§ 7703. — Payments for eligible federally connected children.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 20USC7703]
TITLE 20--EDUCATION
CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY
SCHOOLS
SUBCHAPTER VIII--IMPACT AID
Sec. 7703. Payments for eligible federally connected children
(a) Computation of payment
(1) In general
For the purpose of computing the amount that a local educational
agency is eligible to receive under subsection (b) or (d) of this
section for any fiscal year, the Secretary shall determine the
number of children who were in average daily attendance in the
schools of such agency, and for whom such agency provided free
public education, during the preceding school year and who, while in
attendance at such schools--
(A)(i) resided on Federal property with a parent employed on
Federal property situated in whole or in part within the
boundaries of the school district of such agency; or
(ii) resided on Federal property with a parent who is an
official of, and accredited by, a foreign government and is a
foreign military officer;
(B) resided on Federal property and had a parent on active
duty in the uniformed services (as defined in section 101 of
title 37);
(C) resided on Indian lands;
(D)(i) had a parent on active duty in the uniformed services
(as defined by section 101 of title 37) but did not reside on
Federal property; or
(ii) had a parent who is an official of, and has been
accredited by, a foreign government and is a foreign military
officer but did not reside on Federal property;
(E) resided in low-rent housing;
(F) resided on Federal property and is not described in
subparagraph (A) or (B); or
(G) resided with a parent employed on Federal property
situated--
(i) in whole or in part in the county in which such
agency is located, or in whole or in part in such agency if
such agency is located in more than one county; or
(ii) if not in such county, in whole or in part in the
same State as such agency.
(2) Determination of weighted student units
For the purpose of computing the basic support payment under
subsection (b) of this section, the Secretary shall calculate the
total number of weighted student units for a local educational
agency by adding together the results obtained by the following
computations:
(A) Multiply the number of children described in
subparagraphs (A) and (B) of paragraph (1) by a factor of 1.0.
(B) Multiply the number of children described in paragraph
(1)(C) by a factor of 1.25.
(C) Multiply the number of children described in
subparagraphs (A) and (B) of paragraph (1) by a factor of .35 if
the local educational agency has--
(i) a number of such children described in such
subparagraphs which exceeds 6,500; and
(ii) an average daily attendance for all children which
exceeds 100,000.
(D) Multiply the number of children described in
subparagraph (D) of paragraph (1) by a factor of .20.
(E) Multiply the number of children described in
subparagraph (E) of paragraph (1) by a factor of .10.
(F) Multiply the number of children described in
subparagraphs (F) and (G) of paragraph (1) by a factor of .05.
(3) Special rule
The Secretary shall only compute a payment for a local
educational agency for children described in subparagraph (F) or (G)
of paragraph (1) if the number of such children equals or exceeds
1,000 or such number equals or exceeds 10 percent of the total
number of students in average daily attendance in the schools of
such agency.
(4) Military installation and Indian housing undergoing
renovation or rebuilding
(A) In general
(i) For purposes of computing the amount of a payment for a
local educational agency for children described in paragraph
(1)(D)(i), the Secretary shall consider such children to be
children described in paragraph (1)(B) if the Secretary
determines, on the basis of a certification provided to the
Secretary by a designated representative of the Secretary of
Defense, that such children would have resided in housing on
Federal property in accordance with paragraph (1)(B) except that
such housing was undergoing renovation or rebuilding on the date
for which the Secretary determines the number of children under
paragraph (1).
(ii) For purposes of computing the amount of a payment for a
local educational agency that received a payment for children
that resided on Indian lands in accordance with paragraph (1)(C)
for the fiscal year prior to the fiscal year for which the local
educational agency is making an application, the Secretary shall
consider such children to be children described in paragraph
(1)(C) if the Secretary determines, on the basis of a
certification provided to the Secretary by a designated
representative of the Secretary of the Interior or the Secretary
of Housing and Urban Development, that such children would have
resided in housing on Indian lands in accordance with paragraph
(1)(C) except that such housing was undergoing renovation or
rebuilding on the date for which the Secretary determines the
number of children under paragraph (1).
(B) Limitations
(i)(I) Children described in paragraph (1)(D)(i) may be
deemed to be children described in paragraph (1)(B) with respect
to housing on Federal property undergoing renovation or
rebuilding in accordance with subparagraph (A)(i) for a period
not to exceed 3 fiscal years.
(II) The number of children described in paragraph (1)(D)(i)
who are deemed to be children described in paragraph (1)(B) with
respect to housing on Federal property undergoing renovation or
rebuilding in accordance with subparagraph (A)(i) for any fiscal
year may not exceed the maximum number of children who are
expected to occupy that housing upon completion of the
renovation or rebuilding.
(ii)(I) Children that resided on Indian lands in accordance
with paragraph (1)(C) for the fiscal year prior to the fiscal
year for which the local educational agency is making an
application may be deemed to be children described in paragraph
(1)(C) with respect to housing on Indian lands undergoing
renovation or rebuilding in accordance with subparagraph (A)(ii)
for a period not to exceed 3 fiscal years.
(II) The number of children that resided on Indian lands in
accordance with paragraph (1)(C) for the fiscal year prior to
the fiscal year for which the local educational agency is making
an application who are deemed to be children described in
paragraph (1)(C) with respect to housing on Indian lands
undergoing renovation or rebuilding in accordance with
subparagraph (A)(ii) for any fiscal year may not exceed the
maximum number of children who are expected to occupy that
housing upon completion of the renovation or rebuilding.
(5) Military ``Build to Lease'' program housing
(A) In general
For purposes of computing the amount of payment for a local
educational agency for children identified under paragraph (1),
the Secretary shall consider children residing in housing
initially acquired or constructed under the former section
2828(g) of title 10 (commonly known as the ``Build to Lease''
program), as added by section 801 of the Military Construction
Authorization Act, 1984, to be children described under
paragraph (1)(B) if the property described is within the fenced
security perimeter of the military facility upon which such
housing is situated.
(B) Additional requirements
If the property described in subparagraph (A) is not owned
by the Federal Government, is subject to taxation by a State or
political subdivision of a State, and thereby generates revenues
for a local educational agency that is applying to receive a
payment under this section, then the Secretary--
(i) shall require the local educational agency to
provide certification from an appropriate official of the
Department of Defense that the property is being used to
provide military housing; and
(ii) shall reduce the amount of the payment under this
section by an amount equal to the amount of revenue from
such taxation received in the second preceding fiscal year
by such local educational agency, unless the amount of such
revenue was taken into account by the State for such second
preceding fiscal year and already resulted in a reduction in
the amount of State aid paid to such local educational
agency.
(b) Basic support payments; insufficient appropriations; State with only
one local educational agency
(1) Basic support payments
(A) In general
From the amount appropriated under section 7714(b) of this
title for a fiscal year, the Secretary is authorized to make
basic support payments to eligible local educational agencies
with children described in subsection (a) of this section.
(B) Eligibility
A local educational agency is eligible to receive a basic
support payment under subparagraph (A) for a fiscal year with
respect to a number of children determined under subsection
(a)(1) of this section only if the number of children so
determined with respect to such agency amounts to the lesser
of--
(i) at least 400 such children; or
(ii) a number of such children which equals at least 3
percent of the total number of children who were in average
daily attendance, during such year, at the schools of such
agency and for whom such agency provided free public
education.
