[House Report 106-504]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-504
=======================================================================
IMPACT AID REAUTHORIZATION ACT OF 2000
_______
February 29, 2000.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Goodling, from the Committee on Education and the Workforce,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 3616]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 3616) to reauthorize the impact aid
program under the Elementary and Secondary Education Act of
1965, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Impact Aid Reauthorization Act of
2000''.
SEC. 2. PURPOSE.
Section 8001 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7701) is amended--
(1) in the matter preceding paragraph (1)--
(A) by inserting after ``educational services to
federally connected children'' the following: ``in a
manner that promotes control by local educational
agencies with little or no Federal or State
involvement''; and
(B) by inserting after ``certain activities of the
Federal Government'' the following: ``, such as
activities to fulfill the responsibilities of the
Federal Government with respect to Indian tribes and
activities under section 514 of the Soldiers' and
Sailors' Civil Relief Act of 1940 (50 U.S.C. App.
574),'';
(2) in paragraph (4), by adding ``or'' at the end;
(3) by striking paragraph (5);
(4) by redesignating paragraph (6) as paragraph (5); and
(5) in paragraph (5) (as redesignated), by inserting before
the period at the end the following: ``and because of the
difficulty of raising local revenue through bond referendums
for capital projects due to the inability to tax Federal
property''.
SEC. 3. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
(a) Fiscal Year Requirement.--Section 8002(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7702(a)) is amended in the
matter preceding paragraph (1) by striking ``1999'' and inserting
``2005''.
(b) Amount.--
(1) Insufficient funds.--Section 8002(b)(1)(B) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7702(b)(1)(B)) is amended by striking ``shall ratably reduce
the payment to each eligible local educational agency'' and
inserting ``shall calculate the payment for each eligible local
educational agency in accordance with subsection (h)''.
(2) Maximum amount.--Section 8002(b)(1)(C) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7702(b)(1)(C))
is amended by adding at the end before the period the
following: ``, or the maximum amount that such agency is
eligible to receive for such fiscal year under this section,
whichever is greater''.
(c) Payments With Respect to Fiscal Years in Which Insufficient
Funds Are Appropriated.--Section 8002(h) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7702(h)) is amended 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 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 for pre-1995 recipients.--
``(A) In general.--The Secretary shall first make a
foundation payment to each local educational agency
that is eligible to receive a payment under this
section for the fiscal year involved and was eligible
to receive a payment under section 2 of the Act of
September 30, 1950 (Public Law 874, 81st Congress) (as
such section was in effect on the day preceding the
date of the enactment of the Improving America's
Schools Act of 1994) for any of the fiscal years 1989
through 1994.
``(B) Amount.--The amount of a payment under
subparagraph (A) for a local educational agency shall
be equal to 37 percent of the payment amount the local
educational agency was eligible to receive under
section 2 of the Act of September 30, 1950, for fiscal
year 1994 (or if the local educational agency was not
eligible to receive a payment under such section 2 for
fiscal year 1994, the payment that local educational
agency was eligible to receive under such section 2 for
the most recent fiscal year preceding 1994).
``(C) 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 the fiscal
year, then the Secretary shall ratably reduce the
payment to each local educational agency under this
paragraph.
``(2) Payments for 1995 recipients.--
``(A) In general.--From any amounts remaining after
making payments under paragraph (1) for the fiscal year
involved, the Secretary shall make a payment to each
eligible local educational agency that received a
payment under this section for fiscal year 1995.
``(B) Amount.--The amount of a payment under
subparagraph (A) for a local educational agency shall
be determined as follows:
``(i) Calculate the difference between the
amount appropriated to carry out this section
for fiscal year 1995 and the total amount of
foundation payments made under paragraph (1)
for the fiscal year.
``(ii) Determine the percentage share for
each local educational agency that received a
payment under this section for fiscal year 1995
by dividing the assessed value of the Federal
property of the local educational agency for
fiscal year 1995 determined in accordance with
subsection (b)(3), by the total national
assessed value of the Federal property of all
such local educational agencies for fiscal year
1995, as so determined.
``(iii) Multiply the percentage share
described in clause (ii) for the local
educational agency by the amount determined
under clause (i).
``(3) Subsection (i) recipients.--From any funds remaining
after making payments under paragraphs (1) and (2) for the
fiscal year involved, the Secretary shall make payments in
accordance with subsection (i).
``(4) Remaining funds.--From any funds remaining after making
payments under paragraphs (1), (2), and (3) for the fiscal year
involved--
``(A) the Secretary shall make a payment to each
local educational agency that received a foundation
payment under paragraph (1) for the fiscal year
involved in an amount that bears the same relation to
25 percent of the remainder as the amount the local
educational agency received under paragraph (1) for the
fiscal year involved bears to the amount all local
educational agencies received under paragraph (1) for
the fiscal year involved; and
``(B) the Secretary shall make a payment to each
local educational agency that is eligible to receive a
payment under this section for the fiscal year involved
in an amount that bears the same relation to 75 percent
of the remainder as a percentage share determined for
the local educational agency (in the same manner as
percentage shares are determined for local educational
agencies under paragraph (2)(B)(ii)) bears to the
percentage share determined (in the same manner) for
all local educational agencies eligible to receive a
payment under this section for the fiscal year
involved, except that for the purpose of calculating a
local educational agency's assessed value of the
Federal property, data from the most current fiscal
year shall be used.''.
(d) Special Payments.--
(1) In general.--Section 8002(i)(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7702(i)(1)) is
amended to read as follows:
``(1) In general.--For any fiscal year beginning with fiscal
year 2000 for which the amount appropriated to carry out this
section exceeds the amount so appropriated for fiscal year 1996
and for which subsection (b)(1)(B) applies, the Secretary shall
use the remainder described in subsection (h)(3) for the fiscal
year involved (not to exceed the amount equal to the difference
between (A) the amount appropriated to carry out this section
for fiscal year 1997 and (B) the amount appropriated to carry
out this section for fiscal year 1996) to increase the payment
that would otherwise be made under this section to not more
than 50 percent of the maximum amount determined under
subsection (b) for any local educational agency described in
paragraph (2).''.
(2) Conforming amendment.--The heading of section 8002(i) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7702(i)) is amended by striking ``Priority'' and inserting
Special''.
(e) Additional Assistance for Certain Local Educational Agencies
Impacted by Federal Property Acquisition.--Section 8002(j)(2) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(j)(2))
is amended--
(1) by striking ``(A) A local educational agency'' and
inserting ``A local educational agency'';
(2) by redesignating clauses (i) through (v) as subparagraphs
(A) through (E), respectively; and
(3) in subparagraph (C) (as redesignated), by adding at the
end before the semicolon the following: ``and such agency does
not currently have a military installation located within its
geographic boundaries''.
(f) Data; Preliminary and Final Payments.--Section 8002 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702) is
amended by adding at the end the following:
``(l) Data; Preliminary and Final Payments.--
``(1) In general.--The Secretary shall--
``(A) not later than 30 days following the
application deadline under section 8005(c) for a fiscal
year, require any local educational agency that applied
for a payment under subsection (b) for the fiscal year
to submit such data as may be necessary in order to
compute the payment;
``(B) as soon as possible after the beginning of any
fiscal year, but no later than 60 days after the
enactment of an Act making appropriations to carry out
this title for the fiscal year, provide a preliminary
payment under subsection (b) for any local educational
agency that applied for a payment under subsection (b)
for the fiscal year and was eligible for such a payment
for the preceding fiscal year, in the amount of 60
percent of the payment for the previous year; and
``(C) provide a final payment under subsection (b)
for any eligible local educational agency not later
than 12 months after the application deadline
established under section 8005(c), except that any
local educational agency failing to submit all of the
data required under subparagraph (A) shall be denied
such payment for the fiscal year for which the
application is made unless funds from a source other
than the Act described in subparagraph (B) are made
available to provide such payment.
``(2) Eligibility for payments in subsequent years.--The
denial of a payment under subsection (b) to a local educational
agency for a fiscal year pursuant to this subsection shall not
affect the eligibility of the local educational agency for a
final payment under subsection (b) for a subsequent fiscal
year.''.
SEC. 4. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
(a) Military Installation Housing Undergoing Renovation or
Rebuilding.--
(1) In general.--Section 8003(a)(4) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is
amended--
(A) in the heading, by striking ``undergoing
renovation'' and inserting ``undergoing renovation or
rebuilding'';
(B) by striking ``For purposes'' and inserting the
following:
``(A) In general.--For purposes'';
(C) in subparagraph (A) (as designated by
subparagraph (B)), by inserting ``or rebuilding'' after
``undergoing renovation''; and
(D) by adding at the end the following:
``(B) Limitations.--(i)(I) Except as provided in
subclause (II), children described in paragraph
(1)(D)(i) may be deemed to be children described in
paragraph (1)(B) with respect to housing on Federal
property undergoing renovation or rebuilding in
accordance with subparagraph (A) for a period not to
exceed 2 fiscal years.
``(II) If the Secretary determines, on the basis of a
certification provided to the Secretary by a designated
representative of the Secretary of Defense, that the
expected completion date of the renovation or
rebuilding of the housing has been delayed by not less
than 1 year, then--
``(aa) in the case of a determination made by
the Secretary in the 1st fiscal year described
in subclause (I), the time period described
such subclause shall be extended by the
Secretary for an additional 2 years; and
``(bb) in the case of a determination made by
the Secretary in the 2nd fiscal year described
in subclause (I), the time period described
such subclause shall be extended by the
Secretary for an additional 1 year.
``(ii) The number of children described in paragraph
(1)(D)(i) who are deemed to be children described in
paragraph (1)(B) with respect to housing on Federal
property undergoing renovation or rebuilding in
accordance with subparagraph (A) for any fiscal year
may not exceed the maximum number of children who are
expected to occupy that housing upon completion of the
renovation or rebuilding.''.
(2) Effective date.--The amendments made by paragraph (1)
shall apply with respect to payments to a local educational
agency for fiscal years beginning before, on, or after the date
of the enactment of this Act.
(b) Military `Build to Lease' Program Housing.--Section 8003(a) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(a))
is amended by adding at the end the following:
``(5) Military `build to lease' program housing.--
``(A) In general.--For purposes of computing the
amount of payment for a local educational agency for
children identified under paragraph (1), the Secretary
shall consider children residing in housing initially
acquired or constructed under the former section
2828(g) of title 10, United States Code (commonly known
as the `Build to Lease' program), as added by section
801 of the Military Construction Authorization Act,
1984, to be children described under paragraph (1)(B)
if the property described is within the fenced security
perimeter of the military facility upon which such
housing is situated.
``(B) Additional requirements.--If the property
described in subparagraph (A) is not owned by the
Federal Government, is subject to taxation by a State
or political subdivision of a State, and thereby
generates revenues for a local educational agency that
is applying to receive a payment under this section,
then the Secretary--
``(i) shall require the local educational
agency to provide certification from an
appropriate official of the Department of
Defense that the property is being used to
provide military housing; and
``(ii) shall reduce the amount of the payment
under this section by an amount equal to the
amount of revenue from such taxation received
in the second preceding fiscal year by such
local educational agency, unless the amount of
such revenue was taken into account by the
State for such second preceding fiscal year and
already resulted in a reduction in the amount
of State aid paid to such local educational
agency.''.
SEC. 5. MAXIMUM AMOUNT OF BASIC SUPPORT PAYMENTS.
Section 8003(b)(1) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7703(b)(1)) is amended by adding at the end the
following:
``(D) Increase in local contribution rate due to
unusual geographic factors.--If the current
expenditures in those local educational agencies which
the Secretary has determined to be generally comparable
to the local educational agency for which a computation
is made under subparagraph (C) are not reasonably
comparable because of unusual geographical factors
which affect the current expenditures necessary to
maintain, in such agency, a level of education
equivalent to that maintained in such other agencies,
then the Secretary shall increase the local
contribution rate for such agency under subparagraph
(C)(iii) by such an amount which the Secretary
determines will compensate such agency for the increase
in current expenditures necessitated by such unusual
geographical factors. The amount of any such
supplementary payment may not exceed the per-pupil
share (computed with regard to all children in average
daily attendance), as determined by the Secretary, of
the increased current expenditures necessitated by such
unusual geographic factors.''.
SEC. 6. BASIC SUPPORT PAYMENTS FOR HEAVILY IMPACTED LOCAL EDUCATIONAL
AGENCIES.
(a) In General.--Section 8003(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)) is amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs (3)
and (4), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) Basic support payments for heavily impacted local
educational agencies.--
``(A) In general.--(i) From the amount appropriated
under section 8014(b) for a fiscal year, the Secretary
is authorized to make basic support payments to
eligible heavily impacted local educational agencies
with children described in subsection (a).
``(ii) A local educational agency that receives a
basic support payment under this paragraph for a fiscal
year shall not be eligible to receive a basic support
payment under paragraph (1) for that fiscal year.
``(B) Eligibility for continuing heavily impacted
local educational agencies.--
``(i) Fiscal year 2001.--A heavily impacted
local educational agency is eligible to receive
a basic support payment under subparagraph (A)
for fiscal year 2001 with respect to a number
of children determined under subsection (a)(1)
only if the agency received an additional
assistance payment under subsection (f) (as
such subsection was in effect on the day before
the date of the enactment of the Impact Aid
Reauthorization Act of 2000) for fiscal year
2000.
``(ii) Fiscal year 2002 and subsequent fiscal
years.--A heavily impacted local educational
agency described in clause (i) is eligible to
receive a basic support payment under
subparagraph (A) for fiscal year 2002 and any
subsequent fiscal year with respect to a number
of children determined under subsection (a)(1)
only if the agency--
``(I) received a basic support
payment under subparagraph (A) for
fiscal year 2001; and
``(II)(aa) is a local educational
agency whose boundaries are the same as
a Federal military installation;
``(bb) has an enrollment of federally
connected children described in
subsection (a)(1) which constitutes a
percentage of the total student
enrollment of such agency which is not
less than 35 percent, has a per-pupil
expenditure that is less than the
average per-pupil expenditure of the
State in which the agency is located or
the average per-pupil expenditure of
all States (whichever average per-pupil
expenditure is greater), except that a
local educational agency with a total
student enrollment of less than 350
students shall be deemed to have
satisfied such per-pupil expenditure
requirement, and has a tax rate for
general fund purposes which is at least
95 percent of the average tax rate for
general fund purposes of comparable
local educational agencies in the
State; or
``(cc) has a total student enrollment
of not less than 25,000 students, of
which not less than 50 percent are
federally connected children described
in subsection (a)(1) and not less than
6,000 of such federally connected
children are children described in
subparagraphs (A) and (B) of subsection
(a)(1).
``(iii) Resumption of eligibility.--A heavily
impacted local educational agency described in
clause (i) or (ii) that becomes ineligible
under either such clause for 1 or more fiscal
years may resume eligibility for a basic
support payment under this paragraph for a
subsequent fiscal year only if the agency meets
the requirements of item (aa), (bb), or (cc) of
clause (ii)(II) for that subsequent fiscal
year.
``(C) Eligibility for new heavily impacted local
educational agencies.--
``(i) In general.--A heavily impacted local
educational agency that did not receive an
additional assistance payment under subsection
(f) (as such subsection was in effect on the
day before the date of the enactment of the
Impact Aid Reauthorization Act of 2000) for
fiscal year 2000 is eligible to receive a basic
support payment under subparagraph (A) for
fiscal year 2002 and any subsequent fiscal year
with respect to a number of children determined
under subsection (a)(1) only if the agency--
``(I) has an enrollment of federally
connected children described in
subsection (a)(1) which constitutes a
percentage of the total student
enrollment of such agency which (aa) is
not less than 50 percent if such agency
receives a payment on behalf of
children described in subparagraphs (F)
and (G) of such subsection or (bb) is
not less than 40 percent if such agency
does not receive a payment on behalf of
such children;
``(II)(aa) is a local educational
agency whose boundaries are the same as
a Federal military installation; or
``(bb) is a local educational agency
that has a tax rate for general fund
purposes which is at least 95 percent
of the average tax rate for general
fund purposes of comparable local
educational agencies in the State; and
``(III)(aa) for a local educational
agency that has a total student
enrollment of 350 or more students, the
agency has a per-pupil expenditure that
is less than the average per-pupil
expenditure of the State in which the
agency is located; or
``(bb) for a local educational agency
that has a total student enrollment of
less than 350 students, the agency has
a per-pupil expenditure that is less
than the average per-pupil expenditure
of a comparable agency in the State in
which the agency is located.
``(ii) Resumption of eligibility.--A heavily
impacted local educational agency described in
clause (i) that becomes ineligible under such
clause for 1 or more fiscal years may resume
eligibility for a basic support payment under
this paragraph for a subsequent fiscal year
only if the agency meets the requirements of
subclauses (I), (II), and (III) of clause (i)
for that subsequent fiscal year.
