SEC. 7004.
PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN
Section Summary
ESSA
SEC. 7004. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
Section 7003, as redesignated and amended by section 7001 of this
Act, <<NOTE: 20 USC 7703.>> is further amended--
(1) in subsection (a)(5)(A), by striking ``to be children''
and all that follows through the period at the end and inserting
``or under lease of off-base property under subchapter IV of
chapter 169 of title 10, United States Code, to be children
described under paragraph (1)(B), if the property described is--
``(i) within the fenced security perimeter of
the military facility; or
``(ii) attached to, and under any type of
force protection agreement with, the military
installation upon which such housing is
situated.'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking subparagraph (E); and
(ii) by redesignating subparagraphs (F) and
(G) as subparagraphs (E) and (F), respectively;
(B) in paragraph (2), by striking subparagraphs (B)
through (H) and inserting the following:
``(B) Eligibility for 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) if the agency--
``(I) is a local educational
agency--
``(aa) whose boundaries are
the same as a Federal military
installation or an island
property designated by the
Secretary of the Interior to be
property that is held in trust
by the Federal Government; and
``(bb) that has no taxing
authority;
``(II) is a local educational agency
that--
``(aa) has an enrollment of
children described in subsection
(a)(1) that constitutes a
percentage of the total student
enrollment of the agency that is
not less than 45 percent;
``(bb) has a per-pupil
expenditure that is less than--
``(AA) for an agency
that has a total student
enrollment of 500 or more
students, 125 percent of the
average per-pupil
expenditure of the State in
which the agency is located;
or
``(BB) for any agency
that has a total student
enrollment of less than 500
students, 150 percent of the
average per-pupil
expenditure of the State in
which the agency is located
or the average per-pupil
[[Page 129 STAT. 2078]]
expenditure of 3 or more
comparable local educational
agencies in the State in
which the agency is located;
and
``(cc) is an agency that has
a tax rate for general fund
purposes that is not less than
95 percent of the average tax
rate for general fund purposes
of comparable local educational
agencies in the State;
``(III) is a local educational
agency that--
``(aa) 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; and
``(bb)(AA) has an enrollment
of children described in
subsection (a)(1) that
constitutes a percentage of the
total student enrollment of the
agency that is not less than 30
percent; or
``(BB) has an enrollment of
children described in subsection
(a)(1) that constitutes a
percentage of the total student
enrollment of the agency that is
not less than 20 percent, and
for the 3 fiscal years preceding
the fiscal year for which the
determination is made, the
average enrollment of children
who are not described in
subsection (a)(1) and who are
eligible for a free or reduced
price lunch under the Richard B.
Russell National School Lunch
Act constitutes a percentage of
the total student enrollment of
the agency that is not less than
65 percent;
``(IV) is a local educational agency
that has a total student enrollment of
not less than 25,000 students, of
which--
``(aa) not less than 50
percent are children described
in subsection (a)(1); and
``(bb) not less than 5,000
of such children are children
described in subparagraphs (A)
and (B) of subsection (a)(1); or
``(V) is a local educational agency
that--
``(aa) has an enrollment of
children described in subsection
(a)(1) including, for purposes
of determining eligibility,
those children described in
subparagraphs (F) and (G) of
such subsection, that is not
less than 35 percent of the
total student enrollment of the
agency;
``(bb) has a per-pupil
expenditure described in
subclause (II)(bb) (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
[[Page 129 STAT. 2079]]
general fund purposes for
comparable local educational
agencies in the State; and
``(cc) was eligible to
receive assistance under
subparagraph (A) for fiscal year
2001.
``(ii) Loss of eligibility.--
``(I) In general.--Subject to
subclause (II), 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.
``(II) Loss of eligibility due to
falling below 95 percent of the average
tax rate for general fund purposes.--In
the case of a heavily impacted local
educational agency described in
subclause (II) or (V) of clause (i) that
is eligible to receive a basic support
payment under subparagraph (A), but that
has had, for 2 consecutive fiscal years,
a tax rate for general fund purposes
that falls below 95 percent of the
average tax rate for general fund
purposes of comparable local educational
agencies in the State, such agency shall
be determined to be ineligible under
clause (i) and ineligible to receive a
basic support payment under subparagraph
(A) for each fiscal year succeeding such
2 consecutive fiscal years for which the
agency has such a tax rate for general
fund purposes, and until the fiscal year
for which the agency resumes such
eligibility in accordance with clause
(iii).
