SEC. 1015/SEC. 1122

ALLOCATIONS TO STATES

 

 

Section Summary

 


ESSA Update

SEC. 1015. ALLOCATIONS TO STATES.

    Section 1122(a) (20 U.S.C. 6332(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking
        ``2002-2007'' and inserting ``2017-2020''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) an amount equal to 100 percent of the amount, if any, 
        by which the total amount made available under this subsection
        for the current fiscal year for which the determination is made
        exceeds the total amount available to carry out sections 1124
        and 1124A for fiscal year 2001 shall be used to carry out
        sections 1125 and 1125A and such amount shall be divided equally
        between sections 1125 and 1125A.''.
SEC. 1016. ADEQUACY OF FUNDING RULE.

    Section 1125AA (20 U.S.C. 6336) is amended by striking the section
heading and all that follows through ``Pursuant'' and inserting the
following: ``Adequacy of Funding to Local Educational Agencies in Fiscal
Years After Fiscal Year 2001.--Pursuant''.
SEC. 1017. EDUCATION FINANCE INCENTIVE GRANT PROGRAM.

    Section 1125A (20 U.S.C. 6337) is amended--
            (1) in subsection (a), by striking ``funds appropriated
        under subsection (f)'' and inserting ``funds made available
        under section 1122(a)'';
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``appropriated
                pursuant to subsection (f)'' and inserting ``made
                available for any fiscal year to carry out this
                section''; and
                    (B) in subparagraph (B)(i), by striking ``total
                appropriations'' and inserting ``the total amount
                reserved under section 1122(a) to carry out this
                section'';
            (3) in subsection (c), by redesignating subparagraphs (A) 
        and (B) as paragraphs (1) and (2), respectively;
            (4) in subsection (d)(1)(A)(ii), by striking ``clause
        ``(i)'' and inserting ``clause (i)'';
            (5) by striking subsection (e) and inserting the following:

    ``(e) Maintenance of Effort.--
            ``(1) In general.--A State is entitled to receive its full
        allotment of funds under this section for any fiscal year if the
        Secretary finds that the State's fiscal effort per student or
        the aggregate expenditures of the State with respect to the
        provision of free public education by the State for the
        preceding fiscal year was not less than 90 percent of the fiscal
        effort or aggregate expenditures for the second preceding fiscal
        year, subject to the requirements of paragraph (2).
            ``(2) Reduction in case of failure to meet.--
                    ``(A) In general.--The Secretary shall reduce the
                amount of the allotment of funds under this section for
                any fiscal year in the exact proportion by which a State
                fails to meet the requirement of paragraph (1) by
                falling below 90 percent of both the fiscal effort per
                student and aggregate expenditures (using the measure
                most favorable to the State), if such State has also
                failed to meet such requirement (as determined using the
                measure most favorable to the State) for 1 or more of
                the 5 immediately preceding fiscal years.

[[Page 129 STAT. 1879]]

                    ``(B) Special rule.--No such lesser amount shall be
                used for computing the effort required under paragraph
                (1) for subsequent years.
            ``(3) Waiver.--The Secretary may waive the requirements of
        this subsection if the Secretary determines that a waiver would
        be equitable due to--
                    ``(A) exceptional or uncontrollable circumstances, 
                such as a natural disaster or a change in the
                organizational structure of the State; or
                    ``(B) a precipitous decline in the financial
                resources of the State.'';
            (6) by striking subsection (f);
            (7) by redesignating subsection (g) as subsection (f); and
            (8) in subsection (f), as redesignated by paragraph (7)--
                    (A) in paragraph (1), by striking ``under this
                section'' and inserting ``to carry out this section''; 
                and
                    (B) in paragraph (3), in the matter preceding
                subparagraph (A), by striking ``shall be'' and inserting
                ``shall be--''.


