[House Report 105-726]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-726
_______________________________________________________________________


 
   PROVIDING FOR THE CONSIDERATION OF H.R. 3248, THE DOLLARS TO THE 
                             CLASSROOM ACT

                                _______
                                

               September 16, 1998.--Ordered to be printed

_______________________________________________________________________


 Mr. Diaz-Balart, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 543]

    The Committee on Rules, having had under consideration 
House Resolution 543, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 3248, 
the ``Dollars to the Classroom Act'' under a structured rule. 
The rule provides one hour of general debate divided equally 
between the chairman and ranking minority member of the 
Committee on Education and the Workforce.
    The rule makes in order the Committee on Education and the 
Workforce amendment in the nature of a substitute now printed 
in the bill as an original bill for purpose of amendment, which 
shall be considered as read. Also, the rules waives clause 7 of 
rule XVI (prohibiting nongermane amendments) against the 
committee amendment in the nature of a substitute.
    The rule makes in order only those amendments printed in 
this report. The rule also provides that the amendments made in 
order shall be considered only in the order specified, may be 
offered only by a Member designated in this report, shall be 
considered as read, shall be debatable for the time specified 
in this report equally divided and controlled by the proponent 
and an opponent, and shall not be subject to amendment.
    Further, the rule allows the Chairman of the Committee of 
the Whole to postpone votes during consideration of the bill, 
and to reduce voting time to five minutes on a postponed 
question if the vote follows a fifteen minute vote. Finally, 
the rule provided for one motion to recommit, with or without 
instructions.

 summary of amendments made in order to H.R. 3248, the dollars to the 
                             classroom act

    Mink/Abercrombie--10 minutes: Strikes the repeal of the 
Native Hawaiian Education Act, so that the program will not be 
included in the block grant established in the bill.
    Clay--60 minutes: Substitute amendment. Implements the 
President's education initiatives, such as reducing class size 
in grades 1-3 by providing funds to help local school districts 
hire and pay the salaries of an additional 100,000 teachers. 
States would also receive funds for teacher training and new 
teachers would be required to pass state competency tests. 
Additionally, states and localities would be allowed to issue 
almost $22 billion in no-interest bonds for school construction 
and renovation during 1999-2000, with the Federal government 
providing tax credits in lieu of interest payments to the bond-
holders.

                    text of amendments made in order

  1. An Amendment To Be Offered by Representative Mink of Hawaii, or 
 Representative Abercrombie of Hawaii, or a Designee, Debatable for 10 
                                minutes

    Page 17, strike lines 11 through 13.
                              ----------                              


2. An Amendment To Be Offered by Representative Clay of Missouri, or a 
                   Designee, Debatable for 60 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND FINDINGS.

  (a) Short Title.--This Act may be cited as the ``Class-Size 
Reduction and Teacher Quality Act of 1998''.
  (b) Findings.--The Congress finds the following:
          (1) Rigorous research has shown that students 
        attending small classes in the early grades make more 
        rapid educational progress than students in larger 
        classes, and that these achievement gains persist 
        through at least the elementary grades.
          (2) The benefits of smaller classes are greatest for 
        lower-achieving, minority, poor, and inner-city 
        children. One study found that urban fourth-graders in 
        smaller-than-average classes were three-quarters of a 
        school year ahead of their counterparts in larger-than-
        average classes.
          (3) Teachers in small classes can provide students 
        with more individualized attention, spend more time on 
        instruction and less on other tasks, and cover more 
        material effectively, and are better able to work with 
        parents to further their children's education.
          (4) Smaller classes allow teachers to identify and 
        work more effectively with students who have learning 
        disabilities and, potentially, can reduce those 
        students' need for special education services in the 
        later grades.
          (5) Students in smaller classes are able to become 
        more actively engaged in learning than their peers in 
        large classes.
          (6) Efforts to improve educational achievement by 
        reducing class sizes in the early grades are likely to 
        be more successful if well-prepared teachers are hired 
        and appropriately assigned to fill additional classroom 
        positions and if teachers receive intensive, continuing 
        training in working effectively in smaller classroom 
        settings.
          (7) Several States have begun a serious effort to 
        reduce class sizes in the early elementary grades, but 
        these actions may be impeded by financial limitations 
        or difficulties in hiring well-prepared teachers.
          (8) The Federal Government can assist in this effort 
        by providing funding for class-size reductions in 
        grades one through three, and by helping to ensure that 
        the new teachers brought into the classroom are well 
        prepared.

SEC. 2. PURPOSE.

