P.O. BOX 2120



February 17, 2006



Division Superintendents



Patricia I. Wright

Acting Superintendent of Public Instruction



Per Pupil Expenditures (PPE) for Title I Schools


In preparation for the release of the Title I application for the 2006-2007 school year, this memorandum serves to make you aware of modifications to the procedure that should be used to determine the priority in which a school division serves Title I schools and the method used to derive the Per Pupil Expenditure (PPE). These changes were requested by the U.S. Department of Education as a result of their monitoring visit to Virginia in fall 2005.


School divisions that previously reallocated funds to schools based on academic need must recognize that poverty is the sole factor that determines a schools allocation and not academic need. Additionally, school divisions that have historically allocated more funds to lower poverty schools because of salary differentials can address this in the divisions allowable set-asides.


All Title I schools, regardless of grade span, at or above 75 percent poverty as measured by allowable indicators cited in the No Child Left Behind Act of 2001, (NCLB) Section 1113(a)(5) must be served. Additionally, school divisions must allocate a higher PPE to higher poverty schools than lower poverty schools.


Title I Schools At or Above 35 Percent Poverty

School divisions that serve Title I schools at or above 35 percent poverty must allocate funds to these schools based on a PPE derived from the amount of funds available to distribute after set-asides are reserved, divided by the number of students served in these schools, Section 1113(b). The 2006-2007 NCLB application will no longer have an adjusted PPE calculation for served schools. The revised application will allow adjustment in reallocating Title I funds to eligible schools; however, reallocations must be calculated to ensure higher poverty schools have higher PPEs than lower poverty schools. Reallocations to schools must be based solely on poverty and not on student academic need.


Title I Schools Below 35 Percent Poverty

School divisions serving Title I schools below 35 percent must allocate funds to schools based on a PPE derived from the school divisions total Title I allocation before set-asides are reserved, divided by the total number of poverty students in the entire LEA and adjusted by at least 125 percent, Section 1113(c)(2). These funds are distributed to eligible schools in rank order until they are exhausted. After the last ranked eligible school is fully funded, remaining funds may be redistributed in accordance with Section 1113(a)(4) ensuring that higher poverty schools must always receive equal or higher PPEs than lower poverty schools. School divisions are encouraged to consider Title I programmatic changes for the 2006-07 school year that may result from this change. The Title I application will include required set-asides as well as safeguards to ensure that PPEs have been calculated correctly.


For additional information, please contact Dr. Philip Iovino, Title I specialist, at (804) 371-2934, or by e-mail at