34 C.F.R. Subpart C—Payments for Federally Connected Children Under Section 8003(b) and (e) of the Act
Title 34 - Education
In addition to the terms defined in §222.2, the following definition applies to this part: Free public education. (1) The term means education that is provided— (i) At public expense; (ii)(A) As the complete elementary or secondary educational program as determined under State law through grade 12; and (B) Preschool education, whether or not included as elementary education by State law; (iii) In a school of the local educational agency (LEA) or under a tuition arrangement with another LEA or other educational entity; and (iv) Under public supervision and direction, except with respect to children with disabilities. (2) For the purpose of paragraph (1)(i) of this definition, education is provided at public expense if— (i) There is no tuition charge to the child or the child's parents; and (ii) Federal funds, other than funds under the Act, do not provide a substantial portion of the educational program. (3) For the purpose of paragraph (1)(ii) of this definition, the complete elementary or secondary educational program is the program recognized by the State as meeting all requirements for elementary or secondary education for the children claimed and, except for preschool education, does not include a program that provides only— (i) Supplementary services or instruction; or (ii) A portion of the required educational program. (4) For the purpose of paragraph (1)(iii) of this definition, a tuition arrangement must— (i) Satisfy all applicable legal requirements in the State; and (ii) Genuinely reflect the applicant LEA's responsibility to provide a free public education to the children claimed under section 8003. (5) For the purpose of paragraph (1)(iv) of this definition, education provided under public supervision and direction means education that is provided— (i) In a school of the applicant LEA or another LEA; or (ii) By another educational entity, over which the applicant LEA, or other public agency, exercises authority with respect to the significant aspects of the educational program for the children claimed. The Secretary considers significant aspects of the educational program to include administrative decisions relating to teachers, instruction, and curriculum. (Authority: 20 U.S.C. 7703, 7709, 7713(6)) The Secretary makes payments to an LEA with an otherwise approvable application for children claimed under section 8003(b) of the Act if— (a) The LEA meets the requirements in subpart A of these regulations and this subpart; and (b)(1) The LEA is responsible under applicable State or Federal law for providing a free public education to those children; (2) The LEA is providing a free public education to those children; and (3) The State provides funds for the education of those children on the same basis as all other public school children in the State, unless permitted otherwise under section 8009 of the Act. (Authority: 20 U.S.C. 7703 and 7709) (a) The Secretary determines an LEA's payment under section 8003(b) on the basis of information in the LEA's application, including information regarding the membership of federally connected children. (b) The LEA must supply information in its application regarding its federally connected membership on the basis of any count described in §§222.33 through 222.35. (Authority: 20 U.S.C. 7703 and 7705) (a)(1) An applicant must select a day in the current school year as the survey date for making the first membership count, which must be no earlier than the fourth day of the regular school year and on or before January 31. (2) The applicant must use the same survey date for all schools in the LEA. (b) As of the survey date, the applicant must— (1) Count the membership of its federally connected children; and (2) Count the total membership of its children—both federally connected and non-federally connected. (Authority: 20 U.S.C. 7703, 7705, 7706) (a)(1) The applicant may, but is not required to, make a second count of membership. (2) If the applicant chooses to make a second count of membership, the applicant must select a day after January 31, but no later than May 14, as the survey date for making the second membership count, and make that count in accordance with §222.33(b). (3) The applicant must use the same survey date for the second membership count for all schools in the LEA. (b) The applicant may use the information obtained from a second membership count to amend its application for assistance as described in §222.5(b)(1). (Authority: 20 U.S.C. 7703 and 7705) An applicant counts the membership of its federally connected children by using one or both of the following methods: (a) Parent-pupil survey. An applicant may conduct a parent-pupil survey to count the membership of its federally connected children, which must be counted as of the survey date. (1) The applicant shall conduct a parent-pupil survey by providing a form to a parent of each pupil enrolled in the LEA to substantiate the pupil's place of residence and the parent's place of