  The purpose of this Act is to help States and local 
educational agencies recruit, train, and hire 100,000 
additional teachers over a seven-year period in order to--
          (1) reduce class sizes nationally, in grades 1 
        through 3, to an average of 18 students per classroom; 
        and
          (2) improve teaching in the early grades so that all 
        students can learn to read independently and well by 
        the end of the third grade.

SEC. 3. PROGRAM FUNDING.

  For the purpose of carrying out this Act, there are 
authorized to be appropriated $1,100,000,000 for fiscal year 
1999, $1,300,000,000 for fiscal year 2000, $1,500,000,000 for 
fiscal year 2001, $1,700,000,000 for fiscal year 2002, 
$1,735,000,000 for fiscal year 2003, $2,300,000,000 for fiscal 
year 2004, and $2,800,000,000 for each of the fiscal years 2005 
through 2008.

SEC. 4. ALLOCATIONS TO STATES.

  (a) Reservation for Evaluation.--From the amount appropriated 
pursuant to section 3 for each fiscal year, the Secretary may 
reserve up to $2 million to carry out the evaluation described 
in section 13.
  (b) Reservation for the Outlying Areas and the Bureau of 
Indian Affairs.--Of the amount appropriated pursuant to section 
3 for each fiscal year and remaining after any reservation 
under subsection (a), the Secretary shall reserve a total of 
not more than 1 percent to make payments, on the basis of their 
respective needs, to--
          (1) American Samoa, Guam, the Virgin Islands, and the 
        Commonwealth of the Northern Mariana Islands for 
        activities, approved by the Secretary, consistent with 
        this Act; and
          (2) the Secretary of the Interior for activities, 
        approved by the Secretary, consistent with this Act in 
        schools operated or supported by the Bureau of Indian 
        Affairs.
  (c) Allocations to States.--(1) After reserving funds under 
subsections (a) and (b), the Secretary shall allocate to each 
State an amount that bears the same relationship to the 
remaining amount as the amount of funding the State received 
under section 1122 of the Elementary and Secondary Education 
Act of 1965 for the previous fiscal year bore to the total 
amount available for allocation under that section.
  (2) If any State chooses not to participate in the program 
under this Act, or fails to submit an approvable application, 
the Secretary shall reallocate its allocation to the remaining 
States, in accordance with paragraph (1).

SEC. 5. APPLICATIONS.

  (a) Application Required.--The State educational agency of 
each State desiring to receive a grant under this Act shall 
submit an application to the Secretary at such time, in such 
form, and containing such information as the Secretary may 
require.
  (b) Contents.--Each application shall include--
          (1) the State's goals for using funds under this Act 
        to reduce average class sizes in regular classrooms in 
        grades 1 through 3, including--
                  (A) a description of current regular 
                classroom class sizes in the local educational 
                agencies of the State;
                  (B) a description of the State's plan for 
                using funds under this Act to reduce the 
                average class size in regular classrooms in 
                those grades; and
                  (C) the regular classroom class-size goals 
                the State intends to reach and a justification 
                for those goals;
          (2) a description of the State educational agency's 
        plan for allocating program funds within the State, 
        including--
                  (A) an estimate of the impact of those 
                allocations on class sizes in the individual 
                local educational agencies of the State;
                  (B) an assurance that the State educational 
                agency will make this plan public within the 
                State; and
                  (C) a description of the current and 
                projected capacity of the State's school 
                facilities to accommodate reduced class sizes;
          (3) a description of the State educational agency's 
        strategy for improving teacher quality in grades 1 
        through 3 within the State (which may be part of a 
        broader strategy to improve teacher quality generally), 
        including--
                  (A) the actions it will take to ensure the 
                availability, within the State, of a pool of 
                well-prepared, certified teachers to fill the 
                positions created with funds under this Act; 
                and
                  (B) a description of how the State 
                educational agency and the local educational 
                agencies in the State will ensure that--
                          (i) individuals hired for positions 
                        created with program funds (which may 
                        include individuals who have pursued 
                        ``alternative routes'' to 
                        certification) will meet all of the 
                        State's current requirements for full 
                        certification, or will be making 
                        satisfactory progress toward achieving 
                        full certification within three years;
                          (ii) teachers in first through third 
                        grade will be prepared to teach reading 
                        effectively to all children, including 
                        those with special needs, and will take 
                        part in continuing professional 
                        development in effective reading 
                        instruction and in teaching effectively 
                        in small classes; and
                          (iii) individuals hired as beginning 
                        teachers in first through third grade 
                        will be required to pass a teacher 
                        competency test selected by the State;
          (4) a description of how the State will use other 
        funds, including other Federal funds, to improve 
        teacher quality and reading achievement within the 
        State;
          (5) a description of how the State will hold local 
        educational agencies that use a significant portion of 
        their allocations under section 8(a)(2)(B) accountable 
        for that use of funds;
          (6) an assurance that the local educational agency 
        and its schools will comply with the requirements of 
        subsections (a) and (b) of section 11; and
          (7) an assurance that the State educational agency 
        will submit such reports and information as the 
        Secretary mayreasonably require.
  (c) Approval of Applications.--The Secretary shall approve a 
State's application if it meets the requirements of this 
section and holds reasonable promise of achieving the purposes 
of this Act.