(C) Maximum amount
The maximum amount that a local educational agency is
eligible to receive under this paragraph for any fiscal year is
the sum of the total weighted student units, as computed under
subsection (a)(2) of this section, multiplied by the greater
of--
(i) one-half of the average per-pupil expenditure of the
State in which the local educational agency is located for
the third fiscal year preceding the fiscal year for which
the determination is made;
(ii) one-half of the average per-pupil expenditure of
all of the States for the third fiscal year preceding the
fiscal year for which the determination is made;
(iii) the comparable local contribution rate certified
by the State, as determined under regulations prescribed to
carry out the Act of September 30, 1950 (Public Law 874,
81st Congress), as such regulations were in effect on
January 1, 1994; or
(iv) the average per-pupil expenditure of the State in
which the local educational agency is located, multiplied by
the local contribution percentage.
(D) Data
If satisfactory data from the third preceding fiscal year
are not available for any of the expenditures described in
clause (i) or (ii) of subparagraph (C), the Secretary shall use
data from the most recent fiscal year for which data that are
satisfactory to the Secretary are available.
(E) Special rule
For purposes of determining the comparable local
contribution rate under subparagraph (C)(iii) for a local
educational agency described in section 222.39(c)(3) of title
34, Code of Federal Regulations, that had its comparable local
contribution rate for fiscal year 1998 calculated pursuant to
section 222.39 of title 34, Code of Federal Regulations, the
Secretary shall determine such comparable local contribution
rate as the rate upon which payments under this subsection for
fiscal year 2000 were made to the local educational agency
adjusted by the percentage increase or decrease in the per pupil
expenditure in the State serving the local educational agency
calculated on the basis of the second most recent preceding
school year compared to the third most recent preceding school
year for which school year data are available.
(F) Increase in local contribution rate due to unusual
geographic factors
If the current expenditures in those local educational
agencies which the Secretary has determined to be generally
comparable to the local educational agency for which a
computation is made under subparagraph (C) are not reasonably
comparable because of unusual geographical factors which affect
the current expenditures necessary to maintain, in such agency,
a level of education equivalent to that maintained in such other
agencies, then the Secretary shall increase the local
contribution rate for such agency under subparagraph (C)(iii) by
such an amount which the Secretary determines will compensate
such agency for the increase in current expenditures
necessitated by such unusual geographical factors. The amount of
any such supplementary payment may not exceed the per-pupil
share (computed with regard to all children in average daily
attendance), as determined by the Secretary, of the increased
current expenditures necessitated by such unusual geographic
factors.
(G) Beginning with fiscal year 2002, for the purpose of
calculating a payment under this paragraph for a local
educational agency whose local contribution rate was computed
under subparagraph (C)(iii) for the previous year, the Secretary
shall use a local contribution rate that is not less than 95
percent of the rate that the LEA received for the preceding
year.
(2) Basic support payments for heavily impacted local
educational agencies
(A) In general
(i) From the amount appropriated under section 7714(b) of
this title for a fiscal year, the Secretary is authorized to
make basic support payments to eligible heavily impacted local
educational agencies with children described in subsection (a)
of this section.
(ii) A local educational agency that receives a basic
support payment under this paragraph for a fiscal year shall not
be eligible to receive a basic support payment under paragraph
(1) for that fiscal year.
(B) Eligibility for continuing heavily impacted local
educational agencies
(i) In general
A heavily impacted local educational agency is eligible
to receive a basic support payment under subparagraph (A)
with respect to a number of children determined under
subsection (a)(1) of this section if the agency--
(I) received an additional assistance payment under
subsection (f) of this section (as such subsection was
in effect on the day before October 30, 2000) for fiscal
year 2000; and
(II)(aa) is a local educational agency whose
boundaries are the same as a Federal military
installation;
(bb) has an enrollment of children described in
subsection (a)(1) of this section that constitutes a
percentage of the total student enrollment of the agency
which is not less than 35 percent, has a per-pupil
expenditure that is less than the average per-pupil
expenditure of the State in which the agency is located
or the average per-pupil expenditure of all States
(whichever average per-pupil expenditure is greater),
except that a local educational agency with a total
student enrollment of less than 350 students shall be
deemed to have satisfied such per-pupil expenditure
requirement, and has a tax rate for general fund
purposes which is not less than 95 percent of the
average tax rate for general fund purposes of local
educational agencies in the State;
(cc) has an enrollment of children described in
subsection (a)(1) of this section that constitutes a
percentage of the total student enrollment of the agency
which is not less than 30 percent, and has a tax rate
for general fund purposes which is not less than 125
percent of the average tax rate for general fund
purposes for comparable local educational agencies in
the State;
(dd) has a total student enrollment of not less than
25,000 students, of which not less than 50 percent are
children described in subsection (a)(1) of this section
and not less than 6,000 of such children are children
described in subparagraphs (A) and (B) of subsection
(a)(1) of this section; or
(ee) meets the requirements of subsection (f)(2) of
this section applying the data requirements of
subsection (f)(4) of this section (as such subsections
were in effect on the day before October 30, 2000).
(ii) Loss of eligibility
A heavily impacted local educational agency that met the
requirements of clause (i) for a fiscal year shall be
ineligible to receive a basic support payment under
subparagraph (A) if the agency fails to meet the
requirements of clause (i) for a subsequent fiscal year,
except that such agency shall continue to receive a basic
support payment under this paragraph for the fiscal year for
which the ineligibility determination is made.
(iii) Resumption of eligibility
A heavily impacted local educational agency described in
clause (i) that becomes ineligible under such clause for 1
or more fiscal years may resume eligibility for a basic
support payment under this paragraph for a subsequent fiscal
year only if the agency meets the requirements of clause (i)
for that subsequent fiscal year, except that such agency
shall not receive a basic support payment under this
paragraph until the fiscal year succeeding the fiscal year
for which the eligibility determination is made.
(C) Eligibility for new heavily impacted local educational
agencies
(i) In general
A heavily impacted local educational agency that did not
receive an additional assistance payment under subsection
(f) of this section (as such subsection was in effect on the
day before October 30, 2000) for fiscal year 2000 is
eligible to receive a basic support payment under
subparagraph (A) for fiscal year 2002 and any subsequent
fiscal year with respect to a number of children determined
under subsection (a)(1) of this section only if the agency
is a local educational agency whose boundaries are the same
as a Federal military installation (or if the agency is a
qualified local educational agency as described in clause
(iv)), or the agency--
(I) has an enrollment of children described in
subsection (a)(1) of this section that constitutes a
percentage of the total student enrollment of the agency
that--
(aa) is not less than 50 percent if such agency
receives a payment on behalf of children described
in subparagraphs (F) and (G) of such subsection; or
(bb) is not less than 40 percent if such agency
does not receive a payment on behalf of such
children;
(II)(aa) for a local educational agency that has a
total student enrollment of 350 or more students, has a
per-pupil expenditure that is less than the average per-
pupil expenditure of the State in which the agency is
located; or
(bb) for a local educational agency that has a total
student enrollment of less than 350 students, has a per-
pupil expenditure that is less than the average per-
pupil expenditure of a comparable local education agency
or three comparable local educational agencies in the
State in which the local educational agency is located;
and
(III) has a tax rate for general fund purposes that
is at least 95 percent of the average tax rate for
general fund purposes of comparable local educational
agencies in the State.
