Copy of Title IV SEC. 4104. STATE USE OF FUNDS

SEC. 4105

``(a) Allocations to Local Educational Agencies.--

``(1) In general.--From the funds reserved by a State under

section 4104(a)(1), the State shall allocate to each local

educational agency in the State that has an application approved

by the State educational agency under section 4106 an amount

that bears the same relationship to the total amount of such

reservation as the amount the local educational agency received

under subpart 2 of part A of title I for the preceding fiscal

year bears to the total amount received by all local educational

agencies in the State under such subpart for the preceding

fiscal year.

``(2) Minimum local educational agency allocation.--No

allocation to a local educational agency under this subsection

may be made in an amount that is less than $10,000, subject to

subsection (b).

``(3) Consortia.--Local educational agencies in a State may

form a consortium with other surrounding local educational

agencies and combine the funds each such agency in the

consortium receives under this section to jointly carry out the

local activities described in this subpart.

``(b) Ratable Reduction.--If the amount reserved by the State under

section 4104(a)(1) is insufficient to make allocations to local

educational agencies in an amount equal to the minimum allocation

described in subsection (a)(2), such allocations shall be ratably

reduced.

``(c) Administrative Costs.--Of the amount received under subsection

(a)(2), a local educational agency may reserve not more than 2 percent

for the direct administrative costs of carrying out the local

educational agency's responsibilities under this subpart.