SEC. 6. WITHIN-STATE ALLOCATIONS.

  (a) State-Level Expenses.--Each State may use not more than a 
total of one-half of one percent of the amount it receives 
under this part for any fiscal year or $50,000, whichever is 
greater, for the administration costs of the State educational 
agency and for State-level activities described in section 7.
  (b) Subgrants to Local Educational Agencies.--(1) Each State 
shall use the remainder of its allocation to make subgrants to 
local educational agencies, for the purpose of reducing class 
size and improving instruction in grades 1 through 3, on the 
basis of--
          (A) current or projected regular classroom class 
        sizes in grades 1 through 3 in those agencies; and
          (B) the relative ability and effort of those agencies 
        to finance class-size reductions with their own funds.
  (2) Each State shall make the allocations described in 
paragraph (1) in such manner as to enable local educational 
agencies to reduce their average class sizes in regular 
classrooms, in grades 1 through 3, to the average class size 
proposed in the State application.
  (3) Notwithstanding paragraph (2), each State shall ensure, 
in allocating funds under this subsection, that each local 
educational agency in which at least 30 percent of the children 
are from low-income families, or in which there are at least 
10,000 children from such families, receives at least the same 
share of those funds as it received of the State's allocation 
under section 1122 of the Elementary and Secondary Education 
Act of 1965 for the preceding fiscal year.
  (c) Maintenance of Effort.--(1) A local educational agency 
may receive an allocation under this section for any fiscal 
year only if it submits to, or has on file with, the State 
educational agency an assurance that it will spend at least as 
much from non-Federal sources as it spent in the previous year 
for the combination of--
          (A) teachers in regular classrooms in grades 1 
        through 3 in schools receiving benefits under this Act; 
        and
          (B) the quality-improvement activities described in 
        section 8(b).
  (2) The Secretary may waive or modify the requirement of 
paragraph (1) for a local educational agency if the Secretary 
determines that doing so would be equitable due to exceptional 
or uncontrollable circumstances affecting that agency.

SEC. 7. STATE-LEVEL ACTIVITIES.

  East State educational agency may use the funds it reserves 
for State-level activities under section 6(a) to carry out 
activities described in its application, which may include such 
activities as--
          (1) strengthening State teacher licensure and 
        certification standards;
          (2) developing or strengthening, and administering, 
        teacher competency tests for beginning teachers; and
          (3) program monitoring and other administrative costs 
        associated with operating the program.

SEC. 8. USES OF FUNDS.

  (a) In General.--(1) Each local educational agency shall use 
all funds it receives from the State under this Act, except for 
funds it reserves under subsection (b), to pay the salaries of, 
and benefits for, the additional teachers needed to reduce 
class sizes in grades 1 through 3 to the level set by the State 
as its goal in the State application.
  (2) A local educational agency that has already reached this 
level may use those funds to--
          (A) make further class-size reductions in grades 1 
        through 3;
          (B) reduce class sizes in kindergarten or other 
        grades; or
          (C) undertake quality-improvement activities under 
        subsection (b).
  (b) Quality Improvement.--(1) Each local educational agency 
shall use at least 10 percent of the funds it receives under 
this Act for each of the fiscal years 1999 through 2003 for 
activities to ensure that teachers who will teach smaller 
classes are prepared to teach reading and other subjects 
effectively in a smaller class setting.
  (2) The activities described in paragraph (1) may include--
          (A) training teachers in effective reading 
        instructional practices (including practices for 
        teaching students who experience initial difficulty 
inlearning to read) and in effective instructional practices in small 
classes;
          (B) paying the costs for uncertified teachers hired 
        in grades 1 through 3 to obtain full certification 
        within three years;
          (C) providing mentors or other support for teachers 
        in grades 1 through 3;
          (D) improving recruitment of teachers for schools 
        that have a particularly difficult time hiring 
        certified instructors; and
          (E) providing scholarships or other aid for education 
        and education-related expenses to paraprofessionals or 
        undergraduate students in order to expand the pool of 
        well-prepared and certified teachers.

SEC. 9. COST-SHARING REQUIREMENT.

