FORMULA MODIFICATIONS.

SEC. 5107. FORMULA MODIFICATIONS. (a) In General.— (1) Paragraph (1) of section 1128(c) of the Education Amendments of 1978 (25 U.S.C. 2008(c)(1)) is amended to read as follows: “(1) For fiscal year 1990, and for each subsequent fiscal year, the Secretary shall adjust the formula established under subsection (a) to— “(A) use a weighted unit of 1.2 for each eligible Indian student enrolled in the seventh and eighth grades of the school in considering the number of eligible Indian students served by the school; “(B) consider a school with an average daily attendance of less than 50 eligible Indian students as having an average daily attendance of 50 eligible Indian students for purposes of implementing the adjustment factor for small schools; and “(C) take into account the provision of residential services on a less than 9-month basis at a school when the school board and supervisor of the school determine that a less than 9-month basis will be implemented for the school year involved.”, (2) Subsection (c) of section 1128 of the Education Amendments of 1978 (25 U.S.C. 2008(c)) is amended by adding at the end thereof the following new paragraphs: “(4)(A) The Secretary shall adjust the formula established under subsection (a) to use a weighted unit of 2.0 for each eligible Indian student that— “(i) is gifted and talented (as determined pursuant to section 5324 of the Indian Education Amendments of 1988), and “(ii) is enrolled in the school on a full-time basis, in considering the number of eligible Indian students served by the school. “(B) The adjustment required under subparagraph (A) shall be used for the later of the following fiscal years and for each fiscal year succeeding such later fiscal year: “(i) the second fiscal year succeeding the fiscal year in which the Secretary of Education makes the report required under section 5324(c)(6)(B) of the Indian Education Act of 1988, or 102 STAT. 369 “(ii) the first fiscal year for which an increase in the amount of funds appropriated for allotment under this section is designated by the law that appropriates such funds as the amount necessary to implement such adjustment without reducing allotments made under this section to any school . “(5) For each of the fiscal years 1989 and 1990, the Secretary shall adjust the formula established under subsection (a) to provide funding to schools operated by Indian tribes that are treated under State law as political subdivisions of the State in an amount sufficient to enable the schools to meet standards imposed by the State.”. (b) Study.— (1) The Comptroller General of the United States (hereafter in this subsection referred to as the “Comptroller General”) shall conduct a study to determine— (A) the number of children who— (i) are 3 or 4 years of age, (ii) are eligible for services provided by the Bureau of Indian Affairs of the Department of the Interior, and (iii) are handicapped children (within the meaning of section 602(1) of the Education of the Handicapped Act (20 U.S.C. 401(D)), (B) the geographic disbursement of such children, (C) the number of such children who the Comptroller General estimates will receive services under the preschool set-aside program under Public Law 99–457, (D) the sufficiency of the preschool services described in subparagraph (C), (E) the unmet needs of such children, (F) the number of such children who the Comptroller General estimates will attend education programs (schools or residential programs) funded by the Bureau, and (G) the information described in subparagraphs (B), (C), (D), and (E) with respect to the children described in subparagraph (F). (2) By no later than the date that is 1 year after the date of enactment of this Act, the Comptroller General shall submit to the Congress a report on the study conducted under paragraph (1).