at the LEA level in 
light of ARRA funding.
    Discussion: Even with the SEA administrative cap adjustments, 
almost all LEAs will have considerably more Title I, Part A and IDEA, 
section 611 resources in FY 2009 compared to previous years due to the 
additional $10 billion in Title I, Part A ARRA funds and $11.3 billion 
in IDEA, section 611 funds. In addition, while LEAs also are subject to 
new data collection requirements under the ARRA with respect to Title 
I, Part A and IDEA, section 611, there is no Federal cap on 
administration at the LEA level for either program.
    Changes: None.
    Comment: One commenter asked if the Department had information on 
whether States planned to use the Government Services grant under the 
SFSF program to meet ARRA's reporting requirements.
    Discussion: States were not required to indicate in their initial 
applications for SFSF funds how they intended to spend Government 
Services funds, although a State has the option of providing that 
information to the Department. Seven States, however, indicated in 
their SFSF applications that they would use Government Services funds 
to pay for activities related to reporting or administering the SFSF. 
In addition, a State may amend its application to revise how it will 
spend its Government Services funds. The Department does not have any 
information indicating that States are using their SFSF funds to free 
up other State funds that could then be used to pay for reporting and 
administrative activities.
    Changes: None.
    Comment: A commenter asked how an adjustment to the administrative 
caps for Title I, Part A and IDEA, section 611 would relate to funding 
that a State is permitted to recover through its State-wide Cost 
Allocation Plan (SWCAP).
    Discussion: A State's SWCAP has no effect on the amount of Title I, 
Part A and IDEA, section 611 funds an SEA may reserve for 
administration. A modification to a State's SWCAP approved by the 
Federal Government might affect the amount of Title I, Part A and IDEA, 
section 611 administrative funds an SEA may use for indirect costs in 
relation to other administrative expenses but not the overall amount of 
Title I, Part A funds and IDEA, section 611 funds the SEA may reserve 
for administration.
    Changes: None.
    Comment: One commenter asked how the Department established the 
proposed adjustments to the State administrative caps and what criteria 
the Department used when calculating the funding levels.
    Discussion: The final adjusted caps are based on the additional 
reporting requirements that the ARRA prescribes for SEAs with respect 
to the Title I, Part A and IDEA, section 611 programs. The adjusted 
caps recognize that both programs currently have administrative caps 
that do not take into account these new requirements.
    As we explained in the NPA, the adjustments include: (1) A floor to 
the amount that may be reserved that enables an SEA, on average, to add 
at least the equivalent of one additional full-time-equivalent (FTE) 
employee for each program; and (2) a ceiling that, although limiting 
the amount that may be reserved, enables an SEA, on average, to add the 
equivalent of ten FTEs for Title I, Part A and five FTEs for IDEA, 
section 611. This approach parallels the manner in which an SEA may 
reserve funds for administration under Title I, Part A and IDEA, 
section 611 (i.e., in both statutes the amount an SEA may reserve for 
administration is based on the amount the SEA has received under each 
program with a minimum and maximum factored in). We also reached these 
specific adjustment figures following consultations with staff in 
several SEAs, our own experience with data collections, a review of the 
ARRA data collection requirements, and consideration of the amounts an 
SEA may currently reserve for administration under both programs.
    Changes: None.
    Comment: Several commenters asked why the amount of the Title I, 
Part A adjustment differed from the amount for IDEA, section 611.
    Discussion: The adjustments for Title I, Part A are higher than 
those for IDEA, section 611 because Title I, Part A has more ARRA 
reporting requirements. For

