Department of Education of the State of California v. William J. Bennett, Secretary of Education, United States Department of Education
Opinion
Opinion
Trott, J.
The California State Department of Education (“California”) petitions for review of a final decision of the United States Secretary of Education (“Secretary”). The Secretary ordered California to refund $734,-210 to the United States Department of Education (“Department”). The Department had allocated these funds to California for fiscal year 1980-81 under Title I of the Elementary & Secondary Education Act of 1965 (“Title I”). The Secretary found that, because California did not expend or obligate these funds within the time frame prescribed by statute, the funds had “lapsed” and must revert to the Department. We have jurisdiction and the appeal is timely under 20 U.S.C. § 1234d(b). We reverse the Secretary’s decision on the ground that it is not supported by substantial evidence.
I STATUTORY SCHEME
Title I provided federal funds to support compensatory education for children in low income areas. See Bennett v. New Jersey, 470 U.S. 632, 634 , 105 S.Ct. 1555, 1557 , 84 L.Ed.2d 572 (1985). The Department allocated Title I funds to state educational agencies which then directed the funds to local educational agencies for obligation and expenditure.