**U.S. Department of Education**

**Office of Elementary and Secondary Education**

**Washington, D.C. 20202**

![](media/image1.wmf){width="1.9in" height="1.8in"}

**School Renovation, IDEA, and**

**Technology Grants Program**

**CFDA #84.352A**

**Guidance for Fiscal Year 2001**

***For Further Information:*\
School Renovation, IDEA, and Technology Staff\
Office of Elementary and Secondary Education\
U.S. Department of Education\
400 Maryland Ave., SW**

**Room 3E115\
Washington, DC 20202-6400**

**\
Phone: (202) 205-2161\
Fax: (202) 205-5870\
E-mail: jean.marchowsky@ed.gov\
Website: www.ed.gov/offices/OESE/goals/progresp.html**

School Renovation, IDEA and Technology Grants Program

# Introduction

School Renovation, IDEA and Technology grants are designed to help local
educational agencies (LEAs) make school repairs and renovations and meet
special education and renovation-related technology expenses. Funds are
distributed to States based on each State's FY 2000 Title I, Part A LEA
grant shares, with a small State minimum of one-half of one percent.
State educational agencies (SEAs) or, if applicable, a State agency that
has jurisdiction over school facilities financing, will distribute 75
percent of the State's allocation for grant funds to LEAs for emergency
school repairs and renovations. The SEA or other appropriate State
entity awards these grants to LEAs on a competitive basis and must use
the following criteria in making grant selections: the percentage of
poor students enrolled in the LEA, the need for school repairs and
renovations, the fiscal capacity of the LEA to meet repair needs, and
the likelihood that the LEA would properly maintain repaired school
facilities. For proposals that include charter schools, consideration is
to be given to the extent to which those schools have access to
financing methods available to other public schools within the LEA or
State.

Twenty-five percent of the State's grant funds are to be awarded on a
competitive basis to LEAs for technology activities related to school
repair and renovation and/or for activities authorized under the
Individuals with Disabilities Education Act (IDEA),

Part B. SEAs administer the IDEA, Part B/Technology grant programs.

This document addresses questions regarding the implementation of the
School Renovation, IDEA, and Technology program. It is intended as a
guide to help States plan for and implement the program. It does not
impose requirements that are not stipulated either in the program's
legislation or related legislation or regulations that affect U.S.
Department of Education programs.

# AVAILABILITY OF FUNDS

# A1. When will States receive their allocations under this program?

> We plan to allocate funds in early July 2001 to States that submit
> applications in early June 2001.
>
> A2. How long will the funds be available for use by States and local
> educational agencies?
>
> The Federal Government cannot obligate these funds after September 30,
> 2002. States and local educational agencies, however, may continue to
> obligate these funds past that date, but they must obligate them by
> September 30, 2003. Grantees must liquidate their obligations within
> 90 days after the end of that funding period. (See 34 CFR 80.23(b)).
> However, grantees may ask the Department to extend this deadline. In
> all cases, SEAs and LEAs must liquidate their obligations of these
> funds no later than September 30, 2007.
>
> 1

# Eligible recipients of the State grant funds

> **B1. May educational service agencies apply for these funds on behalf
> of local educational agencies?**
>
> If the educational service agency meets the definition of an LEA in
> section 14101(18)(a) and (b) of the Elementary and Secondary Education
> Act of 1965 (ESEA), it is considered an eligible applicant under this
> program.
>
> **B2.** **May charter schools apply for these funds?**
>
> A charter school that meets the definition of an LEA in section
> 14101(18)(a) and (b) of the ESEA may compete for these funds under the
> same terms and conditions applicable to all other LEAs. A charter
> school that is a school within an LEA may receive assistance under the
> same terms and conditions as other public schools within the LEA.
>
> **B3.** **May alternative schools such as vocational/technical
> education centers receive these funds?**
>
> An alternative school, such as a vocational or technical education
> center, may receive funds if it is an LEA as defined in section
> 14101(18)(a) and (b) of the ESEA or if it is a school within an LEA
> that has applied for and received funding on its behalf.
>
> **B4. May private schools participate under this program?**
>
> A private school that is a nonprofit elementary or secondary school
> with a population of students in poverty that is at least 40
> percent*,* and that is located within the boundaries of an LEA that
> has received a grant under this program*,* may participate under this
> program. The specific activities for which private schools are
> eligible are described in C30 under \"Private Schools\".

