[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5001 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5001

To amend the Individuals with Disabilities Education Act to establish a 
 method to provide outcome-based funding increases to States, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 2002

  Mr. Stark introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
To amend the Individuals with Disabilities Education Act to establish a 
 method to provide outcome-based funding increases to States, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Realizing the Spirit of IDEA Act''.

SEC. 2. FINDINGS; PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) Since its enactment, the Individuals with Disabilities 
        Education Act has successfully increased the access of children 
        with disabilities to a free appropriate public education.
            (2) Maintaining the procedural safeguards detailed in such 
        Act is critical to achieving better academic outcomes for 
        children with disabilities.
            (3) When compared to children without disabilities, 
        children with disabilities are more likely to drop out of 
        school, complete school without a diploma, not attend school 
        regularly, and have poor academic achievement.
            (4) After leaving secondary school, individuals with 
        disabilities frequently do not receive postsecondary education 
        and experience high rates of unemployment.
            (5) Despite their disabilities, children with disabilities 
        are capable of learning and becoming productive members of 
        society.
            (6) There is evidence that effective interventions are 
        available that will enhance the academic and overall adaptive 
        functioning of children with disabilities.
    (b) Purpose.--The purpose of this Act is to achieve mandatory 
maximum funding for the Individuals with Disabilities Education Act, 
and to require educational agencies to demonstrate improvement in the 
outcomes of children with disabilities in order to qualify for Federal 
funding increases.

SEC. 3. MODIFICATIONS TO FUNDING FOR ASSISTANCE FOR EDUCATION OF 
              CHILDREN WITH DISABILITIES.

    (a) Modification to Aggregate Funding.--
            (1) In general.--Section 611 of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1411) is amended--
                    (A) in the section heading, by striking 
                ``AUTHORIZATION OF APPROPRIATIONS.'' and inserting 
                ``FUNDING.''; and
                    (B) by amending subsection (j) to read as follows:
    ``(j) Funding.--
            ``(1) In general.--For the purpose of carrying out this 
        part, other than section 619, there is authorized to be 
        appropriated, and there is appropriated, for each fiscal year 
        after fiscal year 2002, the amount determined under paragraph 
        (2) for such year.
            ``(2) Determination of amounts.--For each fiscal year 
        described in paragraph (1), the amount described in such 
        paragraph shall be determined--
                    ``(A) by multiplying--
                            ``(i) the percentage obtained by dividing 
                        the aggregate amount provided by the Secretary 
                        to States under this section for fiscal year 
                        2002 by the product of--
                                    ``(I) the average per-pupil 
                                expenditure in public elementary and 
                                secondary schools in the United States; 
                                and
                                    ``(II) the total number of children 
                                with disabilities, in all States, 
                                receiving special education and related 
                                services under this part (other than 
                                under section 619) in the most recent 
                                preceding fiscal year for which 
                                satisfactory data are available;
                            ``(ii) the average per-pupil expenditure in 
                        public elementary and secondary schools in the 
                        United States; and
                            ``(iii) the total number of children with 
                        disabilities, in all States, receiving special 
                        education and related services under this part 
                        (other than under section 619) in the most 
                        recent preceding fiscal year for which 
                        satisfactory data are available, except that 
                        the number under this clause may not exceed 12 
                        percent of the total number of all children 
                        aged 5 through 17 in all States; and
                    ``(B) by adding to the amount derived under 
                subparagraph (A)--
                            ``(i) 1 percent of such amount, which shall 
                        be used to carry out subsection (b); and
                            ``(ii) 1.226 percent of such amount, which 
                        shall be used to provide assistance to the 
                        Secretary of the Interior in accordance with 
                        subsection (i).''.
            (2) Clerical amendment.--The table of contents of the 
        Individuals with Disabilities Education Act (20 U.S.C. 1400 et 
        seq.) is amended by amending the item relating to section 611 
        to read as follows:

``Sec. 611. Authorization; allotment; use of funds; funding.''.
    (b) Outcome-Based Bonus Payments to States.--Section 611(e) of the 
Individuals with Disabilities Education Act (20 U.S.C. 1411(e)) is 
amended by adding at the end the following:
            ``(5) Outcome-based bonus payments.--
                    ``(A) In general.--
                            ``(i) Requirement.--In addition to any 
                        amount a State otherwise receives under the 
                        preceding provisions of this subsection, each 
                        State shall receive a bonus payment determined 
                        in accordance with this paragraph.
                            ``(ii) Use of funds.--A State shall expend 
                        a bonus payment received under this paragraph 
                        for educational purposes, except that funds 
                        received under this paragraph shall be used to 
                        supplement, and not supplant, non-Federal funds 
                        that would otherwise be used for educational 
                        purposes. Such a payment shall not be subject 
                        to the terms and conditions otherwise 
                        applicable to the use of State allocations made 
                        under this section.
                            ``(iii) Subgrants to local educational 
                        agencies.--If a State distributes some or all 
                        of a bonus payment received under this 
                        paragraph to local educational agencies, the 
                        State may allocate such funds to such agencies 
                        based on--
                                    ``(I) their respective populations 
                                of children living in poverty;
                                    ``(II) the severity of their 
                                respective special education 
                                populations;
                                    ``(III) their respective 
                                administrative costs;
                                    ``(IV) their prevention efforts; or
                                    ``(V) any other factors the State 
                                deems relevant to the cost of providing 
                                special education and related services 
                                to children with disabilities.
                            ``(iv) Funding.--For the purpose of 
                        carrying out this paragraph, there is 
                        authorized to be appropriated, and there is 
                        appropriated, for each fiscal year after fiscal 
                        year 2002, an amount equal to the sum of the 
                        amounts required to be paid to each State under 
                        this paragraph for such fiscal year.
                    ``(B) Outcome indicators.--
                            ``(i) Indicators.--Each local educational 
                        agency in a State shall measure the differences 
                        between children with disabilities receiving 
                        special education and related services under 
                        this part (other than under section 619) from 
                        the agency, and other children served by the 
                        agency, using the following outcome indicators:
                                    ``(I) The academic achievement of 
                                students in elementary and secondary 
                                schools, as measured by performance on 
                                the national or State assessment of 
                                educational progress carried out under 
                                section 1111 of the Elementary and 
                                Secondary Education Act of 1965 (29 
                                U.S.C. 6311).
                                    ``(II) The rate of average daily 
                                attendance for students in elementary 
                                schools and secondary schools.
                                    ``(III) The dropout rate for 
                                students in secondary schools, as 
                                determined under section 612(a)(16).
                                    ``(IV) The graduation rate of 
                                students in secondary schools, as 
                                determined under section 612(a)(16).
                                    ``(V) The postsecondary education 
                                enrollment, and the employment status, 
                                of students who are ceasing to be 
                                served by the agency by reason of 
                                separation from secondary school.
                            ``(ii) Operational definitions; test 
                        accommodations.--
                                    ``(I) Operational definitions.--
                                Each State, in consultation with the 
                                Secretary, may develop operational 
                                definitions and methods of calculation 
                                with respect to each of the outcome 
                                indicators described in clause (i), as 
                                long as the criteria used are reliable 
                                and valid and remain substantially the 
                                same from year to year.
                                    ``(II) Test accommodations.--To the 
                                extent not prohibited under other law, 
                                for purposes of computing bonuses under 
                                this paragraph, special accommodations 
                                in taking tests of academic achievement 
                                described in clause (i)(I) may be 
                                offered to certain children with 
                                disabilities, as long as such 
                                accommodations yield results that are 
                                reliable and valid. The criteria used 
                                for determining appropriate 
                                accommodations under this subclause 
                                must be reliable and remain 
                                substantially the same from year to 
                                year.
                            ``(iii) Measurement.--A local educational 
                        agency shall make the measurement described in 
                        clause (i), for each indicator described in 
                        clause (i) and each fiscal year, by comparing--
                                    ``(I) the performance difference 
                                (if any), for the most recent preceding 