employment. A parent-pupil survey form must include the following: (i) Pupil enrollment information (this information may also be obtained from school records), including— (A) Name of pupil; (B) Date of birth of the pupil; and (C) Name of public school and grade of the pupil. (ii) Pupil residence and parent employment information, including— (A) Address of the pupil's residence (or other location information for that residence, such as legal description), including the name of the Federal facility if the pupil's residence is on Federal property; and (B) Name (as it appears on the employer's payroll record) of the parent (mother, father, legal guardian or other person standing in loco parentis) who is employed on Federal property and with whom the pupil resides (unless the parent is a member of the uniformed services on active duty); (C) Name and address of the Federal property on which the parent is employed (or other location information, such as legal description), unless the parent is a member of the uniformed services on active duty; (D) If the parent is a member of the uniformed services on active duty, the name, rank, and branch of service of that parent; (E) If the parent is a civilian employed on a Federal vessel, the name of the vessel, hull number, and name of the controlling agency; (F) The signature of the parent supplying the information and the date of such signature; and (G) The name of the parent's employer and the employer's address (or other location information, such as legal description), unless a parent is a member of the uniformed services on active duty. (2) An LEA may accept a parent-pupil survey form, or a parent-pupil survey form that is signed by a person other than a parent, only under unusual circumstances. In those instances, the parent-pupil survey form must show why the parent did not sign the survey form, and when, how, and from whom the residence and employment information was obtained. (b) Source check. (1) An applicant may count the membership of its federally connected children by using a source check to substantiate a pupil's place of residence or parent's place of employment on the survey date. (2) A source check is a form provided— (i) To a parent's employer, on which the employer certifies as to the place of employment of a parent of a pupil claimed; (ii) To a housing official, on which the official certifies as to the residence of each pupil claimed; or (iii) To a tribal official, on which the official certifies as to the residence of each pupil claimed residing on Indian lands over which that tribal official has jurisdiction. (Authority: 20 U.S.C. 7703 and 7706) (a) Except as provided in paragraph (d) of this section, an LEA is eligible to receive a payment under section 8003(b) (basic support and learning opportunity threshold) and (e) (hold harmless) for a fiscal year only if the total number of its eligible federally connected children for whom it provided a free public education for the preceding fiscal year was— (1) At least 400 who were in average daily attendance (ADA); or (2) At least 3 percent of the total number of children in ADA. (b) Except as provided in paragraph (d) of this section, an applicant LEA is eligible to receive a payment under section 8003 for a fiscal year on behalf of federally connected children described in section 8003(a)(1)(F) or (G) only if the total number of those children for whom it provided a free public education for the preceding fiscal year was at least— (1) 1,000 in ADA; or (2) 10 percent of the total number of children in ADA. (c) Children described in paragraph (b) of this section are counted for the purposes of paragraph (a) of this section only if the applicant LEA is eligible to receive a payment on behalf of those children under section 8003. (d) This section does not apply to hold harmless payments under section 8003(e) for fiscal year 1995. (Authority: 20 U.S.C. 7703(a)(3) and (b)(1)(B)) [60 FR 50778, Sept. 29, 1995, as amended at 62 FR 35415, July 1, 1997] (a) This section describes how the Secretary computes the ADA of federally connected children for each category in section 8003 to determine an applicant's payment. (b) If an LEA is in a State that collects actual ADA data for purposes of distributing State aid for education, the Secretary calculates the ADA of that LEA's federally connected children for the current fiscal year payment as follows: (1) Except as provided in paragraph (b)(3) of this section— (i) By dividing the ADA of all the LEA's children for the second preceding fiscal year by the LEA's total membership on its survey date for the second preceding fiscal year (or, in the case of an LEA that conducted two membership counts in the second preceding fiscal year, by the average of the LEA's total membership on the two survey dates); and (ii) By multiplying the figure determined in paragraph (b)(1)(i) of this section by the LEA's total membership of federally connected children in each subcategory described in section 8003 and claimed in the LEA's application for the current fiscal year payment (or, in the