PAYMENTS.

SEC. 2403. PAYMENTS. (a) In General.— (1) Escrow for public charter schools.— Except as provided in subsection (b), for any fiscal year, not later than 10 days after the date of enactment of an Act making appropriations for the District of Columbia for such fiscal year, the Mayor shall place in escrow an amount equal to the aggregate of the amounts determined under section 2401(b)(1)(B) for use only by District of Columbia public charter schools. (2) Transfer of escrow funds.— (A) Initial payment.— Not later than October 15, 1996, and not later than October 15 of each year thereafter, the Mayor shall transfer, by electronic funds transfer, an amount equal to 75 percent of the amount of the annual payment for each public charter school determined by using the formula established pursuant to section 2401(b) to a bank designated by such school. (B) Final payment.— (i) Except as provided in clause (ii), not later than May 1, 1997, and not later than May 1 of each year thereafter, the Mayor shall transfer the remainder of the annual payment for a public charter school in the same manner as the initial payment was made under subparagraph (A). (ii) Not later than March 15, 1997, and not later than March 15 of each year thereafter, if the enrollment number of a public charter school has changed from the number reported to the Mayor and the Board of Education, as required under section 2402(a), the Mayor shall increase the payment in an amount eoual to 50 percent of the amount provided for each student who has enrolled in such school in excess of such enrollment number, or shall reduce the payment in an amount equal to 50 percent of the amount provided for each student who has withdrawn or dropped out of such school below such enrollment number. (C) Pro rata reduction or increase in payments.— (i) Pro rata reduction.— If the funds made available to the District of Columbia Government for the District of Columbia public school system and each public charter school for any fiscal year are insufficient to pay the full amount that such system and each public charter school is eligible to receive under this subtitle for such year, the Mayor shall ratably reduce such amounts for such year on the basis of the formula described in section 2401(b). (ii) Increase.— If additional funds become available for making payments under this subtitle for such 110 STAT. 1321–140fiscal year, amounts that were reduced under subparagraph (A) shall be increased on the same basis as such amounts were reduced. (D) Unexpended funds.— Any funds that remain in the escrow account for public charter schools on September 30 of a fiscal year shall revert to the general fund of the District of Columbia. (b) Exception for New Schools.— (1) Authorization.— There are authorized to be appropriated $200,000 for each fiscal year to carry out this subsection. (2) Disbursement to mayor.— The Secretary of the Treasury shall make available and disburse to the Mayor, not later than August 1 of each of the fiscal years 1996 through 2000, such funds as have been appropriated under paragraph (1). (3) Escrow.— The Mayor shall place in escrow, for use by public charter schools, any sum disbursed under paragraph (2) and not paid under paragraph (4). (4) Payments to schools.— The Mayor shall pay to public charter schools described in paragraph (5), in accordance with this subsection, any sum disbursed under paragraph (2). (5) Schools described.— The schools referred to in paragraph (4) are public charter schools that— (A) did not operate as public charter schools during any portion of the fiscal year preceding the fiscal year for which funds are authorized to be appropriated under paragraph (1); and (B) operated as public charter schools during the fiscal year for which funds are authorized to be appropriated under paragraph (1). (6) Formula.— (A) 1996.— The amount of the payment to a public charter school described in paragraph (5) that begins operation in fiscal year 1996 shall be calculated by multiplying $6,300 by V12 of the total anticipated enrollment as set forth in the petition to establish the public charter school; and (B) 1997 through 2000.— The amount of the payment to a public charter school described in paragraph (5) that begins operation in any of fiscal years 1997 through 2000 shall be calculated by multiplying the uniform dollar amount used in the formula established under section 2401(b) by 1/12 of the total anticipated enrollment as set forth in the petition to establish the public charter school. (7) Payment to schools.— (A) Transfer.— On September 1 of each of the years 1996 through 2000, the Mayor shall transfer, by electronic funds transfer, the amount determined under paragraph (6) for each public charter school from the escrow account established under subsection (a) to a bank designated by each such school. (B) Pro rata and remaining funds.— Subparagraphs (C) and (D) of subsection (a)(2) shall apply to payments made under this subsection, except that for purposes of this subparagraph references to District of Columbia public schools in such subparagraphs (C) and (D) shall be read to refer to public charter schools.