ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

SEC. 1074. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES. (a) Continuation of Department of Defense Program for Fiscal Year 1996.— (1) Of the amounts authorized to be appropriated in section 301(5)— (A) $30,000,000 shall be available for providing educational agencies assistance (as defined in paragraph (4)(A)) to local educational agencies; and (B) $5,000,000 shall be available for making educational agencies payments (as defined in paragraph (4)(B)) to local educational agencies. (2) Not later than June 30, 1996, the Secretary of Defense shall— (A) notify each local educational agency that is eligible for educational agencies assistance for fiscal year 1996 of that agency’s eligibility for such assistance and the amount of such assistance for which that agency is eligible; and (B) notify each local educational agency that is eligible for an educational agencies payment for fiscal year 1996 of that agency’s eligibility for such payment and the amount of the payment for which that agency is eligible. (3) The Secretary of Defense shall disburse funds made available under subparagraphs (A) and (B) of paragraph (1) not later than 30 days after the date on which notification to the eligible local educational agencies is provided pursuant to paragraph (2). (4) In this section: (A) The term “educational agencies assistance” means assistance authorized under subsection (b) of section 386 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C. 238 note). (B) The term “educational agencies payments” means payments authorized under subsection (a) of that section, as amended by subsection (d). (b) Special Rule for 1994 Payments.— The Secretary of Education shall not consider any payment to a local educational agency by the Department of Defense, that is available to such agency for current expenditures and used for capital expenses, as funds available to such agency for purposes of making a determination for fiscal year 1994 under section 3(d)(2)(B)(i) of the Act of September 30, 1950 (Public Law 874, 81st Congress) (as such Act was in effect on September 30, 1994). 110 STAT. 448 (c) Reduction in Impact Threshold.— Subsection (c)(1) of section 386 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C. 238 note) is amended— (1) by striking out “30 percent” and inserting in lieu thereof “20 percent”; and (2) by striking out “counted under subsection (a) or (b) of section 3 of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress; 20 U.S.C. 238)” and inserting in lieu thereof “counted under section 8003(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(a))”. (d) Adjustments Related to Base Closures and Realignments.— Subsection (d) of section 386 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 28 U.S.C. 238 note) is amended to read as follows: “(d) Adjustments Related to Base Closures and Realignments.— To assist communities in making adjustments resulting from reductions in the size of the Armed Forces, the Secretary of Defense shall, in consultation with the Secretary of Education, make payments to local educational agencies that, during the period between the end of the school year preceding the fiscal year for which the payments are authorized and the beginning of the school year immediately preceding that school year, had an overall reduction of not less than 20 percent in the number of military dependent students as a result of the closure or realignment of military installations.”. (e) Extension of Reporting Requirement.— Subsection (e)(1) note of section 386 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C. 238 note) is amended by striking out “and 1995” and inserting in lieu thereof “1995, and 1996”. (f) Payments for Eligible Federally Connected Children.— Subsection (f) of section 8003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703) is amended— (1) in paragraph (2)— (A) in the matter preceding clause (i) of subparagraph (A), by striking “only if such agency” and inserting “if such agency is eligible for a supplementary payment in accordance with subparagraph (B) or such agency”; and (B) by adding at the end the following new subparagraph: “(D) A local educational agency shall only be eligible to receive additional assistance under this subsection if the Secretary determines that— “(i) such agency is exercising due diligence in availing itself of State and other financial assistance; and “(ii) the eligibility of such agency under State law for State aid with respect to the free public education of children described in subsection (a)(1) and the amount of such aid are determined on a basis no less favorable to such agency than the basis used in determining the eligibility of local educational agencies for State aid, and the amount of such aid, with respect to the free public education of other children in the State.”; and (2) in paragraph (3)— (A) in subparagraph (A)— 110 STAT. 449 (i) in the matter preceding clause (i), by inserting “(other than any amount received under paragraph (2)(B))” after “subsection”; (ii) in subclause (I) of clause (i), by striking “or the average per-pupil expenditure of all the States”; (iii) by amending clause (ii) to read as follows: “(ii) The Secretary shall next multiply the amount determined under clause (i) by the total number of students in average daily attendance at the schools of the local educational agency.”; and (iv) by amending clause (iii) to read as follows: “(iii) The Secretary shall next subtract from the amount determined under clause (ii) all funds available to the local educational agency for current expenditures, but shall not so subtract hinds provided— “(I) under this Act; or “(II) by any department or agency of the Federal Government (other than the Department) that are used for capital expenses.”; and (B) by amending subparagraph (B) to read as follows: “(B) Special rule.— With respect to payments under this subsection for a fiscal year for a local educational agency described in clause (ii) or (iii) of paragraph (2)(A), the maximum amount of payments under this subsection shall be equal to— “(i) the product of— “(I) the average per-pupil expenditure in all States multiplied by 0.7, except that such amount may not exceed 125 percent of the average per-pupil expenditure in all local educational agencies in the State; multiplied by “(II) the number of students described in subparagraph (A) or (B) of subsection (a)(D for such agency; minus “(ii) the amount of payments such agency receives under subsections (b) and (d) for such year.”. (g) Current Year Data.— Paragraph (4) of section 8003(f) of such Act (20 U.S.C. 7703(f)) is amended to read as follows: “(4) Current year data.— For purposes of providing assistance under this subsection the Secretary— “(A) shall use student and revenue data from the fiscal year for which the local educational agency is applying for assistance under this subsection; and “(B) shall derive the per pupil expenditure amount for such year for the local educational agency’s comparable school districts by increasing or decreasing the per pupil expenditure data for the second fiscal year preceding the fiscal year for which the determination is made by the same percentage increase or decrease reflected between the per pupil expenditure data for the fourth fiscal year preceding the fiscal year for which the determination is made and the per pupil expenditure data for such second year.”. (h) Technical Amendments To Correct References to Repealed Law.— Section 386 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C. 238 note) is amended— 110 STAT. 450 (1) in subsection (e)(2)— (A) in subparagraph (C), by inserting after “et seq.),” the following: “title VIII of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7701 et seq.),”; and (B) in subparagraph (D)(iii), by striking out “under subsections (a) and (b) of section 3 of such Act (20 U.S.C. 238)”; and (2) in subsection (h)— (A) in paragraph (1), by striking out “section 14101 of the Elementary and Secondary Education Act of 1965” and inserting in lieu thereof “section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9))”; and (B) by striking out paragraph (3) and inserting in lieu thereof the following new paragraph: “(3) The term ‘State’ means each of the 50 States and the District of Columbia.”.