case of an LEA that conducts two membership counts, by the average of the LEA's total membership of federally connected children in each subcategory on the two survey dates). (2)(i) For purposes of this section, actual ADA means raw ADA data that have not been weighted or adjusted to reflect higher costs for specific types of students for purposes of distributing State aid for education. (ii) If an LEA provides a program of free public summer school, attendance data for the summer session are included in the LEA's ADA figure in accordance with State law or practice. (iii) An LEA's ADA count includes attendance data for children for whom it makes tuition arrangements with other educational entities. (3) Attendance data are not counted for any child— (i) Who is not physically present at school for the daily minimum time period required by the State, unless the child is— (A) Participating via telecommunication or correspondence course programs that meet State standards; or (B) Being served by a State-approved homebound instruction program for the daily minimum time period appropriate for the child; or (ii) Attending the applicant's schools under a tuition arrangement with another LEA. (c) If an LEA is in a State that does not collect ADA data for purposes of distributing State aid for education, the LEA or SEA shall submit data necessary for the Secretary to calculate the ADA of the LEA's federally connected children as follows: (1) If an LEA is in a State that formerly collected ADA data for purposes of distributing State aid for education, the SEA may submit the total ADA and total membership data for the State for each of the last three fiscal years that ADA data were collected. The Secretary uses these data to calculate the ADA of the LEA's federally connected children by— (i) Dividing the total ADA data by the total membership data for each of the three fiscal years and averaging the results; and (ii) Multiplying the average determined in paragraph (c)(1)(i) of this section by the LEA's total membership of federally connected children as described in paragraph (b)(1)(ii) of this section. (2) An LEA may submit attendance data based on sampling conducted during the previous fiscal year. The sampling must include attendance data for all children for at least 30 school days. The data must be collected during at least three periods evenly distributed throughout the school year. Each collection period must consist of at least five consecutive school days. The Secretary uses these data to calculate the ADA of the LEA's federally connected children by— (i) Determining the ADA of all children in the sample; (ii) Dividing the figure obtained in paragraph (c)(2)(i) of this section by the LEA's total membership for the previous fiscal year; and (iii) Multiplying the figure determined in paragraph (c)(2)(ii) of this section by the LEA's total membership of federally connected children for the current fiscal year, as described in paragraph (b)(1)(ii) of this section. (3) If an LEA is in a State that distributes State aid for education based on data similar to attendance data, the SEA may request that the Secretary use those data to calculate the ADA of the LEA's federally connected children. If the Secretary determines that those data are, in effect, equivalent to attendance data, the Secretary allows use of the requested data and determines the method by which the ADA of the LEA's federally connected children will be calculated. (Authority: 20 U.S.C. 7703, 7706, 7713) The maximum basic support payment that an LEA may receive under section 8003(b) for any fiscal year is the sum of its total weighted student units under section 8003(a)(2) for the federally connected children eligible to be counted as the basis for payment, multiplied by the greater of one of the following: (a) One-half of the State average per pupil expenditure for the third fiscal year preceding the fiscal year for which the LEA seeks assistance. (b) One-half of the national average per pupil expenditure for the third fiscal year preceding the fiscal year for which the LEA seeks assistance. (c) The comparable local contribution rate (LCR) determined in accordance with §§222.39–222.41. (d) The State average per pupil expenditure multiplied by the local contribution percentage as defined in section 8013(8) of the Act. (Authority: 20 U.S.C. 7703 (a), (b) and (c)) (a) To identify generally comparable LEAs within its State for LCR purposes, the State educational agency (SEA) for that State shall use data from the third fiscal year preceding the fiscal year for which the LCR is being computed to group all of its LEAs, including all applicant LEAs, as follows: (1) Grouping by grade span/legal classification alone. Divide all LEAs into groups that serve the same grade span and then subdivide the grade span groups by legal classification, if the Secretary considers this classification relevant and sufficiently different from grade span within the State. As an alternative grade-span division, after consultation with the applicant LEAs in the State, divide all LEAs into