``(III) Taken over by state board of
education.--In the case of a heavily
impacted local educational agency that
is eligible to receive a basic support
payment under subparagraph (A), but that
has been taken over by a State board of
education in any 2 previous years, such
agency shall be deemed to maintain
heavily impacted status for 2 fiscal
years following the date of enactment of
the Every Student Succeeds Act.
``(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) Maximum amount for heavily impacted local
educational agencies.--
[[Page 129 STAT. 2080]]
``(i) In general.--Except as provided in
subparagraph (D), 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)
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) Calculation of weighted student
units.--
``(I) In general.--
``(aa) Percentage
enrollment.--For a local
educational agency in 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), and that has
an enrollment of children
described in subparagraph (A),
(B), or (C) of such subsection
equal to at least 10 percent of
the agency's total enrollment,
the Secretary shall calculate
the weighted student units of
those children described in
subparagraph (D) or (E) of such
subsection by multiplying the
number of such children by a
factor of 0.55.
``(bb) Exception.--
Notwithstanding item (aa), a
local educational agency that
received a payment under this
paragraph for fiscal year 2013
shall not be required to have an
enrollment of children described
in subparagraph (A), (B), or (C)
of subsection (a)(1) equal to at
least 10 percent of the agency's
total enrollment and shall be
eligible for the student weight
as provided for in item (aa).
``(II) Enrollment of 100 or fewer
children.--For a local educational
agency that has an enrollment of 100 or
fewer children described in subsection
(a)(1), the Secretary shall calculate
the total number of weighted student
units for purposes of subsection (a)(2)
by multiplying the number of such
children by a factor of 1.75.
``(III) Enrollment of more than 100
children but less than 1000.--For a
local educational agency that is not
described under subparagraph (B)(i)(I)
and has an enrollment of more than 100
but not more than 1,000 children
described in subsection (a)(1), the
Secretary shall calculate the total
number of weighted student units for
purposes of subsection (a)(2) by
multiplying the number of such children
by a factor of 1.25.
[[Page 129 STAT. 2081]]
``(D) Maximum amount for large heavily impacted
local educational agencies.--
``(i) In general.--
``(I) Formula.--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) Heavily impacted local
educational agency.--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) and not less than
5,000 of such children are children
described in subparagraphs (A) and (B)
of subsection (a)(1).
``(ii) Factor.--For purposes of calculating
the maximum amount described in clause (i), the
factor used in determining the weighted student
units under subsection (a)(2) with respect to
children described in subparagraphs (A) and (B) of
subsection (a)(1) shall be 1.35.
``(E) Data.--For purposes of providing assistance
under this paragraph, the Secretary 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.
``(F) Determination of average tax rates for general
fund purposes.--
``(i) In general.--Except as provided in
clause (ii), for the purpose of determining the
average tax rates for general fund purposes for
local educational agencies in a State under this
paragraph, 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.
``(ii) Fiscal years 2010-2015.--
``(I) In general.--For fiscal years
2010 through 2015, any local educational
agency that was found ineligible to
receive a payment under subparagraph (A)
because the Secretary determined that it
failed to meet the average tax rate
requirement for general fund purposes in
subparagraph (B)(i)(II)(cc), shall be
considered to have met that requirement,
if its State determined, through an
alternate calculation of average tax
rates for general fund purposes, that
such local educational agency met that
requirement.
``(II) Subsequent fiscal years after
2015.--For any succeeding fiscal year
after 2015, any local educational agency
identified in subclause
[[Page 129 STAT. 2082]]
(I) may continue to have its State use
that alternate methodology to calculate
whether the average tax rate requirement
for general fund purposes under
subparagraph (B)(i)(II)(cc) is met.
``(III) Availability of funds.--
Notwithstanding any other provision of
law limiting the period during which the
Secretary may obligate funds
appropriated for any fiscal year after
2012, the Secretary shall reserve a
total of $14,000,000 from funds that
remain unobligated under this section
from fiscal years 2015 or 2016 in order
to make payments under this clause for
fiscal years 2011 through 2014.
``(G) Eligibility for heavily impacted local
educational agencies affected by privatization of
military housing.--
``(i) Eligibility.--For any fiscal year, a
heavily impacted local educational agency that
received a basic support payment under this
paragraph for the prior fiscal year, but is
ineligible for such payment for the current fiscal
year under subparagraph (B) due to the conversion
of military housing units to private housing
described in clause (iii), or as the direct result
of base realignment and closure or modularization
as determined by the Secretary of Defense and
force structure change or force relocation, shall
be deemed to meet the eligibility requirements
under subparagraph (B) for the period during which
the housing units are undergoing such conversion
or during such time as activities associated with
base closure and realignment, modularization,
force structure change, or force relocation are
ongoing.