``(iii) Application.--With respect to the
first fiscal year for which a heavily impacted
local educational agency described in clause
(i) applies for a basic support payment under
subparagraph (A), or with respect to the first
fiscal year for which a heavily impacted local
educational agency applies for a basic support
payment under subparagraph (A) after becoming
ineligible under clause (i) for 1 or more
preceding fiscal years, the agency shall apply
for such payment at least 1 year prior to the
start of that first fiscal year.
``(D) Maximum amount for regular heavily impacted
local educational agencies.--(i) Except as provided in
subparagraph (E), 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) (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)(I) 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 subparagraph (D) or (E) (or a combination
thereof) of subsection (a)(1), the Secretary shall
calculate the weighted student units of such children
for purposes of subsection (a)(2) by multiplying the
number of such children by a factor of 0.55.
``(II) For a local educational agency that has an
enrollment of 100 or fewer federally connected 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 has an
enrollment of more than 100 but not more than 750
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.
``(E) 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 federally connected children described in
subsection (a)(1) and not less than 6,000 of such
federally connected children are children described in
subparagraphs (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 subparagraphs (A) and
(B) of subsection (a)(1) shall be 1.35.
``(F) Data.--For purposes of providing assistance
under this paragraph, the Secretary shall use student,
revenue, expenditure, and tax data from the third
fiscal year preceding the fiscal year for which the
local educational agency is applying for assistance
under this paragraph.''.
(b) Payments With Respect to Fiscal Years in Which Insufficient
Funds Are Appropriated.--Paragraph (3) of section 8003(b) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)), as
redesignated, is amended--
(1) in subparagraph (A), by striking ``paragraph (1)'' and
inserting ``paragraphs (1) and (2)'';
(2) in subparagraph (B)--
(A) in the heading, by inserting after ``payments''
the following: ``in lieu of payments under paragraph
(1)'';
(B) in the matter preceding subclause (I) of clause
(i), by inserting after ```threshold payment')'' the
following: ``in lieu of basic support payments under
paragraph (1)'';
(C) in clause (ii), by striking ``paragraph (1)'' and
inserting ``clause (i)''; and
(D) by adding at the end the following:
``(iv) In the case of a local educational agency that
has a total student enrollment of fewer than 1,000
students and that has a per-pupil expenditure that is
less than the average per-pupil expenditure of the
State in which the agency is located, the total
percentage used to calculate threshold payments under
clause (i) shall not be less than 40 percent.'';
(3) by redesignating subparagraph (C) as subparagraph (D);
(4) by inserting after subparagraph (B) the following:
``(C) Learning opportunity threshold payments in lieu
of payments under paragraph (2).--For fiscal years
described in subparagraph (A), the learning opportunity
threshold payment in lieu of basic support payments
under paragraph (2) shall be equal to the amount
obtained under subparagraph (D) or (E) of paragraph
(2), as the case may be.''; and
(5) in subparagraph (D) (as redesignated), by striking
``computation made under subparagraph (B)'' and inserting
``computations made under subparagraphs (B) and (C)''.
(c) Conforming Amendments.--(1) Section 8002(b)(1)(C) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7702(b)(1)(C)) is amended by striking ``section 8003(b)(1)(C)'' and
inserting ``paragraph (1)(C) of section 8003(b) or subparagraph (D) or
(E) of paragraph (2) of such section, as the case may be''.
(2) Section 8003 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7703) is amended--
(A) in subsection (a)(1), by striking ``subsection (b), (d),
or (f)'' and inserting ``subsection (b) or (d)'';
(B) in subsection (b)--
(i) in paragraph (1)(C), in the matter preceding
clause (i), by striking ``this subsection'' and
inserting ``this paragraph''; and
(ii) in paragraph (4) (as redesignated)--
(I) in subparagraph (A), by striking
``paragraphs (1)(B), (1)(C), and (2) of this
subsection'' and inserting ``subparagraphs (B)
and (C) of paragraph (1) or subparagraphs (B)
through (D) of paragraph (2), as the case may
be, paragraph (3) of this subsection''; and
(II) in subparagraph (B)--
(aa) by inserting after ``paragraph
(1)(C)'' the following: ``or
subparagraph (D) or (E) of paragraph
(2), as the case may be,''; and
(bb) by striking ``paragraph (2)(B)''
and inserting ``subparagraph (B) or (C)
of paragraph (3)'';
(C) in subsection (c)(1), by striking ``paragraph (2) and
subsection (f)'' and inserting ``subsection (b)(2) and
paragraph (2)'';
(D) by striking subsection (f); and
(E) in subsection (i), by striking ``sections 8002 and
8003(b)'' and inserting ``section 8002 and subsection (b) of
this section''.
SEC. 7. BASIC SUPPORT PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES AFFECTED
BY REMOVAL OF FEDERAL PROPERTY.
Section 8003(b) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7703(b)), as amended by this Act, is further amended by
adding at the end the following:
``(5) Local educational agencies affected by removal of
federal property.--
``(A) In general.--In computing the amount of a basic
support payment under this subsection for a fiscal year
for a local educational agency described in
subparagraph (B), the Secretary shall meet the
additional requirements described in subparagraph (C).
``(B) Local educational agency described.--A local
educational agency described in this subparagraph is a
local educational agency with respect to which Federal
property (i) located within the boundaries of the
agency, and (ii) on which 1 or more children reside who
are receiving a free public education at a school of
the agency, is transferred by the Federal Government to
another entity in any fiscal year beginning on or after
the date of the enactment of the Impact Aid
Reauthorization Act of 2000 so that the property is
subject to taxation by the State or a political
subdivision of the State.
``(C) Additional requirements.--The additional
requirements described in this subparagraph are the
following:
``(i) For each fiscal year beginning after
the date on which the Federal property is
transferred, a child described in subparagraph
(B) who continues to reside on such property
and who continues to receive a free public
education at a school of the agency shall be
deemed to be a child who resides on Federal
property for purposes of computing under the
applicable subparagraph of subsection (a)(1)
the amount that the agency is eligible to
receive under this subsection.
``(ii)(I) For the third fiscal year beginning
after the date on which the Federal property is
transferred, and for each fiscal year
thereafter, the Secretary shall, after
computing the amount that the agency is
otherwise eligible to receive under this
subsection for the fiscal year involved, deduct
from such amount an amount equal to the revenue
received by the agency for the immediately
preceding fiscal year as a result of the
taxable status of the former Federal property.
``(II) For purposes of determining the amount
of revenue to be deducted in accordance with
subclause (I), the local educational agency--
``(aa) shall provide for a review and
certification of such amount by an
appropriate local tax authority; and
``(bb) shall submit to the Secretary
a report containing the amount
certified under item (aa).''.
SEC. 8. ADDITIONAL PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES WITH HIGH
CONCENTRATIONS OF CHILDREN WITH SEVERE
DISABILITIES.
(a) Repeal.--Subsection (g) of section 8003 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(g)) is repealed.
(b) Conforming Amendments.--(1) Section 8003 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703) is amended by
redesignating subsections (h) and (i) as subsections (f) and (g),
respectively.
(2) Section 426 of the General Education Provisions Act (20 U.S.C.
1228) is amended by striking ``subsections (d) and (g) of section 8003
of such Act'' and inserting ``section 8003(d) of such Act''.
SEC. 9. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.
Section 8005(d) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7705(d)) is amended--
(1) in paragraph (2), by inserting after ``not more than 60
days after a deadline established under subsection (c)'' the
following: ``, or not more than 60 days after the date on which
the Secretary sends written notice to the local educational
agency pursuant to paragraph (3)(A), as the case may be,''; and
(2) in paragraph (3) to read as follows:
``(3) Late applications.--
``(A) Notice.--The Secretary shall, as soon as
practicable after the deadline established under
subsection (c), provide to each local educational
agency that applied for a payment under section 8002 or
8003 for the prior fiscal year, and with respect to
which the Secretary has not received an application for
a payment under either such section (as the case may
be) for the fiscal year in question, written notice of
the failure to comply with the deadline and instruction
to ensure that the application is filed not later than
60 days after the date on which the Secretary sends the
notice.
``(B) Acceptance and approval of late applications.--
The Secretary shall not accept or approve any
application of a local educational agency that is filed
more than 60 days after the date on which the Secretary
sends written notice to the local educational agency
pursuant to subparagraph (A).''.
SEC. 10. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN ATTENDANCE OF
MILITARY DEPENDENTS.
Section 8006 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7706) is repealed.
SEC. 11. CONSTRUCTION.
(a) In General.--Section 8007 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7707) is amended to read as follows:
``SEC. 8007. CONSTRUCTION.
``(a) Construction Payments Authorized.--
``(1) In general.--From 70 percent of the amount appropriated
for each fiscal year under section 8014(e), the Secretary shall
make payments in accordance with this subsection to each local
educational agency that receives a basic support payment under
section 8003(b) for that fiscal year.
``(2) Additional requirements.--A local educational agency
that receives a basic support payment under section 8003(b)(1)
shall also meet at least 1 of the following requirements:
``(A) The number of children determined under section
8003(a)(1)(C) for the agency for the preceding school
year constituted at least 50 percent of the total
student enrollment in the schools of the agency during
the preceding school year.
``(B) The number of children determined under
subparagraphs (B) and (D)(i) of section 8003(a)(1) for
the agency for the preceding school year constituted at
least 50 percent of the total student enrollment in the
schools of the agency during the preceding school year.
``(3) Amount of payments.--
``(A) Local educational 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)(II) 35 percent of the amount
appropriated under section 8014(e) for such
fiscal year; divided by
``(II) the total number of weighted student
units of children described in subparagraphs
(B) and (D)(i) of section 8003(a)(1) for all
local educational agencies described in this
subsection (as calculated under section
8003(a)(2)), including the number of weighted
student units of such 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
prior fiscal year; multiplied by
``(ii) the total number of such weighted
student units for the agency.
``(B) Local educational agencies impacted by children
who reside on indian lands.--The amount of a payment to
each local educational agency described in this
subsection that is impacted by children who reside on
Indian lands for a fiscal year shall be equal to--
``(i)(I) 35 percent of the amount
appropriated under section 8014(e) for such
fiscal year; divided by
``(II) the total number of weighted student
units of children described in section
8003(a)(1)(C) for all local educational
agencies described in this subsection (as
calculated under section 8003(a)(2));
multiplied by
``(ii) the total number of such weighted
student units for the agency.
``(4) Use of funds.--Any local educational agency that
receives funds under this subsection shall use such funds for
construction, as defined in section 8013(3).
``(b) School Facility Modernization Grants Authorized.--
``(1) In general.--From 30 percent of the amount appropriated
for each fiscal year under section 8014(e), the Secretary shall
award grants in accordance with this subsection to eligible
local educational agencies to enable the local educational
agencies to carry out modernization of school facilities.
``(2) Eligibility requirements.--A local educational agency
is eligible to receive funds under this subsection only if--
``(A) such agency (or in the case of a local
educational agency that does not have the authority to
tax or issue bonds, such agency's fiscal agent) has no
capacity to issue bonds or is at such agency's limit in
bonded indebtedness for the purposes of generating
funds for capital expenditures; and
``(B)(i) such agency received assistance under
section 8002(a) for the fiscal year and has an assessed
value of taxable property per student in the school
district that is less than the average of the assessed
value of taxable property per student in the State in
which the local educational agency is located; or
``(ii) such agency received assistance under
subsection (a) for the fiscal year and has a school
facility emergency, as determined by the Secretary,
that poses a health or safety hazard to the students
and school personnel assigned to the school facility.
``(3) Award criteria.--In awarding grants under this
subsection the Secretary shall consider 1 or more of the
following factors:
``(A) The extent to which the local educational
agency lacks the fiscal capacity to undertake the
modernization project without Federal assistance.
``(B) The extent to which property in the local
educational agency is nontaxable due to the presence of
the Federal Government.
``(C) The extent to which the local educational
agency serves high numbers or percentages of children
described in subparagraphs (A), (B), (C), and (D) of
section 8003(a)(1).
``(D) The need for modernization to meet--
``(i) the threat that the condition of the
school facility poses to the safety and well-
being of students;
``(ii) overcrowding conditions as evidenced
by the use of trailers and portable buildings
and the potential for future overcrowding
because of increased enrollment; and
``(iii) facility needs resulting from actions
of the Federal Government.
``(E) The age of the school facility to be
modernized.
``(4) Other award provisions.--
``(A) Federal share.--The Federal funds provided
under this subsection to a local educational agency
described in subparagraph (C) shall not exceed 50
percent of the total cost of the project to be assisted
under this subsection. A local educational agency may
use in-kind contributions to meet the matching
requirement of the preceding sentence.
``(B) Maximum grant.--A local educational agency
described in subparagraph (C) may not receive a grant
under this subsection in an amount that exceeds
$3,000,000 during any 5-year period.
``(C) Local educational agency described.--A local
educational agency described in this subparagraph is a
local educational agency that has the authority to
issue bonds but is at such agency's limit in bonded
indebtedness for the purposes of generating funds for
capital expenditures.
``(5) Applications.--A local educational agency that desires
to receive a grant under this subsection shall submit an
application to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may require.
Each application shall contain--
``(A) documentation certifying such agency's lack of
bonding capacity;
``(B) a listing of the school facilities to be
modernized, including the number and percentage of
children determined under section 8003(a)(1) in average
daily attendance in each school facility;
``(C) a description of the ownership of the property
on which the current school facility is located or on
which the planned school facility will be located;
``(D) a description of any school facility deficiency
that poses a health or safety hazard to the occupants
of the school facility and a description of how that
deficiency will be repaired;
``(E) a description of the modernization to be
supported with funds provided under this subsection;
``(F) a cost estimate of the proposed modernization;
and
``(G) such other information and assurances as the
Secretary may reasonably require.
``(6) Emergency grants.--
``(A) Applications.--Each local educational agency
described in paragraph (2)(B)(ii) that desires a grant
under this subsection shall include in the application
submitted under paragraph (5) a signed statement from
an appropriate local official certifying that a health
or safety deficiency exists.
``(B) Priority.--If the Secretary receives more than
1 application from local educational agencies described
in paragraph (2)(B)(ii) for grants under this
subsection for any fiscal year, the Secretary shall
give priority to local educational agencies based on
the severity of the emergency, as determined by the
Secretary, and when the application was received.
``(C) Consideration for following year.--A local
educational agency described in paragraph (2)(B)(ii)
that applies for a grant under this subsection for any
fiscal year and does not receive the grant shall have
the application for the grant considered for the
following fiscal year, subject to the priority
described in subparagraph (B).''.
(b) Definition.--Section 8013 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7713) is amended by adding at the end
the following:
``(13) Modernization.--The term `modernization' means repair,
renovation, alteration, or construction, including--
``(A) the concurrent installation of equipment; and
``(B) the complete or partial replacement of an
existing school facility, but only if such replacement
is less expensive and more cost-effective than repair,
renovation, or alteration of the school facility.''.
SEC. 12. FEDERAL ADMINISTRATION.
Section 8010(c) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7710(c)) is amended--
(1) by striking paragraph (1);
(2) by redesignating paragraphs (2) and (3) as paragraphs (1)
and (2), respectively; and
(3) in paragraph (2)(D) (as redesignated), by striking
``section 5(d)(2) of the Act of September 30, 1950 (Public Law
874, 81st Congress) (as such section was in effect on the day
preceding the date of enactment of the Improving America's
Schools Act of 1994) or''.
SEC. 13. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.
(a) Administrative Hearings.--
(1) In general.--Section 8011(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7711) is amended by
adding at the end before the period the following: ``if the
local educational agency or State, as the case may be, submits
to the Secretary a request for the hearing not later than 60
days after the date of the action of the Secretary under this
title''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to an action of the Secretary under
title VIII of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7701 et seq.) initiated on or after the date of
the enactment of this Act.
(b) Judicial Review of Secretarial Action.--Section 8011(b)(1) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7711(b)(1)) is amended by striking ``60 days'' and inserting ``30
working days (as determined by the local educational agency or
State)''.
SEC. 14. DEFINITIONS.
Section 8013(5)(A)(iii) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7713(5)(A)(iii)) is amended--
(1) in subclause (I), by striking ``or'' at the end; and
(2) by adding at the end the following:
``(III) affordable housing assisted under the
Native American Housing Assistance and Self-
Determination Act of 1996; or''.
SEC. 15. AUTHORIZATION OF APPROPRIATIONS.
(a) Payments for Federal Acquisition of Real Property.--Section
8014(a) of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7714(a)) is amended by striking ``$16,750,000 for fiscal year
1995'' and inserting ``$32,000,000 for fiscal year 2000''.