elementary, secondary, or unified grade-span groups, as appropriate, within the State. (2) Grouping by grade span/legal classification and size. (i) Divide all LEAs into groups by grade span (or the alternative grade-span groups described in paragraph (a)(1)) of this section and legal classification, if relevant and sufficiently different from grade span and size. (ii) List all LEAs within each group in descending order by size as measured by ADA, placing the LEA with the largest ADA at the top of the list. A State that does not tabulate actual annual ADA shall use the same formula for establishing ADA for the purpose of ranking LEAs by size as the Department has approved for the purpose of calculating payments under section 8003 for applicant LEAs in the State. (iii) After consultation with the applicant LEAs in the State, divide each group into either two subgroups or three subgroups. (iv) To determine the subgroups, divide each list at the point(s) that will result in as nearly equal numbers of LEAs in each subgroup as possible, so that no group is more than one LEA larger than any other group. (3) Grouping by grade span/legal classification and location. Divide all LEAs into groups by grade span (or the alternative grade-span groups described in paragraph (a)(1) of this section) and, if relevant and sufficiently different from grade span and location, legal classification; then subdivide these groups by location, as determined by placement inside or outside a metropolitan statistical area (MSA) as defined by the U.S. Bureau of the Census. The Department will supply SEAs with lists of MSA classifications for their LEAs, and only the classifications on those lists will be recognized by the Department for the purposes of these regulations. (4) Grouping by grade span/legal classification, size, and location. (i) Divide all LEAs into groups by grade span (or the alternative grade-span groups described in paragraph (a)(1) of this section) and, if relevant and sufficiently different from grade span, size, and location, legal classification; then subdivide these groups by size (into two or three subgroups for each grade span, as described in paragraph (a)(2) of this section); and further subdivide these groups by location (inside or outside an MSA). (ii) In using both the size and location factors, the SEA shall subdivide according to the size factor before the location factor. (b) After applying the following restrictions, the SEA shall compute an LCR according to the provisions of §222.41 for each group of generally comparable LEAs identified under paragraph (a) of this section, as follows: (1) The SEA shall not, when computing an LCR, include the following “significantly impacted” LEAs in any group of generally comparable LEAs: (i) Any LEA having—in the third fiscal year preceding the fiscal year for which the LCR is being computed—20 percent or more of its ADA composed of children identified under section 8003(a)(1)(A)–(C). (ii) Any LEA having—in the third fiscal year preceding the fiscal year for which the LCR is being computed—50 percent or more of its ADA composed of children identified under section 8003(a)(1)(A)–(G) who were eligible under §222.36 to be counted as the basis for payment under section 8003. (2) The SEA may not compute an LCR for any group that contains fewer than 10 LEAs. (c)(1) For an applicant LEA that satisfies the requirements contained in paragraph (c)(3) of this section, the SEA, in consultation with the LEA, may select a subgroup of 10 or more generally comparable LEAs from the group identified under paragraph (a)(2) of this section that includes the applicant LEA. (2) An LEA that otherwise meets either of the requirements of paragraph (c)(3) of this section but serves a different span of grades from all other LEAs in its State (and therefore cannot match any group of generally comparable LEAs under paragraph (a)(2) of this section) must be matched, for purposes of this paragraph (c) only, to a group using legal classification and size as measured by ADA. The group identified using legal classification and size will be the applicant's group under paragraph (a)(2) of this section for purposes of this paragraph (c) only. (3) In order to qualify under paragraph (c) (1) or (2) of this section, an applicant LEA must either— (i)(A) Be located entirely on Federal land; and (B) Be raising either no local revenues or an amount of local revenues the Secretary determines to be minimal; or (ii)(A) Be located in a State where State aid makes up no more than 40 percent of the State average per pupil expenditure in the third fiscal year preceding the fiscal year for which the LCR is being computed; (B) In its application, have federally connected children identified under section 8003(a)(1)(A)–(C) equal to at least 20 percent of its total ADA; and (C) In its application, have federally connected children identified under section 8003(a)(1)(A)–(G) who were eligible under §222.36 to be counted as the basis for payment under section 8003 equal to at least 50 percent of its total ADA. (4) In the case of an