(ii) Resumption of eligibility
A heavily impacted local educational agency described in
clause (i) that becomes ineligible under such clause for 1
or more fiscal years may resume eligibility for a basic
support payment under this paragraph for a subsequent fiscal
year only if the agency is a local educational agency whose
boundaries are the same as a Federal military installation
(or if the agency is a qualified local educational agency as
described in clause (iv)), or meets the requirements of
clause (i), for that subsequent fiscal year, except that
such agency shall continue to receive a basic support
payment under this paragraph for the fiscal year for which
the ineligibility determination is made.
(iii) Application
With respect to the first fiscal year for which a
heavily impacted local educational agency described in
clause (i) applies for a basic support payment under
subparagraph (A), or with respect to the first fiscal year
for which a heavily impacted local educational agency
applies for a basic support payment under subparagraph (A)
after becoming ineligible under clause (i) for 1 or more
preceding fiscal years, the agency shall apply for such
payment at least 1 year prior to the start of that first
fiscal year.
(iv) Qualified local educational agency
A qualified local educational agency described in this
clause is an agency that meets the following requirements:
(I) The boundaries of the agency are the same as
island property designated by the Secretary of the
Interior to be property that is held in trust by the
Federal Government.
(II) The agency has no taxing authority.
(III) The agency received a payment under paragraph
(1) for fiscal year 2001.
(D) Maximum amount for regular heavily impacted local
educational agencies
(i) Except as provided in subparagraph (E), the maximum
amount that a heavily impacted local educational agency is
eligible to receive under this paragraph for any fiscal year is
the sum of the total weighted student units, as computed under
subsection (a)(2) of this section and subject to clause (ii),
multiplied by the greater of--
(I) four-fifths of the average per-pupil expenditure of
the State in which the local educational agency is located
for the third fiscal year preceding the fiscal year for
which the determination is made; or
(II) four-fifths of the average per-pupil expenditure of
all of the States for the third fiscal year preceding the
fiscal year for which the determination is made.
(ii)(I) For a local educational agency with respect to which
35 percent or more of the total student enrollment of the
schools of the agency are children described in subparagraph (D)
or (E) (or a combination thereof) of subsection (a)(1) of this
section, the Secretary shall calculate the weighted student
units of such children for purposes of subsection (a)(2) of this
section by multiplying the number of such children by a factor
of 0.55.
(II) For a local educational agency that has an enrollment
of 100 or fewer children described in subsection (a)(1) of this
section, the Secretary shall calculate the total number of
weighted student units for purposes of subsection (a)(2) of this
section by multiplying the number of such children by a factor
of 1.75.
(III) For a local educational agency that does not qualify
under (B)(i)(II)(aa) \1\ of this subsection and has an
enrollment of more than 100 but not more than 1,000 children
described in subsection (a)(1) of this section, the Secretary
shall calculate the total number of weighted student units for
purposes of subsection (a)(2) of this section by multiplying the
number of such children by a factor of 1.25.
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\1\ So in original. Probably should be ``paragraph
(2)(B)(i)(II)(aa)''.
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(E) Maximum amount for large heavily impacted local educational
agencies
(i)(I) Subject to clause (ii), the maximum amount that a
heavily impacted local educational agency described in subclause
(II) is eligible to receive under this paragraph for any fiscal
year shall be determined in accordance with the formula
described in paragraph (1)(C).
(II) A heavily impacted local educational agency described
in this subclause is a local educational agency that has a total
student enrollment of not less than 25,000 students, of which
not less than 50 percent are children described in subsection
(a)(1) of this section and not less than 6,000 of such children
are children described in subparagraphs (A) and (B) of
subsection (a)(1) of this section.
(ii) For purposes of calculating the maximum amount
described in clause (i), the factor used in determining the
weighted student units under subsection (a)(2) of this section
with respect to children described in subparagraphs (A) and (B)
of subsection (a)(1) of this section shall be 1.35.
(F) Data
For purposes of providing assistance under this paragraph
the Secretary--
(i) shall use student, revenue, expenditure, and tax
data from the third fiscal year preceding the fiscal year
for which the local educational agency is applying for
assistance under this paragraph; and
(ii) except as provided in subparagraph (C)(i)(I), shall
include all of the children described in subparagraphs (F)
and (G) of subsection (a)(1) of this section enrolled in
schools of the local educational agency in determining (I)
the eligibility of the agency for assistance under this
paragraph, and (II) the amount of such assistance if the
number of such children meet the requirements of subsection
(a)(3) of this section.
(G) Determination of average tax rates for general fund purposes
For the purpose of determining average tax rates for general
fund purposes for local educational agencies in a State under
this paragraph (except under subparagraph (C)(i)(II)(bb)), the
Secretary shall use either--
(i) the average tax rate for general fund purposes for
comparable local educational agencies, as determined by the
Secretary in regulations; or
(ii) the average tax rate of all the local educational
agencies in the State.
(H) Eligibility for heavily impacted local educational agencies
affected by privatization of military housing
(i) Eligibility
For any fiscal year beginning with fiscal year 2003, a
heavily impacted local educational agency that received a
basic support payment under subparagraph (A) for the prior
fiscal year, but is ineligible for such payment for the
current fiscal year under subparagraph (B) or (C), as the
case may be, by reason of the conversion of military housing
units to private housing described in clause (iii), shall be
deemed to meet the eligibility requirements under
subparagraph (B) or (C), as the case may be, for the period
during which the housing units are undergoing such
conversion.
(ii) Amount of payment
The amount of a payment to a heavily impacted local
educational agency for a fiscal year by reason of the
application of clause (i), and calculated in accordance with
subparagraph (D) or (E) (as the case may be), shall be based
on the number of children in average daily attendance in the
schools of such agency for the fiscal year.
(iii) Conversion of military housing units to
private housing described
For purposes of clause (i), ``conversion of military
housing units to private housing'' means the conversion of
military housing units to private housing units pursuant to
subchapter IV of chapter 169 of title 10 or pursuant to any
other related provision of law.
(3) Payments with respect to fiscal years in which
insufficient funds are appropriated
(A) In general
For any fiscal year in which the sums appropriated under
section 7714(b) of this title are insufficient to pay to each
local educational agency the full amount computed under
paragraphs (1) and (2), the Secretary shall make payments in
accordance with this paragraph.
(B) Learning opportunity threshold payments in lieu of payments
under paragraph (1)
(i) For fiscal years described in subparagraph (A), the
Secretary shall compute a learning opportunity threshold payment
(hereafter in this subchapter referred to as the ``threshold
payment'') in lieu of basic support payments under paragraph (1)
by multiplying the amount obtained under paragraph (1)(C) by the
total percentage obtained by adding--
(I) the percentage of federally connected children for
each local educational agency determined by calculating the
fraction, the numerator of which is the total number of
children described under subsection (a)(1) of this section
and the denominator of which is the total number of children
in average daily attendance at the schools served by such
agency; and
(II) the percentage that funds under paragraph (1)(C)
represent of the total budget of the local educational
agency, determined by calculating the fraction, the
numerator of which is the total amount of funds calculated
for each local educational agency under this paragraph, and
the denominator of which is the total current expenditures
for such agency in the second preceding fiscal year for
which the determination is made.