                                fiscal year, but only if satisfactory 
                                data are available for such year; with
                                    ``(II) the average of such 
                                performance differences (if any) for 
                                the 3 school years that precede such 
                                most recent preceding year, but only if 
                                satisfactory data are available for all 
                                such years.
                            ``(iv) Percentage reduction in outcome 
                        difference.--A local educational agency shall 
                        convert each measurement under clause (iii) 
                        into a percentage reduction (if there is a 
                        reduction), for the most recent preceding 
                        fiscal year, in the difference between the 
                        outcome for--
                                    ``(I) children with disabilities 
                                receiving special education and related 
                                services under this part (other than 
                                under section 619) from the agency; and
                                    ``(II) other children served by the 
                                agency.
                            ``(v) Minimum participation level.--In 
                        order for any measurement made under clause 
                        (iii) to be used under this paragraph, it must 
                        be based on data for not less than 90 percent 
                        of the children with disabilities for whom the 
                        applicable local educational agency was 
                        providing special education and related 
                        services under this part (other than under 
                        section 619) during the period measured.
                            ``(vi) Statistical disaggregation of 
                        special education students.--For the purpose of 
                        calculating performance with respect to outcome 
                        indicators under this paragraph, data on a 
                        child with a disability who receives special 
                        education or related services from a local 
                        educational agency under this part (other than 
                        under section 619) shall be disaggregated from 
the general education population of such agency for the remainder of 
the child's elementary and secondary education within the jurisdiction 
of such agency, even if the child ceases to receive special education 
or related services.
                    ``(C) Local educational agency calculations.--
                            ``(i) In general.--For purposes of 
                        calculating the payments to States under 
                        subparagraph (D), each local educational agency 
                        shall receive a credit with respect to 
                        performance on the outcome indicators described 
                        in subparagraph (B)(i). Such credit shall be 
                        calculated in accordance with this 
                        subparagraph.
                            ``(ii) Reduction in outcome difference.--
                                    ``(I) In general.--With respect to 
                                each outcome indicator described in 
                                subparagraph (B)(i) and each fiscal 
                                year, the local educational agency 
                                shall determine, in accordance with 
                                subparagraph (B), the applicable 
                                percentage reduction, if any, in the 
                                difference between the outcome for 
                                children with disabilities and children 
                                without disabilities.
                                    ``(II) Maximum.--The maximum 
                                percentage reduction which may be 
                                credited for any local education agency 
                                under this clause with respect to any 
                                individual outcome indicator is 5 
                                percent.
                                    ``(III) High-performing agencies.--
                                If the local educational agency 
                                determines, in accordance with 
                                subparagraph (B), that there is no 
                                measurable difference with respect to 
                                an outcome indicator between the 
                                outcome for children with disabilities 
                                and children without disabilities for 
                                the most recent preceding fiscal year, 
                                the local education agency shall be 
                                credited as if its percentage reduction 
                                under subclause (I) were 5 percent.
                                    ``(IV) Minimally-performing 
                                agencies.--If the percentage reduction 
                                that otherwise would be credited for a 
                                local educational agency under this 
                                clause is greater than zero but less 
                                than 1 percent, the local education 
                                agency shall be credited as if its 
                                percentage reduction under subclause 
                                (I) were 1 percent.
                                    ``(V) Special rule for leas with 
                                few students with disabilities.--In the 
                                case of a local educational agency 
                                enrolling less than 10 children with 
                                disabilities for the fiscal year 
                                concerned, the local educational agency 
                                may elect to make the determinations 
                                under subparagraph (B) and this 
                                subparagraph using aggregated data 
                                reflecting performance by all local 
                                educational agencies in the State.
                            ``(iii) Determination of funding 
                        proportion.--The local educational agency shall 
                        determine a funding proportion, based on a 
                        percentage reduction calculated under clause 
                        (ii), which shall be used by the agency. The 
                        maximum funding proportion shall be 1 percent, 
                        which shall be used only in the case of the 
