[Federal Register Volume 69, Number 53 (Thursday, March 18, 2004)]
[Notices]
[Pages 12840-12841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6139]


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DEPARTMENT OF EDUCATION


State Flexibility Demonstration Program and Local Flexibility 
Demonstration Program

AGENCY: Office of Elementary and Secondary Education, Department of 
Education.

ACTION: Notice inviting applications.

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    Purposes of the Programs: To give selected State educational 
agencies (SEAs) and local educational agencies (LEAs) greater 
flexibility in the use of Federal funds to (1) improve and be 
accountable for the academic achievement of all students, especially 
disadvantaged students; (2) improve teacher quality and subject-matter 
mastery, especially in mathematics, reading, and science; (3) better 
empower parents, educators, administrators, and schools to address 
effectively the needs of their children and students; and (4) narrow 
achievement gaps between the lowest- and highest-achieving groups of 
students so that no child is left behind.
    Eligible Applicants: SEAs (for the State Flexibility Demonstration 
program (State-Flex)) and LEAs (for the Local Flexibility Demonstration 
program (Local-Flex)), subject to the following conditions:
    (1) If an LEA has entered into a Local-Flex agreement with the 
Secretary, its SEA may subsequently seek State-Flex authority only if 
the LEA's Local-Flex agreement is incorporated as one of the proposed 
performance agreements in the SEA's State-Flex proposal. At this time, 
the Seattle School District is the only LEA that has entered into a 
Local-Flex agreement.
    (2) If an SEA has received State-Flex authority from the Secretary, 
its LEAs may not apply to the Department for Local-Flex. Rather, in 
these States, four to ten LEAs (at least half of which must be high-
poverty LEAs) enter into a local performance agreements directly with 
their SEA. At this time, the Florida Department of Education is the 
only SEA that has received State Flexibility Authority from the 
Secretary. Thus, LEAs in Florida may not apply for Local-Flex. However, 
LEAs in other States are not precluded from applying for Local-Flex at 
this time.
    (3) SEAs in Hawaii, Puerto Rico, and the Outlying Areas (as defined 
in Section 9101(30) of the Elementary and Secondary Education Act of 
1965, as amended (ESEA) (20 U.S.C. 7801(30)) are not eligible to apply 
for State-Flex because they do not have the minimum number of LEAs 
required for State-Flex authority. By statute, the District of 
Columbia, Hawaii, Puerto Rico, and the Outlying Areas are also not 
eligible to apply as LEAs for Local-Flex.
    Number of State-Flex and Local-Flex Applications that the 
Department May Approve: The Secretary may grant State-Flex authority to 
up to seven SEAs. Six grants of authority remain available.
    The Secretary may enter into Local-Flex agreements with up to 
eighty LEAs, but no more than three LEAs in a given State.

[[Page 12841]]

    The Department is conducting the State-Flex and Local-Flex 
competitions simultaneously to enable both SEAs and LEAs to take 
advantage of these flexibility programs at the earliest possible date. 
Before applying for Local-Flex, an LEA should contact its SEA to 
determine whether the State will seek State-Flex authority. If the SEA 
intends to apply for State-Flex, the SEA and LEA should consider 
including the proposed local performance agreement as part of the 
State-Flex application. Similarly, an SEA should notify all of its LEAs 
if it intends to apply for State-Flex so that it may coordinate with 
those LEAs that are interested in seeking additional flexibility.
    Applications Available: March 18, 2004.
    Deadline for Transmittal of Applications: There is no specific 
application deadline. Applications will be reviewed on a rolling basis 
as they are received until the maximum number of State-Flex and Local-
Flex proposals authorized by the statute have been approved. We 
anticipate that we will complete the review of an application within 60 
days of its receipt by the Department.