(b) Basic Payments.--Section 8014(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7714(b)) is amended--
(1) by striking ``subsections (b) and (f) of section 8003''
and inserting ``section 8003(b)'';
(2) by striking ``$775,000,000 for fiscal year 1995'' and
inserting ``$809,400,000 for fiscal year 2000''; and
(3) by striking ``, of which 6 percent'' and all that follows
and inserting a period.
(c) Payments for Children With Disabilities.--Section 8014(c) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714(c))
is amended by striking ``$45,000,000 for fiscal year 1995'' and
inserting ``$50,000,000 for fiscal year 2000''.
(d) Payments for Increases in Military Children.--Subsection (d) of
section 8014 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7714) is repealed.
(e) Construction.--Section 8014(e) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7714(e)) is amended by striking
``$25,000,000 for fiscal year 1995'' and inserting ``$10,052,000 for
fiscal year 2000''.
(f) Facilities Maintenance.--Section 8014(f) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7714(f)) is amended by
striking ``$2,000,000 for fiscal year 1995'' and inserting ``$5,000,000
for fiscal year 2000''.
(g) Additional Assistance for Certain Local Educational Agencies
Impacted by Federal Property Acquisition.--Section 8014(g) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714(g)) is
amended--
(1) in the heading, by striking ``Federal Property Local
Educational Agencies'' and inserting ``Local Educational
Agencies Impacted by Federal Property Acquisition''; and
(2) by striking ``such sums as are necessary beginning in
fiscal year 1998 and for each succeeding fiscal year'' and
inserting ``$1,500,000 for fiscal year 2000 and such sums as
may be necessary for each of the four succeeding fiscal
years''.
SEC. 16. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
October 1, 2000, or the date of the enactment of this Act, whichever
occurs later.
Committee Action
The Subcommittee on Early Childhood, Youth and Families
held one hearing in Washington, DC on Impact Aid on March 17,
1999. The Subcommittee received testimony from two panels of
witnesses. Panel 1: The Honorable Randy ``Duke'' Cunningham,
Representative of the 51st District, California, U.S. House of
Representatives; The Honorable Earl Pomeroy, At-Large
Representative, South Dakota, U.S. House of Representatives;
The Honorable Lee Terry, Representative of the 2nd District,
Nebraska, U.S. House of Representatives; and The Honorable Chet
Edwards, Representative of the 11th District, Texas, U.S. House
of Representatives. Panel 2: Dr. Wayne Lett, Superintendent,
Newport News Public School System, Newport News, Virginia; Dr.
Richard Carson, Superintendent, North Hanover Township Board of
Education, McGuire AFB, New Jersey; Mr. Chuck Squier,
Superintendent, Santee School District, Niobrara, Nebraska; and
Mr. Dennis Jarrett, Director of Finance, York County School
Board, Yorktown, Virginia.
Introduction of the Impact Aid Reauthorization Act of 2000
On February 10, 2000, Mr. Robin Hayes (R-NC) introduced
H.R. 3616, the Impact Aid Reauthorization Act of 2000.
Legislative action
On February 16, 2000, the Committee on Education and the
Workforce assembled to consider H.R. 3616, the Impact Aid
Reauthorization Act of 2000. An amendment in the nature of a
substitute, offered by Chairman Goodling, was adopted by voice
vote, and the bill was favorably reported by the Committee on
Education and the Workforce by a voice vote.
Purpose
The purpose of this legislation is to reauthorize and
improve the Impact Aid program so it can continue to provide
important financial assistance to local educational agencies
affected by the removal of property from local tax rolls.
Summary
H.R. 3616 provides several essential changes to the Impact
Aid program to ensure assistance to local educational agencies
is provided in a fair and equitable manner. It adjusts the
funding formula for payments for federal property removed from
the tax rolls, incorporates payments for heavily impacted local
educational agencies into the basic payment structure,
addresses issues related to the privatization of military
housing, modifies the construction program, and provides for
local educational agencies to be notified if they miss the
deadline for filing applications for payments. The bill also
provides for the needs of small, poor districts by establishing
a funding floor for qualifying local educational agencies.
Committee Views
background and need for legislation
Over the years, the Impact Aid program has been the subject
of much debate and numerous legislative proposals and
amendments. This section provides a brief history of the Impact
Aid program.
As originally enacted in 1950, the Impact Aid program was
authorized for three years to provide federal financial
assistance under four circumstances: (1) local educational
agencies in which the federal government had acquired (after
1938) substantial real property that, as a result of the
federal acquisition, became tax-exempt, thus reducing the local
tax base; (2) local educational agencies providing a free
public education for substantial numbers of federally connected
students; (3) local educational agencies adversely affected by
sudden and substantial increases in enrollments by federally
connected students; and (4) payments to other federal agencies
for the operation of schools for federally connected students
where local educational agencies could not provide a free
public education for them--usually schools on military bases.
While the basic structure and purpose of the Impact Aid
program has remained intact since its enactment in 1950, the
program has been frequently amended. The effect of these
amendments, with certain exceptions, has been to increase the
number of local educational agencies receiving Impact Aid
payments and the amounts of those payments. Over the 20 years
(1953 through 1973) that followed the initial 3-year
authorization of Impact Aid, Congress revised the original
legislation to permit children of parents in the uniformed
services and Indian children to be considered as ``federally
connected.'' The definition of what constitutes ``federal
property'' was also expanded to include low-rent public housing
property. These amendments increased the number of students
that could be counted for the purpose of calculating Impact Aid
payments.
As a result of declining appropriations during the 1980's
the appropriations committees tried to target dollars to those
local educational agencies that were highly dependent on Impact
Aid dollars to run their schools. Although these amendments did
provide some relief to highly impacted local educational
agencies, it did so by adding a variety of new subcategories
(Super A, Subsuper A, Regular A, Super B, and Regular B) to the
program, only to make Impact Aid more complex. Funds were to be
allocated to local educational agencies based on their
percentage of federally connected students enrolled--with
different amounts being allocated based on whether or not
students were considered category ``a'' children or category
``b'' children. Because of the drop off in funding, the Impact
Aid program became more susceptible to the parochial interests
of the program, which, in turn, made the program more complex.
The need for program reform was becoming more noticed by the
authorizing committees.
Amendments to Impact Aid made during the reauthorization of
the Elementary and Secondary Education Act in 1988 addressed
some of these concerns; however, serious problems continued
until the reforms brought about as a part of the Improving
America's Schools Act of 1994 were made. The most significant
changes enacted at this time affected how local educational
agencies were compensated for so-called ``federally connected''
children. A major change was the recognition that the program
was not going to be fully funded, and that a more rationale
formula must be adopted to better allocate the dollars
available to those school districts that had a greater
dependence on Impact Aid dollars to run their schools. Prior
law based payments on the ratio of ``federally connected
children'' to total enrollment in school districts. During the
1994 amendments this provision was modified to include the
ratio of Impact Aid payments to a local educational agency's
total current expenditures. As a result, districts with a
higher percentage of federally connected children and with
higher percentages of Impact Aid funds would receive a larger
percentage of their full payment.
Although Impact Aid represents a federal commitment to
local educational agencies impacted by the presence of the
federal government, the lack of full funding had created a
variety of different funding steps that tried to factor in
``need.'' It did so with little attention actually given to a
local educational agency's dependence on Impact Aid funding to
carry on the day-to-day operations of running a school. The
1994 changes to the Impact Aid law created a new system that
recognized that some local educational agencies depended more
on Impact Aid than others. For the first time a true ``need''
component was placed in the law.
Another key revision was the general elimination of
payments for the children of civilian employees who either
lived or worked on federal property. Support for these children
was limited to local educational agencies that enrolled at
least 2,000 of such children and such children represented at
least 15 percent of the local educational agency's total
enrollment. That change represented a bipartisan plan intended
to better target Impact Aid dollars to those local educational
agencies with the greatest need.
The Improving America's Schools Act also modified
provisions dealing with payments for federal property. Prior to
the 1994 amendments, payments were made based on the current
assessed value of property of the same use and condition as the
federal property was at the time of purchase. This provision
was modified to base payments on the actual assessed value of
the taxable property adjacent to the federal property as
determined by the local tax assessor.
Since the 1994 amendments, the program has been working as
intended and has received significant increases in
appropriations. However, the Committee has been made aware of
several areas where further modifications are necessary and
addresses these concerns. --
views
The changes to the Impact Aid statute being proposed by the
House Education and Workforce Committee make refinements to the
1994 reauthorization bill.
Payments relating to Federal acquisition of real property-
In 1994, the formula by which a local educational agency's
maximum payment was to be determined was changed to reflect the
actual assessed value of the taxable property immediately
adjacent to the federal property. The law continued the
provision basing eligibility on property purchased by the
federal government on or after January 1, 1939 that at the time
of purchase had a total value equal to at least 10% of the
total assessed value of all the taxable property within the
boundaries of the taxing authority of the local educational
agency. However, the method for determining the amount of the
payment received by the local educational agency was modified.
Under the pre-1994 changes, a local educational agency's
maximum payment was calculated by determining the assessed
value of property within the taxing boundaries of the agency
that is similar to the type of property originally purchased by
the federal government. For example, if the property was
considered as agricultural property by the taxing authority at
the time of purchase, the assessment of the federal property
must be the same as the current assessment of similar
agricultural property within the taxing boundaries of the local
educational agency. Under this system of determining
assessments, the total amount of the national assessment for
all the eligible property in 1994 was approximately $28
million. The amount appropriated in fiscal year 1994 paid
approximately 250 eligible local educational agencies 61% of
their maximum payment.
The 1994 changes created a new system for determining a
local educational agency's maximum payment. Rather than using
land comparable to the type of land the property was at the
time of purchase by the federal government, the Department of
Education would now appraise the value of the taxable property
adjacent to the federal land, called the ``highest and best''
method. This new method appraised the federal land based on the
value of the taxable land adjacent to the federal land. For
example, if an industrial park or a shopping mall now resided
next to the federal property, the Department of Education would
determine (based on data provided by the local tax assessor)
the maximum payment of the federal land as based on the
assessed value of the industrial park or shopping mall. At that
time, the Committee felt this approach better measured the loss
of property tax to the local educational agency as determined
by what had happened to the property adjacent to the federal
property since the original date of purchase. When the new
method was authorized in 1994, however, it increased the total
amount of funds needed to fully fund the estimated 250 eligible
local educational agencies to an amount of approximately $300
million. However, the amount appropriated for this line item
did not increase at the same rate. In fiscal year 2000, the
Section 8002 program received $32 million, just a little over
10% of the amount needed.
The Committee recognized that problems were occurring in
that a majority of the eligible rural local educational
agencies would not see the assessed value of their federal
property increase to the same degree as many urban local
educational agencies. As a result, urban local educational
agencies would absorb most of the money while the rural local
educational agencies would see significantly lower payments. To
address this problem the original 1994 legislation provided for
a three-year hold harmless that was then extended throughout
the period of the authorization in technical amendments passed
in 1997. The hold harmless provided that those school districts
eligible for federal property payments would be provided a
payment based on the amount of their fiscal year 1994 payment,
which, due to insufficient appropriations, represented 61
percent of their fiscal year maximum payment. The hold harmless
established a three-year phase down covering fiscal years 1995-
1997. The fiscal year 1995 payment was based on 85 percent of
the fiscal year 1994 payment, with each of the following two
fiscal years continuing to apply the 85 percent factor to the
amount received in the previous fiscal year. The fiscal year
1998 payment and subsequent years was then set at the amount
received by each school district in fiscal year 1997.
In order to maintain a funding balance between the rural
and urban school districts, the Committee bill establishes a
funding floor for all local educational agencies at 37 percent
of a local educational agency's fiscal year 1994 maximum
payment. Thirty-seven percent was established as the funding
floor because it represents each local educational agency's
actual payment as a percentage of their 1994 maximum payment
when computing the three-year phase-down contained in the hold
harmless. The Committee felt that this funding level, which is
comparable to the amount received in fiscal year 1997, would be
fair and equitable to all school districts funded under this
section. All federal property school districts--both rural and
urban--would receive, at a minimum, an amount equal to their
percentage of what they would have received in fiscal year 1994
as reduced by the three-year hold harmless. The bill directs
the Secretary of Education to make payments as provided under
the funding floor (foundation payment) established by the bill
before any other payments are made.
Following payment of the funding floor, the Committee bill
would allocate the remaining dollars, not to exceed the amount
appropriated in fiscal year 1996, as per the formula adopted in
the 1994 amendments. This insures that those school districts
benefiting by the 1994 changes in determining the value of the
federal property will receive additional dollars to reflect the
increased value of their federal property.
After the initial allocation of payments, the Committee
bill would direct the Secretary to allocate: (1) 25 percent of
the funds appropriated above the amount appropriated in fiscal
year 1997 to all districts receiving a foundation payment. The
allocation would be pro-rated based on the same percentage of
funds that each district received under the foundation payment.
This will ensure that the rural districts continue to see an
increase in their federal property payments as the
appropriations for the program grow and (2) 75 percent of the
funds appropriated above the fiscal year 1997 level under the
highest and best formula contained in current law. This ensures
that those school districts with increased property assessments
(primarily urban districts) receive a greater portion of the
new money to reflect the higher property values in their area.
This provision is designed to insure that predominantly
rural local educational agencies will continue to receive
foundation payments based on what they received in fiscal year
1994 as well as a small portion of their ``highest and best''
payment. At the same time the urban local educational agencies
favored under the revised ``highest and best'' formula will
receive their foundation payment in addition to a payment under
the ``highest and best'' formula that reflects the increased
assessments of their federal property under the 1994 change to
the law.
In order to receive funding under this revised provision of
law, all eligible local educational agencies must be eligible
for funding in the year they are applying.
Preliminary payments for federal property
H.R. 3616 adds a new subsection (l) that provides a
preliminary payment to Section 8002 eligible local educational
agencies. It requires that such local educational agencies
receive a preliminary payment equal to 60% of the amount
received from the previous fiscal year no later than 60 days
following the passage of the applicable appropriations bill.
Final payment is to be made no later than 12 months following
the close of the application deadline (normally January 31).
The new provision also requires that any data to be submitted
to the Department of Education from a local educational agency
must be filed no later than 30 days following the close of the
application deadline, i.e. tax rates, assessment data, etc. The
Committee expects that the Department will not hold up final
payments because data has not been received from eligible
school districts. In addition, H.R. 3616 provides that any
applicant not complying with the new data submission
requirement shall be denied their final payment from funds
appropriated under the applicable appropriations bill. Denial
of a payment in one year, however, would not affect the local
educational agency's future eligibility for Section 8002
funding.
Renovation and rebuilding
Current law provides that children who move off base during
the renovation of on-base housing continue to be considered as
on-base children for purposes of calculating Impact Aid
payments. H.R. 3616 extends this provision to cover children
who move off base during periods when the housing in which they
reside is demolished and new housing is built on the military
base. However, this new provision only allows these children to
be considered as on-base children for a period of two years. In
addition, only the number of children expected to reoccupy base
housing are permitted to be counted as on-base children for
purposes of calculating Impact Aid payments. The Committee
further understands that when students are relocated for the
purposes of renovation or demolition, it is often not evident
how many students will be returned to base housing. Therefore,
if the estimated number of students cannot be determined by the
Department of Defense at the certification date, the
Committee's intent is for the number of students last reported
in the units in question to be used for reporting purposes by a
local educational agency until accurate information is
available.
The Committee believes that local educational agencies
should not be faced with fluctuating federal support for the
children of military personnel due to efforts by the Department
of Defense to improve military housing. The Committee believes
this provision will benefit both schools and the children of
military personnel. The bill also contains language that would
forgive all school districts whose interpretation of renovation
prior to the enactment of this legislation may result in an
overpayment as determined by the Department of Education. The
Committee does not wish to have any school district face the
potential of having future Impact Aid payments withheld due to
the local educational agency's interpretation of base
renovation prior to fiscal year 2000.
Military ``build to lease'' program
H.R. 3616 addresses an unusual situation affecting the
Travis Independent School District in California. A Department
of Defense program referred to as a ``build to lease'' program
impacts this district. Unlike other military bases that
participated in such a program, the Travis Air Force Base
developed a program that took private property upon which
military housing was constructed, and then expanded the
parameters of the base to take in the housing complex. For
example, the only access to the complex is through the main
gate to the base and all fire and safety services are provided
by the military police, etc. It did not, however, put the land
into federal ownership. Under this provision, the children
residing in such housing would be considered as on-base
students and counted as such when calculating the Impact Aid
payment for the local educational agency. However, any tax
revenue received by the local educational agency would then be
subtracted from the Impact Aid payment provided to the Travis
Independent School District. This language codifies the
language currently in both the fiscal year 1999 and fiscal year
2000 appropriations bills.
