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Officials of the Kentucky Department of Education and the U.S. Education Department are reviewing a request from the Jefferson County school district that, if approved, would set a precedent for the use of federal Chapter 1 funds.

School officials in the county have asked the state to allow them to use federal money earmarked for disadvantaged children to fund a voluntary integration program.

Officials of the district, which includes Louisville and several surrounding suburbs, have proposed using Chapter 1 funds to pay most of the $1.2 million needed for a racial-balancing plan approved earlier this year that would "cluster'' the district's elementary schools and establish attractive programs within them to draw outside students.

Diane M. Teasley, the director of the division of program resources within the Kentucky education department, said the state is seeking to ensure that the Chapter 1 money will continue to be spent on the disadvantaged students it is intended to help.

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