(ii) Such total percentage used to calculate threshold
payments under paragraph (1) shall not exceed 100.
(iii) For the purpose of determining the percentages
described in subclauses (I) and (II) of clause (i) that are
applicable to the local educational agency providing free public
education to students in grades 9 through 12 residing on Hanscom
Air Force Base, Massachusetts, the Secretary shall consider only
that portion of such agency's total enrollment of students in
grades 9 through 12 when calculating the percentage under such
subclause (I) and only that portion of the total current
expenditures attributed to the operation of grades 9 through 12
in such agency when calculating the percentage under subclause
(II).
(iv) In the case of a local educational agency that has a
total student enrollment of fewer than 1,000 students and that
has a per-pupil expenditure that is less than the average per-
pupil expenditure of the State in which the agency is located or
less than the average per-pupil expenditure of all the States,
the total percentage used to calculate threshold payments under
clause (i) shall not be less than 40 percent.
(C) Learning opportunity threshold payments in lieu of payments
under paragraph (2)
For fiscal years described in subparagraph (A), the learning
opportunity threshold payment in lieu of basic support payments
under paragraph (2) shall be equal to the amount obtained under
subparagraph (D) or (E) of paragraph (2), as the case may be.
(D) Ratable distribution
For fiscal years described in subparagraph (A), the
Secretary shall make payments as a ratable distribution based
upon the computations made under subparagraphs (B) and (C).
(4) States with only one local educational agency
(A) In general
In any of the 50 States of the United States in which there
is only one local educational agency, the Secretary shall, for
purposes of subparagraphs (B) and (C) of paragraph (1) or
subparagraphs (B) through (D) of paragraph (2), as the case may
be, paragraph (3) of this subsection, and subsection (e) of this
section, consider each administrative school district in the
State to be a separate local educational agency.
(B) Computation of maximum amount of basic support payment and
threshold payment
In computing the maximum payment amount under paragraph
(1)(C) or subparagraph (D) or (E) of paragraph (2), as the case
may be, and the learning opportunity threshold payment under
subparagraph (B) or (C) of paragraph (3), as the case may be,
for an administrative school district described in subparagraph
(A)--
(i) the Secretary shall first determine the maximum
payment amount and the total current expenditures for the
State as a whole; and
(ii) the Secretary shall then--
(I) proportionately allocate such maximum payment
amount among the administrative school districts on the
basis of the respective weighted student units of such
districts; and
(II) proportionately allocate such total current
expenditures among the administrative school districts
on the basis of the respective number of students in
average daily attendance at such districts.
(5) Local educational agencies affected by removal of
Federal property
(A) In general
In computing the amount of a basic support payment under
this subsection for a fiscal year for a local educational agency
described in subparagraph (B), the Secretary shall meet the
additional requirements described in subparagraph (C).
(B) Local educational agency described
A local educational agency described in this subparagraph is
a local educational agency with respect to which Federal
property (i) located within the boundaries of the agency, and
(ii) on which one or more children reside who are receiving a
free public education at a school of the agency, is transferred
by the Federal Government to another entity in any fiscal year
beginning on or after October 30, 2000, so that the property is
subject to taxation by the State or a political subdivision of
the State.
(C) Additional requirements
The additional requirements described in this subparagraph
are the following:
(i) For each fiscal year beginning after the date on
which the Federal property is transferred, a child described
in subparagraph (B) who continues to reside on such property
and who continues to receive a free public education at a
school of the agency shall be deemed to be a child who
resides on Federal property for purposes of computing under
the applicable subparagraph of subsection (a)(1) of this
section the amount that the agency is eligible to receive
under this subsection.
(ii)(I) For the third fiscal year beginning after the
date on which the Federal property is transferred, and for
each fiscal year thereafter, the Secretary shall, after
computing the amount that the agency is otherwise eligible
to receive under this subsection for the fiscal year
involved, deduct from such amount an amount equal to the
revenue received by the agency for the immediately preceding
fiscal year as a result of the taxable status of the former
Federal property.
(II) For purposes of determining the amount of revenue
to be deducted in accordance with subclause (I), the local
educational agency--
(aa) shall provide for a review and certification of
such amount by an appropriate local tax authority; and
(bb) shall submit to the Secretary a report
containing the amount certified under item (aa).
(c) Prior year data
(1) In general
Except as provided in subsections (b)(1)(D), (b)(2), and
paragraph (2), all calculations under this section shall be based on
data for each local educational agency from not later than the
fiscal year preceding the fiscal year for which the agency is making
application for payment.
(2) Exception
Calculations for a local educational agency that is newly
established by a State shall, for the first year of operation of
such agency, be based on data from the fiscal year for which the
agency is making application for payment.
(d) Children with disabilities
(1) In general
From the amount appropriated under section 7714(c) of this title
for a fiscal year, the Secretary shall pay to each eligible local
educational agency, on a pro rata basis, the amounts determined by--
(A) multiplying the number of children described in
subparagraphs (A)(ii), (B) and (C) of subsection (a)(1) of this
section who are eligible to receive services under the
Individuals with Disabilities Education Act (20 U.S.C. 1400 et
seq.) by a factor of 1.0; and
(B) multiplying the number of children described in
subparagraph (D) of subsection (a)(1) of this section who are
eligible to receive services under such Act by a factor of 0.5.
(2) Use of funds
A local educational agency that receives funds under paragraph
(1) shall use such funds to provide a free appropriate public
education to children described in paragraph (1) in accordance with
the Individuals with Disabilities Education Act (20 U.S.C. 1400 et
seq.).
(e) Hold harmless
(1) In general
Subject to paragraphs (2) and (3), the total amount the
Secretary shall pay a local educational agency under subsection (b)
of this section--
(A) for fiscal year 2001 shall not be less than 85 percent
of the total amount that the local educational agency received
under subsections (b) and (f) of this section for fiscal year
2000; and
(B) for fiscal year 2002 shall not be less than 70 percent
of the total amount that the local educational agency received
under subsections (b) and (f) of this section for fiscal year
2000.
(2) Maximum amount
The total amount provided to a local educational agency under
subparagraph (A) or (B) of paragraph (1) for a fiscal year shall not
exceed the maximum basic support payment amount for such agency
determined under paragraph (1) or (2) of subsection (b) of this
section, as the case may be.
(3) Ratable reductions
(A) In general
If the sums made available under this subchapter for any
fiscal year are insufficient to pay the full amounts that all
local educational agencies in all States are eligible to receive
under paragraph (1) for such year, then the Secretary shall
ratably reduce the payments to all such agencies for such year.
(B) Additional funds
If additional funds become available for making payments
under paragraph (1) for such fiscal year, payments that were
reduced under subparagraph (A) shall be increased on the same
basis as such payments were reduced.
