special incentive grants

special incentive grants Sec. 108. (a) Title II of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress), is further amended by— (1) inserting “Part A—Basic Grants” immediately after the heading of such title; (2) striking out “this title” wherever it appears in sections 201 through 208 and inserting in lieu thereof “this part”; (3) inserting “Part C—General Provisions” immediately before the section heading of section 209; (4) redesignating sections 209 through 214 and references thereto as sections 231 through 236; and (5) inserting after section 208 thereof the following new part: “Part B— Incentive Grants “special incentive grants “Sec. 221. (a) A special incentive grant shall be made for any fiscal year beginning after June 30, 1968, to the State educational agency of each State which has an effort index for the preceding fiscal year that exceeds the national effort index for such year. The amount of such special incentive grant shall be determined by multiplying the amount of $1 for each 0.01 per centum by which such State’s effort index for such year exceeds the national effort index for such year times the aggregate number of children counted for purposes of entitling local educational agencies within such State to basic grants in accordance with clauses (2), (5), (6), and (7) of section 203(a) of this Act. If the sum of the amounts so determined for all the States exceeds the amount appropriated pursuant to this part for any fiscal year, such amounts shall be ratably reduced. No State agency shall receive in any year a grant pursuant to this section which is in excess of 15 per centum of the total amount appropriated for such year for the purpose of this section. The State educational agency shall distribute such grant to those local educational agencies in such State which are in the greatest need of additional funds, for the purposes set forth in section 205(a), and amounts so distributed shall be used by such agencies in accordance with the provisions governing the use or grants to such agencies under this title. “(b) Grants pursuant to this section shall be made upon application containing such information as the Commissioner may require for the purpose of this section. The Commissioner shall not finally disapprove such an application except after reasonable notice and opportunity for a hearing to the State educational agency. “(c) For the purpose of this section the term ‘State effort index’ means the per centum expressing the ratio of expenditures from all non-Federal sources in a State for public elementary and secondary 81 Stat. 787education to the total personal income in such State, and the term ‘national effort index’ means the per centum expressing the ratio of such expenditures in all States to the total personal income in all States. “(d) For the purpose of making grants under this part there are authorized to be appropriated not in excess of $50,000,000 each for the fiscal year ending .June 30, 1969, and the succeeding fiscal year.” (b) Sections 232 and 233(a) of such Act (as redesignated by subsection (a) of this section) are each amended by striking out “or 206(b)” and inserting in lieu thereof “, 206(b) or 221(b)”.