I 112th CONGRESS 1st Session H. R. 1342 IN THE HOUSE OF REPRESENTATIVES April 4, 2011 Ms. Hirono (for herself and Mrs. Noem) introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To reauthorize the impact aid program under the Elementary and Secondary Education Act of 1965.
1.
Short title
This Act may be cited as the Local Taxpayer Relief Act.
2.
Payments relating to Federal acquisition of real property
(a)
Amendments
Section 8002 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702) is amended— (1)in subsection (a)(1)(C), by amending the matter preceding clause (i) to read as follows: (C)had an assessed value according to original records (including facsimiles or other reproductions of those records) or other records that the Secretary determines to be appropriate and reliable, including Federal agency records or local historical records aggregating 10 percent or more of the assessed value of— ; (2)in subsection (b)— (A)in paragraph (1), by adding at the end the following: (D)Notwithstanding any other provision of this subsection, a local educational agency may not be paid an amount under this section that exceeds the total current expenditures of the agency in the second prior fiscal year. ; (B)by striking paragraph (2) and inserting the following: (2)
Determination of estimated assessed value for eligible federal property
(A)
In general
Subject to subparagraph (B), in determining the estimated taxable value of eligible Federal property located within the boundaries of a local educational agency for fiscal year 2010 and each succeeding fiscal year, the Secretary shall— (i)determine the total taxable value for the purpose of levying a property tax for school purposes for current expenditures of real property located within the boundaries of such local educational agency; (ii)determine the per acre value of the eligible Federal property by dividing— (I)the total taxable value as determined in clause (i), by (II)the total acres located within the boundaries of the local educational agency minus the number of Federal acres eligible under this section; and (iii)multiply the per acre value as calculated under clause (ii) by the number of Federal acres eligible under this section. (B)
Special rule
In a case in which a local educational agency shares eligible Federal property with 2 or more local educational agencies, the local educational agency may ask the Secretary to— (i)calculate the per acre value of each such local educational agency in accordance with subparagraph (A); and (ii)apply the average of the per acre values to the acres of the Federal property in that agency. ; and (C)by striking paragraph (3) and inserting the following: (3)
Application of current levied real property tax rate
In calculating the amount that a local educational agency is eligible to receive for a fiscal year the Secretary shall apply the current levied real property tax rate for current expenditures levied by fiscally independent local educational agencies, or imputed for fiscally dependent local educational agencies, to the current annually determined estimated taxable value of such acquired Federal property as calculated under paragraph (2). ; (3)in subsection (f), by striking paragraphs (4) and (5); (4)by amending subsection (g) to read as follows: (g)
Former Districts
(1)
Consolidations
For fiscal year 2006 and all succeeding fiscal years, if a local educational agency described in paragraph (2) is formed at any time after 1938 by the consolidation of 2 or more former school districts, the local educational agency may elect to have the Secretary determine its eligibility and any amount for which the local educational agency is eligible under this section for any fiscal year on the basis of 1 or more of those former districts, as designated by the local educational agency in such election. (2)
Eligible local educational agencies
A local educational described in this paragraph is— (A)any local educational agency that, for fiscal year 1994 or any preceding fiscal year, applied for, and was determined to be eligible under, section 2(c) of the Act of September 20, 1950 (Public Law 874, 81st Congress), as that section was in effect for that fiscal year; or (B)a local educational agency formed by the consolidation of 2 or more districts, at least 1 of which was eligible for assistance under this section for the fiscal year preceding the year of the consolidation, if— (i)for fiscal years 2006 through 2011, the local educational agency notifies the Secretary of the designation made by the agency in the election described in paragraph (1) not later than 30 days after the date of enactment of the Local Taxpayer Relief Act; and (ii)for fiscal year 2012 and any subsequent fiscal year, the local educational agency includes the designation in its application under section 8005 or any timely amendment to such application. (3)
