ANNUAL BUDGETS FOR SCHOOLS.

SEC. 2401. ANNUAL BUDGETS FOR SCHOOLS. (a) In General.— For fiscal year 1997 and for each subsequent fiscal year, the Mayor shall make annual payments from the general fund of the District of Columbia in accordance with the formula established under subsection (b). (b) Formula.— (1) In general.— The Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, shall establish not later than 90 days after enactment of this Act, a formula to determine the amount of— (A) the annual payment to the Board of Education for the operating expenses of the District of Columbia public schools, which for purposes of this paragraph includes the 110 STAT. 1321–137operating expenses of the Board of Education and the Office of the Superintendent; and (B) the annual payment to each public charter school for the operating expenses of each public charter school. (2) Formula calculation.— Except as provided in paragraph (3), the amount of the annual payment under paragraph (1) shall be calculated by multiplying a uniform dollar amount used in the formula established under such paragraph by— (A) the number of students calculated under section 2402 that are enrolled at District of Columbia public schools, in the case of the payment under paragraph (1)(A); or (B) the number of students calculated under section 2402 that are enrolled at each public charter school, in the case of a payment under paragraph (1)(B). (3) Exceptions.— (A) Formula.— Notwithstanding paragraph (2), the Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, may adjust the formula to increase or decrease the amount of the annual payment to the District of Columbia public schools or each public charter school based on a calculation of— (i) the number of students served by such schools in certain grade levels; and (ii) the cost of educating students at such certain grade levels. (B) Payment.— Notwithstanding paragraph (2), the Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, may adjust the amount of the annual payment under paragraph (1) to increase the amount of such payment if a District of Columbia public school or a public charter school serves a high number of students— (i) with special needs; or (ii) who do not meet minimum literacy standards.