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1

on a basis no less favorable to such agency than the basis used 2 in determining the eligibility of local educational agencies for 3 State aid, and the amount thereof, with respect to the free 4 public education of children in the State. In determining the 5 amount specified in clause (1) of the preceding sentence 6 for any local educational agency, the Commissioner shall 7 consult with such agency and the appropriate State educa8 tional agency and shall consider the standard of education 9 of school systems in such State which are generally compa10 rable to the school system of such local agency and of such 11 systems in such State or in other States whose school pupils 12 in such school district have attended or may attend.

13

"(c) Notwithstanding any other provision of this section, the current expenditures determined by the Commis15 sioner to be necessary to provide a reasonable standard of 16 free public education in the school district of a local educa17 tional agency calculated on a per pupil basis—

"(1) shall be not less than 85 per centum of the greater of (A) the average per pupil expenditure in the State in which such agency is situated or (B) the average per pupil expenditure in the United States; and

"(2) shall not exceed by more than 25 per centum the greater of such State average or such national

average.

"(d) For the purpose of this section the average per

46-219 O 70 - 2

9

1 pupil expenditure in a State and in the United States shall

2 be determined in accordance with section 12 (c) (3).

3 "SUDDEN AND SUBSTANTIAL INCREASES AND DECREASES

4

5

IN ATTENDANCE

"SEC. 14. (a) Upon a determination by the Commis

6 sioner, after consultation with the affected State and local

7 educational agencies—

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10

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12

13

14

15

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17

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19

"(1) that an increase in the adjusted number of Federal impact pupils of a local educational agency in any fiscal year has increased the number of pupils in average daily attendance at such schools in such fiscal year by an amount equal to not less than 10 per centum

of the number of pupils in average daily attendance at such schools during the preceding fiscal year; and

“(2) that such agency is making a reasonable tax effort and is exercising due diligence in availing itself of State and other financial assistance but is unable to

secure sufficient funds to meet the increased educational costs involved,

20 then such agency shall be eligible to receive from the Com21 missioner for such fiscal year an amount not in excess of

25

"(A) the number of pupils in average daily attend

ance which the Commissioner determines to be the in

crease in such year above the number of pupils in aver

10

age daily attendance during the preceding fiscal year, such number to be adjusted as required by section 11

with respect to Federal impact pupils; and

"(B) the amount which the Commissioner determines to be the current expenditures per pupil neces

sary to provide free public education to such additional pupils during such year, reduced by an amount per pupil

which the Commissioner determines to be available from State, local, and Federal sources for such purpose (including payments under this Act).

"(b) Upon a determination of the Commissioner

"(1) that a local educational agency has made preparations to provide free public education during a fiscal year for a certain number of Federal impact pupils;

“(2) that such preparations were in his judgment reasonable in the light of the information available to such agency at the time such preparations were made;

and

66

'(3) that such number has been substantially reduced by reason of a decrease in or cessation of Federal

activities or an expected increase has not materialized

by reason of a failure of any such activities to occur,

the amount for which such agency is otherwise eligible under

section 12 or 13, or pursuant to subsection (a) of this sec

tion, for such fiscal year shall be increased to the amount for

11

1 which, in the judgment of the Commissioner, such agency 2 would have been eligible but for such decrease in or cessation 3 of Federal activities or the failure of such activities to occur, 4 minus any reduction in current expenditures for such fiscal 5 year which the Commissioner determines that such agency 6 has effected, or reasonably should have effected, by reason of 7 such decrease in or cessation of Federal activities or the fail8 ure of such activities to occur".

9

SEC. 3. Section 15 of such title (as redesignated by sec

10 tion 2 (1) of this Act) is amended—

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(1) by striking out subsection (c) and paragraph (2) of subsection (d);

(2) in subsection (a), (A) by striking out "section 2, 3, or 4 of" and (B) by striking out "title" where it appears and inserting in lieu thereof "part";

(3) in subsection (b), (A) by striking out "subsection (C)" and inserting in lieu thereof "section 17”, and (B) by striking out "title" where it appears and inserting in lieu thereof "part";

(4) by inserting after subsection (b) the following new subsection:

"(c) The determinations whether a local educational

23 agency has met the requirements of section 12, 13, or 14 for

24

any fiscal year shall be made on the basis of estimates by

12

1 the Commissioner made prior to the close of such year except

2 that an underestimate may be corrected thereafter."

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4

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6

7

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(5) in subsection (d), (A) by striking out “(1)” after "(d)" and (B) by striking out "section 2, 3, or 4” .and inserting in lieu thereof "this part";

(6) by inserting after subsection (d), the following new subsection:

"(e) (1) Subject to paragraph (2), a local educational 9 agency shall not be entitled to assistance under this part if 10 such agency or the State in which it is situated (1) pro11 hibits, by law or otherwise, the expenditure of State or local 12 tax revenues for the free public education of any children 13 described in section 11 or (2) refuses to allocate such reve14 nues on an equitable basis for such education.

15

"(2) For a period not exceeding three years from the 16 date of enactment of the Impact Aid Reform Act of 1970 the 17 Commissioner may, if he finds that a State is taking reason18 able steps to come into compliance with paragraph (1), 19 waive its operation with respect to such State and determine 20 entitlements under sections 12, 13, and 14 in accordance 21 with the provisions of section 6 (f) of Public Law 874

:

22 (Eighty-first Congress) as in effect immediately prior to 23 such date.";