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 2005, the Secretary may obligate funds remaining after final payments have been made from any of such fiscal years to carry out this subsection. ; (5)by amending subsection (h) to read as follows: (h)
Payments With Respect to Fiscal Years in Which Insufficient Funds Are Appropriated
For any fiscal year for which the amount appropriated under section 8014(a) is insufficient to pay to each eligible local educational agency the full amount determined under subsection (b), the Secretary shall make payments to each local educational agency under this section as follows: (1)
Foundation payments
(A)
In general
From the amount appropriated under section 8014(a), the Secretary shall first make payments to the following local educational agencies: (i)Each local educational agency that received a payment under this section for fiscal year 2006; and that was eligible for a payment under this section for fiscal year 2006. (ii)Each local educational agency that did not receive a payment under this section for fiscal year 2006 but was newly eligible for a payment under this section after fiscal year 2006. (B)
Amount
The amount of payment under subparagraph (A) for a local educational shall be determined as follows: (i)For a local educational agency described in subparagraph (A)(i), the amount of payment shall be equal to 90 percent of the amount received by such local educational agency under subsection (b) for fiscal year 2006. (ii)For a local educational agency described in subparagraph (A)(ii) the amount of payment shall be determined by— (I)calculating a payment estimate for fiscal year 2006 under the same provisions and in the same manner as payments were determined for those local educational agencies eligible for and receiving payments for fiscal year 2006; and (II)multiplying the amount determined under clause (i) by 90 percent. (C)
Foundation payment
The amount of payments calculated under clauses (i) and (ii) of subparagraph (B) shall be considered the agencies foundation payments for each succeeding fiscal year. (D)
Insufficient appropriations
If the amount appropriated under section 8014(a) is insufficient to pay the full amount determined under this paragraph for all eligible local educational agencies for a fiscal year, the Secretary shall ratably reduce the payment to each local educational agency under this paragraph for such fiscal year. (2)
Remaining funds
From any funds remaining after making payments under paragraph (1) for a fiscal year, the Secretary shall— (A)sum the amounts determined under paragraph (b)(2) for all eligible local educational agencies; (B)determine each eligible local educational agency’s proportional share of the amount calculated under subparagraph (A); and (C)pay each eligible local educational agency its share of the remaining funds based on the proportion calculated under subparagraph (B). ; (6)by striking subsections (i), (k), and (m); and (7)by redesignating subsections (l) and (n) as subsections (i) and (j), respectively. (b)
Effective date
Notwithstanding the date of enactment of this Act, the amendments made by this section shall apply to applications submitted for fiscal year 2010 and all succeeding fiscal years.
3.
Payments for eligible federally connected children
Section 8003 of that Act (20 U.S.C. 7703) is amended— (1)in subsection (a)— (A)in paragraph (1), in the matter preceding subparagraph (A), by inserting after such agency, the following: including those children enrolled in a State that has a State open enrollment policy (but not including children enrolled in a distance learning program not residing within the geographic boundaries of the agency),; (B)in paragraph (4)— (i)by inserting rebuilding or authorized for demolition after renovation in each place it appears; and (ii)in each of clauses (i)(I) and (ii) (I) of subparagraph (B), by striking 3 fiscal years and inserting 4 fiscal years (which are not required to run consecutively); and (C)in paragraph (5)(A), by inserting after 1984, the following: or under lease of off-base property under subchapter IV of chapter 169 of part IV of subtitle A of title 10, United States Code (10 U.S.C. 2871 et. seq.),; (2)subsection (b)(2)— (A)in subparagraph (B)— (i)in the subparagraph heading, by striking continuing; (ii)by amending clause (i) to read as follows: (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 whose boundaries are the same as a Federal military installation or the boundaries 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 and the agency has no taxing authority; (II)is a local educational agency— (aa)that 