Compensatory Funding

by Coy Holcombe.  

EISD receives about 59% of its funding from the state. The other 41% comes from local sources. The 59% from the state is made up of various programs. One of the programs is compensatory funding. Compensatory funding is based on the number of students with approved free and reduced lunch applications. Actually, the exact number is the average of the highest six months of approved applications from the previous federal fiscal year. So, right now, EISD is receiving compensatory funding based on the number of approved applications from October 2007 – September 2008. Currently, this number is about 1021.

As stated before, this 1021 is the average of the highest six months from the previous federal fiscal year. This number might increase somewhat based on the approved applications from September 2008; however, at this point it will not decrease any. 

To calculate our state compensatory funding, take the district’s compensatory number, 1021, and multiply it by our adjusted allotment. The adjusted allotment is the greater of several different allotments that are calculated by the state. For EISD, our adjusted allotment is $3,614. Multiplying these two numbers together gives us $3,689,894. However, at his point, the state is only funding 20% of this allotment. Now, take $3,689,894 and multiply it by 20% = $737,978. From this allotment, the state deducts an amount to help pay for the cost of state testing and other related expenses. For EISD, the state deducts about $62,000. So, that leaves EISD receiving about $676,000 in compensatory funding.

EISD uses its compensatory funding to pay for certain teachers’ salaries, certain paraprofessional salaries, tutorials, special programs, and supplies and materials. If you have any questions about our compensatory program, or any other program in EISD, please do not hesitate to contact me at

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