Payments for small school districts
The Committee is aware of the difficulty faced by many
small local educational agencies that have seen their Impact
Aid payments reduced because of a dramatic decrease in the
number of eligible children. In order to provide assistance to
these small, often poor local educational agencies, the
Committee bill would provide them with a funding floor of forty
percent of the Impact Aid payment they would have received if
the program were fully funded.
Basic support payments for heavily impacted local educational agencies
The Committee believes it is vital that heavily impacted
school districts receive compensation in a timely manner. That
is the purpose of the second major change from the existing
statute. Although there is no change to the intent of this
provision (formerly Section 8003(f) in existing law), H.R. 3616
would move the supplemental program for heavily impacted
districts in current law into the basic support program. This
concept has been tested in both the fiscal year 1999 and fiscal
year 2000 appropriations bills and has been extremely
successful.
The purpose of this change is to expedite the supplemental
payments received by heavily impacted school districts. H.R.
3616 would change both the method by which the supplemental
payments are calculated and paid out. Under the existing
statute, local educational agencies that are eligible (in FY
2000 there were 28 local educational agencies eligible) are
provided a supplemental payment. This payment is based on a
formula that requires the Department of Education to collect a
variety of data from the state educational agency including tax
data, per pupil spending, available revenue, and comparable
data from other local educational agencies in the state. As a
result, supplemental payments are made as long as 18 to 24
months following the fiscal year in which an appropriation was
initially made.
Although the initial requirements for eligibility remain
the same as in current law, the Committee bill would require
that newly eligible local educational agencies receive funding
under this subsection in the year following the year in which
they are deemed eligible. Conversely, if a local educational
agency should be denied eligibility, their payment would cease
the year following their loss of eligibility.
The Committee bill changes the process by which the payment
for a heavily impacted school district will be calculated. The
method in current law provides an additional payment to
eligible local educational agencies that would increase the
local educational agency's per pupil spending to the state
average per pupil expenditure or to the average per pupil
spending of other non-impacted local educational agencies
within the state that are similar in size and grade span. The
committee bill provides that only federally impacted children
are used in the computation of their payment.-
The Committee bill contains a new payment formula by simply
adjusting upward the weights of federal students as used in the
basic weight computation contained in current law. This will
provide for an easier method for the Department of Education to
calculate payments and will expedite the payment process.
The only exception to this calculation process is for
eligible local educational agencies with less than 350 students
in total enrollment. Because smaller local educational agencies
have a higher per pupil expenditure, the weight adjustment
approach will not adequately measure the additional dollars
needed to operate the school. Thus, the Committee bill provides
that these local educational agencies can calculate their
payment based on the per pupil spending of non-federally
connected local educational agencies in their state that are
less than 350 students and are similar in grade span.
The net effect of this change is that, while some local
educational agencies (currently in the program) would see (or
actually have seen through the pilot project) their
supplemental payments drop somewhat from what they received in
the past, payments will be expedited. For example, under the
pilot project of this proposal tested in both the fiscal year
1999 and 2000 appropriations bills, 70% of the fiscal year 1999
payments were paid out within four and one-half months
following passage of the fiscal year 1999 appropriations bill
and the Department of Education expects to pay out 85% of the
total fiscal year 2000 appropriations before March 1, 2000.
Local educational agencies affected by this provision were
willing to see a reduction in their Impact Aid payment in order
to receive funding in a more timely fashion. Since the new
method for calculating payments went into effect two years ago,
the Committee has not heard complaints from any of the local
educational agencies affected by this provision.
Basic support payments for local educational agencies affected by
removal of federal property
This is a new provision that primarily addresses actions
taking place relative to the development of housing for
military personnel. However, it is possible that similar
situations could take place with respect to children residing
on Indian lands. For several years, the Committee has received
testimony from local educational agencies concerned about the
potential impact of efforts by the Department of Defense to
build additional housing for military personnel. They are
primarily concerned that housing built as part of a public/
private partnership will reduce Impact Aid payments to local
school districts for the children of military personnel.
The Committee bill addresses instances in which property
under federal ownership that is located within the boundaries
of the local educational agency is transferred, by an action of
the federal government, to another entity and becomes subject
to taxation. H.R. 3616 amends current law to permit the local
educational agency to continue to count the children residing
on such property as on-federal property dependent children.
However, the Department of Education, when calculating the
local educational agency's payment, would reduce such payment
by whatever amount of revenue the local educational agency
received from taxes assessed and collected on such property.
Because it will require at least two years for the property to
provide taxable revenue to the taxing authority, the Committee
bill provides for a two-year transition period during which
such children would maintain their on-federal property status
for payment purposes. Payments would not be reduced until the
third year.
The Committee takes this action due to its concern that the
development of base housing by the Department of Defense
through the use of private developers provides the potential
for current on-base housing to be deeded over to a private
developer. In such instances, property would become taxable.
Thus far, the federal land upon which new on-base housing is
being constructed through private developers has remained under
federal ownership. This provision will address a concern on the
part of local educational agencies located near military bases.
It would ensure that local educational agencies would not
suffer financially as a result of such transfers should they
occur at some future date.
The Committee notes that any tax revenue collected off of
such property would not be comparable to revenue collected from
off-base housing, as the residence pool for on-base private
housing would be limited for the most part to military
personnel. The assessed value of on-base ``private property''
for example, would not increase over time, but would at best
remain level.
It is the belief of the Committee that this provision
provides a fair resolution to what could become a difficult
problem in future years for school districts providing an
education to the children of military personnel.
Late applications for impact aid assistance
H.R. 3616 includes a provision intended to address the
numerous amendments contained in yearly appropriations bills to
provide that late applications for Impact Aid payments are to
be considered as being timely filed. Current law establishes
very clear timelines for the submission of applications for
Impact Aid. In recent years, local educational agencies have
missed this deadline for a variety of reasons. Section 8005 of
Impact Aid is amended to direct the Department of Education to
notify, in writing, every Impact Aid applicant that does not
submit an application by the date due (normally January 31)
that their application has not been received. This provision
would apply only to those local educational agencies that
applied in the previous year. Applicants receiving such
notification would then have sixty days to submit their
application. After sixty days, local educational agencies would
no longer be eligible for Impact Aid payments for that fiscal
year. The 10 percent late filing penalty would still apply to
those applications received after the original filing deadline.
The Committee believes that local educational agencies will no
longer have an excuse for submitting applications after
established deadlines once this provision is enacted into law.
School Construction
The Committee is concerned that a federal presence may not
only impact tax revenues and expenses of local school
districts, but in some cases can reduce or eliminate the
ability of local educational agencies to issue bonds, which are
often used for the construction or renovation of school
facilities. The Committee bill maintains the current section
8007, now identified as subsection (a) ``Construction
Payments'', and provides that 70% of the funds appropriated for
Impact Aid construction be reserved for this purpose. The only
substantive change from current law to this subsection is that
local educational agencies that provide an educational program
in facilities owned by the Department of Education (Section
8008) would be allowed to count children enrolled in those
facilities for purposes of computing their payment under
Section 8007(a). However, they will only be able to count such
students in a year following a year in which they did not
receive funding from the Department of Education under Section
8008. This will help ensure that such schools receive an
equitable share of funding, without double dipping and
depleting resources available for similar schools.
In addition, the Committee bill creates a new subsection
(b) ``School Facility Modernization Grants'' that will provide
modernization (construction, renovation and repair) funds to
local educational agencies that lack bonding capacity or that
enroll children in a facility with hazardous conditions that
threaten the health and safety of students or school personnel.
Of the funds appropriated for construction, 30% would be
reserved for these schools. Entities that would be eligible for
this money would only include local educational agencies that
lack bonding authority for construction due to a federal
presence, or have limited bonding authority and have exhausted
it. However, local educational agencies with some bonding
authority will be required to match federal funds received on a
one-to-one basis, and would not qualify for a grant in excess
of three million dollars. Further, in addition to lacking
bonding authority, an interested local educational agency will
have to show that it is either eligible for impact aid payments
under section 8002 (federal property districts) and has an
assessed value of taxable property per student that is less
than the average of the assessed value of taxable property per
student in the state in which the local educational agency is
located, or that it is eligible to receive funds under
subsection (a), and has facilities with conditions which
present a health or safety hazard to students. This will ensure
that money awarded under this subsection serves those with the
greatest need.
In creating this new authorized use of construction funds,
it is the intent of the Committee that payments made under the
existing construction authority are made on a timely basis. The
Committee recognizes that the current construction payments are
calculated on a formula basis, while the new authority will
require the Secretary to make payments based on an application
process. The Committee put these two authorities under separate
subsections in order to ensure that the new application process
under subsection (b) does not slow down the payment of formula
grants under subsection (a).
Administrative hearings and judicial review
The Committee bill makes only minor changes to current law.
It clarifies the time line by which a local educational agency
may request a hearing resulting in an action by the Secretary.
The bill also changes from 60 days to 30 days the time allowed
a local educational agency to appeal a decision of the
Secretary to the court of appeals.
In both instances, H.R. 3616 would expedite the time
involved in a local educational agency's appeal to the
Secretary and the subsequent action on the part of the
Secretary to render a decision. Continued delays in such
proceedings sometimes hold up for as much as five years the
Department of Education's ability to process final payments.
The Committee includes this provision at the request of local
educational agencies that wish to expedite the Department's
payment system while still allowing due process to grieved
local educational agencies.
Changes to definitions
Minor changes have been made to the definition section of
the statute to update changes made in Indian housing
legislation since the last reauthorization. There is no policy
change involved. The changes are only intended to conform
existing Indian housing legislation (the Native American
Housing Assistance and Self-Determination Act of 1996) to the
Impact Aid law.
While this is the only change to the definition section of
current law, the Committee would like to clarify its intention
with respect to the calculation of the amount of revenue
available for general fund purposes that the Department uses to
determine the eligibility of a local educational agency for any
program authorized under the Impact Aid Program. The Committee
believes that only those funds not encumbered by contract for
expenditure in any fiscal year should be considered as
available to the local educational agency for general fund
expenditure. The Committee notes that in past instances the
Department of Education has considered funds in the general
fund of a local educational agency to be available even if a
portion of those funds have been obligated by contract for
expenditure in the following fiscal year.
In addition, the Committee wishes to point out that the
language currently in Department of Education regulations
defining the process used to determine the amount of revenue
generated from local sources when computing a local educational
agency's local contribution rate follows the intent of the law
and the Committee would urge that no changes be made to such
regulation.
The Committee bill not only continues to address the needs
of the 1,600 federally impacted local educational agencies that
receive funding under the Impact Aid program, but also refines
and improves the current Impact Aid law so that the federal
obligation first recognized by Congress in 1950 continues into
the 21st century.
Section-by-Section Analysis
Section 1 states the short title as the ``Impact Aid
Reauthorization Act of 2000''.
Section 2 amends and establishes the purpose.
Section 3 describes payments relating to federal
acquisition of real property.
Section 3(a) extends authorization through 2005.
Section 3(b) establishes the amount of payments.
Section 3(c) is amended to read as follows ``Section
8002(h) establishes payments with respect to fiscal years in
which insufficient funds are appropriated.''
Section 3(d) establishes special payments.
Section 3(e) establishes additional assistance for certain
local educational agencies impacted by federal property
acquisition.
Section 3(f) establishes application deadline and payment
requirements.
Section 4 establishes payments for eligible federally
connected children.
Section 4(a) addresses the issue of military installation
housing undergoing renovation or rebuilding.
Section 4(b) addresses military `build to lease' program
housing.
Section 5 establishes the maximum amount of basic support
payments.
Section 6 establishes basic payments for heavily impacted
local educational agencies (LEAs).
Section 6(a) changes the current section 8003(f) to section
8003(b)(2) determining eligibility for heavily impacted local
educational agencies.
Section 6(b) addresses payments with respect to fiscal
years in which insufficient funds are appropriated.
Section 6(c) establishes conforming amendments.
Section 7 establishes basic support payments for local
educational agencies affected by removal of federal property.
Section 8 establishes additional payments for local
educational agencies with high concentrations of children with
severe disabilities.
Section 8(a) repeals subsection (g) of section 8003 of the
Elementary and Secondary Education Act of 1965.
Section 8(b) establishes conforming amendments.
Section 9 establishes the application for payments under
sections 8002 and 8003.
Section 10 establishes payments for sudden and substantial
increases in attendance of military dependents.
Section 11 establishes the construction program.
Section 11(a) authorizes the construction program and
amends Section 8007 of the Elementary and Secondary Education
Act of 1965.
``Section 8007(a) authorizes construction payments and
establishes eligibility.''
``Section 8007(b) authorizes school facility modernization
grants.''
Section 11(b) add the definition of `modernization'.
Section 12 establishes the federal administration.
Section 13 establishes administrative hearings and judicial
review.
Section 14 establishes definitions.
Section 15 establishes the authorization of appropriations.
Section 15(a) establishes the payments for federal
acquisitions of real property.
Section 15(b) establishes basic payments.
Section 15(c) establishes payments for children with
disabilities.
Section 15(d) establishes payments for increases in
military children.
Section 15(e) establishes appropriations for construction.
Section 15(f) establishes appropriations for facilities
maintenance.
Section 15(g) establishes additional assistance for certain
local educational agencies impacted by federal property
acquisitions.
Section 16 establishes the effective date as October 1,
2000.
Explanation of Amendments
The Amendment in the Nature of a Substitute is explained in
the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. This bill, H.R. 3616, the ``Impact Aid Reauthorization
Act of 2000,'' reauthorizes and improves the Impact Aid program
so it can continue to provide important financial assistance to
local educational agencies affected by the removal of property
from local tax rolls. The bill does not prevent legislative
branch employees from receiving the benefits of this
legislation.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. H.R. 3616 reauthorizes and improves the Impact Aid
program so it can continue to provide important financial
assistance to local educational agencies affected by the
removal of property from local tax rolls. As such, the bill
does not contain any unfunded mandates.
Roll Call Votes
Clause 3(b) of Rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the body of this report.
New Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the House of Representatives and section 308(a) of the
Congressional Budget Act of 1974 and with respect to
requirements of 3(c)(3) of Rule XIII of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for H.R. 3616 from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 28, 2000.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3616, the Impact
Aid Reauthorization Act of 2000.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Audra
Millen (for federal costs) and Susan Sieg (for the state and
local impact).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3616--Impact Aid Reauthorization Act of 2000
Summary: H.R. 3616 would reauthorize and revise the Impact
Aid Program under the Elementary and Secondary Education Act of
1965 (ESEA). Under current law, the authorization expires in
2000; H.R. 3616 would extend the authorization through 2004.
Under the General Education Provisions Act (GEPA), programs
funded by the Department of Education receive an automatic one-
year authorization extension. Therefore, the bill would
effectively reauthorize the program through 2005. In addition,
the bill would establish a minimum payment level for small
school districts, introduce a school modernization initiative
within the current construction program, and modify certain
payment formulas and procedures. It would also repeal two
currently unfunded programs that authorize additional payments
for disabled students and districts that experience significant
increases in federally connected students.
CBO estimates that authorizations under the bill would
total $4.8 billion (with adjustments for inflation) or ($4.6
billion (without such adjustments) over the 2001-2005 period.
Assuming appropriations of those amounts, CBO estimates that
additional outlays over the five-year period would total $4.7
billion (with adjustments for inflation) or $4.4 billion
(without adjustments for inflation). These estimates assume a
continuation of current funding levels and do not reflect the
cost of providing the full payments that would be required
under the formulas specified in the ESEA. If full funding of
the formulas has been assumed, the estimated costs would be
roughly twice the amount that CBO estimates for the bill.
Enacting H.R. 3616 would not affect direct spending or
receipts; therefore, pay-as-you-go procedures would not apply.
H.R. 3616 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Enactment of the bill would benefit state and local
governments, and any costs to them would be incurred
voluntarily as conditions of federal aid.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3616 is shown in Table 1. The costs of
this legislation fall within budget function 500 (education,
training, employment, and social services).
TABLE 1. ESTIMATED BUDGETARY EFFECTS OF H.R. 3616
[By fiscal year, in million of dollars]
----------------------------------------------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005
----------------------------------------------------------------------------------------------------------------
Spending Under Current Law:
Budget Authority............................................ 906 0 0 0 0 0
Estimated Outlays........................................... 900 93 21 1 0 0
Without Adjustments for Inflation
Proposed Changes:
Estimated Authorization Level............................... 2 914 914 914 914 914
Estimated Outlays........................................... 1 817 891 913 914 914
Spending Under H.R. 3616:
Estimated Authorization Level............................... 908 914 914 914 914 914
Estimated Outlays........................................... 901 910 911 913 914 914
With Adjustments for Inflation
Total Proposed Changes:
Estimated Authorization Level............................... 2 929 944 960 977 993
Estimated Outlays........................................... 1 831 919 957 974 991
Spending Under H.R. 3616:
Estimated Authorization Level............................... 908 929 944 960 977 993
Estimated Outlays........................................... 900 924 939 957 974 991
----------------------------------------------------------------------------------------------------------------
None: Components may not sum to totals because of rounding.