(f) Other funds
Notwithstanding any other provision of law, a local educational
agency receiving funds under this section may also receive funds under
section 386 of the National Defense Authorization Act for Fiscal Year
1993 or such section's successor authority.
(g) Maintenance of effort
A local educational agency may receive funds under subsection (b) of
this section and section 7702 of this title for any fiscal year only if
the State educational agency finds that either the combined fiscal
effort per student or the aggregate expenditures of that agency and the
State with respect to the provision of free public education by that
agency for the preceding fiscal year was not less than 90 percent of
such combined fiscal effort or aggregate expenditures for the second
preceding fiscal year.
(Pub. L. 89-10, title VIII, Sec. 8003, as added Pub. L. 103-382, title
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3752; amended Pub. L. 104-106,
div. A, title X, Sec. 1074(f), (g), Feb. 10, 1996, 110 Stat. 448, 449;
Pub. L. 104-195, Secs. 3(a), 4(a), 5(a), (b), Sept. 16, 1996, 110 Stat.
2380-2382; Pub. L. 104-201, div. A, title III, Sec. 376, Sept. 23, 1996,
110 Stat. 2503; Pub. L. 104-208, div. A, title I, Sec. 101(e) [title
III, Sec. 307(a)], Sept. 30, 1996, 110 Stat. 3009-233, 3009-262; Pub. L.
105-18, title VI, Sec. 60005(a), June 12, 1997, 111 Stat. 214; Pub. L.
105-78, title III, Nov. 13, 1997, 111 Stat. 1497; Pub. L. 106-398,
Sec. 1 [[div. A], title XVIII, Secs. 1804(a), (b)(1), (c), 1805-
1808(b)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A-372, 1654A-374 to
1654A-382; Pub. L. 106-554, Sec. 1(a)(1) [title III, Sec. 323], Dec. 21,
2000, 114 Stat. 2763, 2763A-61; Pub. L. 107-20, title II, Sec. 2703(a),
July 24, 2001, 115 Stat. 182; Pub. L. 107-110, title VIII,
Sec. 802(a)(1), Jan. 8, 2002, 115 Stat. 1949; Pub. L. 107-206, title I,
Secs. 801, 802, Aug. 2, 2002, 116 Stat. 874; Pub. L. 107-279, title IV,
Sec. 406(a), Nov. 5, 2002, 116 Stat. 1986; Pub. L. 107-314, div. A,
title III, Sec. 344, Dec. 2, 2002, 116 Stat. 2515.)
References in Text
Section 2828(g) of title 10 (commonly known as the ``Build to
Lease'' program), as added by section 801 of the Military Construction
Authorization Act, 1984, referred to in subsec. (a)(5)(A), means the
subsection (g) added to section 2828 of Title 10, Armed Forces, by
section 801 of Pub. L. 98-115, which was repealed by Pub. L. 102-190,
div. B, title XXVIII, Sec. 2806(b), Dec. 5, 1991, 105 Stat. 1540.
Act of September 30, 1950, referred to in subsec. (b)(1)(C)(iii), is
act Sept. 30, 1950, ch. 1124, 64 Stat. 1100, as amended, which was
classified generally to chapter 13 (Sec. 236 et seq.) of this title,
prior to repeal by Pub. L. 103-382, title III, Sec. 331(b), Oct. 20,
1994, 108 Stat. 3965. For complete classification of this Act to the
Code, see Tables.
The Individuals with Disabilities Education Act, referred to in
subsec. (d), is title VI of Pub. L. 91-230, Apr. 13, 1970, 84 Stat. 175,
as amended, which is classified generally to chapter 33 (Sec. 1400 et
seq.) of this title. For complete classification of this Act to the
Code, see section 1400 of this title and Tables.
Section 386 of the National Defense Authorization Act for Fiscal
Year 1993, referred to in subsec. (f), is section 386 of Pub. L. 102-
484, which is set out as a note below.
Prior Provisions
Provisions similar to those in this section were contained in
section 238 of this title prior to repeal by Pub. L. 103-382,
Sec. 331(b).
A prior section 8003 of Pub. L. 89-10 was renumbered section 9003
and was classified to section 3383 of this title, prior to the general
amendment of Pub. L. 89-10 by Pub. L. 103-382.
Amendments
2002--Subsec. (b)(1)(G). Pub. L. 107-206, Sec. 802, added subpar.
(G).
Subsec. (b)(2)(C)(i). Pub. L. 107-110, Sec. 802(a)(1)(A), inserted
``(or if the agency is a qualified local educational agency as described
in clause (iv))'' after ``Federal military installation'' in
introductory provisions.
Subsec. (b)(2)(C)(i)(II)(bb). Pub. L. 107-279 amended item (bb)
generally. Prior to amendment, item (bb) read as follows: ``for a local
educational agency that has a total student enrollment of less than 350
students, has a per-pupil expenditure that is less than the average per-
pupil expenditure of a comparable local educational agency in the State
in which the agency is located; and''.
Subsec. (b)(2)(C)(ii). Pub. L. 107-110, Sec. 802(a)(1)(A), inserted
``(or if the agency is a qualified local educational agency as described
in clause (iv))'' after ``Federal military installation''.
Subsec. (b)(2)(C)(iv). Pub. L. 107-110, Sec. 802(a)(1)(B), added cl.
(iv).
Subsec. (b)(2)(D)(ii)(III). Pub. L. 107-206, Sec. 801, amended
subcl. (III) generally. Prior to amendment, subcl. (III) read as
follows: ``For a local educational agency that has an enrollment of more
than 100 but not more than 750 children described in subsection (a)(1)
of this section, the Secretary shall calculate the total number of
weighted student units for purposes of subsection (a)(2) of this section
by multiplying the number of such children by a factor of 1.25.''
Subsec. (b)(2)(H). Pub. L. 107-314 added subpar. (H).
Subsec. (b)(3)(B)(iv). Pub. L. 107-20 inserted ``or less than the
average per-pupil expenditure of all the States'' after ``of the State
in which the agency is located''.
2000--Subsec. (a)(1). Pub. L. 106-398, Sec. 1 [[div. A], title
XVIII, Sec. 1806(c)(1)], substituted ``subsection (b) or (d)'' for
``subsection (b), (d), or (f)'' in introductory provisions.
Subsec. (a)(2)(D). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1804(a)(1)(B)], substituted ``subparagraph (D) of paragraph (1) by
a factor of .20'' for ``subparagraphs (D) and (E) of paragraph (1) by a
factor of .10''.
Subsec. (a)(2)(E), (F). Pub. L. 106-398, Sec. 1 [[div. A], title
XVIII, Sec. 1804(a)(1)(A), (C)], added subpar. (E) and redesignated
former subpar. (E) as (F).
Subsec. (a)(4). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1804(b)(1)], inserted ``and Indian'' after ``Military
installation'' and ``or rebuilding'' after ``renovation'' in par.
heading, designated existing provisions as subpar. (A)(i), inserted
subpar. (A) heading, inserted ``or rebuilding'' after ``undergoing
renovation'', added cl. (ii) to subpar. (A) and added subpar. (B).
Subsec. (a)(5). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1804(c)], added par. (5).