[[Page 55218]]

example, the ARRA requires the Department to collect from SEAs by March 
31, 2010, a report of school-by-school expenditures of State and local 
funds for LEAs receiving Title I, Part A funds. Because this is a new 
data collection for many SEAs, which do not currently collect this 
school-level information from their LEAs, we believe SEAs will have 
additional responsibilities to provide guidance to LEAs and monitor the 
quality of these data. Similarly, we believe SEAs need additional 
administrative resources to take on new responsibilities related to the 
large increase in school improvement funds available through the ARRA.
    Changes: None.
    Comment: One commenter asked whether, in establishing the adjusted 
caps, the Department analyzed individual State capacity to meet the 
ARRA reporting requirements and whether it surveyed SEAs and LEAs about 
their data systems' capacity to provide the required information to the 
Federal government.
    Discussion: The Department did not conduct a formal analysis or 
survey. However, as indicated earlier, we did discuss the idea of 
adjusting the caps on State administration under Title I, Part A and 
IDEA, section 611 with representatives of SEAs in a variety of 
settings, including conference calls, informal telephone calls, 
professional conferences, and meetings of State directors of Title I 
and IDEA. Through these conversations, we heard about the challenges 
SEAs face with meeting the new data collection requirements within the 
existing administrative caps.
    The Secretary did not consult directly with LEAs on this matter. 
LEAs, unlike SEAs, are not subject to an administrative cap under Title 
I, Part A or IDEA, section 611. We note that, because of the ARRA, 
almost all LEAs, even with this one-time adjustment to State 
administrative caps, have received unprecedented amounts of Title I, 
Part A and IDEA, 611 funds.
    Changes: None.
    Comment: One commenter suggested that the Department was imposing 
additional burden on SEAs by inviting them to request waivers of 
certain ARRA-related Title I requirements. Another commenter asked the 
Department to reduce the burden on SEAs and LEAs of reporting Title I, 
Part A school-by-school State and local expenditures.
    Discussion: We wish to make clear that no SEA is required to 
request a waiver of any Title I, Part A requirement. The Secretary 
believes, however, that waivers with respect to certain Title I, Part A 
ARRA-related provisions and to the maintenance of effort requirements 
that SEAs may request could be particularly helpful to LEAs. 
(Information on these waivers is available at https://www.ed.gov/programs/titleiparta/title-i-waiver.doc.) Rather than processing 
thousands of LEA requests and risking significantly delaying approval 
of those requests, the Secretary invited SEAs to apply on behalf of 
their LEAs. Although this approach benefits both SEAs and LEAs, it does 
entail some additional administrative costs for SEAs, which is why we 
are permitting an SEA that requests and receives waivers of Title I, 
Part A ARRA-related requirements or maintenance of effort to reserve 
more State administrative funds.
    With respect to easing the burden of reporting school-by-school 
expenditures of State and local funds, we note that this report is 
expressly required by the ARRA. In devising the data collection 
instrument for this report, we have been mindful of the burden this 
requirement could create and have proposed, for public comment, data 
items that we believe LEAs already must collect for other reporting 
purposes.
    Changes: None.
    Comment: One commenter asked whether burden estimates related to 
ARRA data collection requirements are available.
    Discussion: Concerning ARRA-related burden hours for collections 
initiated by the Department with respect to Title I, Part A, see the 
following links:
     https://edicsweb.ed.gov/browse/browsecoll.cfm?pkg_serial_num=4119; and
     https://edicsweb.ed.gov/browse/browsecoll.cfm?pkg_serial_num=4002.
    For information on quarterly reporting burden hours required by 
section 1512 of the ARRA, see the following link:
    https://edocket.access.gpo.gov/2009/E9-24320.htm.
    Changes: None.
    Final Adjustments:
    Title I, Part A:
    Notwithstanding section 1004(b) of the ESEA and 34 CFR 
200.100(b)(3), the Secretary adjusts the administrative cap under Title 
I, Part A to:
    1. Provide administrative funds to support ARRA data collection, 
excluding data collection for obtaining and implementing Title I, Part 
A waivers related to the ARRA and maintenance of effort. The Secretary 
adjusts the statutory cap on State administration under section 1004(b) 
of the ESEA to permit an SEA to reserve, from its FY 2009 Title I, Part 
A allocation, an amount equal to or less than the figure shown for the 
State in Column 2 in Table 1 to help defray the costs associated with 
Title I, Part A ARRA data collection. The amount shown in Column 2 for 
each State is equal to 0.3 percent of the portion of the State's FY 
2009 Title I, Part A allocation attributable to the ARRA, or $600,000, 
whichever is less.\1\ A State's amount in Column 2 is $100,000 if 0.3 
percent of the State's Title I, Part A ARRA allocation is less than 
$100,000.
---------------------------------------------------------------------------