NCLB Text

`SEC. 1122. ALLOCATIONS TO STATES. <<NOTE: 20 USC 6332.>> 

    ``(a) Allocation Formula.--Of the amount appropriated under section
1002(a) to carry out this part for each of fiscal years 2002-2007
(referred to in this subsection as the current fiscal year)--
            ``(1) an amount equal to the amount made available to carry
        out section 1124 for fiscal year 2001 shall be allocated in
        accordance with section 1124;
            ``(2) an amount equal to the amount made available to carry
        out section 1124A for fiscal year 2001 shall be allocated in
        accordance with section 1124A; and
            ``(3) an amount equal to 100 percent of the amount, if any, 
        by which the amount made available to carry out sections 1124, 
        1124A, and 1125 for the current fiscal year for which the
        determination is made exceeds the amount available to carry out
        sections 1124 and 1124A for fiscal year 2001 shall be allocated
        in accordance with section 1125.

    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this subpart
        for any fiscal year are insufficient to pay the full amounts
        that all local educational agencies in States are eligible to
        receive under sections 1124, 1124A, and 1125 for such year, the
        Secretary shall ratably reduce the allocations to such local
        educational agencies, subject to subsections (c) and (d) of this
        section.
            ``(2) Additional funds.--If additional funds become
        available for making payments under sections 1124, 1124A, and
        1125 for such fiscal year, allocations that were reduced under
        paragraph (1) shall be increased on the same basis as they were
        reduced.

    ``(c) Hold-Harmless Amounts.--
            ``(1) Amounts for sections 1124, 1124a, and 1125.--For each
        fiscal year, the amount made available to each local educational
        agency under each of sections 1124, 1124A, and 1125 shall be--
                    ``(A) not less than 95 percent of the amount made
                available for the preceding fiscal year if the number of
                children counted for grants under section 1124 is not
                less than 30 percent of the total number of children
                aged 5 to 17 years, inclusive, in the local educational
                agency;
                    ``(B) not less than 90 percent of the amount made
                available for the preceding fiscal year if the
                percentage described in subparagraph (A) is between 15
                percent and 30 percent; and
                    ``(C) not less than 85 percent of the amount made
                available for the preceding fiscal year if the
                percentage described in subparagraph (A) is below 15
                percent.
            ``(2) Payments.--If sufficient funds are appropriated, the
        amounts described in paragraph (1) shall be paid to all local
        educational agencies that received grants under section 1124A
        for the preceding fiscal year, regardless of whether the local

[[Page 115 STAT. 1516]]

        educational agency meets the minimum eligibility criteria for
        that fiscal year described in section 1124A(a)(1)(A) except that
        a local educational agency that does not meet such minimum
        eligibility criteria for 4 consecutive years shall no longer be
        eligible to receive a hold harmless amount referred to in
        paragraph (1).
            ``(3) Applicability.--Notwithstanding any other provision of
        law, the Secretary shall not take into consideration the hold-
        harmless provisions of this subsection for any fiscal year for
        purposes of calculating State or local allocations for the
        fiscal year under any program administered by the Secretary
        other than a program authorized under this part.
            ``(4) <<NOTE: Applicability.>>  Population data.--For any
        fiscal year for which the Secretary calculates grants on the
        basis of population data for counties, the Secretary shall apply
        the hold-harmless percentages in paragraphs (1) and (2) to
        counties and, if the Secretary's allocation for a county is not
        sufficient to meet the hold-harmless requirements of this
        subsection for every local educational agency within that
        county, the State educational agency shall reallocate funds
        proportionately from all other local educational agencies in the
        State that are receiving funds in excess of the hold-harmless
        amounts specified in this subsection.

    ``(d) Ratable Reductions.--
            ``(1) In general.--If the sums made available under this
        subpart for any fiscal year are insufficient to pay the full
        amounts that local educational agencies in all States are
        eligible to receive under subsection (c) for such year, the
        Secretary shall ratably reduce such amounts for such year.
            ``(2) Additional funds.--If additional funds become
        available for making payments under subsection (c) for such
        fiscal year, amounts that were reduced under paragraph (1) shall
        be increased on the same basis as such amounts were reduced.

    ``(e) Definition.--For the purpose of this section and sections
1124, 1124A, 1125, and 1125A, the term `State' means each of the 50
States, the District of Columbia, and the Commonwealth of Puerto Rico.