Authorization of Grants to local governments

(a)

In general

From the amounts appropriated under subsection (h), the Secretary of Education shall award grants to eligible local governments to fund elementary and secondary school education programs in accordance with subsection (g). (b)

Number of grants

An eligible local government may receive— (1)1 grant under this Act because it has experienced at least a 15 percent decrease in property tax revenues from fiscal year 2008 to fiscal year 2009; and (2)1 grant under this Act because it has experienced at least a 15 percent decrease in property tax revenues from fiscal year 2009 to fiscal year 2010. (c)

Grant duration

A grant under this Act shall be awarded in accordance with the amounts described in subsection (d) for a period of not longer than 3 years. (d)

Grant amounts

(1)

In general

Subject to paragraph (2), a grant awarded to an eligible local government under this Act shall not exceed an amount that is equal to— (A)in the first year of the grant period, 70 percent of the difference in the amount of property tax revenues collected by such local government from fiscal year 2008 to fiscal year 2009 or from fiscal year 2009 to fiscal year 2010, as applicable; (B)in the second year of the grant period, 50 percent of such difference; and (C)in the third year of the grant period, 25 percent of such difference. (2)

Maximum amount

A grant awarded under this Act shall not exceed a total of $40,000,000 in a 3-year grant period. (e)

Application requirements

To qualify to receive a grant under this Act, an eligible local government shall submit an application, not later than 2 months after the end of fiscal year 2009 or fiscal year 2010, in such manner and containing such information as the Secretary of Education may require, which shall include— (1)the difference and the percentage of decrease in the amount of property tax revenues collected by such local government from fiscal year 2008 to fiscal year 2009 or from fiscal year 2009 to fiscal year 2010, as applicable; and (2)how such local government plans to operate without the funds it receives under this Act after the 3-year grant period, including any plans to increase property taxes or reduce elementary and secondary school budgets. (f)

Priority

In awarding grants under this Act, the Secretary of Education shall give priority to eligible local governments— (1)that have experienced the largest amount of decrease in property tax revenues collected from fiscal year 2008 to fiscal year 2009 or from fiscal year 2009 to fiscal year 2010, as applicable, in proportion to the tax base of such local government, relative to the total tax base of all eligible local governments; and (2)where the decrease in property tax revenues collected from fiscal year 2008 to fiscal year 2009 or from fiscal year 2009 to fiscal year 2010, as applicable, is attributable to the permanent or temporary shutdown or closure of an establishment of a large employer (as determined by the Secretary) or several small employers (as determined by the Secretary). (g)

Required uses of funds

An eligible local government receiving a grant under this Act shall only use the grant funds to fund elementary and secondary school education programs, including— (1)programs for construction, maintenance, rehabilitation, or repair of a school facility; (2)programs to maintain the salaries of teachers or other faculty; or (3)school lunch programs or other nutrition programs that are funded by such local government. (h)

Authorization of appropriations

There are authorized to be appropriated $100,000,000 for each of fiscal years 2010 through 2013. (i)

Definitions

In this Act: (1)

Eligible local government

The term eligible local government means a city, county, town, parish, village, or other general-purpose political subdivision of a State that has the authority to levy real property taxes and— (A)has experienced at least a 15 percent decrease in property tax revenues from fiscal year 2008 to fiscal year 2009 or from fiscal year 2009 to fiscal year 2010; and (B)spend such tax funds on elementary and secondary education programs within the jurisdiction of such local government. (2)

Fiscal year

The term fiscal year has the meaning given such term under applicable State or local law. (3)

Property tax revenues

The term property tax revenues means the revenues generated by the levying of real property taxes by a local government based on the assessment of the value of real property located within the jurisdiction of such local government. (4)

State

The term State means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. (5)

Tax base

The term tax base means the assessment by a local government of the total value of taxable real property located within the jurisdiction of such local government.