ALLOCATIONS UNDER SECTION 611.

SEC. 311. ALLOCATIONS UNDER SECTION 611. (a) Maximum Amount.— Subsection (a) of section 611 of the Individuals with Disabilities Education Act (hereafter in this part referred to as the “Act”) (20 U.S.C. 1411(a)) is amended— (1) by amending paragraph (1) to read as follows: “(1) Except as provided in paragraph (5), the maximum amount of the grant for which a State is entitled under this section for any fiscal year is— “(A) the sum of— “(i) the number of children with disabilities in the State, aged 6 through 21, who are receiving special education and related services, as determined under paragraph (3); and “(ii) if the State is eligible for a grant under section 619, the number of such children in the State, aged 3 through 5; multiplied by “(B) 40 percent of the average per-pupil expenditure in public elementary and secondary schools in the United States.”; (2) by amending paragraph (2) to read as follows: “(2) For the purpose of this section, the term ‘State’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.”; and (3) in subparagraph (A) of paragraph (5)— (A) in clause (i)— (i) by striking “and the State” and inserting “, or the combined percentage of such children counted108 STAT. 3932 by the Secretary for the purpose of making fiscal year 1994 allocations under this section and under subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (as such subpart was in effect on the day preceding the date of enactment of the Improving America’s Schools Act of 1994), whichever is greater, if the State”; and (ii) by inserting “and” after the comma at the end; (B) in clause (ii)— (i) by striking “and the State” and inserting “, or the combined percentage of such children counted by the Secretary for the purpose of making fiscal year 1994 allocations under this section and under subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (as such subpart was in effect on the day preceding the date of enactment of the Improving America’s Schools Act of 1994), whichever is greater, if the State”; and (ii) by striking “; and” and inserting a period; and (C) by striking clause (iii). (b) State Uses.— Subsection (b) of section 611 of the Act (20 U.S.C. 1411(b)) is amended to read as follows: “(b) (1) Notwithstanding subsections (a) and (g), no State shall receive an amount under this section for any of the fiscal years 1995 through 1999 that is less than the sum of the amount such State received for fiscal year 1994 under— “(A) this section; and “(B) subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (as such subpart was in effect on the day preceding the date of enactment of the Improving America’s Schools Act of 1994) for children with disabilities aged 3 through 21. “(2) If, for fiscal year 1998 or 1999, the number of children determined under subsection (a)(3) for any State is less than the total number of children with disabilities, aged 3 through 21, counted for that State’s fiscal year 1994 grants under this section and under subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (as such subpart was in effect on the day preceding the date of enactment of the Improving America’s Schools Act of 1994), then the amount determined under paragraph (1) for that State shall be reduced by the same percentage by which the number of those children so declined. “(3) (A) If the sums made available under this part for any fiscal year are insufficient to pay the full amounts that all States are eligible to receive under paragraphs (1) and (2) for such year, the Secretary shall ratably reduce the allocations to such States for such year. “(B) If additional funds become available for making payments under paragraphs (1) and (2) for such fiscal year, allocations that were reduced under subparagraph (A) shall be increased on the same basis as such allocations were reduced.”. (c) Distribution.— Subsection (c) of section 611 of the Act (20 U.S.C. 1411(c)) is amended— (1) by amending paragraph (1) to read as follows: 108 STAT. 3933 “(1) Of the funds received under subsection (a) by any State for any fiscal year— “(A) a State may use not more than 25 percent of such funds in accordance with paragraph (2); and “(B) except as provided in paragraph (4), the State shall distribute at least 75 percent of such funds to local educational agencies and intermediate educational units, in accordance with subsection (d), for use in accordance with priorities established under section 612(3).”; and (2) in paragraph (2), by amending subparagraph (A) to read as follows: “(A) From the funds that any State may use under paragraph (1)(A) for any fiscal year, the State— “(i) may use 5 percent of the funds received under this section or $450,000, whichever is greater, for administrative costs related to carrying out sections 612 and 613; and “(ii) shall use the remainder— “(I) to provide support services and direct services, subject to subparagraph (B), in accordance with priorities established under section 612(3); and “(II) for the administrative costs of monitoring and complaint investigation, but only to the extent that such costs exceed the costs of administration incurred during fiscal year 1985.”