SEC. 1015
ALLOCATIONS TO STATES
Section Summary
ESSA Update
SEC. 1015. ALLOCATIONS TO STATES.
Section 1122(a) (20 U.S.C. 6332(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``2002-2007'' and inserting ``2017-2020''; and
(2) by striking paragraph (3) and inserting the following:
``(3) an amount equal to 100 percent of the amount, if any,
by which the total amount made available under this subsection
for the current fiscal year for which the determination is made
exceeds the total amount available to carry out sections 1124
and 1124A for fiscal year 2001 shall be used to carry out
sections 1125 and 1125A and such amount shall be divided equally
between sections 1125 and 1125A.''.
SEC. 1016. ADEQUACY OF FUNDING RULE.
Section 1125AA (20 U.S.C. 6336) is amended by striking the section
heading and all that follows through ``Pursuant'' and inserting the
following: ``Adequacy of Funding to Local Educational Agencies in Fiscal
Years After Fiscal Year 2001.--Pursuant''.
SEC. 1017. EDUCATION FINANCE INCENTIVE GRANT PROGRAM.
Section 1125A (20 U.S.C. 6337) is amended--
(1) in subsection (a), by striking ``funds appropriated
under subsection (f)'' and inserting ``funds made available
under section 1122(a)'';
(2) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``appropriated
pursuant to subsection (f)'' and inserting ``made
available for any fiscal year to carry out this
section''; and
(B) in subparagraph (B)(i), by striking ``total
appropriations'' and inserting ``the total amount
reserved under section 1122(a) to carry out this
section'';
(3) in subsection (c), by redesignating subparagraphs (A)
and (B) as paragraphs (1) and (2), respectively;
(4) in subsection (d)(1)(A)(ii), by striking ``clause
``(i)'' and inserting ``clause (i)'';
(5) by striking subsection (e) and inserting the following:
``(e) Maintenance of Effort.--
``(1) In general.--A State is entitled to receive its full
allotment of funds under this section for any fiscal year if the
Secretary finds that the State's fiscal effort per student or
the aggregate expenditures of the State with respect to the
provision of free public education by the State for the
preceding fiscal year was not less than 90 percent of the fiscal
effort or aggregate expenditures for the second preceding fiscal
year, subject to the requirements of paragraph (2).
``(2) Reduction in case of failure to meet.--
``(A) In general.--The Secretary shall reduce the
amount of the allotment of funds under this section for
any fiscal year in the exact proportion by which a State
fails to meet the requirement of paragraph (1) by
falling below 90 percent of both the fiscal effort per
student and aggregate expenditures (using the measure
most favorable to the State), if such State has also
failed to meet such requirement (as determined using the
measure most favorable to the State) for 1 or more of
the 5 immediately preceding fiscal years.
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``(B) Special rule.--No such lesser amount shall be
used for computing the effort required under paragraph
(1) for subsequent years.
``(3) Waiver.--The Secretary may waive the requirements of
this subsection if the Secretary determines that a waiver would
be equitable due to--
``(A) exceptional or uncontrollable circumstances,
such as a natural disaster or a change in the
organizational structure of the State; or
``(B) a precipitous decline in the financial
resources of the State.'';
(6) by striking subsection (f);
(7) by redesignating subsection (g) as subsection (f); and
(8) in subsection (f), as redesignated by paragraph (7)--
(A) in paragraph (1), by striking ``under this
section'' and inserting ``to carry out this section'';
and
(B) in paragraph (3), in the matter preceding
subparagraph (A), by striking ``shall be'' and inserting
``shall be--''.
NCLB Text
`SEC. 1122. ALLOCATIONS TO STATES. <<NOTE: 20 USC 6332.>>
``(a) Allocation Formula.--Of the amount appropriated under section
1002(a) to carry out this part for each of fiscal years 2002-2007
(referred to in this subsection as the current fiscal year)--
``(1) an amount equal to the amount made available to carry
out section 1124 for fiscal year 2001 shall be allocated in
accordance with section 1124;
``(2) an amount equal to the amount made available to carry
out section 1124A for fiscal year 2001 shall be allocated in
accordance with section 1124A; and
``(3) an amount equal to 100 percent of the amount, if any,
by which the amount made available to carry out sections 1124,
1124A, and 1125 for the current fiscal year for which the
determination is made exceeds the amount available to carry out
sections 1124 and 1124A for fiscal year 2001 shall be allocated
in accordance with section 1125.
``(b) Adjustments Where Necessitated by Appropriations.--
``(1) In general.--If the sums available under this subpart
for any fiscal year are insufficient to pay the full amounts
that all local educational agencies in States are eligible to
receive under sections 1124, 1124A, and 1125 for such year, the
Secretary shall ratably reduce the allocations to such local
educational agencies, subject to subsections (c) and (d) of this
section.
``(2) Additional funds.--If additional funds become
available for making payments under sections 1124, 1124A, and
1125 for such fiscal year, allocations that were reduced under
paragraph (1) shall be increased on the same basis as they were
reduced.
``(c) Hold-Harmless Amounts.--
``(1) Amounts for sections 1124, 1124a, and 1125.--For each
fiscal year, the amount made available to each local educational
agency under each of sections 1124, 1124A, and 1125 shall be--
``(A) not less than 95 percent of the amount made
available for the preceding fiscal year if the number of
children counted for grants under section 1124 is not
less than 30 percent of the total number of children
aged 5 to 17 years, inclusive, in the local educational
agency;
``(B) not less than 90 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is between 15
percent and 30 percent; and
``(C) not less than 85 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is below 15
percent.
``(2) Payments.--If sufficient funds are appropriated, the
amounts described in paragraph (1) shall be paid to all local
educational agencies that received grants under section 1124A
for the preceding fiscal year, regardless of whether the local
[[Page 115 STAT. 1516]]
educational agency meets the minimum eligibility criteria for
that fiscal year described in section 1124A(a)(1)(A) except that
a local educational agency that does not meet such minimum
eligibility criteria for 4 consecutive years shall no longer be
eligible to receive a hold harmless amount referred to in
paragraph (1).
``(3) Applicability.--Notwithstanding any other provision of
law, the Secretary shall not take into consideration the hold-
harmless provisions of this subsection for any fiscal year for
purposes of calculating State or local allocations for the
fiscal year under any program administered by the Secretary
other than a program authorized under this part.
``(4) <<NOTE: Applicability.>> Population data.--For any
fiscal year for which the Secretary calculates grants on the
basis of population data for counties, the Secretary shall apply
the hold-harmless percentages in paragraphs (1) and (2) to
counties and, if the Secretary's allocation for a county is not
sufficient to meet the hold-harmless requirements of this
subsection for every local educational agency within that
county, the State educational agency shall reallocate funds
proportionately from all other local educational agencies in the
State that are receiving funds in excess of the hold-harmless
amounts specified in this subsection.
``(d) Ratable Reductions.--
``(1) In general.--If the sums made available under this
subpart for any fiscal year are insufficient to pay the full
amounts that local educational agencies in all States are
eligible to receive under subsection (c) for such year, the
Secretary shall ratably reduce such amounts for such year.
``(2) Additional funds.--If additional funds become
available for making payments under subsection (c) for such
fiscal year, amounts that were reduced under paragraph (1) shall
be increased on the same basis as such amounts were reduced.
``(e) Definition.--For the purpose of this section and sections
1124, 1124A, 1125, and 1125A, the term `State' means each of the 50
States, the District of Columbia, and the Commonwealth of Puerto Rico.