## 

## C. SCHOOL REPAIR AND RENOVATION 

### States

> **C1. May States use funds to cover administrative costs?**

State educational agencies may reserve up to 1 percent for expenses
necessary to administer the entire program (including school repair and
renovation and IDEA, Part B/technology activities). If a State entity
other than the SEA will administer the school repair and renovation
portion of the program, the SEA will transfer 75 percent of the
administrative funds to that entity.

C2. How can States ensure that high-poverty and rural school districts
receive the proportion of funds required by the law without conducting
separate competitions?

2

> States are required to provide total amounts for successful
> high-poverty and rural
>
> LEA applicants that are proportionate to the Title I shares of these
> types of LEAs [in aggregate]{.underline}. States are likely to conduct
> a single competition and create a single list that ranks all
> applications based on quality. States might select applications for
> funding in the following order: (1) all of the highest ranking
> high-poverty LEAs that can be funded within the amount established for
> this group, (2) all of the highest ranking, unfunded rural LEAs that
> can be funded within the amount established for this group, and (3)
> the remaining unfunded, highest ranking LEAs, including high-poverty
> and rural LEAs, that can be funded with the remaining funds.

C3. Are States required to provide School Renovation funds to every
eligible high-poverty and each rural *LEA*?

> No, a State need not provide every high-poverty and rural LEA with a
> grant. In fact, States are prohibited from doing so on a formula basis
> because the grants are supposed to be awarded competitively.

C4. May States award a higher amount for high-poverty and/or rural
school districts than the proportion indicated in the program
legislation?

> Yes. The required proportion of School Renovation funds for
> high-poverty and rural school districts is a minimum or floor. States
> may provide these categories of LEAs a proportion of School Renovation
> funds that exceeds their proportion of FY 2000 Title I, Part A funds.
>
> C5. How do States determine the aggregate proportion of Title I, Part
> A shares for rural and high-poverty LEAs?
>
> First, a State should identify which LEAs meet the definitions in the
> legislation of rural and high-poverty LEAs. A State then should
> determine what proportion of its Title I, Part A funds these two types
> of LEAs received in fiscal year 2000. These data are only available at
> the State level (not from the U.S. Department of Education) because
> States make adjustments to the Title I, Part A funds allocated by the
> Department.
>
> C6. May a State use the Title I poverty counts of its LEAs to
> determine their poverty status for the purpose of this program?
>
> The poverty percentage for this program will not necessarily be the
> same percentage a State uses for Title I purposes, for two reasons.
> First, the LEA's formula used to determine a poverty percentage under
> Title I includes other measures in addition to poverty data (i.e.,
> Temporary Aid to Needy Families, foster children, and children in
> local institutions for neglected children). Second, some States use
> alternative poverty data to allocate Title I funds to LEAs with less
> than 20,000 total residents, an option not available to States under
> this program.
>
> 3
>
> For this program States must use the definition stipulated in the
> School Renovation,
>
> IDEA and Technology program legislation. It defines a high-poverty LEA
> to mean
>
> an LEA in which 30 percent or more of the students enrolled are
> children who are 5 to 17 years of age and who are from families with
> incomes below the poverty line (as
>
> defined by the Office of Management and Budget) applicable to a family
> of the size
>
> involved for the most recent fiscal year for which satisfactory data
> are available.
>
> This is the same poverty definition that the Bureau of the Census uses
> to provide poverty data to the Department for use in making Title I
> allocations. The Department provides these data to each State, along
> with the total 5-17 school-age population necessary to enable States
> to calculate poverty percentages. For this program, the State may need
> to adjust these data, as it does under Title I, to account for LEAs
> for which Census poverty data are not available (such as new LEAs,
> LEAs with changes in district boundaries, or charter school LEAs).

