ALLOCATION OF FUNDS.

SEC. 105. ALLOCATION OF FUNDS. (a) Allocation and Use of Funds for Quality Improvement.—Section 640(a)(3) (42 U.S.C. 9835(a)(3)) is amended— (1) by redesignating subparagraphs (A) and (B) as subparagraphs (C) and (D), respectively; (2) by striking “(3)(C)” and all that follows through “quality improvement activities:” and inserting the following: “(3) (A) (i) In order to provide assistance for activities specified in subparagraph (C) directed at the goals specified in subparagraph (B), the Secretary shall reserve, from the amount (if any) by which the funds appropriated under section 639(a) for a fiscal year exceed the adjusted prior year appropriation, a share equal to the sum of— “(I) 25 percent of such excess amount; and “(II) any additional amount the Secretary may find necessary to address a demonstrated need for such activities. “(ii) As used in clause (i), the term ‘adjusted prior year appropriation’ means, with respect to a fiscal year, the amount appropriated pursuant to section 639(a) for the preceding fiscal year, adjusted to reflect the percentage change in the Consumer Price Index for All Urban Consumers (issued by the Bureau of Labor Statistics) during such preceding fiscal year. “(B) Funds reserved under this paragraph (referred to in this paragraph as ‘quality improvement funds’) shall be used to accomplish any or all of the following goals: “(i) Ensuring that Head Start programs meet or exceed performance standards pursuant to section 641A(a)(l)(A). “(ii) Ensuring that such programs have adequate qualified staff, and that such staff are furnished adequate training, including developing skills in working with children with non--English language background, when appropriate. “(iii) Ensuring that salary levels and benefits are adequate to attract and retain qualified staff for such programs. “(iv) Using salary increases to improve staff qualifications, and to assist with the implementation of career development programs, for the staff of Head Start programs. “(v) Improving community-wide strategic planning and needs assessments for such programs. “(vi) Ensuring that the physical environments of Head Start programs are conducive to providing effective program services to children and families. “(vii) Making such other improvements in the quality of such programs as the Secretary may designate. “(C) Quality improvement funds shall be used to carry out any or all of the following activities:”; (3) in subparagraph (C), as redesignated in paragraph (1), by adding at the end the following new clause: “(vii) Such other activities as the Secretary may designate.”; and (4) in subparagraph (D), as redesignated in paragraph (1)— (A) in clause (i)— (i) in the matter preceding subclause (I), by striking “for the first, second, and third fiscal years for which funds are so reserved”; and (ii) in subclause (II), by inserting “geographical areas specified in subsection (a)(2)(B) and Indian and migrant Head Start programs,” after “States,”; 108 STAT. 627 (B) by striking clauses (ii) and (iii); (C) in clause (iv)— (i) by striking “To be expended” and all that follows, through “reserved, funds” and inserting “Funds”; (ii) by striking “clause (ii)” the first place it appears and inserting “clause (i)”; (iii) by inserting before the period at the end of the first sentence, “, for expenditure for activities specified in subparagraph (C)”; and (iv) by striking the second sentence; (D) in clause (vi), by striking “paragraphs (2), (4), and (5)” and inserting “paragraph (2) or (4)”; and (E) by striking clause (v) and redesignating clauses (iv) and (vi) as clauses (ii) and (iii), respectively. (b) Funds Set-Aside.—Section 640(a) (42 U.S.C. 9835(a)) is amended— (1) in paragraph (1), by striking “through (5).” and inserting “through (4), and subject to paragraphs (5) and (6).”; (2) in paragraph (2)— (A) in subparagraph (A), by striking “1990” and inserting “1994”; and (B) in subparagraph (D), by inserting “(including payments for all costs (other than compensation of Federal employees) of reviews of Head Start agencies and programs under section 641A(c), and of activities related to the development and implementation of quality improvement plans under section 641A(d)(2))” after “Secretary”; (3) in paragraph (3), by striking “paragraph (5)” each place it appears and inserting “paragraph (4)”; (4) by striking paragraph (4), and redesignating paragraphs (5) and (6) as paragraphs (4) and (7), respectively; (5) in paragraph (4), as redesignated in paragraph (4), by striking “The” and inserting “Subject to section 639(b), the”; and (6) by adding after paragraph (4), as redesignated in paragraph (4), the following new paragraphs: “(5) (A) From amounts reserved and allotted pursuant to paragraph (4), the Secretary shall reserve such sums as may be necessary to award the collaboration grants described in subparagraph (B). “(B) From the reserved sums, the Secretary may award a collaboration grant to each State to facilitate collaboration regarding activities carried out in the State under this subchapter, and other activities carried out in, and by, the State that are designed to benefit low-income children and families. “(C) A State that receives a grant under subparagraph (B) shall— “(i) appoint