applicant LEA that meets either of the requirements contained in paragraph (c)(3) of this section, the SEA, in consultation with the LEA, may select 10 or more generally comparable LEAs that share one or more common factors of general comparability with the eligible applicant LEA, as follows: (i)(A) The SEA must consider one or more generally accepted, objectively defined factors that affect the applicant's cost of educating its children. Examples of such cost-related factors include location inside or outside an MSA, sparsity of population, an unusually large geographical area, economically depressed area, low-income families, children with disabilities, neglected or delinquent children, low-achieving children, children with limited English proficiency, and minority children. (B) The SEA may not consider cost-related factors that can be varied at the discretion of the applicant LEA or its generally comparable LEAs or factors dependent on the wealth of the applicant LEA or its generally comparable LEAs. Examples of factors that may not be considered include special alternative curricular programs, pupil-teacher ratio, and per pupil expenditures. (ii) The SEA must apply the factor or factors of general comparability recommended under paragraph (c)(4)(i)(A) of this section in one of the following ways in order to identify 10 or more generally comparable LEAs for the eligible applicant LEA, none of which may be significantly impacted LEAs: (A) The SEA identifies all of the LEAs in the group to which the eligible applicant LEA belongs under paragraph (a)(2) of this section that share the recommended factor or factors. If the subgroup containing the eligible applicant LEA includes at least 10 other LEAs (excluding significantly impacted LEAs), it will be the eligible applicant LEA's new group of generally comparable LEAs. The LCR for the eligible applicant LEA shall be computed using the data for all of the LEAs in the subgroup except the eligible applicant LEA. Example. An eligible applicant LEA contains a designated economically depressed area, and the SEA recommends “economically depressed area” as an additional factor of general comparability. From the group of LEAs under paragraph (a)(2) of this section that includes the eligible applicant LEA, the SEA identifies two subgroups, those LEAs that contain a designated economically depressed area and those that do not. The entire subgroup identified by the SEA that includes the eligible applicant LEA is that LEA's new group of generally comparable LEAs if it contains at least 10 LEAs. (B) After the SEA identifies all of the LEAs in the group that the eligible applicant LEA belongs to under paragraph (a)(2) of this section that share the recommended factor or factors, the SEA then systematically orders all of the LEAs in the group that includes the eligible applicant LEA. The SEA may further divide the ordered LEAs into subgroups by using logical division points (e.g., the median, quartiles, or standard deviations) or a continuous interval of the ordered LEAs (e.g., a percentage or a numerical range). If the subgroup containing the eligible applicant LEA includes at least 10 other LEAs (excluding significantly impacted LEAs), it will be the eligible applicant LEA's new group of generally comparable LEAs. The LCR for the eligible applicant LEA shall be computed using the data for all of the LEAs in the subgroup except the eligible applicant LEA. Example 1. An eligible applicant LEA serves an unusually high percentage of children with disabilities, and the SEA recommends “proportion of children with disabilities” as an additional comparability factor. From the group of LEAs under paragraph (a)(2) of this section that includes the eligible applicant LEA, the SEA lists the LEAs in descending order according to the percentage of children with disabilities enrolled in each of the LEAs. The SEA divides the list of LEAs into four groups containing equal numbers of LEAs. The group containing the eligible applicant LEA is that LEA's new group of generally comparable LEAs if it contains at least 10 LEAs. Example 2. An eligible applicant LEA serves an unusually high percentage of minority children, and the SEA recommends “proportion of minority children” as an additional comparability factor. From the group of LEAs under paragraph (a)(2) of this section that includes the eligible applicant LEA, the SEA lists the LEAs in descending order according to the percentage of minority children enrolled in each of the LEAs. The SEA chooses from the list of LEAs the 15 LEAs whose percentages of minority children are closest to the eligible applicant LEA's. These 15 LEAs will be the eligible applicant LEA's new group of generally comparable LEAs. (C) The SEA may recommend and apply more than one factor of general comparability in selecting a new group of 10 or more generally comparable LEAs for the eligible applicant LEA. If the subgroup containing the eligible applicant LEA includes at least 10 other LEAs (excluding significantly impacted LEAs), it will be the eligible applicant LEA's new group