                        maximum percentage reduction under clause (ii) 
                        of 5 percent. All other funding proportions 
                        shall be ratably reduced below 1 percent. In 
                        any case in which a percentage reduction under 
                        clause (ii) is zero or less, the funding 
                        proportion determined under this clause shall 
                        be zero.
                            ``(iv) Average per-pupil expenditure.--The 
                        local educational agency shall multiply the 
                        funding proportion determined under clause 
                        (iii) by the average per-pupil expenditure in 
                        public elementary and secondary schools in the 
                        United States.
                            ``(v) Population of children receiving 
                        services.--The local educational agency shall 
                        multiply the product determined under clause 
                        (iv) by the number of children with 
                        disabilities receiving special education and 
                        related services from the local educational 
                        agency for the most recent preceding year for 
                        which satisfactory data are available.
                            ``(vi) Credit.--The local educational 
                        agency shall receive a dollar amount credit 
                        with respect to performance on each outcome 
                        indicator described in subparagraph (B)(i). 
                        Such credit shall equal the product determined 
                        under clause (v) with respect to such 
                        indicator.
                            ``(vii) Special rules for leas serving only 
                        elementary school students.--In the case of a 
                        local educational agency that does not provide 
                        secondary education (as determined under State 
                        law), at the option of the State--
                                    ``(I) the maximum funding 
                                proportion described in clause (iii) 
                                shall be 2.5 percent in lieu of 1 
                                percent, and the local educational 
                                agency may receive a dollar amount 
                                credit under this subparagraph with 
                                respect to performance only on the 
                                outcome indicators described in 
                                subclauses (I) and (II) of subparagraph 
                                (B)(i); or
                                    ``(III) the maximum funding 
                                proportion described in clause (iii) 
                                shall be 1 \2/3\ percent in lieu of 1 
                                percent, and the local educational 
                                agency may receive a dollar amount 
                                credit under this subparagraph with 
                                respect to performance only on the 
                                outcome indicators described in 
                                subclauses (I) and (II) of subparagraph 
                                (B)(i) and an additional outcome 
                                indicator that measures the differences 
                                between children with disabilities 
                                receiving special education and related 
                                services under this part (other than 
                                under section 619) from the agency, and 
                                other children served by the agency, 
                                with respect to grade-to-grade 
                                retention rates.
                            ``(viii) Lea reports to states.--Each local 
                        educational agency annually shall submit to the 
                        State a report, at such time and in such manner 
                        as the State shall specify, containing the 
                        data, measurements, and calculations of the 
                        agency pursuant to subparagraph (B) and this 
                        subparagraph.
                    ``(D) Bonus payments to states.--
                            ``(i) State reports to secretary.--Each 
                        State annually shall submit to the Secretary a 
                        report, at such time  and in such manner as the 
Secretary shall specify, containing the data, measurements, and 
calculations of each local educational agency in the State pursuant to 
subparagraphs (B) and (C).
                            ``(ii) Calculation of payment amount.--
                        Subject to clauses (iii) and (iv), each State 
                        shall receive a bonus payment for a fiscal year 
                        equal to--
                                    ``(I) the sum of all dollar amount 
                                credits determined under subparagraph 
                                (C) for such year for all local 
                                educational agencies in the State; plus
                                    ``(II) the bonus payment received 
                                by the State for the preceding fiscal 
                                year.
                            ``(iii) Limitation.--In no case may a State 
                        receive a bonus payment under this paragraph 
                        for a fiscal year that would cause the State to 
                        receive an amount under this section for the 
                        year that exceeds the maximum amount described 
                        in subsection (a)(2). The Secretary shall 
                        reduce the bonus payment to such a State until 
                        the State receives an amount under this section 
                        that equals such maximum amount.
                            ``(iv) Redeterminations.--In any case in 
                        which a local educational agency has made an 
                        error, has used data improperly, or has used 
                        data that are not satisfactory, Secretary shall 
                        redetermine any determination made by such 
                        agency under this paragraph.
                    ``(E) Reports to congress.--The Secretary shall 
                submit to the Congress an annual report describing--
                            ``(i) the most recent bonus payments made 
                        to States under this paragraph; and
                            ``(ii) the data, measurements, and 
                        calculations that were the basis for such 
                        payments.''.