    \1\ The U.S. Department of Education's budget page [available at 
https://www.ed.gov/about/overview/budget/statetables/10stbyprogram.pdf] shows the amount each State received in Title I, 
Part A ARRA funds.
---------------------------------------------------------------------------

    2. Provide administrative funds to support ARRA data collection, 
including data collection for obtaining and implementing Title I, Part 
A waivers related to the ARRA and maintenance of effort. The Secretary 
adjusts the Title I, Part A administrative cap to allow an SEA that 
requests and receives a waiver under Section C (Waivers related to 
Title I, Part A ARRA Funds) or Section E (Waivers of Maintenance of 
Effort for LEAs) of the Department's Non-Regulatory Guidance on Title 
I, Part A Waivers \2\ (Title I, Part A Waiver Guidance) to reserve a 
larger amount of additional administrative funds than it would 
otherwise be permitted to reserve. Specifically, in this case, the 
Secretary permits an SEA to reserve, from its FY 2009 Title I, Part A 
allocation, an amount equal to or less than the figure shown for the 
State in Column 3 in Table 1. These funds can help defray the costs 
associated with Title I, Part A ARRA data collection, including 
additional data collection costs that an SEA may have already incurred 
or will incur in processing requests from its LEAs that wish to benefit 
from waivers the SEA has received or may request.
---------------------------------------------------------------------------

    \2\ The guidance provides comprehensive information on how to 
request a waiver of specific statutory and regulatory provisions of 
Title I, Part A and is available at [https://www.ed.gov/programs/titleiparta/title-i-waiver.doc].
---------------------------------------------------------------------------

    The amount shown in Column 3 for each State is equal to 0.5 percent 
of the portion of the State's FY 2009 Title I, Part A allocation 
attributable to the ARRA, or $1,000,000, whichever is less. A State's 
amount in Column 3 is $200,000 if 0.5 percent of the State's Title I, 
Part A ARRA allocation is less than $200,000.
    The amount in Column 2 or 3 that each SEA may reserve is in 
addition to the amount the SEA is able to reserve for State 
administration under section 1004(b) of the ESEA.

    Note:  An SEA may only reserve additional funds for 
administration up to the amount shown in Column 3 if it has received 
a

[[Page 55219]]

waiver from the Department under Section C or E of the Title I, Part 
A Waiver Guidance. An SEA that has not received such a waiver may 
only reserve additional funds for administration up to the amount 
shown in Column 2. (In other words, an SEA may reserve either the 
amount in Column 2 or the amount in Column 3, as appropriate.)

    An SEA may reserve these additional funds from its regular FY 2009 
Title I, Part A allocation, its Title I, Part A ARRA allocation, or a 
combination of the two allocations provided that the total amount 
reserved does not exceed the figure listed in Column 2 or Column 3 for 
each State. An SEA may only reserve these additional funds from the 
allocations of LEAs receiving Title I, Part A ARRA funds. In reserving 
these additional funds, an SEA may exercise the options in 34 CFR 
200.100(d) with respect to consideration of the applicable hold-
harmless provisions.