Subsec. (b)(1)(C). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(c)(2)(A)], substituted ``this paragraph'' for ``this
subsection'' in introductory provisions.
Subsec. (b)(1)(D), (E). Pub. L. 106-398, Sec. 1 [[div. A], title
XVIII, Sec. 1804(a)(2)], added subpars. (D) and (E).
Subsec. (b)(1)(F). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1805], added subpar. (F).
Subsec. (b)(2). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(a)(2)], added par. (2). Former par. (2) redesignated (3).
Subsec. (b)(2)(F). Pub. L. 106-554, Sec. 1(a)(1) [title III,
Sec. 323(a)], substituted ``the Secretary--'' for ``the Secretary'',
designated remaining provisions as cl. (i), and added cl. (ii).
Subsec. (b)(2)(G). Pub. L. 106-554, Sec. 1(a)(1) [title III,
Sec. 323(b)], added subpar. (G).
Subsec. (b)(3). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(a)(1)], redesignated par. (2) as (3). Former par. (3)
redesignated (4).
Subsec. (b)(3)(A). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(b)(1)], substituted ``paragraphs (1) and (2)'' for ``paragraph
(1)''.
Subsec. (b)(3)(B). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(b)(2)(A)], inserted ``in lieu of payments under paragraph
(1)'' after ``payments'' in heading.
Subsec. (b)(3)(B)(i). Pub. L. 106-398, Sec. 1 [[div. A], title
XVIII, Sec. 1806(b)(2)(B)], inserted ``in lieu of basic support payments
under paragraph (1)'' before ``by multiplying'' in introductory
provisions and struck out ``(not including amounts received under
subsection (f) of this section)'' after ``under this paragraph'' in
subcl. (II).
Subsec. (b)(3)(B)(iv). Pub. L. 106-398, Sec. 1 [[div. A], title
XVIII, Sec. 1806(b)(2)(C)], added cl. (iv).
Subsec. (b)(3)(C). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(b)(4)], added subpar. (C). Former subpar. (C) redesignated
(D).
Subsec. (b)(3)(D). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(b)(3), (5)], redesignated subpar. (C) as (D) and substituted
``computations made under subparagraphs (B) and (C)'' for ``computation
made under subparagraph (B)''.
Subsec. (b)(4). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(a)(1)], redesignated par. (3) as (4).
Subsec. (b)(4)(A). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(c)(2)(B)(i)], substituted ``subparagraphs (B) and (C) of
paragraph (1) or subparagraphs (B) through (D) of paragraph (2), as the
case may be, paragraph (3) of this subsection'' for ``paragraphs (1)(B),
(1)(C), and (2) of this subsection''.
Subsec. (b)(4)(B). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(c)(2)(B)(ii)], in introductory provisions, inserted ``or
subparagraph (D) or (E) of paragraph (2), as the case may be,'' after
``paragraph (1)(C)'' and substituted ``subparagraph (B) or (C) of
paragraph (3), as the case may be,'' for ``paragraph (2)(B)''.
Subsec. (b)(5). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1807], added par. (5).
Subsec. (c)(1). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1806(c)(3)], substituted ``subsections (b)(1)(D), (b)(2), and
paragraph (2)'' for ``paragraph (2) and subsection (f) of this
section''.
Subsec. (e). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1804(a)(3)], amended heading and text of subsec. (e) generally.
Prior to amendment, subsec. (e) required the Secretary to pay local
education agencies under subsec. (b) of this section certain minimum
amounts for fiscal years 1995 to 1999.
Subsec. (f). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Secs. 1806(c)(4), 1808(b)(1)], redesignated subsec. (h) as (f) and
struck out heading and text of former subsec. (f) which required the
Secretary to provide additional assistance to meet special circumstances
relating to the provision of education in local educational agencies
eligible to receive assistance under this section.
Subsec. (g). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1808(a), (b)(1)], redesignated subsec. (i) as (g) and struck out
heading and text of former subsec. (g) which related to additional
payments for local educational agencies with high concentrations of
children with severe disabilities.
Subsec. (h). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1808(b)(1)], redesignated subsec. (h) as (f).
Pub. L. 106-398, Sec. 1 [[div. A], title XVIII, Sec. 1806(c)(5)],
substituted ``section 386 of the National Defense Authorization Act for
Fiscal Year 1993'' for ``section 6 of the Act of September 30, 1950
(Public Law 874, 81st Congress) (as such section was in effect on the
day preceding October 20, 1994)''.
Subsec. (i). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1808(b)(1)], redesignated subsec. (i) as (g).
1997--Subsec. (f)(2)(A)(ii)(I). Pub. L. 105-78, which directed the
amendment of section 8003(f)(2)(ii)(I) of the Elementary and Secondary
Education Act of 1965 by substituting ``25 percent of the total student
enrollment of such agency. For purposes of this subclause, all students
described in subsection (a)(1) of this section are used to determine
eligibility, regardless of whether or not a local educational agency
receives funds for these children from subsection (b) of this section;''
for ``35 percent'' and all that follows through the semicolon, was
executed by making the substitution for ``35 percent of the total
student enrollment of such agency;'' in subsection (f)(2)(A)(ii)(I) of
this section, to reflect the probable intent of Congress.
Subsec. (f)(4). Pub. L. 105-18 struck out hyphen after ``Secretary''
in introductory provisions, redesignated subpar. (A) as entire par. (4),
inserted ``expenditure,'' after ``revenue,'', substituted period for
semicolon after ``assistance under this subsection'', and struck out
subpar. (B) which read as follows: ``shall derive the per pupil
expenditure amount for the fiscal year for which the local educational
agency is applying for assistance under this subsection for the local
educational agency's comparable school districts by increasing or
decreasing the per pupil expenditure data for the second fiscal year
preceding the fiscal year for which the determination is made by the
same percentage increase or decrease reflected between the per pupil
expenditure data for the fourth fiscal year preceding the fiscal year
for which the determination is made and the per pupil expenditure data
for such second year.''
1996--Subsec. (a)(3). Pub. L. 104-201 substituted ``1,000 or such
number equals or exceeds 10 percent'' for ``2,000 and such number equals
or exceeds 15 percent''.
Subsec. (a)(4). Pub. L. 104-195, Sec. 3(a), added par. (4).
Subsec. (b)(3). Pub. L. 104-195, Sec. 4(a), added par. (3).
Subsec. (f)(2)(A). Pub. L. 104-106, Sec. 1074(f)(1)(A), substituted
``if such agency is eligible for a supplementary payment in accordance
with subparagraph (B) or such agency'' for ``only if such agency'' in
introductory provisions.
Subsec. (f)(2)(D). Pub. L. 104-106, Sec. 1074(f)(1)(B), added
subpar. (D).
Subsec. (f)(3)(A). Pub. L. 104-106, Sec. 1074(f)(2)(A)(i), inserted
``(other than any amount received under paragraph (2)(B))'' after
``subsection'' in introductory provisions.
Subsec. (f)(3)(A)(i). Pub. L. 104-208, Sec. 101(e) [title III,
Sec. 307(a)(1), (5)], substituted in introductory provisions, ``The
Secretary, in conjunction with the local educational agency, shall first
determine each of the following:'' for ``The Secretary shall first
determine the greater of--'' and inserted concluding provisions.