Basis of estimate
H.R. 3616 would reauthorize and revise the Impact Aid
Program under Title VII of ESEA. The current authorization for
Impact Aid expires at the end of 2000 under GEPA. The bill
would reauthorize funding for 2000 through 2004; however,
programmatic changes would not take effect until 2001. Under
GEPA, the program would automatically be authorized for an
additional year; therefore, CBO estimates costs through 2005.
In general, the bill would set authorization levels for 2000
equal to actual appropriations and would authorize the
appropriation of such sums as necessary for the subsequent
years, when the programmatic changes would become effective.
For 2000, the bill would authorize appropriations totaling
$908 million, $1.5 million more than has been appropriated to
date. CBO assumes spending levels for 2001 through 2005 will
remain consistent with the 2000 amount except when the bill
introduces structural changes that would require additional
funding. Spending is projected two different ways: (1) assuming
that funding each year is identical to the 2000 authorization,
adjusted for program changes, and (2) adjusting the 2000
authorizations for both program changes and projected
inflation. With adjustments for inflation, CBO estimates the
authorizations would total $929 million for 2001 and would grow
to $993 million by 2005. Table 2 shows CBO's estimates of
projected spending for each program, including adjustments for
inflation.
The Impact Aid Program provides assistance to Local
Education Agencies (LEAs) that are hindered in their ability to
generate local revenues for education by their proximity to
federal property. The program provides formula grants to cover
a portion of per-pupil education costs, as well as grants to
support construction and maintenance needs. H.R. 3616 would
continue the program's authorization, introduce minor
revisions, and repeal two provisions.
Payments Relating to Federal Acquisition of Real Property
Under subsection 8002(b) of ESEA, grants are made to LEAs
to compensate for the loss of local property taxes because of
the tax-exempt status of certain federal property. The maximum
amount an LEA is eligible to receive is calculated as the
assessed value of the property times the appropriate tax rate,
less any revenue collected as a result of activities conducted
on such federal property. The amount LEAs receive is subject to
a hold-harmless provision and is ratably reduced if full
funding is not provided. Approximately 100 of the LEAs
receiving payments under this section are also eligible for
basic support payments under section 8003. Payments under
section 8003 compensate LEAs that educate children whose
parents' residence or work location partially or fully exempt
them from paying local taxes. Under current law, the total
payment an LEA receives under both programs cannot exceed its
maximum allowable payment as defined by section 8003.
TABLE 2. ESTIMATED BUDGETARY EFFECTS OF H.R. 3616, WITH ADJUSTMENTS FOR INFLATION
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
Budget Authority............................................ 906 0 0 0 0 0
Estimated Outlays........................................... 900 93 21 1 0 0
Proposed Changes:
Payments for Federal Acquisition of Property:
Payments to LEAs:
Estimated Authorization Level................................... 0 33 33 34 34 35
Estimated Outlays............................................... 0 29 32 34 34 35
Additional Payments:
Estimated Authorization Level................................... 2 2 2 2 2 2
Estimated Outlays............................................... 1 2 2 2 2 2
Payments for Federally Connected Children:
Basic Support and Heavily Impacted Districts:
Estimated Authorization Level................................... 0 823 836 851 865 880
Estimated Outlays............................................... 0 741 818 849 864 878
40 Percent LOT floor for Small LEAs:
Estimated Authorization Level................................... 0 6 6 6 6 6
Estimated Outlays............................................... 0 5 6 6 6 6
Payments for Children with Disabilities:
Estimated Authorization Level........................... 0 51 52 53 53 54
Estimated Outlays....................................... 0 46 51 52 53 54
Construction Grants:
Formula Construction:
Estimated Authorization Level................................... 0 7 7 7 8 8
Estimated Outlays............................................... 0 6 7 7 8 8
School Renovation:
Estimated Authorization Level................................... 0 3 3 3 3 3
Estimated Outlays............................................... 0 0 1 3 3 3
Facilities Maintenance:
Estimated Authorization Level........................... 0 5 5 5 5 5
Estimated Outlays....................................... 0 1 2 4 5 5
Total Proposed Changes:
Estimated Authorization Level............................... 2 929 944 960 977 993
Estimated Outlays........................................... 1 831 919 957 974 991
Total Spending Under H.R. 3616:
Estimated Authorization Level............................... 908 929 944 960 977 993
Estimated Outlays........................................... 901 924 939 957 974 991
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
Information from the Department of Education indicates that
full funding of section 8002 payments would cost over $300
million. The cap on total payments specified in section 8003
would reduce this to approximately $250 million. However,
actual funding in 2000 was $32 million.
The discrepancy between full funding and actual funding
increased significantly as a result of changes made in 1994.
Before 1994, the property valuation base was the assessed value
of similar property. In 1994 the valuation base was changed to
a ``highest and best'' method, under which the value was
determined based on property values of adjacent land. In areas
with significant growth in property values, the calculation of
maximum payments and therefore the basis for allocating actual
payments grew comparably. In contrast, areas with little or no
growth in property values did not experience such an increase
in payments.
The Impact Aid Technical Amendments Act of 1996 (Public Law
104-195) addressed this problem by establishing a payment floor
equal to 37 percent of an LEAs 1994 maximum allowable payment.
H.R. 3616 would continue this floor, but would revise the
procedure for allocating appropriations in excess of the amount
required to cover the floor payments. Remaining funds would be
allocated based on a combination of the hold-harmless provision
and consideration of the ``highest and best'' assessment. CBO
estimates no cost as a result of this revision.
H.R. 3616 would also change the caps on total payments for
LEAs that also receive basic support payments under section
8003. The bill would cap total payments at the higher of the
maximum amount an LEA is eligible to receive under section 8002
or 8003. The potential costs of this change would be
substantial if full funding were to be provided, as many
districts have maximum 8002 payments that are much greater than
their 8003 maximums. Assuming continuation of past funding
trends, however, CBO estimates any increased payments to be
negligible.
For payments under section 8002, H.R. 3616 would authorize
$32 million in 2000 and such sums as necessary for the 2001-
2005 period. CBO's estimate assumes that total funding for the
2001-2005 period would be $168 million (assuming adjustments
for inflation) or $160 million (without such adjustments).
Additional assistance for LEAs impacted by the acquisition
of real property
H.R. 3616 would also continue to authorize additional
payments for certain LEAs under subsection 8002(j), a
previously unfunded provision. Payments under this section
would support LEAs that qualify for payments under subsections
8002(b) and 8003(b) and have unique circumstances that increase
the costs imposed by the existence of federally owned property.
The bill would authorize $1.5 million for 2000 and such
sums as may be necessary for fiscal years 2001 to 2005.
Assuming an enactment date and additional appropriations in
fiscal year 2000, CBO estimates that this provision would
increase budget authority by $1.5 million and outlays by
$600,000 in 2000. CBO's estimate assumes funding of about $8
million over the 2001-2005 period.
Payments for eligible federally connected children
Payments under section 8003 compensate LEAs that educate
children whose parents' residence or work location partially or
fully exempts them from local taxes. Under subsection 8003(b),
eligible LEAs are entitled to compensation based on the product
of a weighted count of eligible students and the amount of per-
pupil spending that is generated through local tax revenue. If
funding levels are insufficient to provide all LEAs with this
calculated amount, payments are multiplied by a calculated
percentage to compute the learning opportunity threshold (LOT)
payment. This percent is the sum of the LEAs percentage of
federally connected students and the ratio of its maximum
allowable payment to its total expenditures. This percentage
cannot exceed 100 percent. If funding levels are still
insufficient, these LOT payments are subject to further ratable
reductions.
Based on information from the Department of Education, CBO
estimates full funding for 1999 would have been $1.4 billion.
But the program has never been fully funded and, in 1999, the
appropriation was $704 million.
Under subsection 8003(f), certain LEAs are eligible for an
additional payment if they have a particularly large percentage
of federally connected children. These payments are based on a
formula, but subject to appropriations. Payments are ratably
reduced when funding is insufficient to cover the costs
calculated by the formula. Information from the Department of
Education indicates that full funding for 1999 would have been
more than $76 million, compared with the actual appropriation
of $70 million.
H.R. 3616 adds several provisions relating to basic support
payments under section 8003. First, it would continue an
existing practice of allowing students temporarily living off
military bases during renovations to retain their previous
classification. Second, it would codify language included in
previous appropriations bills to reduce payments in cases where
property is leased by the federal government. As each of these
provisions represents current practice, CBO estimates no
additional costs for these provisions.
A third provision would require a LOT minimum of 40 percent
for any LEA with fewer than 1000 students that currently spends
less per pupil than the average LEA in the state or substate
area. CBO estimates this would affect over 300 LEAs (out of a
total of 1400) and increase annual costs by $6 million.
Finally, H.R. 3616 would continue a pilot program,
authorized in the 1999 and 2000 appropriation acts, that
expedites the disbursement of 8003(f) payments and coordinates
8003(b) and 8003(f) payments for LEAs that receive both. To
reflect this change, H.R. 3616 would consolidate the two line
items into a single authorized amount of $809 million for 2000.
This amount equals the combined fiscal year 2000 appropriations
for the two programs. Taking into consideration the additional
costs of the 40 percent LOT floor, CBO estimates the total cost
of these payments to be $829 million in 2001 (with adjustments
for inflation) or $815 million (without the adjustments). Over
the 2001-2005 period, the estimate assumes funding of $4.3
billion (with adjustment for inflation) or $4.1 billion
(without such adjustments).
Payments for children with disabilities
Under subsection 8003(d), special payments are made to
compensate LEAs that educate a significant number of students
with disabilities for the additional costs of educating those
students. Districts receive a prorated amount of the
appropriation based on the number of eligible children they
serve. H.R. 3616 would authorize $50 million for 2000. CBO's
estimate assumes funding of $263 million (assuming adjustments
for inflation) or $250 million (without such adjustments) over
the 2001-2005 period.
Construction
Under section 8008 of ESEA, funds are made available to
support school construction or renovation projects for certain
LEAs. Only LEAs eligible for basic support payments qualify for
payments under this section. In addition, they must qualify for
payments under 8003(j) or have at least 50 percent of their
students residing on Indian lands or have parents in the
uniformed services. Available funds are allocated based on the
number of federally connected students. Of the $10 million
provided for construction programs in 2000, just over $3
million was earmarked for specific LEAs with special
construction needs.
H.R. 3616 would permanently set aside 30 percent of funds
appropriated under section 8007 for a new school modernization
initiative. LEAs with significant repair needs would be
eligible to compete for grants if they had no remaining
capacity to issue bonds or their facilities posed health or
safety threats to their students. Recipients would be required
to use nonfederal funds to cover half of any project costs.
Remaining funds would continue to be allocated on a formula
basis to qualifying schools, although 50 percent of the funds
would be required to go to schools that educate a large number
of children residing on Indian land.
H.R. 3616 would authorize $10 million for 2000 for the
construction grants and school modernization initiative under
section 8007. CBO estimates the application and matching
requirements of the school modernization component would cause
spending to occur more slowly than for the current construction
grants. CBO estimates that first-year outlays of the estimated
$3 million set aside for the school modernization initiative
would be $300,000. The remaining $7 million of the construction
money is still expected to spend at its current rate, resulting
in first year outlays of $6 million.
For the construction program and the school modernization
initiative, CBO's estimate assumes funding of $53 million (with
adjustments for inflation) or $50 million (without such
adjustments) over the 2001-2005 period.
Facilities maintenance
Section 8008 funds are used to maintain schools that are
owned by the Department of Education. LEAs that serve a
significant number of federally connected children are allowed
to use these facilities, but the department is responsible for
costs of renovations and repairs. Although it is the goal of
the department to eventually transfer ownership of these
facilities to the LEAs, CBO does not expect the timing of these
transfers to decrease funding for 2001.
H.R. 3616 would authorize $5 million in 2000 for funding
under section 8008. Over the 2001-2005 period, CBO's estimate
assumes funding of $26 million (assuming adjustments for
inflation) and $25 million (without such adjustments).
Repeal of unfunded uthorizations
H.R. 3616 would repeal sections 8003(g) and 8006, both of
which were not funded in 2000. Section 8003(g) authorized
additional payments for LEAs with disabled students. Section
8006 authorized payments to support sudden and substantial
increases in the number of federally connected students.
Estimated impact on State, local, and tribal governments:
H.R. 3616 contains no intergovernmental mandates as defined in
UMRA. The bill would reauthorize formula grants to local
educational agencies affected by the presence of federal
property within their districts. Any cost of state or local
governments arising from application for or participation in
the grant program would be incurred voluntarily.
Estimated impact on the private sector: The bill contains
no private-sector mandates as defined in UMRA.
Estimate prepared by: Federal costs: Audra Millen. Impact
on State, local, and tribal governments: Susan Sieg.
Estimate approved by: Robert A. Sunshine, Assistant
Director for Budget Analysis.
Statement of Oversight Findings of the Committee on Government Reform
With respect of the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform on the
subject of H.R. 3616.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee believes that the
amendments made by this bill to the Elementary and Secondary
Education Act are within Congress's authority under Article I,
section 8, clause 1 of the Constitution.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 3616. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965
* * * * * * *
TITLE VIII--IMPACT AID
SEC. 8001. PURPOSE.
In order to fulfill the Federal responsibility to assist
with the provision of educational services to federally
connected children in a manner that promotes control by local
educational agencies with little or no Federal or State
involvement, because certain activities of the Federal
Government, such as activities to fulfill the responsibilities
of the Federal Government with respect to Indian tribes and
activities under section 514 of the Soldiers' and Sailors'
Civil Relief Act of 1940 (50 U.S.C. App. 574), place a
financial burden on the local educational agencies serving
areas where such activities are carried out, and to help such
children meet challenging State standards, it is the purpose of
this title to provide financial assistance to local educational
agencies that--
(1) * * *
* * * * * * *
(4) educate heavy concentrations of children whose
parents are civilian employees of the Federal
Government and do not reside on Federal property; or
[(5) experience sudden and substantial increases or
decreases in enrollments because of military
realignments; or]
[(6)] (5) need special assistance with capital
expenditures for construction activities because of the
enrollments of substantial numbers of children who
reside on Federal lands and because of the difficulty
of raising local revenue through bond referendums for
capital projects due to the inability to tax Federal
property.
SEC. 8002. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
(a) In General.--Where the Secretary, after consultation
with any local educational agency and with the appropriate
State educational agency, determines for a fiscal year ending
prior to October 1, [1999] 2005--
(1) * * *
* * * * * * *
(b) Amount.--
(1) In general.--(A) * * *
* * * * * * *
(B) If funds appropriated under section 8014(a) are
insufficient to pay the amount determined under
subparagraph (A), the Secretary [shall ratably reduce
the payment to each eligible local educational agency]
shall calculate the payment for each eligible local
educational agency in accordance with subsection (h).
(C) Notwithstanding any other provision of this
subsection, a local educational agency may not be paid
an amount under this section that, when added to the
amount such agency receives under section 8003(b),
exceeds the maximum amount that such agency is eligible
to receive for such fiscal year under [section
8003(b)(1)(C)] paragraph (1)(C) of section 8003(b) or
subparagraph (D) or (E) of paragraph (2) of such
section, as the case may be, or the maximum amount that
such agency is eligible to receive for such fiscal year
under this section, whichever is greater.
* * * * * * *
[(h) Hold-Harmless Amounts.--
[(1) In general.--Except as provided in paragraph
(2)(A), the total amount that the Secretary shall pay
under subsection (b) to a local educational agency that
is otherwise eligible for a payment under this
section--
[(A) for fiscal year 1995 shall not be less
than 85 percent of the amount such agency
received for fiscal year 1994 under section 2
of the Act of September 30, 1950 (Public Law
874, 81st Congress) as such section was in
effect on September 30, 1994;
[(B) for fiscal year 1996 shall not be less
than 85 percent of the amount such agency
received for fiscal year 1995 under subsection
(b); and
[(C) for fiscal year 1997 and each succeeding
fiscal year through fiscal year 2000 shall not
be less than 85 percent of the amount such
agency received for fiscal year 1996 under
subsection (b).
[(2) Ratable reductions.--(A)(i) If necessary in
order to make payments to local educational agencies in
accordance with paragraph (1) for any fiscal year, the
Secretary first shall ratably reduce payments under
subsection (b) for such year to local educational
agencies that do not receive a payment under this
subsection for such year.
