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HR 4540 IH
To reauthorize the impact aid program under the Elementary and Secondary Education Act of 1965.
December 13, 2007
Ms. HIRONO (for herself and Mr. TERRY) introduced the following bill; which was referred to the Committee on Education and Labor
To reauthorize the impact aid program under the Elementary and Secondary Education Act of 1965.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Fair Funding for Schools Act'.
SEC. 2. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
Section 8002 of the Elementary and Secondary Education Act of 1965 (
(1) in subsection (a) by adding at the end the following: `The Secretary may base such a determination on original records (including facsimiles or other reproductions of those records) documenting the assessed value of that real property, prepared by a legally authorized official as of the time of the Federal acquisition, or other records that the Secretary determines to be appropriate and reliable, including Federal agency records or local historical records.';
(2) in subsection (f) by striking paragraphs (4) and (5);
(3) in subsection (h) by striking paragraphs (1) through (4) and inserting the following:
`(1) FOUNDATION PAYMENTS FOR CURRENT ELIGIBLE LOCAL EDUCATIONAL AGENCIES-
`(A) IN GENERAL- The Secretary shall first make a foundation payment to each local educational agency that was eligible for a payment under this section for fiscal year 2006.
`(B) AMOUNT- The amount of a payment under subparagraph (A) for a local educational agency shall be equal to 90 percent of the local educational agency's calculated payment for fiscal year 2006.
`(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) FOUNDATION PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES DEEMED ELIGIBLE AFTER FISCAL YEAR 2006-
`(A) IN GENERAL- From those funds remaining after making payments under paragraph (1) for the fiscal year involved, the Secretary shall make a payment to each local educational agency deemed eligible after fiscal year 2006 for the fiscal year in which such agency was deemed eligible.
`(B) IN GENERAL- The first payment made to a local educational agency under subparagraph (A) shall thereafter be treated as the foundation payment for that local educational agency.
`(C) AMOUNTS- The amount of a payment under subparagraph (A) for a local educational agency shall be determined as follows:
`(i) Calculate the local educational agency's maximum payment under subsection (b).
`(ii) Calculate the percentage that the amount appropriated under section 8014(a) for the most recent fiscal year for which the Secretary has completed making payments under this section is of the total maximum payments for such fiscal year for all eligible local educational agencies and multiply the agency's maximum payment by such percentage.
`(iii) Multiply the amount determined under clause (ii) by 90 percent.
`(3) REMAINING FUNDS- From any funds remaining after making payments under paragraphs (1) and (2) for the fiscal year involved, the Secretary shall make a payment to each local educational agency that received a foundation payment under paragraphs (1) or (2) for the fiscal year involved in an amount that bears the same relation to the remainder as a percentage share determined for the local educational agency (by dividing the maximum amount that the agency is eligible to receive under subsection (b) by the total of the maximum amounts for all such agencies) 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 maximum payment under subsection (b), data from the most current fiscal year shall be used.';
(4) by striking subsections (i), (k), and (m); and
(5) by redesignating subsections (l) and (n) as (i) and (j), respectively.
SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
Section 8003 of that Act (
(1) in subsection (a)--
(A) in paragraph (1), in the matter preceding subparagraph (A), by inserting after `such agency,' the following: `including those children enrolled in a State that has a State open enrollment policy (but not including children enrolled in a distance learning program not residing within the defined boundaries of the agency),';
(B) in paragraph (2)--
(i) by redesignating subparagraphs (D) through (F) as (E) through (G), respectively;
(ii) by inserting after subparagraph (C) the following:
`(D) Multiply the number of children described in subparagraph (A) and (B) of subsection (a)(1) by a factor of 1.35 if the local educational agency has a total student enrollment of not less than 25,000 students, of which not less than 50 percent are children described in (a)(1) and not less than 6,000 of such children are children described in subparagraph (A) and (B) of subsection (a)(1).'; and
(iii) in subparagraph (F) (as so redesignated) by striking `.10' and inserting `.05';
(C) in paragraph (4)(B), in each of clauses (i)(I) and (ii)(I), by striking `3 fiscal years' and inserting `4 fiscal years'; and
(D) in paragraph (5) by inserting after `1984,' the following: `or under lease of off-base property under subchapter IV of chapter 169 of part IV of subtitle A of title 10, United States Code (
(2) in subsection (b)(2)--
(A) in subparagraph (B)--
(i) in the subparagraph heading by striking `CONTINUING';
(ii) in clause (i) by striking subclauses (I) and (II) and inserting the following:
`(I) is a local educational agency whose boundaries are the same as a Federal military installation or the boundaries are the same as island property designated by the Secretary of the Interior to be property that is held in trust by the Federal Government and the agency has no taxing authority, or the agency;
`(II) has an enrollment of children described in subsection (a)(1) that constitutes a percentage of the total student enrollment of the agency that is not less than 45 percent;
`(III) has a per-pupil expenditure that is less than--