C7. May States estimate poverty data for eligible non-traditional or
\"special\" LEAs, such as charter schools and vocational/technical
schools?

> As indicated in C6, generally States must use the same Bureau of
> Census poverty data as is used for Title I allocations. However,
> census poverty data are not available for *"*special*"* LEAs. In these
> cases, you may use one of two methods of estimating poverty data that
> involve equating another source of poverty data, such as free and
> reduced price lunch (FRPL) student eligibility data, to census poverty
> data and thereby deriving census poverty data for these LEAs. These
> methods are consistent with the Department\'s guidance for calculating
> Title I and Class-Size Reduction program allocations for special LEAs.
> The first method, using FRPL data as an example, is as follows:
>
> 1\) Determine the number of children eligible for the FRPL program in
> each special LEA.
>
> 2\) Divide the total census poverty number for the State by the total
> FRPL number for the State (the result is a \"State equating factor\").
>
> 3\) For each special LEA, multiply the number of FRPL children in the
> special LEA by the State equating factor. The result is the census
> poverty estimate for that special LEA.
>
> 4\) The State now has census poverty figures for all LEAs.
>
> We believe this is a straightforward approach that involves minimal
> burden for States. However, some States may wish to use a second
> method, which tracks children who attend special LEAs back to the
> sending LEA in order to determine the appropriate census poverty
> figure for the special LEA. This second method uses the proportion of
> FRPL children from a regular district or districts who are attending a
> special LEA or LEAs and applies that proportion to the census poverty
> data figure for the regular LEAs, to determine: 1) an estimated census
> poverty data figure for the special LEAs; and 2) an adjusted census
> poverty data figure(s) for the regular LEAs. In order to use this
> method, the State must be able to identify the resident LEA of each
> student attending a special LEA. Please contact the School Renovation,
> IDEA, and Technology staff for additional information on either of
> these methods for estimating poverty.
>
> 4

###### C8. What criteria should be used to identify rural school districts?

> For the purposes of this program, a "rural" LEA is one that the State
> determines is
>
> located in a rural area. In making this determination States are to
> use objective data
>
> and a commonly employed definition of the term rural. For example, a
> State may
>
> define as rural an LEA that the Department's National Center for
> Educational Statistics (NCES) would typically define as being rural.
> Under the NCES definition*,* rural LEAs are located in cities or
> counties of 2,500 or less. In cases where an LEA is located partly
> inside a city or county that meets the definition of rural and partly
> in a city or county that does not, an LEA is categorized as being
> rural if the LEA's administrative office is located in a city or
> county of 2,500 or less.
>
> **C9. May a State use all of its allocation, or a higher percentage of
> its allocation than the 75 percent stipulated in the legislation, for
> the support of school repair and renovations?**
>
> No. The program legislation limits the percentage of State grant funds
> that may be used for school repairs and renovations to 75 percent.
>
> **C10. If the State does not receive enough quality applications for
> either rural or high-poverty LEAs, may unawarded funds that were set
> aside for this type of LEA be used for the support of the other types
> of LEAs?**

No. The funds that are reserved for rural and high-poverty LEAs may only
be spent on these types of LEAs. If a State did not initially have
enough qualified applications to spend all of the available funds, in
either of the two categories, it may wish to provide technical
assistance to LEAs and have a second competition for the remaining
funds.