                        Table 1--Title I, Part A
------------------------------------------------------------------------
                                            Column 2         Column 3
                                        (Administrative  (Administrative
                                         funds for ARRA   funds for ARRA
               Column 1                 data collection  data collection
                                         excluding data   including data
                                         collection for   collection for
                                           waivers)*        waivers)*
------------------------------------------------------------------------
Alabama...............................        $488,908         $814,846
Alaska................................         100,000          200,000
Arizona...............................         585,262          975,437
Arkansas..............................         333,276          555,461
California............................         600,000        1,000,000
Colorado..............................         333,408          555,680
Connecticut...........................         212,143          353,571
Delaware..............................         100,000          200,000
District of Columbia..................         112,807          200,000
Florida...............................         600,000        1,000,000
Georgia...............................         600,000        1,000,000
Hawaii................................         100,000          200,000
Idaho.................................         104,867          200,000
Illinois..............................         600,000        1,000,000
Indiana...............................         506,031          843,385
Iowa..................................         154,491          257,485
Kansas................................         212,604          354,340
Kentucky..............................         466,044          776,739
Louisiana.............................         531,470          885,784
Maine.................................         111,553          200,000
Maryland..............................         407,875          679,792
Massachusetts.........................         491,041          818,401
Michigan..............................         600,000        1,000,000
Minnesota.............................         284,133          473,555
Mississippi...........................         398,665          664,442
Missouri..............................         443,185          738,642
Montana...............................         103,950          200,000
Nebraska..............................         143,427          239,045
Nevada................................         210,378          350,631
New Hampshire.........................         100,000          200,000
New Jersey............................         548,914          914,856
New Mexico............................         242,410          404,017
New York..............................         600,000        1,000,000
North Carolina........................         600,000        1,000,000
North Dakota..........................         100,000          200,000
Ohio..................................         600,000        1,000,000
Oklahoma..............................         328,328          547,213
Oregon................................         281,207          468,678
Pennsylvania..........................         600,000        1,000,000
Puerto Rico...........................         600,000        1,000,000
Rhode Island..........................         107,503          200,000
South Carolina........................         428,517          714,195
South Dakota..........................         103,950          200,000
Tennessee.............................         582,225          970,374
Texas.................................         600,000        1,000,000
Utah..................................         148,609          247,681
Vermont...............................         100,000          200,000
Virginia..............................         496,056          826,760
Washington............................         405,369          675,615
West Virginia.........................         182,944          304,906
Wisconsin.............................         443,188          738,647
Wyoming...............................         100,000          200,000
------------------------------------------------------------------------
For the purposes of this table, ``waivers'' refer to waivers described
  in Section C or E of the Title I, Part A Waiver Guidance that have
  been obtained by an SEA from the Department.

IDEA, Section 611

    Notwithstanding section 611(c)(1) of IDEA and 34 CFR 300.704(a), 
the Secretary adjusts the statutory cap on State administration to 
permit an SEA to reserve, from its FY 2009 IDEA, section 611 
allocation, an amount equal to or less than the figure shown for such 
State in Column 2 in Table 2 to help defray the costs associated with 
ARRA data collection under IDEA, section 611. The amount for each State 
shown in Column 2 is equal to 0.1 percent of the portion of the State's 
FY 2009 IDEA, section 611 allocation attributable to the ARRA, or 
500,000, whichever is less.\3\ A State's amount in Column 2 is 100,000 
if 0.1 percent of the State's IDEA, section 611 ARRA allocation is less 
than $100,000. The amount each SEA may reserve is in addition to the 
amount the SEA is able to reserve for State administration under 
section 611(e)(1) of the IDEA.
---------------------------------------------------------------------------

    \3\ The U.S. Department of Education's budget page [available at 
https://www.ed.gov/about/overview/budget/statetables/10stbyprogram.pdf] shows the amount each State received in IDEA, 
section 611 ARRA funds.
---------------------------------------------------------------------------

    An SEA may reserve these additional funds from its regular FY 2009 
IDEA, section 611 allocation, its IDEA, section 611 ARRA allocation, or 
a combination of the two allocations provided that the total amount 
reserved does not exceed the figure listed in Column 2 for each State. 
An SEA may only adjust the allocations of LEAs receiving IDEA, section 
611 ARRA funds in order to reserve the additional amount.