of generally comparable LEAs. The LCR for the eligible applicant LEA shall be computed using the data from all of the LEAs in the subgroup except the eligible applicant LEA. Example. An eligible applicant LEA is very sparsely populated and serves an unusually high percentage of children with limited English proficiency. The SEA recommends “sparsity of population” and “proportion of children with limited English proficiency” as additional comparability factors. From the group of LEAs under paragraph (a)(2) of this section that includes the eligible applicant LEA, the SEA identifies all LEAs that are sparsely populated. The SEA further subdivides the sparsely populated LEAs into two groups, those that serve an unusually high percentage of children with limited English proficiency and those that do not. The subgroup of at least 10 sparsely populated LEAs that serve a high percentage of children with limited English proficiency is the eligible applicant LEA's new group of generally comparable LEAs. (4)(i) Using the new group of generally comparable LEAs selected under paragraph (c)(4) of this section, the SEA shall compute the LCR for the eligible applicant LEA according to the provisions of §222.41. (ii) The SEA shall submit the resulting LCR to the Secretary and provide the Secretary a description of the additional factor or factors of general comparability and the data used to identify the new group of generally comparable LEAs. (iii) The Secretary reviews the data submitted by the SEA, and accepts the LCR for the purpose of use under section 8003(b)(1)(C)(iii) in determining the LEA's maximum payment under section 8003 if the Secretary determines that it meets the purposes and requirements of the Act and this part. (d) This section does not apply to applicant LEAs located in— (1) Puerto Rico; (2) Wake Island; (3) Guam; (4) American Samoa; (5) Any outlying area; and (6) Any State in which there is only one LEA. (Authority: 20 U.S.C. 7703(b)(1)(C)(iii)) (a) In selecting an LCR based upon generally comparable LEAs, an LEA shall use the following steps: (1) Step 1. The LEA shall select the factor or factors in §222.39 the LEA wishes to use as the basis for general comparability. (2) Step 2. Using State-supplied data, the LEA shall identify within the State the entire group of LEAs (containing at least 10 LEAs exclusive of significantly impacted LEAs described in §222.39(b)(1)) that matches the factor or factors selected in Step 1 and that contains the applicant LEA or would contain the applicant LEA if it were not significantly impacted. (3) Step 3. The LEA shall recommend to the Secretary the LCR, which the SEA has computed according to the provisions of §222.39, based on the group identified in Step 2. (b) A significantly impacted LEA described in §222.39(b)(1) may— (1) Apply for assistance under this program; and (2) Under the generally comparable LEA method, recommend for itself the LCR of any group in which it would be included based on grade span/legal classification, size, location, or a combination of these factors, if it were not excluded as significantly impacted in §222.39(b)(1). Example. An LEA applies for assistance under section 8003 and wishes to recommend to the Secretary an LCR based on generally comparable LEAs within its State.
1. Characteristics of Applicant LEA The ADA of the applicant LEA is above the median ADA of LEAs serving only K–8 in the State. The applicant LEA is located outside an MSA. 2. Characteristics of Other LEAs Serving Same Grade Span (a) The SEA identifies the following groups: (i) One hundred and one LEAs serve only K–8. The SEA has identified a group of 50 LEAs having an ADA above the median ADA for the group of 101, one LEA having an ADA at the median, and a group of 50 LEAs having an ADA below the median ADA; and according to §222.39(a)(2)(i), the SEA considers 51 LEAs to have an ADA below the median ADA. (ii) Of the 101 LEAs in the group, the SEA has identified a group of 64 LEAs as being inside an MSA and a group of 37 LEAs as being outside an MSA. (iii) Among the group of 50 LEAs having an ADA above the median, the SEA has identified a group of 35 LEAs as being inside an MSA and a group of 15 LEAs as being outside an MSA. (iv) Among the group of 51 LEAs having an ADA at or below the median, the SEA has identified a group of 29 LEAs as being inside an MSA and 22 LEAs as being outside an MSA. (v) One LEA has 20 percent of its ADA composed of children identified under section 8003(a)(1)(A)–(C) and, therefore, must be excluded from any group it falls within before the SEA computes an LCR for the group. The LEA has an ADA below the median ADA and is located outside an MSA. (b) On the basis of §222.41, the SEA computes the LCR for each group of generally comparable LEAs that the SEA has identified. 