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Baseline Analyses of SIG Applications and SIG-Eligible and SIG-Awarded Schools
NCEE 2011-4019
May 2011

2. Policy Overview

Authorized under Title I section 1003(g) of ESEA and supplemented by ARRA, the SIG program will target $3.5 billion over the next three years toward the goal of turning around the nation’s lowest-performing schools. Each state’s allotment of SIG funds is determined by formula based on Title I allocations. In turn, state education agencies (SEAs) award funds to LEAs with eligible schools, based on a competitive application process. According to ED guidelines, states may award LEAs up to $2,000,000 annually to each qualified SIG school.1 States may award SIG funds to LEAs and schools that meet criteria established by the federal guidelines and in accordance with state determinations of LEA capacity and commitment to support school turnaround.

The final rules issued by ED define both the criteria for selecting eligible schools and the authorized intervention models. Eligible schools are defined as belonging to one of three categories:

  • Tier I, which includes any Title I school in improvement, corrective action, or restructuring that (1) is among the lowest-achieving five percent of those schools in the state; or (2) is a high school that has had a graduation rate below 60 percent for a number of years. States have the option of identifying Title I eligible elementary schools that (1) are no higher achieving than the highest-achieving school identified as a persistently lowest-achieving school in Tier I; and that (2) have not made AYP for at least two consecutive years; or are in the state’s lowest quintile based on proficiency rates.
  • Tier II, which includes any secondary school that is eligible for, but does not receive, Title I, Part A funds and (1) is among the lowest-achieving five percent of such secondary schools in the state; or (2) had a graduation rate below 60 percent for a number of years. States may also identify as Tier II schools Title I eligible secondary schools that (1) are no higher achieving than the highest-achieving school identified as a persistently lowest-achieving school in Tier II; or that had a graduation rate of less than 60 percent over a number of years; and that (2) have not made AYP for at least two consecutive years; or are in the state’s lowest quintile based on proficiency rates.
  • Tier III, which includes the remaining Title I schools in improvement, corrective action, or restructuring that are not Tier I schools. States have the option of identifying as Tier III schools (1) Title I eligible schools that do not meet the requirements to be in Tier I or Tier II; and (2) have not made AYP for at least two consecutive years; or are in the state’s lowest quintile based on proficiency rates.

For each Tier I and II school identified in an LEA’s SIG subgrant application, the LEA must specify one of four improvement models to be implemented in an effort to turn around the school. The key elements for each of the four models include:

  1. Turnaround model: replace the principal and no less than 50 percent of the staff; and introduce significant instructional reforms, increase learning time, and provide flexibility and support
  2. Restart model: reopen the school under the management of a charter school operator, charter management organization, or an education management organization
  3. School closure: close the school and reassign students to higher achieving schools
  4. Transformation model: replace the principal, introduce significant instructional reforms, increase learning time, and provide flexibility and support

These models are consistent with those defined in other ARRA-funded initiatives, including Race to the Top (RTT) and the State Fiscal Stabilization Funds (SFSF)—Phase 2.

According to the federal rules, SIG funds may be awarded to LEAs to support Tier III schools implementing improvement strategies. However, Tier I and II schools must be served first, and SEAs must define in their applications how they will prioritize the disbursement of funds to eligible Tier III schools. Federal rules do not require Tier III schools to implement one of the four models.

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1 The Consolidated Appropriations Act of 2010 raised the maximum funding amount for a participating school from $500,000 to $2,000,000 per year.