> C11. May States establish funding priorities and criteria that are not
> required by the program legislation? May States assign different
> values or weights to the criteria that are listed in the legislation?
>
> The program legislation specifies certain priorities and criteria that
> States must use in selecting applications for funding. However, it
> does not prohibit States from establishing additional priorities and
> criteria.
>
> States also may determine the relative values to be assigned to the
> criteria used to select LEA applications for funding, including the
> values to be assigned to the criteria listed in the program
> legislation.
>
> **C12. Would the statutory criteria regarding fiscal capacity prohibit
> the award of funds to a high-poverty LEA that is able to float
> bonds?**

5

The program legislation does not prohibit funding for such LEAs.
However, the

legislation requires the State to consider, among other criteria, the
ability of the LEA

to obtain elsewhere the funds required to make the repairs for which
funds are requested under this program. Since School Renovation, IDEA
and Technology program funds are awarded to LEAs on a competitive basis,
the decision as to whether an LEA of this type receives a grant will be
based on how well this LEA's application meets all of the grant
selection criteria used by the State in comparison to the applications
of other LEAs competing for these funds.

> **C13. What might a sliding scale matching requirement that takes into
> consideration the poverty level of an LEA look like?**
>
> The School Renovation, IDEA and Technology program legislation
> provides States with the [option]{.underline} of imposing a matching
> requirement, and indicates that this match may use a sliding scale
> based on the percentage of the population in poverty. A
> sliding*-*scale match would require the types of school districts that
> can more easily afford to pay for school repair and renovations to
> provide a relatively large match compared to school districts with a
> limited ability to pay. A sliding scale match can be helpful because
> it requires school districts to share in the financial commitment to a
> project, while taking care to not make the match so high that school
> districts with limited financial ability could not afford to provide
> funds for the match.
>
> *Example*. A sliding scale match could require school districts with
> the following poverty levels to provide the following proportion of
> funds from local sources:

+-----------------------------------+-----------------------------------+
| # Percentage poverty              | #                                 |
|                                   | Percentage match from local funds |
+-----------------------------------+-----------------------------------+
| 0-9.99%                           | 70%                               |
+-----------------------------------+-----------------------------------+
| 10-19.99%                         | 50%                               |
+-----------------------------------+-----------------------------------+
| 20-29.99%                         | 30%                               |
+-----------------------------------+-----------------------------------+
| 30-39.99%                         | 10%                               |
+-----------------------------------+-----------------------------------+
| 40 percent or greater             | None                              |
+-----------------------------------+-----------------------------------+

A sliding scale does not need to use this identical scale if it is based
on poverty nor does a State have to base a sliding scale on the
population in poverty if its chooses to use a sliding scale match. A
State could choose to use some other measure, such as equalized assessed
value per-pupil or average income.

> **C14.** **When must States hold their competitions?**

States must hold their competitions early enough to ensure that LEAs are
able to obligate funds by September 30, 2003. If a State that receives
these funds will not be able to allocate some or all of these funds by
this date, it must provide written notification to the Department of
Education as soon as possible, but no later than July 30, 2002.

> **C15. Must States conduct competitions to award grants even if it is
> likely that all applications can be funded?**
>
> 6
>
> States are required to distribute the funds on a competitive basis.
> States would generally comply with this requirement by requesting
> applications for funds from
>
> school districts and evaluating the applications. In a few instances,
> a State might have sufficient funds to fund all of its applications if
> they are all in compliance with the statute and have substantial
> merit. In this event, the "competition" may only result in a
> determination as to relative merit and thereby on the amounts to be
> awarded to applicant LEAs. Funds cannot be distributed by a formula or
> on a first-come, first-served basis.
>
> **C16. May a State use the result of a previously conducted
> competitive process in awarding these grants?**

Since the specific details as to how States have conducted other
competitive processes will vary, we will respond to this question on a
case-by-case basis. However, at a minimum, a previously conducted
competitive process must have utilized the criteria stipulated in this
program legislation and resulted in a ranking of the applications
submitted by LEAs. In addition, the resulting ranked list could only be
used to award these grants, if LEAs that may not have previously
competed are given an opportunity to compete in this process. States
with pre-existing renovation programs and priority lists must ensure
that they do not supplant funds from non-federal sources that would have
been available for school repair and renovation.