3. Selection of Generally Comparable LEAs (a) Option 1. The applicant LEA may select as its group of generally comparable LEAs on which to base its recommended LCR the entire group of 100 LEAs serving K–8, after excluding the one significantly impacted LEA. The applicant LEA then recommends to the Secretary as its LCR the rate computed for this group by the SEA. (b) Option 2. Instead of selecting the group of 100, the applicant LEA may select as its generally comparable group only those LEAs within the 101 (the significantly impacted LEA must be included initially for the purpose of determining the median ADA) that have an ADA above the median ADA, that is, the group of 50. The applicant LEA then recommends to the Secretary as its LCR the rate computed for the group by the SEA. (c) Option 3. Instead of selecting either of the groups described in Options 1 and 2, the applicant LEA may select as its generally comparable group only those LEAs within the 100 that are outside an MSA; that is, the group of 36, after excluding the one significantly impacted LEA. The applicant LEA then recommends to the Secretary as its LCR the rate computed for this group by the SEA. (d) Option 4. Instead of selecting any of the groups described in Options 1, 2, and 3, the applicant LEA may select as its generally comparable group only those LEAs that both have an ADA above the median ADA for the 101 and are outside an MSA; that is, the group of 15. The applicant LEA then recommends to the Secretary as its LCR the rate computed for this group by the SEA. However, as provided in §222.39(b)(2), if the SEA were to have identified fewer than 10 LEAs under any factor or combination of factors, the SEA would not have computed a rate for such a group. Therefore, an applicant LEA included in such a group would not be able to use this factor or combination of factors in recommending its LCR to the Secretary. The significantly impacted LEA described in §222.39(b)(1), while included for determining the median ADA, is excluded from the computation of any group's LCR. However, the significantly impacted LEA may recommend for itself the LCR of any group it matches in grade span/legal classification, size, location, or a combination of these factors, (that is, in the case of the significantly impacted LEA referred to in this example, below the median ADA and outside an MSA), provided the group contains at least 10 LEAs that are not significantly impacted. (Authority: 20 U.S.C. 7703(b)(1)(C)(iii) and 7703(f)(3)(A)(i)(II) and (III)) Except as otherwise specified in the Act, the SEA, subject to the Secretary's review and approval, shall compute an LCR for each group of generally comparable LEAs within its State that was identified using the factors in §222.39, as follows: (a)(1) The SEA shall compile the aggregate local current expenditures of the comparable LEAs in each group for the third fiscal year preceding the fiscal year for which the LCR is being computed. (2) For purposes of this section, the SEA shall consider only those aggregate current expenditures made by the generally comparable LEAs from revenues derived from local sources. No State or Federal funds may be included. (b) The SEA shall compile the aggregate number of children in ADA to whom the generally comparable LEAs in each group provided a free public education during the third fiscal year preceding the fiscal year for which the LCR is being computed. (c) The SEA shall divide— (1) The aggregate current expenditures determined under paragraph (a) of this section by; (2) The aggregate number of children determined under paragraph (b) of this section. (d) The SEA shall submit the resulting figure as the “comparable LCR” to be used by the Secretary under section 8003(b)(1)(C)(iii) in determining the LEA's maximum payment amount under section 8003. (Authority: 20 U.S.C. 7703(b)(1)(C)(iii))
Title 34: Education
PART 222—IMPACT AID PROGRAMS
Subpart C—Payments for Federally Connected Children Under Section 8003(b) and (e) of the Act
§ 222.30 What is “free public education”?
§ 222.31 To which local educational agencies does the Secretary make basic support payments under section 8003(b) of the Act?
§ 222.32 Upon what information is a local educational agency's basic support payment based?
§ 222.33 When must an applicant make its first or only membership count?
§ 222.34 If an applicant makes a second membership count, when must that count be made?
§ 222.35 How does a local educational agency count the membership of its federally connected children?
§ 222.36 What minimum number of federally connected children must a local educational agency have to receive a payment on behalf of those children under section 8003(b) and (e)?
§ 222.37 How does the Secretary calculate the average daily attendance of federally connected children?
§ 222.38 What is the maximum basic support payment that a local educational agency may receive under section 8003(b)?
§ 222.39 How does a State educational agency identify generally comparable local educational agencies for local contribution rate purposes?
§ 222.40 How does a local educational agency select a local contribution rate based on generally comparable local educational agencies?
§ 222.41 How does a State educational agency compute local contribution rates based upon generally comparable local educational agencies?
§§ 222.42-222.49 [Reserved]
