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District 1 receives a Compensatory Education Allotment of $3,835,006 while District 2 receives an allotment of $633,369 for this program. This could be a significant amount of funding for District 1 and could have a positive impact on student education. Because of District 1’s percentage of low income students and the increased needs associated with a high limited English proficient student body District 1 needs these additional funds if they are to meet the needs of these students.

State compensatory funds are targeted funds meaning that they should be used to specifically impact the education of at-risk learners. These funds should make a difference and should not be used to purchase items such as paper that could be purchased from general funds. If utilized correctly, this money could develop and support programs that may help to close achievement gaps often seen between low income students and their higher income peers. "The SCE allotment is based on the number of educationally disadvantaged students in a district. The number of educationally disadvantaged students is determined by averaging the highest six months of student enrollment in the National School Lunch Program for free or reduced-price lunches for the prior federal fiscal year."- //School Finance 101: Funding of Texas Schools, Texas Education Agency//

In order for a student to be categorized as an at-risk student they must fall into one of the categories described in TEC 29.081 COMPENSATORY, INTENSIVE, AND ACCELERATED INSTRUCTION. It is important to note that socioeconomic status is not a qualifier for at- risk. However, circumstances such as pregnancy, retention and limited English proficiency are qualifiers. At-risk status is reviewed annually and the district must submit this information to the state through PEIMS. It is important that school district personnel be properly trained in at-risk identification so that the district receives proper funding.