#### LEAs

> **C17.** **What types of school repair and renovation projects may
> grant funds support?**

The legislation for the School Renovation, IDEA and Technology Grants
Program states that the use of funds may be used for emergency school
repair or renovation projects that are defined to be those necessary to
ensure the health and safety of students and staff. The legislation
provides examples of the type of projects that fall in this category.
These include repairing, replacing or installing roofs, electrical
wiring, plumbing systems, sewage systems, heating, ventilation or air
conditioning systems, or bringing schools into compliance with fire and
safety codes. LEAs also may use grant funds to bring schools into
compliance with fire and safety codes, to make school facilities
accessible in order to comply with the Americans with Disabilities Act
of 1990 or section 504 of the Rehabilitation Act of 1973, and for
asbestos abatement or removal from public school
facilities*[.]{.smallcaps}* In the case of charter schools, funds may
also be used for renovation, repair and acquisition needs related to the
building infrastructure of the charter school. (See discussion under
C24, "Charter Schools".) Within the broad framework described in the
legislation, States have flexibility in defining the specific types of
emergency school repair and renovation projects that may be supported
under the program.

###### C18. May LEAs use funds to cover administrative costs?

> Local educational agencies may use grant funds for administrative
> costs that are necessary and reasonable for the proper and efficient
> performance and administration of this Federal grant. This use of
> funds, as well as indirect costs and rates, must
>
> 7
>
> comply with the Office of Management and Budget Circular A-87 (Cost
> Principles for State, Local, and Indian Tribal Governments) and the
> Department\'s administrative
>
> regulations. (See 34 CFR 76.560-76.569 on indirect costs).
>
> **C19. May LEAs use grant funds to cover the cost of school repair and
> renovation design assistance or advice from professionals such as
> architects?**

Grant funds may cover the fees that are associated with selected repair
and renovation projects. However, funds cannot be used to cover the
costs of the LEA's grant application.

C20. Are LEAs prohibited from using grant funds under this State program
for certain types of activities?

The program legislation specifically prohibits the use of these funds
for (1) facilities maintenance costs, (2) construction of new
facilities, and (3) stadiums or facilities used for athletics or
exhibitions or where admission is charged to the general public.

C21. May these grant funds be used with other funds for more
comprehensive projects, including projects that include construction?

Yes, funds may be combined with funds for more comprehensive projects.
For instance, an LEA may make health and safety repairs to a school at
the same time an addition to the school is being built. The school
district, however, would need to account for the cost of the health and
safety repairs separately so that it could demonstrate that the grant
funds were spent on the permissible uses, such as health and safety
repairs, within the more comprehensive project.

> C22. May an LEA combine funds generated from a Qualified Zone Academy
> Bond (QZAB) with School Renovation, IDEA and Technology grant funds?
> Would this result in a conflict with the non-supplanting provision of
> the School Renovation, IDEA and Technology program legislation?
>
> An LEA may combine funds from a QZAB and a School Renovation, IDEA and
> Technology grant to pay for school repairs and renovations. Except in
> the case of charter schools, an LEA may not use funds from a School
> Renovation, IDEA and Technology grant to pay the debt service for a
> QZAB. (See also C23.)
>
> **C23. May these grant funds be used for debt service?**

Except when using funds for charter school facilities, an LEA may not
use funds from a School Renovation, IDEA and Technology grant to pay
debt service, including for a QZAB. Debt service is not generally an
authorized use of these funds, even if the debt was incurred to make
repairs that are permissible. Charter schools (or LEAs using the funds
on behalf of their charter schools) may use School Renovation, IDEA and
Technology funds for debt service because the School Renovation, IDEA
and Technology program legislation allows them to acquire school
buildings with these grant funds. A charter school's use of these funds
for debt service, however, would be in violation of the supplement not
supplant provision if the debt service for the

8

charter school began prior to receipt of the School Renovation, IDEA and
Technology grant.

***[Charter Schools]{.underline}***

C24. May a charter school use grant funds under this program to lease or
purchase a building?