`(aa) for a local educational agency that has a total student enrollment of 350 or more students, 120 percent of 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--
`(AA) 120 percent of the average per-pupil expenditure of the State in which the agency is located; or
`(BB) the average per-pupil expenditure of three comparable local educational agencies in the State in which the agency is located;
`(IV) has a tax rate for general fund purposes that is at least 95 percent of the average tax rate for general fund purposes of comparable local educational agencies in the State; and
`(V) for a local educational agency that has an enrollment of children described in subsection (a)(1) that constitutes a percentage of the total student enrollment of the agency which is not less than 30 percent, and has a tax rate for general fund purposes which is not less than 125 percent of the average tax rate for general fund purposes for comparable local educational agencies in the State.';
(iii) by adding at the end the following:
`(iv) SPECIAL RULE- Notwithstanding clause (i)(II), a local educational agency shall be considered eligible to receive a basic support payment under subparagraph (A) with respect to the number of children determined under subsection (a)(1) if the agency--
`(I) has an enrollment of children described in subsection (a)(1) that constitutes a percentage of the total student enrollment of the agency that is not less than 35 percent including for purposes of determining eligibility those children described in subparagraph (F) and (G) of subsection (a)(1); and
`(II) was eligible to receive assistance under subsection (b)(2) of section 8003 in fiscal year 2001.';
(B) by striking subparagraphs (C), (D), and (E);
(C) by inserting after subparagraph (B) the following:
`(C) MAXIMUM AMOUNT FOR HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCIES-
`(i) IN GENERAL- The maximum amount that a heavily impacted local educational agency is eligible to receive under this paragraph for any fiscal year is the sum of the total weighted student units, as computed under subsection (a)(2) and subject to clause (ii), multiplied by the greater of--
`(I) four-fifths of the average per-pupil expenditure of the State in which the local educational agency is located for the third fiscal year preceding the fiscal year for which the determination is made; or
`(II) four-fifths of the average per-pupil expenditure of all of the States for the third fiscal year preceding the fiscal year for which the determination is made.
`(ii) SPECIAL RULE- (I)(aa) For a local educational agency with respect to which 35 percent or more of the total student enrollment of the schools of the agency are children described in subparagraph (D) or (E) (or a combination thereof) of subsection (a)(1), and has an enrollment of children described in subparagraph (A), (B), or (C) of such subsection equal to at least 10 percent of the agency's total enrollment, the Secretary shall calculate the weighted student units of those children described in subparagraph (D) or (E) of such subsection by multiplying the number of such children by a factor of 0.55.
`(bb) For any local educational agency that received a payment under this clause in fiscal year 2006 the local educational agency shall not be required to have an enrollment of children described in subparagraphs (A), (B), or (C) of such subsection equal to at least 10 percent of the agency's total enrollment.
`(II) For a local educational agency that has an enrollment of 100 or fewer children described in subsection (a)(1), the Secretary shall calculate the total number of weighted student units for purposes of subsection (a)(2) by multiplying the number of such children by a factor of 1.75.
`(III) For a local educational agency that does not qualify under (B)(i)(I) of this subsection and has an enrollment of more than 100 but not more than 1000 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.';
(D) by redesignating subparagraph (F) as (D) and, in that subparagraph--
(i) by striking clause (ii);
(ii) by striking `; and' at the end of clause (i) and inserting a period; and
(iii) by striking `the Secretary--' and all that follows through `shall use' and inserting `the Secretary shall use';
(E) by redesignating subparagraph (G) as (E) and, in that subparagraph, in the matter preceding clause (i), by striking `(C)(i)(II)(bb)' and inserting `(B)(i)(II)(bb)';
(F) by redesignating subparagraph (H) as (F) and, in that subparagraph--
(i) in clause (i)--
(I) by striking `(B), (C), (D), or (E),' and inserting `(B) or (C),';
(II) by striking `by reason of' and inserting `due to';
(III) by inserting after `clause (iii),' the following: `or as the direct result of base realignment and closure or modularization as determined by the Secretary of Defense and force structure change or force relocation,'; and
(IV) by inserting before the period at the end the following: `or during such time as activities associated with base closure and realignment, modularization, force structure change, or force relocation is ongoing'; and
(ii) in clause (ii) by striking `(D) or (E)' both places such term appears and inserting `(C)';
(3) in subsection (b)(3)(B)--
(A) by redesignating clause (iv) as (v); and
(B) by inserting after clause (iii) the following:
`(iv) For any local educational agency that is providing a program of distant learning to children not residing within the legally defined boundaries of the agency, the Secretary shall disregard such children from such agency's total enrollment when calculating the percentage under subclause (I) of clause (i) and shall disregard any funds received for such children when calculating the total current expenditures attributed to the operation of such agency when calculating the percentage under subclause (II) of clause (i).';
(4) in subsection (b)(3)(C) by striking `or (E) of paragraph (2), as the case may be' and inserting `of paragraph (2)'.
