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This week, the U.S. Department of Education (ED) for Indiana under the Elementary and Secondary Education Act (ESEA). Indiana joins two other States who have been approved for similar waivers, Louisiana and Iowa, but Indiana鈥檚 waiver includes the broadest flexibility that ED has approved so far.

The first approved flexibility is the same as Louisiana and Iowa received earlier this year 鈥� allowing Indiana to consolidate State-level activities funds from certain programs to be used for activities in any of the consolidated programs. In addition to approval to consolidate State-level funds from Titles II-A, III-A, IV-A, IV-B, Indiana can also consolidate Title I-B funds. The State had also requested to consolidate Title I-C and I-D funds, but ED approved a narrower group of programs.

A new flexibility, which Indiana is the first to receive, includes a pilot for local educational agencies (LEAs) to consolidate non-administrative funds under Titles II-A and IV-A. Indiana is permitted to implement this flexibility in up to 15 percent of its LEAs, but those LEAs must have both Title I and non-Title I schools and be ineligible for the Alternative Use Fund Authority (AFUA) under the Rural Education Achievement Program (REAP)(that authority permits LEAs eligible for the Small, Rural School Achievement program to use Title II-A and IV-A funds flexibly for other ESEA programs without transferring the monies). ED notes in its that it is restricting the flexibility to LEAs meeting those conditions because an LEA with all Title I schools may allow all of its schools to take advantage of schoolwide funding consolidation, and AFUA-eligible LEAs already have similar flexibility available to them under AFUA. Similar to the State-level funds consolidation request, Indiana requested from ED a waiver to allow LEAs to consolidate Titles I-A, I-D, III-A, and V-B as well, but ED approved more limited flexibility.

Finally, Indiana is the first State approved by ED to alter its ESEA accountability system. States are required to provide 鈥渕uch greater weight鈥� to the academic indicators in their accountability system compared to other indicators like school quality or student success. Under the approved waiver, ED will allow Indiana to provide greater weight to its school quality and student success indicators. In the letter, ED states that it is granting this flexibility because Indiana has demonstrated that many of its student success and school quality indicators do reflect academic performance.