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 drop out 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.


Under House Bill 5 high school students are now required to pass five State of Texas Assessments of Academic Readiness (STAAR®) end-of-course exams to meet the new graduation requirements. There are exams that are no longer being required and some students were classified as at-risk based on their failure on the assessments that are no longer in use.

A student who was identified as at risk based on this category last year should continue to be identified as at risk this school year, but the at risk status should be removed at the end of this school year.

The LEA should also determine whether the student meets any of the other criteria under TEC §29.081(d). An LEA should also review local eligibility criteria adopted by the board of trustees in accordance with TEC §29.081(g) to determine whether the student is eligible for services/supports.


Note: The naming conventions for the electronic submission of the SCE District/Campus Improvement Plans in PDF have changed.  The list of revised naming conventions can be found in the Electronic Reports Submission Standards manual.


Additional information can be found in the State Compensatory Education (SCE) module in the Financial Accountability System Resource Guide (FASRG).

Frequently Asked Questions (PDF, 295KB)  

For additional information, contact:
Christine McCormick (512) 463-2334

Federal and State  Education Policy

Phone:  (512) 463-6060


Page last modified on 3/31/2014 02:02:12 PM.