(5) in subsection (b)(3), by amending subparagraph (D) to read as follows:
`(D) RATABLE DISTRIBUTION- For any fiscal year described in subparagraph (A) for which the sums available exceed the amount required to pay each local educational agency 100 percent of its threshold payment the Secretary shall distribute the excess sums to each eligible local educational agency that has not received its full amount computed under paragraph (1) or (2) (as the case may be) by multiplying--
`(i) a percentage, the denominator of which is the difference between the full amount computed under paragraph (1) or (2) (as the case may be) for all local educational agencies and the amount of the threshold payment (as calculated under subparagraphs (B) and (C) of all local educational agencies, and the numerator of which is the aggregate amount of the excess sums by:
`(ii) the difference between the full amount computed under paragraph (1) or (2) (as the case may be) for the agency and the amount of the threshold payment as calculated under subparagraphs (B) and (C) of the agency.';
(6) in subsection (c) by amending paragraph (2) to read as follows:
`(2) EXCEPTION- Calculation of payments for a local educational agency shall be based on data from the fiscal year for which the agency is making an application for payment if such agency:
`(A) is newly established by a State (first year of operation only), or
`(B)(i) was eligible to receive a payment under this section in the previous fiscal year and such agency has had an overall increase (as determined by the Secretary of Education in consultation with the Secretary of Defense, the Secretary of Interior or other Federal agencies) of not less than 250 students or 10 percent as described in section 8003(a)(1)(A), (B), (C), (D) or (F) and (G) if those children described in (F) or (G) are civilian dependents of employees of the Department of Defense and/or the Department of the Interior; and
`(ii) such increase occurred during the period between the end of the school year preceding the fiscal year for which the application is being made and the beginning of the school year immediately preceding that school year as the result of closure or realignment of military installations under the base closure process or the relocation of members of the Armed Forces and civilian employees of the Department of Defense as part of force structure changes or movements of units or personnel between military installations or because of actions initiated by the Secretary of Interior or other Federal agency.';
(7) in subsection (e) by striking paragraphs (1) and (2) and inserting the following:
`(1) IN GENERAL- Subject to paragraph (2), the total amount the Secretary shall pay a local education agency received under subsection (b)(1), (b)(2) or (b)(2)(B)(ii)--
`(A) for fiscal year 2008 shall not be less than 90 percent of the total amount that the local education agency received under subsection (b)(1), (b)(2) or (b)(2)(B)(ii) for fiscal year 2007;
`(B) for fiscal year 2009 shall not be less than 80 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2) or (b)(2)(B)(ii) for fiscal year 2007;
`(C) for fiscal year 2010 shall not be less than 70 percent of the total amount that the local educational agency received under subsection (b)(1), (b)(2) or (b)(2)(B)(ii) for fiscal year 2007 of which such amount shall be considered a foundation payment for each succeeding fiscal year until such time as the agency's maximum payment as determined under paragraphs (1) or (2) of subsection (b) as the case may be, exceeds the amount provided for under this subparagraph.
`(2) RATABLE REDUCTION-
`(A) IN GENERAL- If the sums made available under this title for any fiscal year are insufficient to pay the full amounts that all local educational agencies in all States are eligible to receive under paragraph (1) for such year, then the Secretary shall ratably reduce the payments to all agencies for such year.
`(B) ADDITIONAL FUNDS- If additional funds become available for making payments under paragraph (1) for such fiscal year, payments that were reduced under subparagraph (A) shall be increased on the same basis as such payments were reduced.'; and
(8) by striking subsection (g).
SEC. 4. CONSTRUCTION.