``(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 (C) or (D), 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 and
under the same provisions of subparagraph (C) or
(D) under which the agency was paid during the
prior 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, United States Code, or pursuant to any other
related provision of law.'';
(C) in paragraph (3)--
(i) in subparagraph (B), by striking clause
(iii) and inserting the following:
``(iii) In the case of a local educational agency
providing a free public education to students enrolled
in kindergarten through grade 12, that enrolls students
described in subparagraphs (A), (B), and (D) of
subsection (a)(1) only in grades 9 through 12, and that
received a final payment
[[Page 129 STAT. 2083]]
for fiscal year 2009 calculated under section 8003(b)(3)
(as such section was in effect on the day before the
date of enactment of the Every Student Succeeds Act) for
students in grades 9 through 12, the Secretary shall, in
calculating the agency's payment, consider only that
portion of such agency's total enrollment of students in
grades 9 through 12 when calculating the percentage
under clause (i)(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 clause (i)(II).'';
(ii) in subparagraph (C), by striking
``subparagraph (D) or (E) of paragraph (2), as the
case may be'' and inserting ``subparagraph (C) or
(D) of paragraph (2), as the case may be''; and
(iii) by striking subparagraph (D) and
inserting the following:
``(D) Ratable distribution.--For fiscal years
described in subparagraph (A), for which the sums
available exceed the amount required to pay each local
educational agency 100 percent of its threshold payment,
the Secretary shall distribute the excess sums to each
eligible local educational agency that has not received
its full amount computed under paragraphs (1) or (2) (as
the case may be) by multiplying--
``(i) a percentage, the denominator of which
is the difference between the full amount computed
under paragraph (1) or (2) (as the case may be)
for all local educational agencies and the amount
of the threshold payment (as calculated under
subparagraphs (B) and (C)) of all local
educational agencies, and the numerator of which
is the aggregate of the excess sums, by
``(ii) the difference between the full amount
computed under paragraph (1) or (2) (as the case
may be) for the agency and the amount of the
threshold payment (as calculated under
subparagraphs (B) or (C)) of the agency, except
that no local educational agency shall receive
more than 100 percent of the maximum payment
calculated under subparagraph (C) or (D) of
paragraph (2).
``(E) Insufficient payments.--For each fiscal year
described in subparagraph (A) for which the sums
appropriated are insufficient to pay each local
educational agency all of the local educational agency's
threshold payment described in subparagraph (B), the
Secretary shall ratably reduce the payment to each local
educational agency under this paragraph.
``(F) Increases.--
``(i) Increases based on insufficient funds.--
If additional funds become available under 7014(b)
for making payments under paragraphs (1) and (2)
and those funds are not sufficient to increase
each local
[[Page 129 STAT. 2084]]
educational agency's threshold payment above 100
percent of its threshold payment described in
subparagraph (B), payments that were reduced under
subparagraph (E) shall be increased by the
Secretary on the same basis as such payments were
reduced.
``(ii) Increases based on sufficient funds.--
If additional funds become available under section
7014(b) for making payments under paragraphs (1)
and (2) and those funds are sufficient to increase
each local educational agency's threshold payment
above 100 percent of its threshold payment
described in subparagraph (B), the payment for
each local educational agency shall be 100 percent
of its threshold payment. The Secretary shall then
distribute the excess sums to each eligible local
educational agency in accordance with subparagraph
(D).