Yes. It is possible that the lease or purchase of a building is a
permissible activity for charter schools. However, in the case of
leasing, we anticipate that using these grant funds for a school's lease
may often violate the non-supplanting requirements. States will need to
ensure that any grant funds applied to a charter school's lease or
purchase of a building complies with the non-supplanting provision of
this program's legislation. Under the non-supplanting provision, a
charter school may use grant funds for the lease or purchase of a
building only to the extent that it would supplement the amount of funds
that would, in the absence of these grant funds, be made available from
non-Federal funds for these purposes.

**Examples of supplanting**: Typically, an operating charter school
would already have funds available to obtain space for its programs.
Using these grant funds for this purpose is not allowed if other
non-Federal funds would have been used for this purpose, in the absence
of funds under this grant program. Therefore, if in the absence of this
grant program, a charter school would have used non-Federal funds to
enter into a lease for \$1,500 a month for space, it may not use these
grant funds for this expenditure when they become available. An example
of supplanting while using these funds to purchase a building would be
to use these funds for debt service after the charter school has already
begun to pay for debt service with non-Federal funds (See C23).

> **Examples of non-supplanting**: A charter school signs a lease for
> 1,500 square of classroom space and the rent is \$1,500 per month.
> However, the charter school determines that it instead needs 2,000
> square feet of space, but additional non-Federal funds are not
> available for the \$500 increase. As above, it would be supplanting to
> use \$1,500 per month of these grant funds to pay the charter school's
> rent. But, since other funds are not available, it would not be
> supplanting if the school used the State Renovation grant funds to pay
> for the additional rent of \$500 that could be attributed to the
> larger space it needed to acquire. One example of non-supplanting
> while using these funds to purchase a building includes using the
> funds for a down payment when the charter school has not previously
> owned a building, and other funds would not have been used for this
> purpose.

C25. May a charter school use grant funds under this program to purchase
land?

Yes, if the land is included in an allowable building purchase. Since
charter schools are permitted to use these grant funds for acquisition
needs related to their building infrastructure, a charter school may use
grant funds to purchase a building and the land parcel on which it is
located. However, this type of purchase must also comply with the
provisions regarding debt service and supplanting outlined in C23 and
C24.

9

Charter schools may not use these grant funds for purchasing land when
there are no

immediate plans to acquire a building on that land since land alone does
not meet a charter school's building infrastructure needs.

***[Private Schools]{.underline}***

###### C26. May private schools receive school repairs and renovation benefits directly from the State?

> No. A nonprofit private school that meets the eligibility requirements
> described in item B4 above may receive certain repairs or renovations
> from an LEA that has received a grant under the program and within
> whose boundaries the private school is located.
>
> **C27. How are funds allocated for private school repair and
> renovation?**

LEAs allocate funds for private school repair and renovation on the
basis of the proportion of students in private schools that have a
student population of greater than or equal to 40 percent poverty
compared with the number of students in the public schools that are
assisted under this program. If there is not enough need at the eligible
private schools for the maximum amount that could be allocated for
private school repairs and renovations, the LEA may use the remainder to
address additional repair and renovation needs in its public school
facilities. Once the proper allocation for private school renovation and
repair is determined, the LEA provides or contracts for the provision of
these services. No funds are paid to the private school.

> **Example:** An LEA, consisting of 14 school facilities applies for
> and receives on behalf of four public schools and two private schools
> located within the LEA, a \$500,000 School Renovation, IDEA, and
> Technology grant through its State for repair and renovation. The LEA
> plans to replace the roof at one middle school and upgrade the
> electrical wiring at three of its elementary schools. As part of its
> application process, the LEA consulted with the private schools in the
> district and determined that there are two non-profit private schools
> that have a child poverty rate of at least 40 percent and want to
> participate in this program.
>
> **[Step 1]{.underline}** To calculate the amount it allocated for the
> private school renovation and repair, the LEA first determines the
> total number of students enrolled in each of the four public schools
> and two private schools to be repaired.