[(ii) If additional funds become available for making
payments under subsection (b) for such year, then
payments that were reduced under clause (i) shall be
increased on the same basis as such payments were
reduced.
[(B)(i) 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)
after the application of subparagraph (A) for such
year, then the Secretary shall ratably reduce payments
under paragraph (1) to all such agencies for such year.
[(ii) If additional funds become available for making
payments under paragraph (1) for such fiscal year, then
payments that were reduced under clause (i) shall be
increased on the same basis as such payments were
reduced.]
(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 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 for pre-1995 recipients.--
(A) In general.--The Secretary shall first
make a foundation payment to each local
educational agency that is eligible to receive
a payment under this section for the fiscal
year involved and was eligible to receive a
payment under section 2 of the Act of September
30, 1950 (Public Law 874, 81st Congress) (as
such section was in effect on the day preceding
the date of the enactment of the Improving
America's Schools Act of 1994) for any of the
fiscal years 1989 through 1994.
(B) Amount.--The amount of a payment under
subparagraph (A) for a local educational agency
shall be equal to 37 percent of the payment
amount the local educational agency was
eligible to receive under section 2 of the Act
of September 30, 1950, for fiscal year 1994 (or
if the local educational agency was not
eligible to receive a payment under such
section 2 for fiscal year 1994, the payment
that local educational agency was eligible to
receive under such section 2 for the most
recent fiscal year preceding 1994).
(C) 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 the fiscal year, then
the Secretary shall ratably reduce the payment
to each local educational agency under this
paragraph.
(2) Payments for 1995 recipients.--
(A) In general.--From any amounts remaining
after making payments under paragraph (1) for
the fiscal year involved, the Secretary shall
make a payment to each eligible local
educational agency that received a payment
under this section for fiscal year 1995.
(B) Amount.--The amount of a payment under
subparagraph (A) for a local educational agency
shall be determined as follows:
(i) Calculate the difference between
the amount appropriated to carry out
this section for fiscal year 1995 and
the total amount of foundation payments
made under paragraph (1) for the fiscal
year.
(ii) Determine the percentage share
for each local educational agency that
received a payment under this section
for fiscal year 1995 by dividing the
assessed value of the Federal property
of the local educational agency for
fiscal year 1995 determined in
accordance with subsection (b)(3), by
the total national assessed value of
the Federal property of all such local
educational agencies for fiscal year
1995, as so determined.
(iii) Multiply the percentage share
described in clause (ii) for the local
educational agency by the amount
determined under clause (i).
(3) Subsection (i) recipients.--From any funds
remaining after making payments under paragraphs (1)
and (2) for the fiscal year involved, the Secretary
shall make payments in accordance with subsection (i).
(4) Remaining funds.--From any funds remaining after
making payments under paragraphs (1), (2), and (3) for
the fiscal year involved--
(A) the Secretary shall make a payment to
each local educational agency that received a
foundation payment under paragraph (1) for the
fiscal year involved in an amount that bears
the same relation to 25 percent of the
remainder as the amount the local educational
agency received under paragraph (1) for the
fiscal year involved bears to the amount all
local educational agencies received under
paragraph (1) for the fiscal year involved; and
(B) the Secretary shall make a payment to
each local educational agency that is eligible
to receive a payment under this section for the
fiscal year involved in an amount that bears
the same relation to 75 percent of the
remainder as a percentage share determined for
the local educational agency (in the same
manner as percentage shares are determined for
local educational agencies under paragraph
(2)(B)(ii)) bears to the percentage share
determined (in the same manner) for all local
educational agencies eligible to receive a
payment under this section for the fiscal year
involved, except that for the purpose of
calculating a local educational agency's
assessed value of the Federal property, data
from the most current fiscal year shall be
used.
(i) [Priority] Special Payments.--
[(1) In general.--Notwithstanding subsection
(b)(1)(B), and for any fiscal year beginning with
fiscal year 1997 for which the amount appropriated to
carry out this section exceeds the amount so
appropriated for fiscal year 1996--
[(A) the Secretary shall first use the excess
amount (not to exceed the amount equal to the
difference of (i) the amount appropriated to
carry out this section for fiscal year 1997,
and (ii) the amount appropriated to carry out
this section for fiscal year 1996) to increase
the payment that would otherwise be made under
this section to not more than 50 percent of the
maximum amount determined under subsection (b)
for any local educational agency described in
paragraph (2); and
[(B) the Secretary shall use the remainder of
the excess amount to increase the payments to
each eligible local educational agency under
this section.]
(1) In general.--For any fiscal year beginning with
fiscal year 2000 for which the amount appropriated to
carry out this section exceeds the amount so
appropriated for fiscal year 1996 and for which
subsection (b)(1)(B) applies, the Secretary shall use
the remainder described in subsection (h)(3) for the
fiscal year involved (not to exceed the amount equal to
the difference between (A) the amount appropriated to
carry out this section for fiscal year 1997 and (B) the
amount appropriated to carry out this section for
fiscal year 1996) to increase the payment that would
otherwise be made under this section to not more than
50 percent of the maximum amount determined under
subsection (b) for any local educational agency
described in paragraph (2).
* * * * * * *
(j) Additional Assistance for Certain Local Educational
Agencies Impacted by Federal Property Acquisition.--
(1) * * *
(2) Eligibility.--[(A) A local educational agency] A
local educational agency is eligible to receive
additional assistance under this subsection only if
such agency--
[(i)] (A) received a payment under both this
section and section 8003(b) for fiscal year
1996 and is eligible to receive payments under
those sections for the year of application;
[(ii)] (B) provided a free public education
to children described under sections
8003(a)(1)(A), (B), or (D);
[(iii)] (C) had a military installation
located within the geographic boundaries of the
local educational agency that was closed as a
result of base closure or realignment and such
agency does not currently have a military
installation located within its geographic
boundaries;
[(iv)] (D) remains responsible for the free
public education of children residing in
housing located on Federal property within the
boundaries of the closed military installation
but whose parents are on active duty in the
uniformed services and assigned to a military
activity located within the boundaries of an
adjoining local educational agency; and
[(v)] (E) demonstrates to the satisfaction of
the Secretary that such agency's per-pupil
revenue derived from local sources for current
expenditures is not less than that revenue for
the preceding fiscal year.
* * * * * * *
(l) Data; Preliminary and Final Payments.--
(1) In general.--The Secretary shall--
(A) not later than 30 days following the
application deadline under section 8005(c) for
a fiscal year, require any local educational
agency that applied for a payment under
subsection (b) for the fiscal year to submit
such data as may be necessary in order to
compute the payment;
(B) as soon as possible after the beginning
of any fiscal year, but no later than 60 days
after the enactment of an Act making
appropriations to carry out this title for the
fiscal year, provide a preliminary payment
under subsection (b) for any local educational
agency that applied for a payment under
subsection (b) for the fiscal year and was
eligible for such a payment for the preceding
fiscal year, in the amount of 60 percent of the
payment for the previous year; and
(C) provide a final payment under subsection
(b) for any eligible local educational agency
not later than 12 months after the application
deadline established under section 8005(c),
except that any local educational agency
failing to submit all of the data required
under subparagraph (A) shall be denied such
payment for the fiscal year for which the
application is made unless funds from a source
other than the Act described in subparagraph
(B) are made available to provide such payment.
(2) Eligibility for payments in subsequent years.--
The denial of a payment under subsection (b) to a local
educational agency for a fiscal year pursuant to this
subsection shall not affect the eligibility of the
local educational agency for a final payment under
subsection (b) for a subsequent fiscal year.
SEC. 8003. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
(a) Computation of Payment.--
(1) In general.--For the purpose of computing the
amount that a local educational agency is eligible to
receive under [subsection (b), (d), or (f)] subsection
(b) or (d) for any fiscal year, the Secretary shall
determine the number of children who were in average
daily attendance in the schools of such agency, and for
whom such agency provided free public education, during
the preceding school year and who, while in attendance
at such schools--
(A) * * *
* * * * * * *
(4) Military installation housing [undergoing
renovation] undergoing renovation or rebuilding.--[For
purposes]
(A) In general.--For purposes of computing
the amount of a payment for a local educational
agency for children described in paragraph
(1)(D)(i), the Secretary shall consider such
children to be children described in paragraph
(1)(B) if the Secretary determines, on the
basis of a certification provided to the
Secretary by a designated representative of the
Secretary of Defense, that such children would
have resided in housing on Federal property in
accordance with paragraph (1)(B) except that
such housing was undergoing renovation or
rebuilding on the date for which the Secretary
determines the number of children under
paragraph (1).
(B) Limitations.--(i)(I) Except as provided
in subclause (II), children described in
paragraph (1)(D)(i) may be deemed to be
children described in paragraph (1)(B) with
respect to housing on Federal property
undergoing renovation or rebuilding in
accordance with subparagraph (A) for a period
not to exceed 2 fiscal years.
(II) If the Secretary determines, on the
basis of a certification provided to the
Secretary by a designated representative of the
Secretary of Defense, that the expected
completion date of the renovation or rebuilding
of the housing has been delayed by not less
than 1 year, then--
(aa) in the case of a determination
made by the Secretary in the 1st fiscal
year described in subclause (I), the
time period described such subclause
shall be extended by the Secretary for
an additional 2 years; and
(bb) in the case of a determination
made by the Secretary in the 2nd fiscal
year described in subclause (I), the
time period described such subclause
shall be extended by the Secretary for
an additional 1 year.
(ii) The number of children described in
paragraph (1)(D)(i) who are deemed to be
children described in paragraph (1)(B) with
respect to housing on Federal property
undergoing renovation or rebuilding in
accordance with subparagraph (A) for any fiscal
year may not exceed the maximum number of
children who are expected to occupy that
housing upon completion of the renovation or
rebuilding.
(5) Military ``build to lease'' program housing.--
(A) In general.--For purposes of computing
the amount of payment for a local educational
agency for children identified under paragraph
(1), the Secretary shall consider children
residing in housing initially acquired or
constructed under the former section 2828(g) of
title 10, United States Code (commonly known as
the ``Build to Lease'' program), as added by
section 801 of the Military Construction
Authorization Act, 1984, to be children
described under paragraph (1)(B) if the
property described is within the fenced
security perimeter of the military facility
upon which such housing is situated.
(B) Additional requirements.--If the property
described in subparagraph (A) is not owned by
the Federal Government, is subject to taxation
by a State or political subdivision of a State,
and thereby generates revenues for a local
educational agency that is applying to receive
a payment under this section, then the
Secretary--
(i) shall require the local
educational agency to provide
certification from an appropriate
official of the Department of Defense
that the property is being used to
provide military housing; and
(ii) shall reduce the amount of the
payment under this section by an amount
equal to the amount of revenue from
such taxation received in the second
preceding fiscal year by such local
educational agency, unless the amount
of such revenue was taken into account
by the State for such second preceding
fiscal year and already resulted in a
reduction in the amount of State aid
paid to such local educational agency.
(b) Basic Support Payments and Payments With Respect to
Fiscal Years in Which Insufficient Funds Are Appropriated.--
(1) Basic support payments.--
(A) * * *
* * * * * * *
(C) Maximum amount.--The maximum amount that
a local educational agency is eligible to
receive under this [subsection] paragraph for
any fiscal year is the sum of the total
weighted student units, as computed under
subsection (a)(2), multiplied by the greater
of--
* * * * * * *
(D) Increase in local contribution rate due
to unusual geographic factors.--If the current
expenditures in those local educational
agencies which the Secretary has determined to
be generally comparable to the local
educational agency for which a computation is
made under subparagraph (C) are not reasonably
comparable because of unusual geographical
factors which affect the current expenditures
necessary to maintain, in such agency, a level
of education equivalent to that maintained in
such other agencies, then the Secretary shall
increase the local contribution rate for such
agency under subparagraph (C)(iii) by such an
amount which the Secretary determines will
compensate such agency for the increase in
current expenditures necessitated by such
unusual geographical factors. The amount of any
such supplementary payment may not exceed the
per-pupil share (computed with regard to all
children in average daily attendance), as
determined by the Secretary, of the increased
current expenditures necessitated by such
unusual geographic factors.
(2) Basic support payments for heavily impacted local
educational agencies.--
(A) In general.--(i) From the amount
appropriated under section 8014(b) for a fiscal
year, the Secretary is authorized to make basic
support payments to eligible heavily impacted
local educational agencies with children
described in subsection (a).
(ii) A local educational agency that receives
a basic support payment under this paragraph
for a fiscal year shall not be eligible to
receive a basic support payment under paragraph
(1) for that fiscal year.
(B) Eligibility for continuing heavily
impacted local educational agencies.--
(i) Fiscal year 2001.--A heavily
impacted local educational agency is
eligible to receive a basic support
payment under subparagraph (A) for
fiscal year 2001 with respect to a
number of children determined under
subsection (a)(1) only if the agency
received an additional assistance
payment under subsection (f) (as such
subsection was in effect on the day
before the date of the enactment of the
Impact Aid Reauthorization Act of 2000)
for fiscal year 2000.
(ii) Fiscal year 2002 and subsequent
fiscal years.--A heavily impacted local
educational agency described in clause
(i) is eligible to receive a basic
support payment under subparagraph (A)
for fiscal year 2002 and any subsequent
fiscal year with respect to a number of
children determined under subsection
(a)(1) only if the agency--
(I) received a basic support
payment under subparagraph (A)
for fiscal year 2001; and
(II)(aa) is a local
educational agency whose
boundaries are the same as a
Federal military installation;
(bb) has an enrollment of
federally connected children
described in subsection (a)(1)
which constitutes a percentage
of the total student enrollment
of such agency which is not
less than 35 percent, has a
per-pupil expenditure that is
less than the average per-pupil
expenditure of the State in
which the agency is located or
the average per-pupil
expenditure of all States
(whichever average per-pupil
expenditure is greater), except
that a local educational agency
with a total student enrollment
of less than 350 students shall
be deemed to have satisfied
such per-pupil expenditure
requirement, and has a tax rate
for general fund purposes which
is at least 95 percent of the
average tax rate for general
fund purposes of comparable
local educational agencies in
the State; or
(cc) has a total student
enrollment of not less than
25,000 students, of which not
less than 50 percent are
federally connected children
described in subsection (a)(1)
and not less than 6,000 of such
federally connected children
are children described in
subparagraphs (A) and (B) of
subsection (a)(1).
(iii) Resumption of eligibility.--A
heavily impacted local educational
agency described in clause (i) or (ii)
that becomes ineligible under either
such clause for 1 or more fiscal years
may resume eligibility for a basic
support payment under this paragraph
for a subsequent fiscal year only if
the agency meets the requirements of
item (aa), (bb), or (cc) of clause
(ii)(II) for that subsequent fiscal
year.
(C) Eligibility for new heavily impacted
local educational agencies.--
(i) In general.--A heavily impacted
local educational agency that did not
receive an additional assistance
payment under subsection (f) (as such
subsection was in effect on the day
before the date of the enactment of the
Impact Aid Reauthorization Act of 2000)
for fiscal year 2000 is eligible to
receive a basic support payment under
subparagraph (A) for fiscal year 2002
and any subsequent fiscal year with
respect to a number of children
determined under subsection (a)(1) only
if the agency--
(I) has an enrollment of
federally connected children
described in subsection (a)(1)
which constitutes a percentage
of the total student enrollment
of such agency which (aa) is
not less than 50 percent if
such agency receives a payment
on behalf of children described
in subparagraphs (F) and (G) of
such subsection or (bb) is not
less than 40 percent if such
agency does not receive a
payment on behalf of such
children;
(II)(aa) is a local
educational agency whose
boundaries are the same as a
Federal military installation;
or
(bb) is a local educational
agency that has a tax rate for
general fund purposes which is
at least 95 percent of the
average tax rate for general
fund purposes of comparable
local educational agencies in
the State; and
(III)(aa) for a local
educational agency that has a
total student enrollment of 350
or more students, the agency
has a per-pupil expenditure
that is less than the average
per-pupil expenditure of the
State in which the agency is
located; or
(bb) for a local educational
agency that has a total student
enrollment of less than 350
students, the agency has a per-
pupil expenditure that is less
than the average per-pupil
expenditure of a comparable
agency in the State in which
the agency is located.
(ii) Resumption of eligibility.--A
heavily impacted local educational
agency described in clause (i) that
becomes ineligible under such clause
for 1 or more fiscal years may resume
eligibility for a basic support payment
under this paragraph for a subsequent
fiscal year only if the agency meets
the requirements of subclauses (I),
(II), and (III) of clause (i) for that
subsequent fiscal year.