Section 8007 of that Act (
(1) in subsection (a)--
(A) in paragraph (1), by striking `40 percent' and inserting `80 percent';
(B) in paragraph (2) by adding at the end the following:
`(C) The agency is eligible under section 8003(b)(2) or is receiving a basic support payment under circumstances described in section 8003 (b)(2)(B)(ii).'; and
(C) by striking paragraph (3) and inserting the following:
`(3) AMOUNT OF PAYMENTS-
`(A) LOCAL 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 fiscal year shall be equal to--
`(i)(I) 40 percent of the amount appropriated under section 8014(e) for such fiscal year; divided by
`(II) the number of children described in subparagraphs (B) and (D)(i) of section 8003(a)(1) who were in average daily attendance for all local educational agencies described in paragraph (2), including the number of children attending a school facility described in section 8008(a) if the Secretary does not provide assistance for the school facility under that section for the fiscal year; multiplied by
`(ii) the number of children determined for such agency;
`(I) but not less than $25,000, except that this subparagraph shall not apply if the amount available to carry out paragraph (1) for such fiscal year is less than $32,000,000; and
`(II) not more than $3,000,000.
`(B) LOCAL EDUCATIONAL AGENCIES IMPACTED BY CHILDREN WHO RESIDE ON INDIAN LANDS- The amount of a payment to each local educational agency described in this subsection that is impacted by children who reside on Indian lands for a fiscal year shall be equal to--
`(i)(I) 40 percent of the amount appropriated under section 8014(e) for such fiscal year divided by
`(II) the number of children described in section 8003(a)(1)(C) who were in average daily attendance for all local educational agencies described in paragraph (2); multiplied by--
`(ii) the number of children determined for such agency;
`(I) but not less than $25,000, except that this subparagraph shall not apply if the amount available to carry out paragraph (1) for such fiscal year is less than $32,000,000 and
`(II) not more than $3,000,000.'; and
(2) in subsection (b)--
(A) in paragraph (1), in the matter preceding subparagraph (A), by striking `60 percent' and inserting `20 percent';
(B) in paragraph (3)(A), in the matter preceding clause (i), by inserting after `an emergency grant under paragraph (2)(A)' the following: `if the agency is covered by paragraph (7), or';
(C) in paragraph (3)(C)(i)(I) by striking `the agency meets at least one' and all that follows through the period at the end and inserting `the number of children determined under section 8003(a)(1)(C) for the agency for the preceding school year constituted at least 40 percent of the total student enrollment in the schools of the agency during the preceding school year.';
(D) by striking paragraph (3)(D)(ii)(II) and inserting the following:
`(II) The number of children determined under section 8003(a)(1)(C) for the school for the preceding school year constituted at least 40 percent of the total student enrollment in the school during the preceding school year.';
(E) in paragraph (4)(C) by striking `(A), (B), (C), and (D)' and inserting `(A) and (C)';
(F) by redesignating paragraph (7) as paragraph (8); and
(G) by inserting after paragraph (6) the following:
`(7) SPECIAL RULE- Notwithstanding paragraphs (3)(C)(i)(I) and (3)(D)(ii)(II), a local educational agency is eligible to receive a grant under this subsection not to exceed $3,000,000 in any one fiscal year if such agency--
`(A) was eligible to receive a payment under section 8003 for the fiscal year prior to the year for which the application is made; and
`(B) has had an overall increase in enrollment--
`(i) during the period between the end of the school year preceding the fiscal year for which the application is made and the beginning of the school year immediately preceding that school year;
`(ii) of not less than 250 students or 10 percent (whichever is lower), are children described in--
`(I) subparagraph (A), (B), (C), or (D) of section 8003(a) (1); or
`(II) subparagraph (F) or (G) of section 8003(a) (1), but only to the extent such children are civilian dependents of employees of the Department of Defense; and
`(iii) that is the direct result of one or more of the following:
`(I) Base realignment and closure or global rebasing, as determined by the Secretary of Defense.
`(II) Force structure changes or force reductions.
`(III) An action initiated by the Secretary of Interior or other Federal agency.'.
SEC. 5. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.
Section 8009 of that Act (
(1) in subsection (b)(1) by inserting before the period at the end the following: `and for which the average per pupil expenditure is equal to or greater than the average per pupil expenditure of all the States in the third fiscal year preceding the fiscal year for which the State is applying for equalization under the section';
(2) in subsection (b)(2) by striking subparagraphs (A) and (B) and inserting the following:
`(A) STATES CURRENTLY QUALIFYING-
`(i) IN GENERAL- For purposes of paragraph (1), a program of State aid for any State qualifying under this section in fiscal year 2006 equalizes expenditures among local educational agencies if, in the second fiscal year preceding the fiscal year for which the determination is made the amount of per-pupil expenditures made by, or per-pupil revenues available to, the local educational agency in the State with the highest such per-pupil expenditures or revenues did not exceed the amount of such per-pupil expenditures made by, or per-pupil revenues available to, the local educational agency in the State with the lowest such expenditures or revenues by more than 25 percent as calculated under clause (i).