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)that 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 an agency that has a total student enrollment of less than 500, 150 percent of the average per-pupil expenditure of the State in which the agency is located, or the average per-pupil expenditure of 3 or more comparable local educational agencies in the State in which the agency is located; and (cc)that is an agency that— (AA)has a tax rate for general fund purposes that is at least 95 percent of the average tax rate for general fund purposes of comparable local educational agencies in the State; or (BB)was eligible to receive a payment under this subsection for fiscal year 2008 and is located in a State that by State law has eliminated ad valorem tax as a revenue source for local educational agencies; (III)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 5,500 of such children are children described in subparagraphs (A) and (B) of subsection (a)(1); or (IV)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 20 percent; (bb)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; and (cc)has a tax rate for general fund purposes which is not less than 1.25 percent of the average tax rate for general fund purposes for comparable local educational agencies in the State. ; and (iii)by amending clause (ii) to read as follows: (ii)
Loss of Eligibility
(I)
In general
Subject to subclause (II), a heavily impacted local education 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)
Exception
For a local educational agency that is eligible under subparagraph (A) but whose tax rate for general fund purposes falls below 95 percent of the average tax rate for general fund purposes of local educational agencies in the State for two consecutive years shall lose its eligibility and be subject to subclause (I). ; and (iv)by adding at the end, the following: (iv)
Special rule
Notwithstanding clause (i)(II), a local educational agency shall be considered eligible to receive a basic support payment under subparagraph (A) with respect to the number of children determined under subsection (a)(1) if the agency— (I)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 constitutes a percentage of the total student enrollment of the agency that is not less than 35 percent; and (II)was eligible to receive assistance under subsection (b)(2) for fiscal year 2001. ; (B)by amending subparagraph (C) to read as follows: (C)
Maximum amount for heavily impacted local educational agencies
(i)
In general
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)
Special rule
(I)(aa)For a local educational agency with respect to which 35 percent or more of the total student enrollment of the schools of the agency are children described in subparagraphs (D) or (E) (or a combination thereof) of subsection (a)(1), and has an enrollment of children described in subparagraphs (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 subparagraphs (D) or (E) of such subsection by multiplying the number of such children by a factor of 0.55. (bb)For any local educational agency that received a payment under this clause for fiscal year 2006, the local educational agency shall not be required to have 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. (II)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)For a local educational agency that does not qualify under subparagraph (B)(i)(I) of this subsection 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. ; (C)by amending subparagraph (D) to read as follows: (D)
Maximum amount for large heavily impacted local educational agencies
(i)(I)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)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 5,500 of such children are children described in subparagraph (A) and (B) of subsection (a)(1). (ii)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 subparagraph (A) and (B) of subsection (a)(1) shall be 1.35. . (D)by striking subparagraph (E); (E)by redesignating subparagraph (F) as subparagraph (E); (F)in subparagraph (E) (as so redesignated by subparagraph (G))— (i)by striking clause (ii); (ii)by striking ; and at the end of clause (i) and inserting a period; and (iii)by striking the Secretary and all that follows through shall use and inserting the Secretary shall use; (G)by redesignating subparagraph (G) as subparagraph (F); (H)in subparagraph (F) (as so redesignated by subparagraph (I)), in the matter preceding clause (i), by striking (C)(i)(II)(bb) and inserting (B)(i)(II)(bb); (I)by redesignating subparagraph (H) as subparagraph (G); and (J)in subparagraph (G) (as so redesignated by subparagraph (K))— (i)in clause (i)— (I)by striking (B), (C), (D), or (E), and inserting (B), (C), or (D),; (II)by striking by reason of and inserting due