``(G) Provision of tax rate and resulting
percentage.--As soon as practicable following the
payment of funds under paragraph (2) to an eligible
local educational agency, the Secretary shall provide
the local educational agency with a description of--
``(i) the tax rate of the local educational
agency; and
``(ii) the percentage such tax rate represents
of the average tax rate for general fund purposes
of comparable local educational agencies in the
State as determined under subclauses (II)(cc),
III(aa), or (V)(bb) of paragraph (2)(B)(i) (as the
case may be).''; and
(D) in paragraph (4)--
(i) in subparagraph (A), by striking ``through
(D)'' and inserting ``and (C)''; and
(ii) in subparagraph (B), by striking
``subparagraph (D) or (E)'' and inserting
``subparagraph (C) or (D)'';
(3) in subsection (c), by striking paragraph (2) and
inserting the following:
``(2) Exception.--Calculation of payments for a local
educational agency shall be based on data from the fiscal year
for which the agency is making an application for payment if
such agency--
``(A) is newly established by a State, for the first
year of operation of such agency only;
``(B) was eligible to receive a payment under this
section for the previous fiscal year and has had an
overall increase in enrollment (as determined by the
Secretary in consultation with the Secretary of Defense,
the Secretary of the Interior, or the heads of other
Federal agencies)--
``(i)(I) of not less than 10 percent of
children described in--
``(aa) subparagraph (A),
(B), (C), or (D) of subsection
(a)(1); or
``(bb) subparagraphs (F) and
(G) of subsection (a)(1), but
only to the extent that such
children are civilian dependents
of employees of the Department
of Defense or the Department of
the Interior; or
``(II) of not less than 100 of such children;
and
[[Page 129 STAT. 2085]]
``(ii) that is the direct result of closure or
realignment of military installations under the
base closure process or the relocation of members
of the Armed Forces and civilian employees of the
Department of Defense as part of the force
structure changes or movements of units or
personnel between military installations or
because of actions initiated by the Secretary of
the Interior or the head of another Federal
agency; or
``(C) was eligible to receive a payment under this
section for the previous fiscal year and has had an
increase in enrollment (as determined by the
Secretary)--
``(i) of not less than 10 percent of children
described in subsection (a)(1) or not less than
100 of such children; and
``(ii) that is the direct result of the
closure of a local educational agency that
received a payment under subsection (b)(1) or
(b)(2) for the previous fiscal year.'';
(4) in subsection (d)(1), by striking ``section 8014(c)''
and inserting ``section 7014(c)'';
(5) in subsection (e)--
(A) by redesignating paragraph (3) as paragraph (4);
(B) by striking paragraphs (1) and (2) and inserting
the following:
``(1) In general.--In the case of any local educational
agency eligible to receive a payment under subsection (b) whose
calculated payment amount for a fiscal year is reduced by 20
percent, as compared to the amount received for the previous
fiscal year, the Secretary shall pay the local educational
agency, for the year of the reduction and the following 2 years,
the amount determined under paragraph (2).
``(2) Amount of reduction.--Subject to paragraph (3), A
local educational agency described in paragraph (1) shall
receive--
``(A) for the first year for which the reduced
payment is determined, an amount that is not less than
90 percent of the total amount that the local
educational agency received under subsection (b) for the
previous fiscal year;
``(B) for the second year following such reduction,
an amount that is not less than 85 percent of the total
amount that the local educational agency received under
subparagraph (A); and
``(C) for the third year following such reduction,
an amount that is not less than 80 percent of the total
amount that the local educational agency received under
subparagraph (B).
``(3) Special rule.--For any fiscal year for which a local
educational agency would receive a payment under subsection (b)
in excess of the amount determined under paragraph (2), the
payment received by the local educational agency for such fiscal
year shall be calculated under paragraph (1) or (2) of
subsection (b).''; and
(6) by striking subsection (g).
[[Page 129 STAT. 2086]]
NCLB Text
SEC. 802. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
(a) Eligibility for Certain Heavily Impacted Local Educational
Agencies.--
(1) In general.--Section 8003(b)(2)(C) (20 U.S.C.
7703(b)(2)(C)) is amended--
(A) in clauses (i) and (ii), by inserting after
``Federal military installation'' each place it appears
the following: ``(or if the agency is a qualified local
educational agency as described in clause (iv))''; and
(B) by adding at the end the following:
``(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.''.
(2) <<NOTE: 20 USC 7703 note.>> Effective date.--The
Secretary shall consider an application for a payment under
section 8003(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.
(b) Applications for Payment.--
(1) Warner public schools, muskogee county, oklahoma.--
Notwithstanding any other provision of law, the Secretary of
Education shall treat as timely filed an application under
section 8003 (20 U.S.C. 7703) from Warner Public Schools,
Muskogee County, Oklahoma, for a payment for fiscal year 2002,
and shall process that application for payment, if the Secretary
has received the fiscal year 2002 application not later than 30
days after the date of enactment of this Act.
(2) Pine point school, school district 25, minnesota.--
Notwithstanding any other provision of law, the Secretary shall
treat as timely filed an application under section 8003 (20
U.S.C. 7703) from Pine Point School, School District 25,
Minnesota, for a payment for fiscal year 2002, and shall process
that application for payment, if the Secretary has received
[[Page 115 STAT. 1950]]
the fiscal year 2002 application not later than 30 days after
the date of enactment of this Act.