Subsec. (f)(3)(A)(i)(I). Pub. L. 104-208, Sec. 101(e) [title III,
Sec. 307(a)(2), (3)], substituted ``The average'' for ``the average''
before ``of the State'' and substituted period for semicolon at end.
Pub. L. 104-106, Sec. 1074(f)(2)(A)(ii), struck out ``or the average
per-pupil expenditure of all the States'' after ``is located''.
Subsec. (f)(3)(A)(i)(II). Pub. L. 104-208, Sec. 101(e) [title III,
Sec. 307(a)(2)], substituted ``The average'' for ``the average''.
Pub. L. 104-208, Sec. 101(e) [title III, Sec. 307(a)(4)], which
directed substitution of period for ``: or'', was executed by making
substitution for ``; or'' to reflect the probable intent of Congress.
Subsec. (f)(3)(A)(i)(III). Pub. L. 104-208, Sec. 101(e) [title III,
Sec. 307(a)(2)], substituted ``The average'' for ``the average''.
Subsec. (f)(3)(A)(ii). Pub. L. 104-106, Sec. 1074(f)(2)(A)(iii),
amended cl. (ii) generally. Prior to amendment, cl. (ii) read as
follows: ``The Secretary shall next subtract from the amount determined
under clause (i) the average amount of State aid per pupil received by
the local educational agency.''
Subsec. (f)(3)(A)(iii). Pub. L. 104-195, Sec. 5(b)(1), inserted ``,
except as provided in subparagraph (C),'' after ``but'' in introductory
provisions.
Pub. L. 104-106, Sec. 1074(f)(2)(A)(iv), amended cl. (iii)
generally. Prior to amendment, cl. (iii) read as follows: ``The
Secretary shall next multiply the amount determined under clause (ii) by
the total number of students in average daily attendance at the schools
of the local educational agency as determined by the Secretary under
subsection (a)(1) of this section.''
Subsec. (f)(3)(B). Pub. L. 104-106, Sec. 1074(f)(2)(B), amended
heading and text of subpar. (B) generally. Prior to amendment, text read
as follows: ``With respect to payments under this subsection for a local
educational agency described in clause (ii) or (iii) of paragraph
(2)(A), the maximum amount of such payments shall be computed by taking
the product of the average per-pupil expenditure in all States
multiplied by 0.7, except that such amount may not exceed 125 percent of
the average per-pupil expenditure in all local educational agencies in
the State.''
Subsec. (f)(3)(C). Pub. L. 104-195, Sec. 5(b)(2), added subpar. (C).
Subsec. (f)(4). Pub. L. 104-195, Sec. 5(a), substituted ``Data'' for
``Current year data'' in heading, amended subpar. (A) generally,
substituting present provisions for provisions which read ``shall use
student and revenue data from the fiscal year for which the local
educational agency is applying for assistance under this subsection;
and'', and in subpar. (B) substituted ``the fiscal year for which the
local educational agency is applying for assistance under this
subsection'' for ``such year''.
Pub. L. 104-106, Sec. 1074(g), amended heading and text of par. (4)
generally. Prior to amendment, text read as follows: ``The Secretary
shall, for purposes of providing assistance under this subsection, use--
``(A) student and revenue data from the fiscal year for which
the local educational agency is applying for assistance under this
subsection; and
``(B) the most recent data available which is adjusted to such
fiscal year.''
Effective Date of 2002 Amendments
Pub. L. 107-279, title IV, Sec. 406(b), Nov. 5, 2002, 116 Stat.
1987, provided that: ``The amendment made by section 406(a) [amending
this section] shall be effective on September 30, 2001, and shall apply
with respect to fiscal year 2001, and all subsequent fiscal years.''
Amendment by Pub. L. 107-110 effective Jan. 8, 2002, and effective
with respect to appropriations for use under this subchapter for fiscal
year 2002, see section 5 of Pub. L. 107-110, set out as an Effective
Date note under section 6301 of this title.
Effective Date of 2000 Amendment
Pub. L. 106-398, Sec. 1 [[div. A], title XVIII, Sec. 1804(b)(2)],
Oct. 30, 2000, 114 Stat. 1654, 1654A-375, provided that: ``The
amendments made by paragraph (1) [amending this section] shall apply
with respect to payments to a local educational agency for fiscal years
beginning before, on, or after the date of the enactment of this Act
[Oct. 30, 2000].''
Effective Date of 1997 Amendments
Title III of Pub. L. 105-78, Nov. 13, 1997, 111 Stat. 1497, provided
in part that: ``The amendment made by this proviso [amending this
section] shall apply with respect to fiscal years beginning with fiscal
year 1996''.
Section 60005(b) of Pub. L. 105-18 provided that: ``The amendments
made by subsection (a) [amending this section] shall apply with respect
to fiscal years after fiscal year 1997.''
Effective Date of 1996 Amendments
Section 101(e) [title III, Sec. 307(b)] of div. A of Pub. L. 104-208
provided that: ``The amendments made by subsection (a) [amending this
section] shall apply with respect to fiscal years beginning with fiscal
year 1995.''
Section 3(b) of Pub. L. 104-195 provided that: ``Paragraph (4) of
section 8003(a) of the Elementary and Secondary Education Act of 1965
[20 U.S.C. 7703(a)(4)], as added by subsection (a), shall apply with
respect to fiscal years after fiscal year 1995.''
Section 4(b) of Pub. L. 104-195 provided that: ``Paragraph (3) of
section 8003(b) of the Elementary and Secondary Education Act of 1965
[20 U.S.C. 7703(b)(3)], as added by subsection (a), shall apply with
respect to fiscal years after fiscal year 1994.''
Section 5(c) of Pub. L. 104-195 provided that: ``The amendments made
by subsections (a) and (b) [amending this section] shall apply with
respect to fiscal years after fiscal year 1996.''
Transition Provisions
Pub. L. 107-110, title VIII, Sec. 802(a)(2), Jan. 8, 2002, 115 Stat.
1949, provided that: ``The Secretary shall consider an application for a
payment under section 8003(b)(2) [20 U.S.C. 7703(b)(2)] for fiscal year
2002 from a qualified local educational agency described in section
8003(b)(2)(C)(iv), as added by paragraph (1), as meeting the
requirements of section 8003(b)(2)(C)(iii), and shall provide a payment
under section 8003(b)(2) for fiscal year 2002, if the agency submits to
the Secretary an application for payment under such section not later
than 30 days after the date of enactment of this Act [Jan. 8, 2002].''
Assistance to Local Educational Agencies That Benefit Dependents of
Members of Armed Forces and Department of Defense Civilian Employees
Pub. L. 102-484, div. A, title III, Sec. 386, Oct. 23, 1992, 106
Stat. 2394, as amended by Pub. L. 103-160, div. A, title III,
Sec. 373(a), (b), Nov. 30, 1993, 107 Stat. 1635, 1636; Pub. L. 103-382,
title III, Sec. 391(d), Oct. 20, 1994, 108 Stat. 4022; Pub. L. 104-106,
div. A, title X, Sec. 1074(c)-(e), (h), Feb. 10, 1996, 110 Stat. 448,
449; Pub. L. 105-85, div. A, title III, Sec. 381(e), Nov. 18, 1997, 111
Stat. 1709; Pub. L. 106-65, div. A, title III, Sec. 351(e), Oct. 5,
1999, 113 Stat. 572, provided that:
``(a) Assistance Authorized.--The Secretary of Defense, in
consultation with the Secretary of Education, shall provide financial
assistance to local educational agencies in States as provided in this
section.