. (d) Formula.— Subsection (d) of section 611 of the Act (20 U.S.C. 1411(d)) is amended to read as follows: “(d) (1) From the total amount of funds available for any fiscal year under subsection (c)(1)(B), the State shall provide to each local educational agency or intermediate educational unit an amount that bears the same ratio to such total amount as the number of children, aged 3 through 21, determined under subsection (a)(3) for such agency or unit bears to the total number of such children determined for all such agencies and units that apply for such funds. “(2) (A) To the extent necessary, the State— “(i) shall use funds available under subsection (c)(2)(A)(ii) to ensure that each State agency that received funds for fiscal year 1994 under subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (as such subpart was in effect on the day preceding the date of enactment of the Improving America’s Schools Act of 1994) receives, from the sum of such funds and funds provided under paragraph (1), an amount equal to— “(I) the number of children, aged 6 through 21, determined under subsection (a)(3) for such agency; multiplied by “(II) the per-child amount provided under such subpart for fiscal year 1994; and “(ii) may use such funds to ensure that each local educational agency that received for fiscal year 1994 under such subpart for children who had transferred from a State-owned, State-operated, or State-supported school or program assisted under such subpart receives, from the sum of such funds and funds provided under paragraph (1), an amount for each such child, aged 3 through 21, determined under subsection (a)(3)108 STAT. 3934 for such agency, equal to the per-child amount the agency received under such subpart for fiscal year 1994. “(B) For the purpose of subparagraph (A), the number of children determined under subsection (a)(3) for any State agency or local educational agency shall not exceed the number of children aged 3 through 21 for whom such agency received funds under such subpart for such fiscal year.”. (e) Jurisdictions.— Paragraph (1) of section 611(e) of the Act (20 U.S.C. 1411(e)(1)) is amended to read as follows: “(1) The jurisdictions to which this subsection applies are Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, and Palau (until the Compact of Free Association with the Government of Palau takes effect).”. (f) Insufficient Appropriations.— Subsection (g) of section 611 of the Act (20 U.S.C. 1411(g)) is amended to read as follows: “(g) (1) (A) If the sums appropriated under subsection (h) for any fiscal year are not sufficient to pay in full the total of the amounts that all States are eligible to receive under subsection (a), each such amount shall be ratably reduced. “(B) If additional funds become available for making such payments for any fiscal year, such reduced amounts shall be increased on the same basis as such payments were reduced. “(C) Any State that receives any such additional funds shall distribute such funds in accordance with this section, except that any State that has used funds available under subsection (c)(2)(A)(ii) for the purposes described in subsection (d)(2) may— “(i) deduct, from the amount that the State would otherwise be required to make available to local educational agencies and intermediate educational units, the same amount of such additional funds as the State so used; and “(ii) use such funds in accordance with subsection (c)(2)(A)(ii). “(2) (A) In any fiscal year for which payments have been reduced and additional funds have not been made available under paragraph (1) to pay in full the amounts for which all States are eligible under this section, each State educational agency shall fix dates by which each local educational agency or intermediate educational unit shall report to the State agency the amount of funds available to such agency under this section that such agency estimates such agency will expend. “(B) The State educational agency shall, in accordance with this section, reallocate any funds that the State educational agency determines will not be used during the period of availability by local educational agencies and intermediate educational units, and by any such agency or unit to which such funds would be available if such agency or unit applied for such funds under this part, to those local educational agencies and intermediate educational units that the State educational agency determines will need, and be able to use, additional funds to carry out approved programs.”.