                       Table 2--IDEA, Section 611
------------------------------------------------------------------------
                          Column 1                             Column 2
------------------------------------------------------------------------
Alabama....................................................     $181,865
Alaska.....................................................      100,000
Arizona....................................................      178,476
Arkansas...................................................      112,178
California.................................................      500,000
Colorado...................................................      148,731
Connecticut................................................      132,971
Delaware...................................................      100,000
District of Columbia.......................................      100,000
Florida....................................................      500,000
Georgia....................................................      313,758
Hawaii.....................................................      100,000
Idaho......................................................      100,000
Illinois...................................................      500,000
Indiana....................................................      253,535
Iowa.......................................................      122,095
Kansas.....................................................      106,872
Kentucky...................................................      157,570
Louisiana..................................................      188,750
Maine......................................................      100,000
Maryland...................................................      200,242
Massachusetts..............................................      280,552
Michigan...................................................      400,608
Minnesota..................................................      189,839
Mississippi................................................      117,836
Missouri...................................................      227,175
Montana....................................................      100,000
Nebraska...................................................      100,000
Nevada.....................................................      100,000
New Hampshire..............................................      100,000
New Jersey.................................................      360,691
New Mexico.................................................      100,000
New York...................................................      500,000
North Carolina.............................................      314,410
North Dakota...............................................      100,000
Ohio.......................................................      437,736
Oklahoma...................................................      147,925
Oregon.....................................................      128,979
Pennsylvania...............................................      427,178
Puerto Rico................................................      109,098
Rhode Island...............................................      100,000
South Carolina.............................................      173,240
South Dakota...............................................      100,000
Tennessee..................................................      229,613
Texas......................................................      500,000
Utah.......................................................      105,541
Vermont....................................................      100,000
Virginia...................................................      281,415
Washington.................................................      221,357
West Virginia..............................................      100,000
Wisconsin..................................................      208,200
Wyoming....................................................      100,000
------------------------------------------------------------------------


    Note to Tables 1 and 2:  The adjustments in this notice are 
based on funds available to each State under the ARRA. The 
adjustments in this notice to the amounts an SEA may reserve for 
administration under Title I, Part A and IDEA, section 611 do not 
apply to the reservation of funds for administration in any other 
fiscal year (i.e., Title I, Part A and IDEA, section 611 allocations 
for FY 2008, FY 2010, and subsequent years).

Executive Order 12866

    Under Executive Order 12866, the Secretary must determine whether 
this

[[Page 55220]]

regulatory action is ``significant'' and therefore subject to the 
requirements of the Executive order and to review by OMB. Section 3(f) 
of Executive Order 12866 defines a ``significant regulatory action'' as 
an action likely to result in a rule that may (1) have an annual effect 
on the economy of $100 million or more, or adversely affect a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local or tribal governments, or communities 
in a material way (also referred to as an ``economically significant'' 
rule); (2) create serious inconsistency or otherwise interfere with an 
action taken or planned by another agency; (3) materially alter the 
budgetary impacts of entitlement grants, user fees, or loan programs or 
the rights and obligations of recipients thereof; or (4) raise novel 
legal or policy issues arising out of legal mandates, the President's 
priorities, or the principles set forth in the Executive order. 
Pursuant to the Executive order, the Secretary has determined that this 
regulatory action is significant under section 3(f)(4) of the Executive 
order.
    This notice has been reviewed in accordance with Executive Order 
12866. Under the terms of the order, we have assessed the potential 
costs and benefits of this regulatory action and we have determined 
that the benefits of the adjustments justify the costs.
    We have determined, also, that this regulatory action does not 
unduly interfere with State, local, and tribal governments in the 
exercise of their governmental functions.
    Accessible Format: Individuals with disabilities may obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or computer diskette) on request to the program contact 
person listed under FOR FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: You may view this document, as 
well as all other documents of this Department published in the Federal 
Register, in text or Adobe Portable Document Format (PDF) on the 
Internet at the following site: https://www.ed.gov/news/fedregister.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC, area at (202) 512-1530.

    Note:  The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: https://www.gpoaccess.gov/nara/.


    Dated: October 22, 2009.
Arne Duncan,
Secretary of Education.
[FR Doc. E9-25839 Filed 10-26-09; 8:45 am]
BILLING CODE 4000-01-P