  (a) Federal Share.--The Federal share of the cost of 
activities carried out under this Act may be up to 100 percent 
in local educational agencies with child-poverty levels greater 
than 40 percent, but shall be no more than--
          (1) 95 percent in local educational agencies with 
        child-poverty rates of more than 30 percent but not 
        more than 40 percent;
          (2) 85 percent in local educational agencies with 
        child-poverty rates of more than 20 percent but not 
        more than 30 percent;
          (3) 75 percent in local educational agencies with 
        child-poverty rates of more than 10 percent but not 
        more than 20 percent; and
          (4) 65 percent in local educational agencies with 
        child-poverty rates of not more than 10 percent.
  (b) Local Share.--A local educational agency shall provide 
the non-Federal share of a project under this Act through cash 
expenditures from non-Federal sources, except that if an agency 
has allocated funds under section 1113(c) of the Elementary and 
Secondary Education Act of 1965 to one or more schoolwide 
programs under section 1114 of that Act, it may use those funds 
for the non-Federal share of activities under this program that 
benefit those schoolwide programs, to the extent consistent 
with section 1120A(c) of that Act and notwithstanding section 
1114(a)(3)(B) of that Act.

SEC. 10. CARRYOVER OF FUNDS.

  Notwithstanding any other provision of law, any funds 
received under this Act by a State or by a local educational 
agency shall remain available for obligation and expenditure by 
the State or local agency for one fiscal year beyond the fiscal 
year described in section 421(b) of the General Educational 
Provisions Act.

SEC. 11. ACCOUNTABILITY.

  (a) School Report.--Each school benefitting from the program 
under this Act, or the local educational agency for that 
school, shall produce an annual report to parents and the 
general public on its student achievement in reading (using 
available evidence of reading achievement of its students in 
grades 1 through 5 and the assessments the State uses under 
part A of title I of the Elementary and Secondary Education Act 
of 1965, disaggregated as required under that part), average 
class size in its regular classrooms, and teacher certification 
and related academic qualifications in grades 1 through 3.
  (b) Local Educational Agency Reports.--(1) Interm Reports.--
Each local educational agency shall provide each year, to its 
State educational agency, a report summarizing the information 
reported by, or for, its schools under subsection (a).
  (2) Subsequent Reports.--Within three years of receiving 
funding under this Act, and each year thereafter, each local 
educational agency shall provide evidence, to its State 
educational agency, of the reading achievement of its students, 
in grade 3, 4, or 5 in schools served under this Act, which 
shall be--
          (A) in a form determined by the State educational 
        agency;
          (B) based on the assessments that the local 
        educational agency is using under title I of the 
        Elementary and Secondary Education Act of 1965, or on 
        comparably rigorous State or local assessments; and
          (C) disaggregated to show the achievement of students 
        in individual schools and of students separately by 
        race and by gender, as well as for students with 
        disabilities, students with limited English 
        proficiency, migrant students, and students who are 
        economically disadvantaged.
  (c) Program-Improvement Plan.--A local educational agency 
with schools that fail to show improvement in reading 
achievement within three years of receiving funds under this 
Act shall, with the approval of the State educational agency, 
develop and implement a program-improvement plan to improve 
student performance.
  (d) Reduced Local Allocations.--If a school participating in 
the program under this Act fails to show improvement in reading 
achievement of its students within two years after the local 
educational agency develops a plan subsection (b), the State 
educational agency shall reduce the allocation to that local 
agency by an amount equal to the share of the local agency's 
allocation attributable to that school.

SEC. 12. PARTICIPATION OF PRIVATE SCHOOL TEACHERS.

  Each local educational agency receiving funds under this Act 
shall, after timely and meaningful consultation with 
appropriate private school officials, provide for the inclusion 
(in a manner proportionate to the number of children residing 
in the area served by the agency's project under this Act who 
attend private schools) of private school teachers in the 
professional-development activities the agency and its schools 
carry out with those funds.

SEC. 13. EVALUATION.

  With funds reserved under section 4(a), the Secretary shall 
carry out an evaluation of the program authorized by this Act, 
including a measurement of its effectiveness in accordance with 
the Government Performance and Results Act of 1993.

SEC. 14. WAIVERS.

  The Secretary may, at the request of a State educational 
agency, waiver or modify a requirement of this Act if the 
Secretary determines that such requirement impedes the ability 
of the State to carry out the purpose of this Act and that 
providing a waiver would better promote the purpose of this 
Act.

SEC. 15. DEFINITIONS.

  As used in this Act, the following terms have the following 
meanings:
          (1) Local educational agency.--The term ``local 
        educational agency'' has the meaning given that term in 
        section 14101(18) (A) and (B) of the Elementary and 
        Secondary Education Act of 1965.
          (2) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (3) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, and Puerto Rico.

                                
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