[Code of Federal Regulations]
[Title 25, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 25CFR39.12]

[Page 176-177]
 
                            TITLE 25--INDIANS
 
     CHAPTER I--BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR
 
PART 39--THE INDIAN SCHOOL EQUALIZATION PROGRAM--Table of Contents
 
            Subpart B--The Indian School Equalization Formula
 
Sec. 39.12  Instructional funding.

    (a) Schools are to use the following sources to fund their special 
Education programs:
    (1) 15 percent of the Indian Student Equalization Program (ISEP) 
funds generated by their ADM; and
    (2) Funds under Part B of the Individuals with Disabilities 
Education Act (IDEA), if the 15 percent of ISEP funds is inadequate to 
fund the services needed by all eligible ISEP students with 
disabilities.
    (b) All ISEP special education funds must be spent before the need 
for Part B of IDEA funds can be demonstrated. Part B funds are designed 
to provide for special education needs not funded by ISEP. By 
demonstrating that 15 percent of the ISEP base instructional funds were 
spent on special education, there is support for the need for Part B 
funds.
    (c) To receive ISEP special education funding a student must be:
    (1) At least 5 years old by December 31 to be counted as a 
kindergarten student;
    (2) At least 6 years old by December 31 to be counted as a first 
grade student; and
    (3) Under 22 years of age and not have received a high school 
diploma or its equivalent on the first day of full attendance during the 
ISEP student count week.
    (d) A school may spend ISEP funds on school-wide programs to benefit 
all students (including those without disabilities) only if all of the 
following conditions are met:
    (1) The school sets aside 15 percent of the basic instructional 
allotment to meet the needs of students with disabilities;
    (2) The school can document that it has met all needs of students 
with disabilities and addressed all components of IDEA; and
    (3) There are unspent funds after the conditions in paragraphs 
(d)(1) and (d)(2) of this section are met.
    (e) Public Law 100-297 establishes a weighted unit for each ISEP-
eligible full-time student that is gifted and talented. The weighted 
unit for gifted and talented is 2.0 weighted student units minus the 
basic instructional program weight by grade level. The weights for

[[Page 177]]

eligible gifted and talented students must be computed according to the 
following revised weighted student unit factors:

------------------------------------------------------------------------
                                                                 Add-on
                         Grade level                             weight
------------------------------------------------------------------------
Kindergarten.................................................       0.85
Grades 1 to 3................................................       0.62
Grades 4 to 6................................................       0.85
Grades 7 to 8................................................       0.62
Grades 9 to 12...............................................       0.50
------------------------------------------------------------------------

    (f) This paragraph applies to disabled students who are eligible for 
ISEP and were not counted during the ISEP Student Count Week. Schools 
must fund services for these students using the 15 percent of the ISEP 
funds based upon the school ADM for those students counted during the 
ISEP Student Count Week. See paragraph (a)(2) of this section for 
further guidance.
    (g) To compute the funding for individual elementary and secondary 
children, schools must use the weighted student unit factors in 
paragraphs (g)(1) and (g)(2) of this section.
    (1) The factors for basic programs are contained in the following 
table:

------------------------------------------------------------------------
                                                                  Base
                        Basic programs                          weights
------------------------------------------------------------------------
Kindergarten.................................................       1.15
Grades 1 to 3................................................       1.38
Grades 4 to 6................................................       1.15
Grades 7 to 8................................................       1.38
Grades 9 to 12...............................................       1.50
------------------------------------------------------------------------

    (2) For each student in the intense bilingual supplemental program, 
the school must add to the base weight an add-on weight of .20.

[67 FR 52830, Aug. 13, 2002]