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State Compensatory Education

Under Section 29.081 of the Texas Education Code (TEC), compensatory education is defined in law as programs and/or services designed to supplement the regular education program for students identified as at risk of dropping out of school. The purpose is to increase academic achievement and reduce the dropout rate of these students.
The goal of state compensatory education is to reduce any disparity in performance on assessment instruments administered under Subchapter B, Chapter 39 TEC or disparity in the rates of high school completion between students at risk of dropping out of school and all other LEA students (TEC Section 29.081.)
State compensatory education funds were authorized by the legislature to provide financial support for programs and/or services designed by LEAs to increase the achievement of students at risk of dropping out of school. State law, Section 29.081, TEC, requires LEAs to use student performance data from the state’s legislatively-mandated assessment instrument known as the Texas Assessment of Knowledge and Skills (TAKS) tests and any other achievement tests administered under Subchapter B, Chapter 39, of the Texas Education Code, including norm-referenced tests approved by the State Board of Education to provide accelerated intensive instruction to students who have not performed satisfactorily or who are at risk of dropping out of school.

TAA Dated 9/10/15 - (Revised) Eligibility Requirements for Compensatory Education Alternative Reporting **Published 9/11/15**
Additional information can be found at:
  • Financial Accountability System Resource Guide (FASRG)
Electronic Report Submission Standards
All school districts and charter schools, whose state compensatory education allotment is $500,000 or more for the previous fiscal year, are required to submit improvement plans and a state compensatory education evaluation (see criteria below).  The following documents are required to be submitted through the TEASE AUDIT application:
  1. District Improvement Plan
  2. Campus Improvement/Instructional Plans - a minimum of two - for the campuses that had the highest percentage of students at risk of dropping out of school
    • At least one improvement plan for a non-Title I schoolwide campus, if any, that had the highest percentage of at-risk students
    • All campuses that received low performing state academic accountability ratings for the previous school year
  3. Local evaluation of state compensatory education strategies, activities, and programs if the school district/charter school:
    • Had any low performing campuses based on state accountability OR
    • Reported more than 59% at-risk students during the previous school year


NOTE:  The submissions should reflect the previous school year.  For example, at the end of the 2019-2020 school year, a district/charter will submit documents that reflect the 2018-2019 school year.
If a student fails a STAAR assessment, he/she will be coded as at-risk during the school year the assessment is failed and remain at-risk until he/she successfully completes a like/same assessment at 110% of the minimum passing score.  If a student fails a STAAR assessment for a subject that is not tested in the subsequent school year, he/she will remain at risk for the one additional school year.  For example, if a student fails his/her 4th grade writing assessment, he/she will be coded at-risk for the remainder of fourth grade plus his/her entire fifth grade year.