(iii) Application.--With respect to
the first fiscal year for which a
heavily impacted local educational
agency described in clause (i) applies
for a basic support payment under
subparagraph (A), or with respect to
the first fiscal year for which a
heavily impacted local educational
agency applies for a basic support
payment under subparagraph (A) after
becoming ineligible under clause (i)
for 1 or more preceding fiscal years,
the agency shall apply for such payment
at least 1 year prior to the start of
that first fiscal year.
(D) Maximum amount for regular heavily
impacted local educational agencies.--(i)
Except as provided in subparagraph (E), 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) (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)(I) 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 subparagraph
(D) or (E) (or a combination thereof) of
subsection (a)(1), the Secretary shall
calculate the weighted student units of such
children for purposes of subsection (a)(2) by
multiplying the number of such children by a
factor of 0.55.
(II) For a local educational agency that has
an enrollment of 100 or fewer federally
connected 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 has
an enrollment of more than 100 but not more
than 750 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.
(E) 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 federally
connected children described in subsection
(a)(1) and not less than 6,000 of such
federally connected children are children
described in subparagraphs (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 subparagraphs (A) and (B) of
subsection (a)(1) shall be 1.35.
(F) Data.--For purposes of providing
assistance under this paragraph, the Secretary
shall use student, revenue, expenditure, and
tax data from the third fiscal year preceding
the fiscal year for which the local educational
agency is applying for assistance under this
paragraph.
[(2)] (3) Payments with respect to fiscal years in
which insufficient funds are appropriated.--
(A) In general.--For any fiscal year in which
the sums appropriated under section 8014(b) are
insufficient to pay to each local educational
agency the full amount computed under
[paragraph (1)] paragraphs (1) and (2), the
Secretary shall make payments in accordance
with this paragraph.
(B) Learning opportunity threshold payments
in lieu of payments under paragraph (1).--(i)
For fiscal years described in subparagraph (A),
the Secretary shall compute a learning
opportunity threshold payment (hereafter in
this title referred to as the ``threshold
payment'') in lieu of basic support payments
under paragraph (1) by multiplying the amount
obtained under paragraph (1)(C) by the total
percentage obtained by adding--
(I) * * *
* * * * * * *
(ii) Such total percentage used to calculate
threshold payments under [paragraph (1)] clause
(i) shall not exceed 100.
* * * * * * *
(iv) In the case of a local educational
agency that has a total student enrollment of
fewer than 1,000 students and that has a per-
pupil expenditure that is less than the average
per-pupil expenditure of the State in which the
agency is located, the total percentage used to
calculate threshold payments under clause (i)
shall not be less than 40 percent.
(C) Learning opportunity threshold payments
in lieu of payments under paragraph (2).--For
fiscal years described in subparagraph (A), the
learning opportunity threshold payment in lieu
of basic support payments under paragraph (2)
shall be equal to the amount obtained under
subparagraph (D) or (E) of paragraph (2), as
the case may be.
[(C)] (D) Ratable distribution.--For fiscal
years described in subparagraph (A), the
Secretary shall make payments as a ratable
distribution based upon the [computation made
under subparagraph (B)] computations made under
subparagraphs (B) and (C).
[(3)] (4) States with only one local educational
agency.--
(A) In general.--In any of the 50 States of
the United States in which there is only one
local educational agency, the Secretary shall,
for purposes of [paragraphs (1)(B), (1)(C), and
(2) of this subsection] subparagraphs (B) and
(C) of paragraph (1) or subparagraphs (B)
through (D) of paragraph (2), as the case may
be, paragraph (3) of this subsection, and
subsection (e), consider each administrative
school district in the State to be a separate
local educational agency.
(B) Computation of maximum amount of basic
support payment and threshold payment.--In
computing the maximum payment amount under
paragraph (1)(C) or subparagraph (D) or (E) of
paragraph (2), as the case may be, and the
learning opportunity threshold payment under
[paragraph (2)(B)] subparagraph (B) or (C) of
paragraph (3) for an administrative school
district described in subparagraph (A)--
(5) Local educational agencies affected by removal of
federal property.--
(A) In general.--In computing the amount of a
basic support payment under this subsection for
a fiscal year for a local educational agency
described in subparagraph (B), the Secretary
shall meet the additional requirements
described in subparagraph (C).
(B) Local educational agency described.--A
local educational agency described in this
subparagraph is a local educational agency with
respect to which Federal property (i) located
within the boundaries of the agency, and (ii)
on which 1 or more children reside who are
receiving a free public education at a school
of the agency, is transferred by the Federal
Government to another entity in any fiscal year
beginning on or after the date of the enactment
of the Impact Aid Reauthorization Act of 2000
so that the property is subject to taxation by
the State or a political subdivision of the
State.
(C) Additional requirements.--The additional
requirements described in this subparagraph are
the following:
(i) For each fiscal year beginning
after the date on which the Federal
property is transferred, a child
described in subparagraph (B) who
continues to reside on such property
and who continues to receive a free
public education at a school of the
agency shall be deemed to be a child
who resides on Federal property for
purposes of computing under the
applicable subparagraph of subsection
(a)(1) the amount that the agency is
eligible to receive under this
subsection.
(ii)(I) For the third fiscal year
beginning after the date on which the
Federal property is transferred, and
for each fiscal year thereafter, the
Secretary shall, after computing the
amount that the agency is otherwise
eligible to receive under this
subsection for the fiscal year
involved, deduct from such amount an
amount equal to the revenue received by
the agency for the immediately
preceding fiscal year as a result of
the taxable status of the former
Federal property.
(II) For purposes of determining the
amount of revenue to be deducted in
accordance with subclause (I), the
local educational agency--
(aa) shall provide for a
review and certification of
such amount by an appropriate
local tax authority; and
(bb) shall submit to the
Secretary a report containing
the amount certified under item
(aa).
(i) * * *
* * * * * * *
(c) Prior Year Data.--
(1) In general.--Except as provided in [paragraph (2)
and subsection (f)] subsection (b)(2) and paragraph
(2), all calculations under this section shall be based
on data for each local educational agency from not
later than the fiscal year preceding the fiscal year
for which the agency is making application for payment.
* * * * * * *
[(f) Additional Assistance for Heavily Impacted Local
Educational Agencies.--
[(1) Reservation.--From amounts appropriated under
section 8014(b) for a fiscal year, the Secretary shall
provide additional assistance to meet special
circumstances relating to the provision of education in
local educational agencies eligible to receive
assistance under this section.
[(2) Eligibility.--(A) A local educational agency is
eligible to receive additional assistance under this
subsection if such agency is eligible for a
supplementary payment in accordance with subparagraph
(B) or such agency--
[(i)(I) has an enrollment of federally
connected children described in subsection
(a)(1) which constitutes a percentage of the
total student enrollment of such agency which
is not less than 50 percent if such agency
receives a payment on behalf of children
described in subparagraphs (F) and (G) of such
subsection, or not less than 40 percent if such
agency does not receive a payment on behalf of
such children; and
[(II) has a tax rate for general fund
purposes which is at least 95 percent of the
average tax rate for general fund purposes of
comparable local educational agencies in the
State;
[(ii)(I) has an enrollment of federally
connected children described in subsection
(a)(1) which constitutes at least 35 percent of
the total student enrollment of such agency;
and
[(II) has a tax rate for general fund
purposes which is at least 125 percent of the
average tax rate for general fund purposes of
comparable local educational agencies in the
State; or
[(iii) is a local educational agency whose
boundaries are the same as a Federal military
installation.
[(B) If the current expenditures in those local
educational agencies which the Secretary has determined
to be generally comparable to the local educational
agency for which a computation is made under subsection
(b)(1)(C) are not reasonably comparable because of
unusual geographical factors which affect the current
expenditures necessary to maintain, in such agency, a
level of education equivalent to that maintained in
such other agencies, then the Secretary shall increase
the local contribution rate for such agency by such an
amount which the Secretary determines will compensate
such agency for the increase in current expenditures
necessitated by such unusual geographical factors. The
amount of any such supplementary payment may not exceed
the per-pupil share (computed with regard to all
children in average daily attendance), as determined by
the Secretary, of the increased current expenditures
necessitated by such unusual geographic factors.
[(C) Any local educational agency determined eligible
under clause (iii) of subparagraph (A) shall be deemed
to have met the tax effort requirements for eligibility
under clause (i)(II) or (ii)(II) of such subparagraph.
[(D) local educational agency shall only be
eligible to receive additional assistance under
this subsection if the Secretary determines
that--
[(i) such agency is exercising due
diligence in availing itself of State
and other financial assistance; and
[(ii) the eligibility of such agency
under State law for State aid with
respect to the free public education of
children described in subsection (a)(1)
and the amount of such aid are
determined on a basis no less favorable
to such agency than the basis used in
determining the eligibility of local
educational agencies for State aid, and
the amount of such aid, with respect to
the free public education of other
children in the State.
[(3) Maximum payments.--
[(A) In general.--Subject to subparagraph
(B), the Secretary shall determine the maximum
amount that a local educational agency may
receive under this subsection (other than any
amount received under paragraph (2)(B)) in
accordance with the following computations: The
Secretary, in conjunction with the local
educational agency, shall first determine each
of the following:
[(I) The average per-pupil
expenditure of the State in
which the local educational
agency is located.
[(II) The average per-pupil
expenditure of generally
comparable local educational
agencies located in the State
of the local educational
agency, as defined in
regulations issued by the
Secretary.
[(III) The average per-pupil
expenditure of three generally
comparable local educational
agencies located in the State
of the local educational
agency, as defined in
regulations issued by the
Secretary.
The local educational agency shall select one of the
amounts determined under subclause (I), (II), or (III) for
purposes of the remaining computations under this subparagraph.
[(ii) The Secretary shall next
multiply the amount determined under
clause (i) by the total number of
students in average daily attendance at
the schools of the local educational
agency.
[(iii) The Secretary shall next
subtract from the amount determined
under clause (ii) all funds available
to the local educational agency for
current expenditures, but, except as
provided in subparagraph (C), shall not
so subtract funds provided--
[(I) under this Act; or
[(II) by any department or
agency of the Federal
Government (other than the
Department) that are used for
capital expenses.
[(iv) If the tax rate used by the
local educational agency is greater
than 95 percent, but less than 100
percent, of the tax rate of comparable
local educational agencies, the
Secretary shall next multiply the
amount determined under clause (iii) by
the percentage that the tax rate of the
local educational agency is of--
[(I) the average tax rate of
its generally comparable local
educational agencies; or
[(II) the average tax rate of
all the local educational
agencies in the State in which
the local educational agency is
located.
[(v) The Secretary shall next
subtract the total amount of payments
received by a local educational agency
under subsections (b) and (d) for a
fiscal year from the amount determined
under clause (iii) or clause (iv), as
the case may be.
[(B) Special rule.--With respect to payments
under this subsection for a fiscal year for a
local educational agency described in clause
(ii) or (iii) of paragraph (2)(A), the maximum
amount of payments under this subsection shall
be equal to--
[(i) the product of--
[(I) the average per-pupil
expenditure in all States
multiplied by 0.7, except that
such amount may not exceed 125
percent of the average per-
pupil expenditure in all local
educational agencies in the
State; multiplied by
[(II) the number of students
described in subparagraph (A)
or (B) of subsection (a)(1) for
such agency; minus
[(ii) the amount of payments such
agency receives under subsections (b)
and (d) for such year.
[(C) Determination of available funds.--When
determining the amount of funds available to
the local educational agency for current
expenditures for purposes of subparagraph
(A)(iii) for a fiscal year, the Secretary shall
include, with respect to the local educational
agency's opening cash balance for such fiscal
year, the portion of such balance that is the
greater of--
[(i) the amount that exceeds the
maximum amount of funds for current
expenditures that the local educational
agency was allowed by State law to
carry over from the prior fiscal year,
if State restrictions on such amounts
were applied uniformly to all local
educational agencies in the State; or
[(ii) the amount that exceeds 30
percent of the local educational
agency's operating costs for the prior
fiscal year.
[(4) data.--For purposes of providing assistance
under this subsection the Secretary shall use student,
revenue, expenditure, and tax data from the second
fiscal year preceding the fiscal year for which the
local educational agency is applying for assistance
under this subsection.
[(5) Reduction in payments.--If funds appropriated to
carry out this subsection are insufficient to pay in
full the amounts determined under paragraph (3), the
Secretary shall ratably reduce the payment to each
eligible local educational agency.
[(g) Additional Payments for Local Educational Agencies
With High Concentrations of Children With Severe
Disabilities.--
[(1) In general.--If any local educational agency
receives Federal funds from sources other than this
title to carry out the purposes of this title for any
fiscal year due to the enrollment of children described
under subsection (a), then the Secretary shall consider
such funds as a payment to such agency under this part
for such fiscal year.
[(2) Special rule.--Notwithstanding any other
provision of law, if funds appropriated pursuant to
section 8014(b) for payments under subsection (b) to
such agency for a fiscal year which, when added to the
funds described in paragraph (1) received by such
agency for such fiscal year, exceed the maximum amount
described under subsection (b)(1)(C), then the
Secretary shall make available from the funds
appropriated under section 8014(b) for such fiscal year
such excess amounts to any local educational agency
serving two or more children described under
subparagraph (B) or (D) of subsection (a)(1) who have a
severe disability and a parent serving in the uniformed
services (as defined by section 101 of title 37, United
States Code) who is assigned to a particular permanent
duty station for compassionate reasons (compassionate
post assignment) for the total costs associated with
such children who are provided an educational program
provided outside the schools of such agency.
[(3) Remaining funds.--If funds remain after payments
are made under paragraph (2) for any fiscal year, then
such remaining funds shall be made available for
expenditures under subsection (d) in such fiscal year
on a pro rata basis consistent with the requirements of
such subsection.
[(4) Ratable reductions.--If amounts available to
carry out paragraph (2) for any fiscal year are
insufficient to pay in full the total payment that all
eligible local educational agencies are eligible to
receive under such paragraph for such year, then the
Secretary shall ratably reduce such payments to such
agencies for such year.]
[(h)] (f) Other Funds.--Notwithstanding any other provision
of law, a local educational agency receiving funds under this
section may also receive funds under section 6 of the Act of
September 30, 1950 (Public Law 874, 81st Congress) (as such
section was in effect on the day preceding the date of
enactment of the Improving America's Schools Act of 1994) or
such section's successor authority.
[(i)] (g) Maintenance of Effort.--A local educational
agency may receive funds under [sections 8002 and 8003(b)]
section 8002 and subsection (b) of this section for any fiscal
year only if the State educational agency finds that either the
combined fiscal effort per student or the aggregate
expenditures of that agency and the State with respect to the
provision of free public education by that agency for the
preceding fiscal year was not less than 90 percent of such
combined fiscal effort or aggregate expenditures for the second
preceding fiscal year.
* * * * * * *
SEC. 8005. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.
(a) In General.--A local educational agency desiring to
receive a payment under section 8002 or 8003 shall--
* * * * * * *
(d) Approval.--
(1) * * *
* * * * * * *
(2) Reduction in payment.--The Secretary shall
approve an application filed not more than 60 days
after a deadline established under subsection (c), or
not more than 60 days after the date on which the
Secretary sends written notice to the local educational
agency pursuant to paragraph (3)(A), as the case may
be, that otherwise meets the requirements of this
title, except that, notwithstanding section 8003(e),
the Secretary shall reduce the payment based on such
late application by 10 percent of the amount that would
otherwise be paid.
[(3) Late applications.--The Secretary shall not
accept or approve any application that is filed more
than 60 days after a deadline established under
subsection (c).]
(3) Late applications.--
(A) Notice.--The Secretary shall, as soon as
practicable after the deadline established
under subsection (c), provide to each local
educational agency that applied for a payment
under section 8002 or 8003 for the prior fiscal
year, and with respect to which the Secretary
has not received an application for a payment
under either such section (as the case may be)
for the fiscal year in question, written notice
of the failure to comply with the deadline and
instruction to ensure that the application is
filed not later than 60 days after the date on
which the Secretary sends the notice.
(B) Acceptance and approval of late
applications.--The Secretary shall not accept
or approve any application of a local
educational agency that is filed more than 60
days after the date on which the Secretary
sends written notice to the local educational
agency pursuant to subparagraph (A).
* * * * * * *
[SEC. 8006. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN ATTENDANCE
OF MILITARY DEPENDENTS.
[(a) Eligibility.--A local educational agency is eligible
for a payment under this section if--
[(1) the number of children in average daily
attendance during the school year for which the
determination is made is at least 10 percent or 100
more than the number of children in average daily
attendance in the school year preceding the school year
for which the determination is made; and
[(2) the number of children in average daily
attendance with a parent on active duty (as defined in
section 101(18) of title 37, United States Code) in the
Armed Forces who are in attendance at such agency
because of the assignment of their parent to a new duty
station between May 15 and September 30, inclusive, of
the fiscal year for which the determination is made, as
certified by an appropriate local official of the
Department of Defense, is at least 10 percent or 100
more than the number of children in average daily
attendance in the preceding school year.