to; (III)by inserting after clause (iii), the following: 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,; and (IV)by inserting before the period at the end the following: or during such time as activities associated with base closure and realignment, modularization, force structure change, or force relocation is ongoing; and (ii)in clause (ii) by striking (D) or (E) in both places such term appears and inserting (C) or (D); (3)in subsection (b)(3)(B)— (A)by redesignating clause (iv) as clause (v); and (B)by inserting after clause (iii) the following: (iv)For any local educational agency that is providing a program of distant learning to children not residing within the geographic boundaries of the agency, the Secretary shall disregard such children from such agency’s total enrollment when calculating the percentage under subclause (I) of clause (i) and shall disregard any funds received for such children when calculating the total current expenditures attributed to the operation of such agency when calculating the percentage under subclause (II) of clause (i). ; (4)in subsection (b)(3)(C) by striking or (E) of paragraph (2), as the case may be and inserting of paragraph (2); (5)by amending subsection (b)(3)(D) to read as follows: (D)
Ratable distribution
For any fiscal year described in subparagraph (A) for which the sums available exceed the amount required to pay each local educational agency 110 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 paragraphs (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 amount of the excess sums, by (ii)the difference between the full amount computed under paragraphs (1) or (2) (as the case may be) for the agency and the amount of the threshold payment as calculated under subparagraphs (B) and (C) of the agency. ; (6)in subsection (c), by amending paragraph (2) to read as follows: (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 Interior, or the heads of other Federal agencies)— (i)of not less than 10 percent, or 100 students, of children described in— (I)subparagraph (A), (B), (C), or (D) of subsection (a)(1); or (II)subparagraph (F) or (G) of subsection (a)(1), but only to the extent such children are civilian dependents of employees of the Department of Defense or the Department of the Interior; and (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 force structure changes or movements of units or personnel between military installations or because of actions initiated by the Secretary of 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 overall increase in enrollment (as determined by the Secretary)— (i)of not less than 10 percent, or 100 students, of children described in subsection (a)(1); 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) in the previous fiscal year. ; (7)by amending subsection (e) to read as follows: (e)
Hold harmless
(1)
In general
Subject to paragraph (2), the total amount the Secretary shall pay a local education agency under subsection (b)— (A)for fiscal year 2012, shall be not less than 95 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal year 2011; (B)for fiscal year 2013, shall be not less than 90 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal year 2011; and (C)for fiscal year 2014, shall be not less than 85 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal year 2011. (2)
Maximum payment
The total amount provided to a local educational agency under subparagraph (A), (B), or (C) of paragraph (1) for a fiscal year shall not exceed the maximum basic support amount for such agency determined under paragraph (1) or (2) of subsection (b), as the case may be. (3)
Ratable reduction
(A)
In general
If the sums made available under this title for any fiscal year are insufficient to pay the full amounts that all local educational agencies in all States are eligible to receive under paragraph (1) for such fiscal year, then the Secretary shall ratably reduce the payments to all agencies for such year. (B)
Additional funds
If additional funds become available for making payments under paragraph (1) for such fiscal year, payments that were reduced under subparagraph (A) shall be increased on the same basis as such payments were reduced. ; and (8)by striking subsection (g).
4.
Application for payments under sections 8002 and 8003
Section 8005 of that Act (20 U.S.C. 7705) is amended by adding at the end the following: (e)
Student count
For the purpose of meeting the requirements of section 222.35 of the Code of Federal Regulations, the Secretary shall establish a third option for an applicant when counting its federally connected children by using the date established by the applicant to register the students of such applicant for the fiscal year for which the application is filed. .
5.