**Enrollment at public schools**

**to be repaired (**PS 1\--100 + PS 2\--150 + PS 3\--100 + PS 4\--150 =
**500**)

\+

**Enrollment at eligible private schools**

[**to be repaired** (Private School A\--175 + Private School B\--175 =
**350**)]{.underline}

**850** **students**

> 10
>
> **[Step 2]{.underline}** Next, the LEA divides its grant amount by the
> number of students to determine a per pupil expenditure figure.

**\$500,000 850 = \$588 per pupil expenditure (PPE) amount**

> **[Step 3]{.underline}** Then the LEA uses the per pupil expenditure
> figure to calculate the amount of funds in the aggregate that are
> allocated for the private school repair and renovation program.
>
> **PPE (\$588) x private school enrollment (350) =Allocation for
> private school repair and renovation (\$205,882)**
>
> The LEA allocates \$205,882 to address the needs at the two eligible
> private schools. However, if only \$150,000 is needed to address the
> needs of the two private schools, the LEA may use the remaining
> balance to address additional repair and renovation needs of its
> public school facilities.

**C28. May States and LEAs use the State's Title I definitions to
determine the poverty status of students in a private school?**

As discussed in more detail in C6, States must use the definition of
poverty that is referenced in the program legislation. However, we are
aware that, as is also true for \"special\" LEAs, the specified poverty
data may not always be available for private schools. LEAs*,* in
consultation with private school officials, must obtain the best
available poverty data on private school children. Because private
school officials may have access to some sources of poverty information
not easily accessible to public school officials, public and private
school officials need to cooperate in this effort.

LEAs have flexibility in the methods used to collect poverty data on
private school children. For example, an LEA could use:

> 1\. Poverty data for private school children that are from a different
> source than the data the LEA uses for public school children as long
> as the income level for both sources is generally the same.
>
> 2\. Extrapolated data on the number of low-income private school
> children based on actual data from a representative sample of private
> school children if complete data from the same or comparable poverty
> sources are not available.
>
> 3\. Correlated data that show the relation between two known sources
> of poverty data on public school children, which is then applied to a
> known source of data on private school children. For example, States
> and LEAs may estimate poverty data for participating private schools
> by using either of the two estimating methodologies that are outlined
> in C7.

C29. How are equal expenditures for private school students determined
under this program?

Equal expenditures are determined by providing the same per pupil
allocation for

11

students in eligible private schools as is provided to students in
public schools

receiving funds under this program, using the number of pupils in
private and public schools as described in C27.

**C30. What types of school repairs and renovations in private schools
may these funds support?**

Allowable school repair and renovations are:

-   Modifications of school facilities necessary to meet the standards
    applicable to public schools under the Americans with Disabilities
    Act of 1990;

-   Modifications of school facilities necessary to meet the standards
    applicable to public schools under section 504 of the Rehabilitation
    Act of 1973; and

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-   Asbestos abatement or removal from school facilities.

> **C31. If a private school receives modifications of school facilities
> necessary to meet the public school standards under the ADA or section
> 504, does it incur any additional obligations under ADA or section
> 504?**

No. Because no funds are paid to the private school, the private school
does not incur any new or additional obligations under ADA, section 504
or asbestos removal requirements if its facilities are modified under
the School Renovation program.

C32. If private school officials do not believe they have received
equitable services under this program, what recourse do they have?

If a private school official believes that equitable services are not
being provided, he or she should contact State officials. If a State is
prohibited from providing for the participation of private schools under
this program, or the Secretary determines that the SEA or LEA has
substantially failed or is unwilling to provide for the equitable
participation of private schools as required, the Secretary may waive
the requirements and arrange for the provision of services.

> **C33. What are the obligations of the LEA regarding consultation and
> equitable participation of private schools?**
>
> The LEA is obligated to:

-   Consult in a timely and meaningful way with private school officials
    on the needs of their students, how the program can help to meet
    those needs, development of a plan, and implementation of the
    program in the private school within the budget amount generated.