SEC. 4. MODIFICATIONS TO FUNDING FOR PRESCHOOL GRANTS.

    Section 619(j) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1419(j)) is amended to read as follows:
    ``(j) Funding.--
            ``(1) In general.--For the purpose of carrying out this 
        section, there is authorized to be appropriated, and there is 
        appropriated, for each fiscal year after fiscal year 2002, the 
        amount determined under paragraph (2) for such year.
            ``(2) Determination of amounts.--For each fiscal year 
        described in paragraph (1), the amount described in such 
        paragraph shall be determined by increasing the aggregate 
        amount provided by the Secretary to States under this section 
        for the preceding fiscal year by the product of--
                    ``(A) such aggregate amount; and
                    ``(B) the percentage increase in the aggregate 
                amount provided by the Secretary to States under 
                section 611 for such fiscal year over the aggregate 
                amount provided by the Secretary to States under such 
                section for the preceding fiscal year.''.

SEC. 5. MODIFICATIONS TO FUNDING FOR INFANTS AND TODDLERS WITH 
              DISABILITIES.

    (a) In General.--Section 645 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1445) is amended to read as follows:

``SEC. 645. FUNDING.

    ``(a) In General.--For the purpose of carrying out this part, there 
is authorized to be appropriated, and there is appropriated, for each 
fiscal year after fiscal year 2002, the amount determined under 
subsection (b) for such year.
    ``(b) Determination of Amounts.--For each fiscal year described in 
subsection (a), the amount described in such subsection shall be 
determined by increasing the aggregate amount provided by the Secretary 
to States under this part for the preceding fiscal year by the product 
of--
            ``(1) such aggregate amount; and
            ``(2) the percentage increase in the aggregate amount 
        provided by the Secretary to States under section 611 for such 
        fiscal year over the aggregate amount provided by the Secretary 
        to States under such section for the preceding fiscal year.''.
    (b) Clerical Amendment.--The table of contents of the Individuals 
with Disabilities Education Act (20 U.S.C. 1400 et seq.) is amended by 
amending the item relating to section 645 to read as follows:

``Sec. 645. Funding.''.

SEC. 6. MODIFICATIONS TO FUNDING FOR STATE PROGRAM IMPROVEMENT GRANTS 
              FOR CHILDREN WITH DISABILITIES.

    (a) In General.--Section 656 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1456) is amended to read as follows:

``SEC. 656. FUNDING.

    ``(a) In General.--For the purpose of carrying out this subpart, 
there is authorized to be appropriated, and there is appropriated, for 
each fiscal year after fiscal year 2002, the amount determined under 
subsection (b) for such year.
    ``(b) Determination of Amounts.--For each fiscal year described in 
subsection (a), the amount described in such subsection shall be 
determined by increasing the aggregate amount provided by the Secretary 
to State educational agencies under this subpart for the preceding 
fiscal year by the product of--
            ``(1) such aggregate amount; and
            ``(2) the percentage increase in the aggregate amount 
        provided by the Secretary to States under section 611 for such 
        fiscal year over the aggregate amount provided by the Secretary 
        to States under such section for the preceding fiscal year.''.
    (b) Clerical Amendment.--The table of contents of the Individuals 
with Disabilities Education Act (20 U.S.C. 1400 et seq.) is amended by 
amending the item relating to section 656 to read as follows:

``Sec. 656. Funding.''.

SEC. 7. MODIFICATIONS TO FUNDING FOR RESEARCH AND INNOVATION TO IMPROVE 
              SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES.