``(b) Schools With Significant Numbers of Military Dependent
Students.--The Secretary of Defense shall provide financial assistance
to an eligible local educational agency described in subsection (c) if,
without such assistance, that agency will be unable (as determined by
the Secretary of Defense in consultation with the Secretary of
Education) to provide the students in the schools of the agency with a
level of education that is equivalent to the minimum level of education
available in the schools of the other local educational agencies in the
same State.
``(c) Eligible Local Educational Agencies.--A local educational
agency is eligible for assistance under subsection (b) for a fiscal year
if--
``(1) at least 20 percent (as rounded to the nearest whole
percent) of the students in average daily attendance in the schools
of that agency during the preceding school year were military
dependent students counted under section 8003(a)(1) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(a)(1));
``(2) there has been a significant increase, as determined by
the Secretary of Defense, in the number of military dependent
students in average daily attendance in the schools of that agency
as a result of a relocation of Armed Forces personnel or civilian
employees of the Department of Defense or as a result of a
realignment of one or more military installations; or
``(3) by reason of a consolidation or reorganization of local
educational agencies, the local educational agency is a successor of
a local educational agency that, for fiscal year 1992--
``(A) was eligible to receive payments in accordance with
Department of Defense Instruction 1342.18, dated June 3, 1991;
and
``(B) satisfied the requirement in paragraph (1) or (2).
``(d) Adjustments Related to Base Closures and Realignments.--To
assist communities in making adjustments resulting from reductions in
the size of the Armed Forces, the Secretary of Defense shall, in
consultation with the Secretary of Education, make payments to local
educational agencies that, during the period between the end of the
school year preceding the fiscal year for which the payments are
authorized and the beginning of the school year immediately preceding
that school year, had an overall reduction of not less than 20 percent
in the number of military dependent students as a result of the closure
or realignment of military installations.
``(e) Report on Impact of Base Closures on Educational Agencies.--
(1) Not later than February 15 of each of 1993, 1994, 1995, and 1996,
the Secretary of Defense, in consultation with the Secretary of
Education, shall submit to Congress a report on the local educational
agencies affected by the closures and realignment of military
installations and by redeployments of members of the Armed Forces.
``(2) Each report shall contain the following:
``(A) The number of dependent children of members of the Armed
Forces or civilian employees of the Department of Defense who
entered the schools of the local educational agencies during the
preceding school year as a result of closures, realignments, or
redeployments.
``(B) The number of dependent children of such members or
employees who withdrew from the schools of the local educational
agencies during that school year as a result of closures,
realignments, or redeployments.
``(C) The amounts paid to the local educational agencies during
that year under the Act of September 30, 1950 (Public Law 874,
Eighty-first Congress; [former] 20 U.S.C. 236 et seq.), title VIII
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7701 et seq.), or any other provision of law authorizing the payment
of financial assistance to local communities or local educational
agencies on the basis of the presence of dependent children of such
members or employees in such communities and in the schools of such
agencies.
``(D) The projected transfers of such members and employees in
connection with closures, realignments, and redeployments during the
12-month period beginning on the date of the report, including--
``(i) the installations to be closed or realigned;
``(ii) the installations to which personnel will be
transferred as a result of closures, realignments, and
redeployments; and
``(iii) the effects of such transfers on the number of
dependent children who will be included in determinations with
respect to the payment of funds to each affected local
educational agency.
``(f) Funding.--Of the amounts appropriated for the Department of
Defense for operation and maintenance in fiscal year 1993 pursuant to
the authorization of appropriations in section 301 [106 Stat. 2360]--
``(1) $50,000,000 shall be available for providing assistance to
local educational agencies under subsection (b); and
``(2) $8,000,000 shall be available for making payments to local
educational agencies under subsection (d).
``(g) Limitation on Transfer and Obligation of Funds.--(1) The
amount made available pursuant to subsection (f)(2) for adjustment
assistance related to base closures and realignments under subsection
(d) may be obligated for such adjustment assistance only if expenditures
for that adjustment assistance for fiscal year 1993 have been determined
by the Director of the Office of Management and Budget to be counted
against the defense category of the discretionary spending limits for
fiscal year 1993 (as defined in section 601(a)(2) of the Congressional
Budget Act of 1974 [2 U.S.C. 665(a)(2)]) for purposes of part C of the
Balanced Budget and Emergency Deficit Control Act of 1985 [2 U.S.C. 900
et seq.].
``(2) Not later than the third day after the date of the enactment
of this Act [Oct. 23, 1992], the Director of the Office of Management
and Budget shall make a determination as to the classification by
discretionary spending limit category for purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985 [see Short Title note
set out under section 900 of Title 2, The Congress] of the amount
appropriated for adjustment assistance related to base closures and
realignments under subsection (d). If the Director determines that the
amount shall not classify against the defense category (as described in
paragraph (1)), then the President shall submit to Congress a report
stating that the Director has made such a determination and the amount
that will not classify against the defense category and containing an
explanation for the determination.
``(3) The amount listed in the report under paragraph (2) may be
transferred only to the programs under title III [see Tables for
classification] other than the program under subsection (d) pursuant to
amounts specified in appropriation Acts. Any such transfer shall be
taken into account for purposes of calculating all reports under section
254 of the Balanced Budget and Emergency Deficit Control Act of 1985 [2
U.S.C. 904].
``(h) Definitions.--In this section:
``(1) The term `local educational agency' has the meaning given
that term in section 8013(9) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7713(9)).
``(2) The term `military dependent student' means a student that
is--
``(A) a dependent child of a member of the Armed Forces; or
``(B) a dependent child of a civilian employee of the
Department of Defense.
``(3) The term `State' means each of the 50 States and the
District of Columbia.''
[Section 373(c) of Pub. L. 103-160 provided that: ``The amendments
made by subsections (a) and (b) [amending section 386 of Pub. L. 102-484
set out above] shall take effect as of October 23, 1992, as if section
386 of Public Law 102-484 had been enacted as amended by such
subsections.'']
Notice to Local and State Educational Agencies of Enrollment Changes Due
to Base Closures and Realignments
For provisions requiring Secretary of Defense to identify local
educational agencies that will experience at least a 5-percent increase
or 10-percent reduction in enrollment in number of dependent children of
members of Armed Forces and of civilian employees of Department of
Defense enrolled in schools under jurisdiction of such agencies during
next academic year as a result of closure or realignment of a military
installation, and to transmit notice of schedule of such closure or
realignment to affected local and State educational agencies, see
section 2833 of Pub. L. 101-189, set out as a note under section 2687 of
Title 10, Armed Forces.
Section Referred to in Other Sections
This section is referred to in sections 1228, 7281a, 7702, 7703a,
7704, 7705, 7707, 7709, 7710, 7714 of this title.