SUPPLEMENTARY INFORMATION: Sections 6141 through 6144 of the ESEA (20 
U.S.C. 7315-7315c) allow the Secretary to grant State-Flex authority, 
on a competitive basis, to up to seven SEAs. The Secretary will select 
the State-Flex States on the basis of the selection criteria in the 
State-Flex application package.
    Under State-Flex, an SEA receives the authority to consolidate 
certain Federal education funds that are provided for State-level 
activities and State administration and use those funds for any 
educational purpose authorized under the ESEA in order to meet its 
State's definition of adequate yearly progress (AYP) and advance the 
education priorities of the State and its LEAs. A State-Flex State may 
also specify how its LEAs will use funds received under Part A of Title 
V (State Grants for Innovative Programs) of the ESEA. In addition, an 
SEA with State-Flex authority enters into local performance agreements 
with four to ten of its LEAs (at least half of which must be high-
poverty LEAs), giving those LEAs the flexibility to consolidate certain 
Federal education funds for any educational purpose permitted under the 
ESEA in order to meet the State's definition of AYP and specific, 
measurable goals for improving student achievement and narrowing 
achievement gaps.
    Sections 6151 through 6156 of the ESEA (20 U.S.C. 7321-7321e) 
authorize the Secretary to enter into Local-Flex agreements with up to 
eighty LEAs. These agreements, like the local performance agreements 
under State-Flex, give the LEAs the authority to consolidate certain 
Federal education funds and to use those funds for any purpose under 
the ESEA in order to assist the LEAs in meeting the State's definition 
of AYP and specific, measurable goals for improving student achievement 
and narrowing achievement gaps. The Secretary will select the remaining 
Local-Flex LEAs on the basis of the selection criteria in the Local-
Flex application package.
    Competitive Preference in Future Grant Competitions: Because State-
Flex and Local-Flex participants have undergone comprehensive planning 
to improve teacher quality and the academic achievement of all 
students, especially disadvantaged students, and are held to a higher 
degree of accountability, the Secretary intends to give them a 
competitive preference in future grant competitions for Federal 
education funding in which SEAs and LEAs are eligible applicants, to 
the extent that the competitive preference would further the intent and 
purposes of the respective grant programs. Where appropriate, the 
Secretary plans to establish the competitive preferences in the 
individual program notices announcing future competitions.

FOR FURTHER INFORMATION CONTACT: Ms. Jill Staton, U.S. Department of 
Education, Office of Elementary and Secondary Education, 400 Maryland 
Ave., SW., Rm. 3E213, Washington, DC 20202-6400. Telephone: (202) 401-
0039 or via Internet: [email protected]; [email protected].
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339. 
Individuals with disabilities may obtain this notice in an alternative 
format (e.g., Braille, large print, audiotape, or computer diskette) on 
request to the contact person listed above.
    Applications: You may obtain a copy of the application package on 
the Department's Web site at: State Flexibility Demonstration Program 
http://www.ed.gov/programs/stateflex/applicant.html; Local Flexibility 
Demonstration Program http://www.ed.gov/programs/localflex/applicant.html.
    You may also obtain a copy of the application from the contact 
person identified under FOR FURTHER INFORMATION CONTACT. Instructions 
for submitting applications are included in the application package.
    Electronic Access to this Document: You may view this document, as 
well as other Department of Education documents published in the 
Federal Register, in text or Adobe Portable Document Format (PDF) on 
the Internet at the following site: http://www.ed.gov/news/fedregister.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll-free, at 1-888-293-6498; or in 
the Washington DC, area at (202) 512-1530.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official version of the Federal Register and the Code of Federal 
Regulations is available on GPO access at: http://www.gpoaccess.gov/nara/index.html.

    Program Authority: 20 U.S.C. 7315-7315c for State-Flex, and 20 
U.S.C. 7321-7321e for Local-Flex.

    Dated: March 10, 2004.
Raymond Simon,
Assistant Secretary for Elementary and Secondary Education.
[FR Doc. 04-6139 Filed 3-17-04; 8:45 am]
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