    Section 672(g) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1472(g)) is amended to read as follows:
    ``(g) Funding.--
            ``(1) In general.--For the purpose of carrying out this 
        section, there is authorized to be appropriated, and there is 
        appropriated, for each fiscal year after fiscal year 2002, the 
        amount determined under paragraph (2) for such year.
            ``(2) Determination of amounts.--For each fiscal year 
        described in paragraph (1), the amount described in such 
        paragraph shall be determined by increasing the aggregate 
        amount provided by the Secretary to eligible entities under 
        this section for the preceding fiscal year by the product of--
                    ``(A) such aggregate amount; and
                    ``(B) the percentage increase in the aggregate 
                amount provided by the Secretary to States under 
                section 611 for such fiscal year over the aggregate 
                amount provided by the Secretary to States under such 
                section for the preceding fiscal year.''.

SEC. 8. MODIFICATIONS TO FUNDING FOR PERSONNEL PREPARATION TO IMPROVE 
              SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES.

    Section 673(j) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1473(j)) is amended to read as follows:
    ``(j) Funding.--
            ``(1) In general.--For the purpose of carrying out this 
        section, there is authorized to be appropriated, and there is 
        appropriated, for each fiscal year after fiscal year 2002, the 
        amount determined under paragraph (2) for such year.
            ``(2) Determination of amounts.--For each fiscal year 
        described in paragraph (1), the amount described in such 
        paragraph shall be determined by increasing the aggregate 
        amount provided by the Secretary to eligible entities under 
        this section for the preceding fiscal year by the product of--
                    ``(A) such aggregate amount; and
                    ``(B) the percentage increase in the aggregate 
                amount provided by the Secretary to States under 
                section 611 for such fiscal year over the aggregate 
                amount provided by the Secretary to States under such 
                section for the preceding fiscal year.''.

SEC. 9. MODIFICATIONS TO FUNDING FOR IMPROVING EARLY INTERVENTION, 
              EDUCATIONAL, AND TRANSITIONAL SERVICES.

    (a) In General.--Section 686 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1486) is amended to read as follows:

``SEC. 686. FUNDING.

    ``(a) In General.--For the purpose of carrying out sections 681 
through 685, there is authorized to be appropriated, and there is 
appropriated, for each fiscal year after fiscal year 2002, the amount 
determined under subsection (b) for such year.
    ``(b) Determination of Amounts.--For each fiscal year described in 
subsection (a), the amount described in such subsection shall be 
determined by increasing the aggregate amount provided by the Secretary 
under sections 681 through 685 for the preceding fiscal year by the 
product of--
            ``(1) such aggregate amount; and
            ``(2) the percentage increase in the aggregate amount 
        provided by the Secretary to States under section 611 for such 
        fiscal year over the aggregate amount provided by the Secretary 
        to States under such section for the preceding fiscal year.''.
    (b) Clerical Amendment.--The table of contents of the Individuals 
with Disabilities Education Act (20 U.S.C. 1400 et seq.) is amended by 
amending the item relating to section 686 to read as follows:

``Sec. 686. Funding.''.

SEC. 10. MODIFICATIONS TO FUNDING FOR TECHNOLOGY DEVELOPMENT, 
              DEMONSTRATION, AND UTILIZATION; AND MEDIA SERVICES.

    Section 687(e) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1487(e)) is amended to read as follows:
    ``(e) Funding.--
            ``(1) In general.--For the purpose of carrying out this 
        section, there is authorized to be appropriated, and there is 
        appropriated, for each fiscal year after fiscal year 2002, the 
        amount determined under paragraph (2) for such year.
            ``(2) Determination of amounts.--For each fiscal year 
        described in paragraph (1), the amount described in such 
        paragraph shall be determined by increasing the aggregate 
        amount provided by the Secretary to eligible entities under 
        this section for the preceding fiscal year by the product of--
                    ``(A) such aggregate amount; and
                    ``(B) the percentage increase in the aggregate 
                amount provided by the Secretary to States under 
                section 611 for such fiscal year over the aggregate 
                amount provided by the Secretary to States under such 
                section for the preceding fiscal year.''.

SEC. 11. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1, 
2002, or the date of the enactment of this Act, whichever occurs later.
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