New York Codes, Rules and Regulations
Title 8 - EDUCATION DEPARTMENT
Chapter II - Regulations of the Commissioner
Subchapter I - Scholarships and Grants
Part 149 - Setasides For Compensatory Education, Attendance Improvement And Dropout Prevention And Early Grade Intervention
Subpart 149-1 - Setaside For Instructional Programs And Services For Pupils With Compensatory Educational Needs
Section 149-1.4 - Expenditures

(a) Each school district and each community school district in the city of New York that is required to set aside an amount of its comprehensive operating aid for compensatory education and is required to submit a plan in accordance with section 149-1.3(a) or (b) of this Part shall spend such funds for compensatory programs and services for all such pupils as described in this Subpart.

(b) Nothing in this Subpart shall be construed to prevent the use of funds obtained from other sources in the planning, implementation, or evaluation of locally administered educational programs for pupils with compensatory educational needs, which may include the expansion of existing programs which are consistent with the purpose of this Subpart. If federally or privately funded programs in a school district require matching with local funds, such district may claim the amount of funds set aside for compensatory education as local funds, provided that such programs are operated in accordance with the provisions of this Subpart.

(c) Pupils with compensatory educational needs shall continue to be eligible to receive instructional programs and services as provided in this Subpart until such pupils have achieved grade level in school subjects and skills in accordance with criteria determined by the commissioner.

(d) With the approval of the commissioner, a part of the amount set aside for compensatory education, not to exceed five percent of such setaside amount, may be used for administrative and indirect costs attributable to programs and services for pupils with compensatory educational needs.

(e) Funds set aside for compensatory education may be used only to supplement and, to the extent practicable, increase the level of funds that would, in the absence of such State funds, be made available from other State or local sources for the education of pupils with compensatory educational needs and in no case may such funds be used to supplant funds from other State or local sources.

(f) Remedial instruction required pursuant to sections 100.3(b)(3), 100.4(f), and 100.5(a)(4)(iv) of this Title shall continue only so long as Federal funds under chapter 1 of title I of the ESEA of 1965, as amended are made available to school districts in New York.

(g) With the approval of the commissioner, funds set aside for compensatory education may be used to support a schoolwide program in those buildings operating a Federal ESEA chapter 1 schoolwide project. A schoolwide project is a program designed to upgrade the entire educational program of the building. In a local school district with one or more schoolwide projects and with one or more other schools spending funds set aside for pupils with compensatory educational needs, the local school district shall provide for each schoolwide project building an amount of funds for pupils with compensatory education needs that, for each child required to receive remediation under Part 100 of this Title equals or exceeds the amount of such funds made available to other buildings in the district for such pupils. A district may not provide to any building operating a schoolwide project an amount of funds per pupil with compensatory education needs which is less than that expended in the building in the previous year. The commissioner shall grant approval for the use of such funds in conjunction with chapter 1 funds for those programs which meet chapter 1 schoolwide project criteria including the evaluation of all educationally deprived children enrolled in the building.

(h) With the approval of the commissioner, funds set aside for compensatory education may be used in coordination with other State and Federal funds for parental involvement activities designed to meet the educational needs of compensatory education students.