Impact Aid (84.041)

 

Program

84.041 Impact Aid

 

Federal Agency

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

Authorization

Elementary and Secondary Education Act, Title VIII, as amended.

 

Program Number

84.041

 

Last Known Status

Active

 

Objectives

To provide financial assistance to local educational agencies (LEAs) where enrollments or availability of revenue are adversely affected by Federal activities, i.e., where the tax base of a district is reduced through the Federal acquisition of real property (Section 8002, ESEA); where there are a significant number of children who reside on Federal (including Indian) lands and/or children whose parents are employed on Federal property or in the Uniformed Services (Sections 8003 and 8007, ESEA); or where there is a sudden increase in school enrollment as the result of Federal activities (Section 8006, ESEA).

 

Types of Assistance

Formula Grants.

 

Uses and Use Restrictions

Most assistance becomes part of the general operating fund of the LEAs. Districts usually deposit the Federal payment in the general operating funds account in accordance with State laws, together with all State and local funds available for current operating expenses and use this combined account to finance the school program in the district. Special additional payments made to LEAs related to enrollments of federally connected children with disabilities must be used for programs and projects designed to meet the special educational and related needs of these children. Payments for construction may be used for construction and renovation, debt service, or other capital fund activities.

 

Eligibility Requirements

Applicant Eligibility

Local educational agencies that provide free public elementary or secondary education may apply. Generally, assistance is provided: 1) To districts where an aggregate of ten percent or more of the assessed valuation of all real property in the school district as of the time(s) of acquisition) has been acquired by the Federal Government since 1938 and the district is not being substantially compensated by revenue from activities on the eligible Federal property; 2) to districts where at least three percent or 400 of the total number of pupils in average daily attendance (ADA) live on Federal property including Indian lands and/or have a parent who works on Federal property or is on active duty in the uniformed services; or 3) to districts in which there is a sudden and substantial increase in attendance of military dependents.

Beneficiary Eligibility

Public elementary and secondary school children will benefit.

Credentials/Documentation

Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments.

 

Application and Award Process

Preapplication Coordination

This program is excluded from coverage under E.O. 12372, Intergovernmental Review of Federal Programs.

Application Procedure

Applications are submitted to the Secretary of Education and a copy is sent to the State educational agency (SEA). A local educational agency may secure advice and an application form (ED Form 4019) from its SEA. Applications must show the membership of federally connected children on the survey date chosen by the school district within the period prescribed by the Secretary.

Award Procedure

Funds are generally made available beginning in January.

Deadlines

Contact the Program Office for deadlines.

 

Range of Approval/Disapproval Time

Appeals

An administrative law hearing is available for any LEA or State adversely affected by any action of the Secretary. The hearing must be requested under the time frame included under the programregulations.

Renewals

Not applicable.

 

Assistance Considerations

Formula and Matching Requirements

Payments are determined under statutory formulas that consider the assessed valuation of the property acquired by the Federal government and the LEA's local tax rate for current expenditures; and the average daily attendance of federally connected students for the previous year, the per pupil expenditure average from the third preceding year, the weight in the statute attached to certain categories of students, the total current expenditures of the LEA, the total membership of the LEA, and the LEAs previous year's Impact Aid Payment.

Length and Time Phasing of Assistance

Payments are made annually to eligible LEAs.

 

Post Assistance Requirements

Reports

Not applicable.

Audits

In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. The program staff conducts mail-in or on-site reviews to verify application data and collect additional required information.

Records

In accordance with the General Education Provision Act and program regulations, an LEA generally must retain records supporting its payment amount for 3 years after the last payment for a fiscal year.

 

Program Accomplishments

In fiscal year 2002, grants on behalf of an estimated 1 million children were awarded to approximately 1,300 LEAs.

 

Financial Information

Account Identification

91-0102-0-1-501.

Obligations

(Grants) FY 02 $982,500,000; FY 03 est $1,025,292,000; and FY 04 est $867,500,000.

Range and Average of Financial Assistance

Not available.

 

Regulations, Guidelines and Literature

Regulations are included in 34 CFR 222.

 

Related Programs

84.040, Impact Aid_Facilities Maintenance.

 

Information Contacts

Regional or Local Office

Not applicable.

Headquarters Office

U.S. Department of Education, OESE Impact Aid Programs 400 Maryland Ave., S.W., Rm. 3E105, FB-6 Washington DC 20202-6244. Contact: Catherine Schagh. E-mail Address impact.aid@ed.gov. Telephone: (202) 260-3858.

Web Site Address

http://www.ed.gov/offices/OESE/ImpactAid/

 

Examples of Funded Projects

Not applicable.

 

Criteria for Selecting Proposals

Payments are computed on the basis of the statutory formula. Payments are prorated if appropriations are insufficient.