August 7, 2018(1)

(ESEA) Permanent link

ED Issues Guidance on McKinney-Vento Spending

Last week, the U.S. Department of Education issued guidance directed at McKinney-Vento and Title I State coordinators clarifying how ESSA has changed the use of the Title I homeless reservation. Specifically, the guidance clarifies that an LEA is still required to reserve Title I funds for homeless children and youth even if all schools in the LEA are Title I schools.  Prior to ESSSA, the LEA only had to reserve funds to provide support services for homeless children and youth if they did not attend Title I schools. ESSA changed this provision and the guidance makes clear that the LEA must reserve Title I funds to provide educationally related support services to homeless children and youth regardless of whether they attend a Title I school. In other words, the need to reserve funding for McKinney-Vento services and programs applies even when all schools in an LEA are Title I school (including Title I schoolwide schools) or when an LEA has a mix of Title I schools and non-Title I schools. If the LEA has a mixture of Title I and non-Title I schools then the LEA can use McKinney-Vento funding to provide regular Title I services to homeless students attending non-Title I schools as well as to provide homeless students with services not ordinarily provided to Title I students regardless of the type of school they attend.

To be clear, an LEA is not required to reserve a specific amount of funding for services under McKinney Vento. There is no designated set-aside amount. However, the funding level must be sufficient to provide appropriate services to homeless children. The guidance also says that if an LEA has a small number of homeless children it could use a district-wide per-pupil amount for homeless students if it meets the requirement for serving homeless children in ESEA. ESSA and the guidance also recommends that an LEA conduct a needs assessment to determine how much they should be spending on homeless students and youth. Like in the past, McKinney-Vento funding can be used to pay for a local liaison’s salary and expenses, transportation to/from the school of origin and other services not usually provided to Title I students. 

August 7, 2018

(SCHOOL CHOICE AND VOUCHERS) Permanent link

AASA Leads Letter to Administration on Regulatory Treatment of Voucher Programs

AASA along with 21 other organizations that belong to the National Coalition for Public Education wrote a letter asking the Trump administration to close a tax shelter that allows donors to state tax credit voucher programs to reap both state and federal tax benefits. Eighteen states have tax credit scholarship programs, which award individuals or businesses a full or partial tax credit when they donate to organizations that grant private school scholarships.  The letter specifically addresses a soon-to-be-released regulation on the State and Local Tax Cap that was put in place under the GOP tax proposal last year that caps state and local tax deductions at $10,000. 

While the letter does not take a position on how the IRS treats states that have proposed a similar workaround that would allow taxpayers to get a federal deduction and a state credit for their donations to support public schools, the IRS is expected to block theses efforts in high-tax states. If the IRS denies states like New Jersey, New York, Oregon and others to use an identical state tax credit/federal deduction work-around the letter argues that it would create a tax preference for donations to private schools over public schools. 

When the proposed SALT regulation is released we will be asking school leaders to submit comments to the IRS, so stay tuned!