Construction
Section 8007 of that Act (20 U.S.C. 7707) is amended— (1)in subsection (a)— (A)in paragraph (1), by striking 40 percent and inserting 80 percent.; (B)in paragraph (2) by adding at the end the following: (C)The agency is eligible under section 8003(b)(2) or is receiving a basic support payment under circumstances described in section 8003(b)(2)(B)(ii). ; and (C)by striking paragraph (3) and inserting the following: (3)
Amount of payments
(A)
Local education agencies impacted by military dependent children
The amount of a payment to each local educational agency described in this subsection that is impacted by military dependent children for a fiscal year shall be equal to— (i)(I)40 percent of the amount appropriated under section 8014(e) for such fiscal year; divided by (II)the number of children described in subparagraphs (B) and (D)(i) of section (8003)(a)(1) who were in average daily attendance for all local educational agencies described in paragraph (2), including the number of children attending a school facility described in section 8008(a) if the Secretary does not provide assistance for the school facility under that section for the fiscal year; multiplied by (ii)the number of children determined for such agency; (I)but not less than $25,000, except that this subparagraph shall not apply if the amount available to carry out paragraph (1) for such fiscal year is less than $32,000,000; and (II)not more than $4,000,000. (B)
Local educational agencies impacted by children who reside on Indian lands
The amount of a payment to each local educational agency described in the subsection that is impacted by children who reside on Indian lands for a fiscal year shall be equal to— (i)(I)40 percent of the amount appropriated under section 8014(e) for such fiscal year; divided by (II)the number of children described in section 8003(a)(1)(C) who were in average daily attendance for all local educational agencies described in paragraph (2); multiplied by— (ii)the number of children determined for such agency; (I)but not less than $25,000, except that this subparagraph shall not apply if the amount available to carry out paragraph (1) for such fiscal year is less than $32,000,000; and (II)not more than $4,000,000. ; and (2)in subsection (b)— (A)in paragraph (1), in the matter preceding subparagraph (A), by striking 60 percent and inserting 20 percent; (B)in paragraph (3)(A), in the matter preceding clause (i), by inserting after an emergency grant under paragraph (2)(A) the following: if the agency is covered by paragraph (7), or; (C)in paragraph (3)(C)(i)(I) by striking the agency meets at least one and all that follows through the period at the end and inserting the number of children determined under section 8003(a)(1)(C) for the agency for the preceding school year constituted at least 40 percent of the total student enrollment in the schools of the agency during the preceding school year.; (D)by striking paragraph (3)(D)(ii)(II) and inserting the following: (II)The number of children determined under section 8003(a)(1)(C) for the school for the preceding school year constituted at least 40 percent of the total student enrollment in the school during the preceding school year. ; (E)in paragraph (4)(C) by striking (A), (B), (C), and (D) and inserting (A) and (C); (F)by redesignating paragraph (7) as paragraph (8); and (G)by inserting after paragraph (6) the following: (7)
Special rule
Notwithstanding paragraphs (3)(C)(i)(I) and (3)(D)(ii)(II), a local educational agency is eligible to receive a grant under this subsection not to exceed $4,000,000 in any one fiscal year if such agency— (A)was eligible to receive a payment under section 8003 for the fiscal year prior to the year for which the application is made; and (B)has had an overall increase in enrollment— (i)during the period between the end of the school year preceding the fiscal year for which the application is made and the beginning of the school year immediately preceding that school year; (ii)of not less than 250 students or 10 percent (whichever is lower), are children described in— (I)subparagraphs (A), (B), (C), or (D) of section 8003(a)(1); or (II)subparagraphs (F) or (G) of section 8003(a)(1), but only to the extent such children are civilian dependents of employees of the Department of Defense; and (iii)that is the direct result of one or more of the following: (I)Base realignment and closure or global rebasing, as determined by the Secretary of Defense. (II)Force structure changes or force reductions. (III)An action initiated by the Secretary of Interior or head of another Federal agency. .
6.