[(b) Application.--A local educational agency that wishes
to receive a payment under this section shall file an
application with the Secretary by October 15 of the school year
for which payment is requested, in such manner and containing
such information as the Secretary may prescribe, including
information demonstrating that such agency is eligible for such
a payment.
[(c) Children To Be Counted.--For each eligible local
educational agency that applies for a payment under this
section, the Secretary shall determine the lesser of--
[(1) the increase in the number of children in
average daily attendance from the school year preceding
the fiscal year for which the determination is made;
and
[(2) the number of children described in subsection
(a)(2).
[(d) Payments.--
[(1) In general.--Except as provided in paragraph
(2), from the amount appropriated for a fiscal year
under section 8014(d), the Secretary shall pay each
local educational agency with an approved application
an amount equal to one-half of the national average
per-pupil expenditure multiplied by the number of such
children determined under subsection (c) for that local
educational agency.
[(2) Ratable reduction.--(A) If the amount
appropriated to carry out this section for any fiscal
year is insufficient to pay the full payment that all
eligible local educational agencies are eligible to
receive under this section for such year, then the
Secretary shall ratably reduce the payments to such
agencies for such year.
[(B) 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.
[(e) Notification Process.--
[(1) Establishment.--The Secretary shall establish,
with the Secretary of Defense, a notification process
relating to the closure of Department of Defense
facilities, or the adjustment of personnel levels
assigned to such facilities, which may substantially
affect the student enrollment levels of local
educational agencies which receive or may receive
payments under this title.
[(2) Information.--Such process shall provide timely
information regarding such closures and such
adjustments--
[(A) by the Secretary of Defense to the
Secretary; and
[(B) by the Secretary to the affected local
educational agencies.
[SEC. 8007. CONSTRUCTION.
[(a) Payments Authorized.--From the amount appropriated for
each fiscal year under section 8014(e), the Secretary shall
make payments to each local educational agency--
[(1) that receives a basic payment under section
8003(b); and
[(2)(A) in which the number of children determined
under section 8003(a)(1)(C) constituted at least 50
percent of the number of children who were in average
daily attendance in the schools of such agency during
the preceding school year;
[(B) in which the number of children determined under
subparagraphs (B) and (D)(i) of section 8003(a)(1)
constituted at least 50 percent of the number of
children who were in average daily attendance in the
schools of such agency during the school year preceding
the school year for which the determination is made;
[(C) that receives assistance under section 8003(f);
or
[(D) that receives assistance under section 8006.
[(b) Amount of Payments.--The amount of a payment to each
such agency for a fiscal year shall be equal to--
[(1) the amount appropriated under section 8014(e)
for such year; divided by
[(2) the number of children determined under section
8003(a)(2) for all local educational agencies described
in subsection (a), but not including any children
attending a school assisted or provided by the
Secretary under section 8008 or section 10 of the Act
of September 23, 1950 (Public Law 815, 81st Congress)
(as such Act was in effect on the day preceding the
date of enactment of the Improving America's Schools
Act of 1994); multiplied by
[(3) the number of such children determined for such
agency.
[(c) Use of Funds.--Any local educational agency that
receives funds under this section shall use such funds for
construction, as defined in section 8013(3).]
SEC. 8007. CONSTRUCTION.
(a) Construction Payments Authorized.--
(1) In general.--From 70 percent of the amount
appropriated for each fiscal year under section
8014(e), the Secretary shall make payments in
accordance with this subsection to each local
educational agency that receives a basic support
payment under section 8003(b) for that fiscal year.
(2) Additional requirements.--A local educational
agency that receives a basic support payment under
section 8003(b)(1) shall also meet at least 1 of the
following requirements:
(A) The number of children determined under
section 8003(a)(1)(C) for the agency for the
preceding school year constituted at least 50
percent of the total student enrollment in the
schools of the agency during the preceding
school year.
(B) The number of children determined under
subparagraphs (B) and (D)(i) of section
8003(a)(1) for the agency for the preceding
school year constituted at least 50 percent of
the total student enrollment in the schools of
the agency during the preceding school year.
(3) Amount of payments.--
(A) Local educational 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)(II) 35 percent of the amount
appropriated under section 8014(e) for
such fiscal year; divided by
(II) the total number of weighted
student units of children described in
subparagraphs (B) and (D)(i) of section
8003(a)(1) for all local educational
agencies described in this subsection
(as calculated under section
8003(a)(2)), including the number of
weighted student units of such 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 prior fiscal year; multiplied by
(ii) the total number of such
weighted student units for the agency.
(B) Local educational agencies impacted by
children who reside on indian lands.--The
amount of a payment to each local educational
agency described in this subsection that is
impacted by children who reside on Indian lands
for a fiscal year shall be equal to--
(i)(I) 35 percent of the amount
appropriated under section 8014(e) for
such fiscal year; divided by
(II) the total number of weighted
student units of children described in
section 8003(a)(1)(C) for all local
educational agencies described in this
subsection (as calculated under section
8003(a)(2)); multiplied by
(ii) the total number of such
weighted student units for the agency.
(4) Use of funds.--Any local educational agency that
receives funds under this subsection shall use such
funds for construction, as defined in section 8013(3).
(b) School Facility Modernization Grants Authorized.--
(1) In general.--From 30 percent of the amount
appropriated for each fiscal year under section
8014(e), the Secretary shall award grants in accordance
with this subsection to eligible local educational
agencies to enable the local educational agencies to
carry out modernization of school facilities.
(2) Eligibility requirements.--A local educational
agency is eligible to receive funds under this
subsection only if--
(A) such agency (or in the case of a local
educational agency that does not have the
authority to tax or issue bonds, such agency's
fiscal agent) has no capacity to issue bonds or
is at such agency's limit in bonded
indebtedness for the purposes of generating
funds for capital expenditures; and
(B)(i) such agency received assistance under
section 8002(a) for the fiscal year and has an
assessed value of taxable property per student
in the school district that is less than the
average of the assessed value of taxable
property per student in the State in which the
local educational agency is located; or
(ii) such agency received assistance under
subsection (a) for the fiscal year and has a
school facility emergency, as determined by the
Secretary, that poses a health or safety hazard
to the students and school personnel assigned
to the school facility.
(3) Award criteria.--In awarding grants under this
subsection the Secretary shall consider 1 or more of
the following factors:
(A) The extent to which the local educational
agency lacks the fiscal capacity to undertake
the modernization project without Federal
assistance.
(B) The extent to which property in the local
educational agency is nontaxable due to the
presence of the Federal Government.
(C) The extent to which the local educational
agency serves high numbers or percentages of
children described in subparagraphs (A), (B),
(C), and (D) of section 8003(a)(1).
(D) The need for modernization to meet--
(i) the threat that the condition of
the school facility poses to the safety
and well-being of students;
(ii) overcrowding conditions as
evidenced by the use of trailers and
portable buildings and the potential
for future overcrowding because of
increased enrollment; and
(iii) facility needs resulting from
actions of the Federal Government.
(E) The age of the school facility to be
modernized.
(4) Other award provisions.--
(A) Federal share.--The Federal funds
provided under this subsection to a local
educational agency described in subparagraph
(C) shall not exceed 50 percent of the total
cost of the project to be assisted under this
subsection. A local educational agency may use
in-kind contributions to meet the matching
requirement of the preceding sentence.
(B) Maximum grant.--A local educational
agency described in subparagraph (C) may not
receive a grant under this subsection in an
amount that exceeds $3,000,000 during any 5-
year period.
(C) Local educational agency described.--A
local educational agency described in this
subparagraph is a local educational agency that
has the authority to issue bonds but is at such
agency's limit in bonded indebtedness for the
purposes of generating funds for capital
expenditures.
(5) Applications.--A local educational agency that
desires to receive a grant under this subsection shall
submit an application to the Secretary at such time, in
such manner, and accompanied by such information as the
Secretary may require. Each application shall contain--
(A) documentation certifying such agency's
lack of bonding capacity;
(B) a listing of the school facilities to be
modernized, including the number and percentage
of children determined under section 8003(a)(1)
in average daily attendance in each school
facility;
(C) a description of the ownership of the
property on which the current school facility
is located or on which the planned school
facility will be located;
(D) a description of any school facility
deficiency that poses a health or safety hazard
to the occupants of the school facility and a
description of how that deficiency will be
repaired;
(E) a description of the modernization to be
supported with funds provided under this
subsection;
(F) a cost estimate of the proposed
modernization; and
(G) such other information and assurances as
the Secretary may reasonably require.
(6) Emergency grants.--
(A) Applications.--Each local educational
agency described in paragraph (2)(B)(ii) that
desires a grant under this subsection shall
include in the application submitted under
paragraph (5) a signed statement from an
appropriate local official certifying that a
health or safety deficiency exists.
(B) Priority.--If the Secretary receives more
than 1 application from local educational
agencies described in paragraph (2)(B)(ii) for
grants under this subsection for any fiscal
year, the Secretary shall give priority to
local educational agencies based on the
severity of the emergency, as determined by the
Secretary, and when the application was
received.
(C) Consideration for following year.--A
local educational agency described in paragraph
(2)(B)(ii) that applies for a grant under this
subsection for any fiscal year and does not
receive the grant shall have the application
for the grant considered for the following
fiscal year, subject to the priority described
in subparagraph (B).
* * * * * * *
SEC. 8010. FEDERAL ADMINISTRATION.
(a) Payments in Whole Dollar Amounts.--The Secretary shall
round any payments under this title to the nearest whole dollar
amount.
* * * * * * *
(c) Special Rules.--
[(1) Certain children eligible under subsection (a)
or (b) of section 3 of public law 81-874.--
Notwithstanding any other provision of law, for any
fiscal year before fiscal year 1995, the Secretary
shall treat as eligible under subsection (a) or (b) of
section 3 of the Act of September 30, 1950 (Public Law
874, 81st Congress) (as such subsection was in effect
on the day preceding the date of enactment of the
Improving America's Schools Act of 1994), and shall
forgive the obligation of a local educational agency to
repay any amounts that such agency received under such
section for such fiscal year based on, any child who
would be eligible under such subsections except that
such child does not meet the requirements of subsection
(a)(1)(B) or (b)(2)(B), respectively, of such section
3, if such child meets the requirements of paragraph
(3) of this subsection.]
[(2)] (1) Certain children eligible under
subparagraphs (a) and (g)(ii) of section 8003(a)(1).--
(A) * * *
* * * * * * *
[(3)] (2) Requirements.--A child meets the
requirements of this paragraph if--
(A) * * *
* * * * * * *
(D) the State in which such child attends
school provides funds for the education of such
child on the same basis as all other public
school children in the State, unless otherwise
permitted under [section 5(d)(2) of the Act of
September 30, 1950 (Public Law 874, 81st
Congress) (as such section was in effect on the
day preceding the date of enactment of the
Improving America's Schools Act of 1994) or]
section 8009(b) of this title; and
* * * * * * *
SEC. 8011. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.
(a) Administrative Hearings.--A local educational agency
and a State that is adversely affected by any action of the
Secretary under this title or under the Act of September 30,
1950 (Public Law 874, 81st Congress) (as such Act was in effect
on the day preceding the date of enactment of the Improving
America's Schools Act of 1994) shall be entitled to a hearing
on such action in the same manner as if such agency were a
person under chapter 5 of title 5, United States Code if the
local educational agency or State, as the case may be, submits
to the Secretary a request for the hearing not later than 60
days after the date of the action of the Secretary under this
title.
(b) Judicial Review of Secretarial Action.--
(1) In general.--A local educational agency or a
State aggrieved by the Secretary's final decision
following an agency proceeding under subsection (a)
may, within [60 days] 30 working days (as determined by
the local educational agency or State) after receiving
notice of such decision, file with the United States
court of appeals for the circuit in which such agency
or State is located a petition for review of that
action. The clerk of the court shall promptly transmit
a copy of the petition to the Secretary. The Secretary
shall then file in the court the record of the
proceedings on which the Secretary's action was based,
as provided in section 2112 of title 28, United States
Code.
* * * * * * *
SEC. 8013. DEFINITIONS.
For purposes of this title:
(1) * * *
* * * * * * *
(5) Federal property.--
(A) In general.--Except as provided in
subparagraphs (B) through (F), the term
``Federal property'' means real property that
is not subject to taxation by any State or any
political subdivision of a State due to Federal
agreement, law, or policy, and that is--
(i) * * *
* * * * * * *
(iii)(I) part of a low-rent housing
project assisted under the United
States Housing Act of 1937; [or]
* * * * * * *
(III) affordable housing assisted
under the Native American Housing
Assistance and Self-Determination Act
of 1996; or
* * * * * * *
(13) Modernization.--The term ``modernization'' means
repair, renovation, alteration, or construction,
including--
(A) the concurrent installation of equipment;
and
(B) the complete or partial replacement of an
existing school facility, but only if such
replacement is less expensive and more cost-
effective than repair, renovation, or
alteration of the school facility.
SEC. 8014. AUTHORIZATION OF APPROPRIATIONS.
(a) Payments for Federal Acquisition of Real Property.--For
the purpose of making payments under section 8002, there are
authorized to be appropriated [$16,750,000 for fiscal year
1995] $32,000,000 for fiscal year 2000 and such sums as may be
necessary for each of the four succeeding fiscal years.
(b) Basic Payments; Payments for Heavily Impacted Local
Educational Agencies.--For the purpose of making payments under
[subsections (b) and (f) of section 8003] section 8003(b),
there are authorized to be appropriated [$775,000,000 for
fiscal year 1995] $809,400,000 for fiscal year 2000 and such
sums as may be necessary for each of the four succeeding fiscal
years[, of which 6 percent shall be available, until expended,
for each such fiscal year to carry out section 8003(f)].
(c) Payments for Children With Disabilities.--For the
purpose of making payments under section 8003(d), there are
authorized to be appropriated [$45,000,000 for fiscal year
1995] $50,000,000 for fiscal year 2000 and such sums as may be
necessary for each of the four succeeding fiscal years.
[(d) Payments for Increases in Military Children.--For the
purpose of making payments under section 8006, there are
authorized to be appropriated $2,000,000 for fiscal year 1995
and such sums as may be necessary for each of the four
succeeding fiscal years.]
(e) Construction.--For the purpose of carrying out section
8007, there are authorized to be appropriated [$25,000,000 for
fiscal year 1995] $10,052,000 for fiscal year 2000 and such
sums as may be necessary for each of the four succeeding fiscal
years.
(f) Facilities Maintenance.--For the purpose of carrying
out section 8008, there are authorized to be appropriated
[$2,000,000 for fiscal year 1995] $5,000,000 for fiscal year
2000 and such sums as may be necessary for each of the four
succeeding fiscal years.
(g) Additional Assistance for Certain [Federal Property]
Local Educational Agencies Impacted by Federal Property
Acquisition.--For the purpose of carrying out section 8002(j)
there are authorized to be appropriated [such sums as are
necessary beginning in fiscal year 1998 and for each succeeding
fiscal year] $1,500,000 for fiscal year 2000 and such sums as
may be necessary for each of the four succeeding fiscal years.
* * * * * * *
SECTION 426 OF THE GENERAL EDUCATION PROVISIONS ACT
prohibition against use of appropriated funds for busing
Sec. 426. No funds appropriated for the purpose of carrying
out any applicable program may be used for the transportation
of students or teachers (or for the purchase of equipment for
such transportation) in order to overcome racial imbalance in
any school or school system, or for the transportation of
students or teachers (or for the purchase of equipment for such
transportation) in order to carry out a plan of racial
desegregation of any school or school system, except for funds
appropriated pursuant to title VIII of the Elementary and
Secondary Education Act of 1965, but not including any portion
of such funds as are attributable to children counted under
[subsections (d) and (g) of section 8003 of such Act] section
8003(d) of such Act or residing on property described in
section 8013(10) of such Act.
ADDITIONAL VIEWS
Presently, the current weight assigned to military off-base
children is .10 and civilian dependent children is .05. These
weights are used to calculate the level of assistance provided
to school districts. Under the Impact Aid Program, we feel
these levels do not adequately measure the financial impact
these categories of children place on a federally impacted
local educational agency. Impact aid weights for military off-
base children and civilian dependent children should reflect
what is at least close to what the actual impact of these
children is on a school district.It is our hope that an
agreement can be reached in Conference that will increase the
weights assigned these two categories of children.
Bill Clay.
Dale E. Kildee.
Bobby Scott.