an individual to serve as a State liaison between— “(I) agencies and individuals carrying out Head Start programs in the State; and “(II) agencies (including local educational agencies) and entities carrying out programs serving low-income children and families; “(ii) involve the State Head Start Association in the selection of the individual, and involve the association in determinations relating to the ongoing direction of the collaboration; 108 STAT. 628 “(iii) ensure that the individual holds a position with sufficient authority and access to ensure that the collaboration described in subparagraph (B) is effective and involves a range of State agencies; and “(iv) ensure that the collaboration described in subparagraph (B) involves coordination of Head Start services with health care, welfare, child care, education, and national service activities, family literacy services, and activities relating to children with disabilities. “(D) As used in this paragraph, the term ‘low-income’, used with respect to children or families, shall not be considered to refer only to children or families that meet the low-income criteria prescribed pursuant to section 645(a)(1)(A) “(6) From amounts reserved and allotted pursuant to paragraphs (2) and (4), the Secretary shall use, for grants for programs described in section 645A(a), a portion of the combined total of such amounts equal to 3 percent for fiscal year 1995, 4 percent for each of fiscal years 1996 and 1997, and 5 percent for fiscal year 1998, of the amount appropriated pursuant to section 639(a).”. (c) Considerations for Allocation of Funds for Program Expansion.—Section 640(g) (42 U.S.C. 9835(g)) is amended— (1) by striking “(g)” and inserting “(g)(1)”; and (2) by adding at the end the following new paragraphs: “(2) For the purpose of expanding Head Start programs, in allocating funds to an applicant within a State, from amounts allotted to a State pursuant to subsection (a)(4), the Secretary shall take into consideration— “(A) the quality of the applicant’s programs (including Head Start and other child care or child development programs) in existence on the date of the allocation, including, in the case of Head Start programs in existence on the date of the allocation, the extent to which such programs meet or exceed performance standards and other requirements under this sub-chapter; “(B) the applicant’s capacity to expand services (including, in the case of Head Start programs in existence on the date of the allocation, whether the applicant accomplished any prior expansions in an effective and timely manner); “(C) the extent to which the applicant has undertaken community-wide strategic planning and needs assessments involving other community organizations and public agencies serving children and families (including organizations serving families in whose homes English is not the language customarily spoken); “(D) the extent to which the family and community needs assessment of the applicant reflects a need to provide full- working-day or full calendar year services; “(E) the numbers of eligible children in each community who are not participating in a Head Start program; and “(F) the concentration of low-income families in each community. “(3) In determining the amount of funds reserved pursuant to subparagraph (A) or (B) of subsection (a)(2) to be used for expanding Head Start programs under this subchapter, the Secretary shall take into consideration, to the extent appropriate, the factors specified in paragraph (2).”. 108 STAT. 629 (d) Technical Amendment.—Section 640(h) (42 U.S.C. 9835(h)) is amended by striking “Each Head Start program may” and inserting “Financial assistance provided under this subchapter may be used by each Head Start program to”. (e) Compensation.—Section 640 (42 U.S.C. 9835) is amended by adding at the end the following new subsections: “(j) Any agency that receives financial assistance under this subchapter to improve the compensation of staff who provide services under this Act shall use the financial assistance to improve the compensation of such staff, regardless of whether the agency has the ability to improve the compensation of staff employed by the agency who do not provide Head Start services. “(k) (1) The Secretary shall allow center-based Head Start programs the flexibility to satisfy the total number of hours of service required by the regulations in effect on the date of enactment of the Human Services Amendments of 1994, to be provided to children in Head Start programs so long as such agencies do not— “(A) provide less than 3 hours of service per day; “(B) reduce the number of days of service per week; or “(C) reduce the number of days of service per year. “(2) The provisions of this subsection shall not be construed to restrict the authority of the Secretary to fund alternative program variations authorized under section 1306.35 of title 45 of the Code of Federal Regulations in effect on the date of enactment of the Human Services Amendments of 1994. “(l) With funds made available under section 640(a)(2) to migrant Head Start programs, the Secretary shall give priority to migrant Head Start programs that serve eligible children of migrant families whose work requires them to relocate most frequently.”.