`(ii) OTHER FACTORS- In making a determination under this subparagraph, the Secretary notwithstanding regulations in use prior to the enactment of this Act shall--
`(I) arrange all local educational agencies in the State by per-pupil expenditures or revenues in descending order from the highest to the lowest;
`(II) using per pupil expenditures or revenues as the only criteria disregard those local educational agencies that are spending above the 95th percentile and those spending below the 5th percentile;
`(III) identify the local educational agency at the 95th percentile and the local educational agency at the 5th percentile;
`(IV) subtract the amount of per-pupil expenditures or revenues of the local educational agency at the 5th percentile from the amount of per-pupil expenditures or revenues of the local educational agency at the 95th percentile and divide the difference by the per-pupil expenditures or revenues of the local educational agency at the 5th percentile; and
`(V) take into account the extent to which a program of State aid reflects the additional cost of providing free public education in particular types of local educational agencies, such as those that are geographically isolated, or to particular types of students, such as children with disabilities.
`(B) NEW STATES APPLICANTS-
`(i) IN GENERAL- For purposes of paragraph (1), a program of State aid for this section after fiscal year 2006 equalizes expenditures among local educational agencies if, in the second fiscal year preceding the fiscal year for which the determination is made, the amount of per-pupil expenditures made by, or per pupil revenues available to, the local educational agency in the State with the highest such per-pupil expenditures or revenues did not exceed the amount of such per-pupil expenditures made by, or per-pupil revenues available to, the local educational agency in the State with the lowest such expenditures or revenues by more than 10 percent as calculated under clause (i).
`(ii) OTHER FACTORS- In making a determination under this subparagraph, the Secretary notwithstanding regulations in use prior to the enactment of this Act shall--
`(I) arrange all local educational agencies in the State by per pupil expenditures or revenues in descending order from the highest to the lowest;
`(II) using per-pupil expenditures or revenues as the only criteria disregard those local educational agencies that are spending above the 95th percentile and those spending below the 5th percentile;
`(III) identify the local educational agency at the 95th percentile and the local educational agency at the 5th percentile;
`(IV) subtract the amount of per-pupil expenditures or revenues of the local educational agency at the 5th percentile from the amount of per-pupil expenditures or revenues of the local educational agency at the 95th percentile and divide the difference by the per-pupil expenditures or revenues of the local educational agency at the 5th percentile; and
`(V) take into account the extent to which a program of State aid reflects the additional cost of providing free public education in particular types of local educational agencies, such as those that are geographically isolated, or to particular types of students, such as children with disabilities.'; and
(3) in subsection (d)(2)--
(A) by striking `A State' and inserting the following:
`(A) IN GENERAL- A State'; and
(B) by adding at the end the following:
`(B) STATES THAT ARE NOT EQUALIZED STATES- A State that has not been approved as an equalized State under subsection (b) shall not consider funds received under section 8002 or section 8003 of this title in any State formula or place a limit or direct the use of such funds or consider such funds in any State formula.'.
SEC. 6. DEFINITIONS.
Section 8013 of that Act (
(1) in paragraph (1) by striking `and Marine Corps' and inserting `Marine Corps, and Coast Guard';
(2) in paragraph (9) by adding at the end the following:
`(C) NEW LOCAL EDUCATIONAL AGENCIES- Except for those agencies deemed eligible under section 8003 prior to the enactment of this subparagraph, any new local educational agency making application must have boundaries as defined by State law and which has been granted the authority to tax or to receive an imputed tax from either a city, county or township body.'.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
Section 8014 of that Act (
(1) in subsection (a) by striking `$32,000,000 for fiscal year 2000' and inserting `$75,000,000 for fiscal year 2008';
(2) in subsection (b) by striking `$809,400,000 for fiscal year 2000' and inserting `$1,225,000,000 for fiscal year 2008';
(3) in subsection (c) by striking `$50,000,000 for fiscal year 2000' and inserting `$55,000,000 for fiscal year 2008';
(4) by redesignating subsection (e) as (d) and, in that subsection, by striking `$10,052,000' and all that follows through `and such sums' and inserting `$150,000,000 for fiscal year 2008 and such sums';
(5) by redesignating subsection (f) as (e) and, in that subsection, by striking `$5,000,000 for fiscal year 2000' and inserting `$10,000,000 for fiscal year 2008'; and
(6) by adding at the end the following:
`(f) Allocation of Dollars From Previous Fiscal Years- When final payments are made for a fiscal year the Secretary shall add any remaining funds to those funds appropriated for such section for the next fiscal year for the purpose of making payments subject to the provisions of the applicable section.'.
SEC. 8. CONFORMING REPEAL.
Subpart 20 (