State consideration of payments in providing State aid
Section 8009 of that Act (20 U.S.C. 7709) is amended— (1)in subsection (b)(1) by inserting before the period at the end the following: and for which the average per-pupil expenditure is equal to or greater than the average per-pupil expenditure of all the States in the third fiscal year preceding the fiscal year for which the State is applying for equalization under this section; (2)by amending subsection (b)(2) to read as follows: (2)
Computation
(A)
State currently qualifying
(i)
In general
For purposes of paragraph (1), a program of State aid for any State qualifying under this section for fiscal year 2006 equalizes expenditures among local educational agencies if, in the second fiscal year preceding the fiscal year for which the determination is made the amount of per-pupil expenditures made by, or per-pupil revenues available to, the local educational agency in the State with the highest such per-pupil expenditures or revenues did not exceed the amount of such per-pupil expenditures made by, or per-pupil revenues available to, the local educational agency in the State with the lowest such expenditures or revenues by more than 25 percent as calculated under clause (ii). (ii)
Other factors
Notwithstanding regulations in effect prior to the date of enactment of this subparagraph, in making a determination under this subparagraph, the Secretary shall— (I)arrange all local educational agencies in the State by per-pupil expenditures or revenues in descending order from the highest to the lowest; (II)using per-pupil expenditures or revenues as the only criteria disregard those local educational agencies that are spending above the 95th percentile and those spending below the 5th percentile; (III)identify the local educational agency at the 95th percentile and the local educational agency at the 5th percentile; (IV)subtract the amount of per-pupil expenditures or revenues of the local educational agency at the 5th percentile from the amount of per-pupil expenditures or revenues of the local educational agency at the 95th percentile and divide the difference by the per-pupil expenditures or revenues of the local educational agency at the 5th percentile; and (V)take into account the extent to which a program of State aid reflects the additional cost of providing free public education in particular types of local educational agencies, such as those that are geographically isolated, or to particular types of students, such as children with disabilities. (B)
New states applicants
(i)
In general
For purposes of paragraph (1), a program of State aid for any State qualifying under this section after fiscal year 2006 equalizes expenditures among local educational agencies if, in the second fiscal year preceding the fiscal year for which the determination is made, the amount of per-pupil expenditures made by, or per-pupil revenues available to, the local educational agency in the State with the highest such per-pupil expenditures or revenues did not exceed the amount of such per-pupil expenditures made by, or per-pupil revenues available to, the local educational agency in the State with the lowest such expenditures or revenues by more than 10 percent as calculated under clause (ii). (ii)
Other factors
Notwithstanding regulations in effect prior to the date of the enactment of this subparagraph, in making a determination under this subparagraph, the Secretary shall— (I)arrange all local educational agencies in the State by per-pupil expenditures or revenues in descending order from the highest to the lowest; (II)using per-pupil expenditures or revenues as the only criteria disregard those local educational agencies that are spending above the 95th percentile and those spending below the 5th percentile; (III)identify the local educational agency at the 95th percentile and the local educational agency at the 5th percentile; (IV)subtract the amount of per-pupil expenditures or revenues of the local educational agency at the 5th percentile from the amount of per-pupil expenditures or revenues of the local educational agency at the 95th percentile and divide the difference by the per-pupil expenditures or revenues of the local educational agency at the 5th percentile; and (V)take into account the extent to which a program of State aid reflects the additional cost of providing free public education in particular types of local educational agencies, such as those that are geographically isolated, or to particular types of students, such as children with disabilities. ; and (3)in subsection (d)(2)— (A)by striking A State and inserting the following: (A)
In general
A State ; and (B)by adding at the end of the following: (B)
States that are not equalized states
A State that has not been approved as an equalized State under subsection (b) shall not consider funds received under section 8002 or section 8003 of this title in any State formula or place a limit or direct the use of such funds. .
7.
Timely payments
Section 8010 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7710) is amended by adding at the end the following: (d)
Timely payments
(1)
In general
Subject to paragraph (2), the Secretary shall pay a local educational agency the full amount that the agency is eligible to receive under this title for a fiscal year not later than September 30 of the second fiscal year following the fiscal year in which such amount has been appropriated if, not later than 1 calendar year following the fiscal year in which such amount has been appropriated, each local educational agency that is eligible to receive funds under this title for such fiscal year submits to the Secretary all the data and information necessary for the Secretary to pay the full amount that the agency is eligible to receive under this title for such fiscal year. (2)
Payments with respect to fiscal years in which insufficient funds are appropriated
For a fiscal year in which the amount appropriated under section 8014 is insufficient to pay the full amount a local educational agency is eligible to receive under this title, paragraph (1) shall be applied by substituting is available to pay the agency for the agency is eligible to receive each place it appears. .
8.
Definitions
Section 8013 of that Act (20 U.S.C. 7713) is amended— (1)in paragraph (1) by striking and Marine Corps and inserting Marine Corps, and Coast Guard; (2)in paragraph (4)— (A)in the first sentence thereof, by striking part (A) of title I and title VI and inserting title I and part A of title V; and (B)in the second sentence, by striking be determined and inserting be made; (3)in paragraph (5)(A)(iii)— (A)by amending subclause (II) to read as follows: (II)used to provide housing for homeless children at closed military installations pursuant to section 501 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411); ; and (B)by amending subclause (III) to read as follows: (III)used for affordable housing assisted under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.); or ; (4)in paragraph (5)(A), by adding at the end the following: (VI)exempt from taxation of real property and personal property identified by a local governmental entity, including a State government, if upon such property resides a child whose parents or guardians are certified to live on such property is considered to meet the eligibility requirements of section 151.4 of part 150 of subchapter H of title 25 of the Code of Federal Regulations; or ; (5)in paragraph (8)(A), by inserting commas before and after and verified by; and (6)in paragraph (9)— (A)by amending subparagraph (A) to read as follows: (A)
In general
Except as provided in subparagraph (C), the term local educational agency— (i)means a board of education or other legally constituted local school authority having administrative control and direction of free public education in a county, township, independent school district, or other school district; and (ii)includes any State agency that directly operates and maintains facilities for providing free public education; that, except for those local educational agencies determined to be eligible to receive a payment under section 8003 prior to the date of the enactment of the Local Taxpayer Relief Act, when submitting an application under this title for the first time on or after the date of the enactment of such Act, has the authority to tax and has boundaries as defined by applicable State law for the purposes of levying such taxes, or has been granted the authority to receive an imputed tax from a city, county, township, or other general-purpose political subdivision of a State.; and (B)in subparagraph (B), by inserting a comma after Secretary determines.
9.
Authorization of appropriations
Section 8014 of that Act (20 U.S.C. 7714) is amended— (1)in subsection (a) by striking $32,000,000 for fiscal year 2000 and inserting $67,208,000 for fiscal year 2012; (2)in subsection (b) by striking $809,400,000 for fiscal year 2000 and inserting $1,138,000,000 for fiscal year 2012; (3)in subsection (c) by striking $50,000,000 for fiscal year 2000 and inserting $48,602,000 for fiscal year 2012; (4)by redesignating subsection (e) as subsection (d); (5)in subsection (d) (as so redesignated by paragraph 4), by striking $10,052,000 and all that follows through and such sums and inserting $17,509,000 for fiscal year 2012 and such sums; (6)by redesignating subsection (f) as subsection (e); (7)in subsection (e) (as so redesignated by paragraph (6), by striking $5,000,000 for fiscal year 2000 and inserting $4,864,000 for fiscal year 2012; and (8)by adding at the end of the following: (f)
Allocation of dollars from previous fiscal years
When final payments are made for a fiscal year the Secretary shall add any remaining funds to those funds appropriated for such section for the next fiscal year for the purpose of making payments subject to the provisions of the applicable section. .
10.
Additional and conforming amendments
(a)
Subpart 20 of part D of title V
Subpart 20 (20 U.S.C. 7281 et seq.) of part D of title V of that Act (relating to additional assistance for certain local educational agencies impacted by Federal property acquisition) is repealed. (b)
Title VIII
Title VIII of Elementary and Secondary Education Act (20 U.S.C. 7701 et seq.) is further amended— (1)in section 8004 (20 U.S.C. 7704)— (A)in subsection (e)(1)(B)(i), by striking involved, or if and inserting involved or, if; and (B)in subsection (f), by striking upon and inserting on; (2)in section 8008(a) (20 U.S.C. 7708(a)), by striking section 8014(f) and inserting section 8014(e); (3)in section 8010 (20 U.S.C. 7710)— (A)in subsection (b), by striking out require and inserting in lieu thereof need; and (B)in subsection (c)(1)— (i)in subparagraph (A), by striking paragraph (3) and inserting paragraph (2); and (ii)in subparagraph (B), by striking paragraph (3) and inserting paragraph (2); and (4)in section 8011(a) (20 U.S.C. 7711 (a)), by striking or under and all that follows through of 1994).