-   Determine if the school has a child poverty rate of 40 percent or
    greater.

-   Provide or contract for the provision of school repair and
    renovation services for the private school as outlined in the plan.

> The participating private school should:

-   Cooperate with the LEA in developing and implementing a repair and
    renovation program.

12

-   Provide the appropriate assistance to the LEA to determine if the
    school has a child poverty rate of 40 percent or greater.

D. OTHER REPAIR AND RENOVATION PROVISIONS

D1. Does the "Supplement, not Supplant" provision of the program
legislation apply to all projects funded under this program?

An LEA may only use these grant funds to supplement non-Federal school
repair and renovation funds. The exception to this provision is funds
spent for accessibility requirements under the Americans with
Disabilities Act of 1990 or under section 504 of the Rehabilitation Act.

> **D2. Does the SEA retain some responsibility for the school repair
> and renovation program if funds are transferred to another State
> entity for its administration?**

Although another State entity responsible for facilities may administer
the school repair and renovation portion of the grant, the SEA, as the
grantee, also retains certain responsibilities. For example, the SEA
will need to provide information on the Title I, Part A shares for
high-poverty and rural LEAs to the other entity. The SEA as the grantee
also is ultimately responsible for ensuring compliance with the
applicable Federal grant requirements, including the specific reporting
requirements for these grants, as well as general fiscal and other types
of reporting.

**E. Technology and IDEA, Part B Projects**

> Twenty-five percent of the State's grant funds are to be awarded on a
> competitive basis to LEAs for technology activities related to school
> repair and renovation and/or for activities authorized under the
> Individuals with Disabilities Education Act (IDEA), Part B. SEAs
> administer the IDEA, Part B/Technology grant programs.

***[Administration and competitive process]{.underline}***

E1. Are SEAs required to allocate an equal amount of funds for
technology and IDEA projects?

##### No. Within the 25 percent set aside, SEAs will determine the amount of funds to be allocated for these activities. SEAs are not required to provide equal funding for these activities and could opt to support only one of the two activities.

> **E2. Must these funds be awarded to LEAs on a competitive basis?**

Yes. SEAs are required to award these funds on a competitive basis to
LEAs. (See the discussion under C14, C15, and C16).

13

###### 

###### 

###### E3. May SEAs use the same criteria to select technology and IDEA, Part B activities that they use to select school repair and renovation projects for funding?

> At a minimum, SEAs must use the criteria stipulated in the program
> legislation in awarding grants for technology and IDEA, Part B
> projects. States may establish additional criteria, which may be the
> same as the criteria used for the school repair and renovation
> projects. In addition, States may determine the relative values to be
> assigned to the criteria used to select LEA applications for funding,
> including the values to be assigned to the criteria listed in the
> program legislation.

In awarding the competitive technology grants, the program legislation
requires States to take into account an LEA's need for additional funds
for technology activities (described in E4) that are related to school
repair and renovation.

> In awarding the competitive grants for IDEA-authorized activities, the
> program legislation requires States to consider an LEA's need for
> additional:

a)  Funds for a student whose individual IDEA costs substantially exceed
    the State's average per-pupil expenditure;

b)  Funds for special education and related services as determined under
    Part B of the IDEA;

c)  Funds for assistive technology devices or services (as defined in
    the IDEA) for IDEA, Part B children; and

d)  Funds for students to meet performance goals and indicators
    established by the State to promote the purposes of the IDEA and
    other appropriate goals and standards.

***[Use of Funds]{.underline}***

> **E4. What types of Technology and IDEA, Part B projects may grant
> funds support?**
>
> The program legislation stipulates that technology projects supported
> under this program may include activities carried out in conjunction
> with school repair and renovation such as wiring; acquiring hardware
> and software; connectivity linkages and resources; and microwave,
> fiber optics, cable, and satellite transmission equipment.

Grant funds that are used to support activities under Part B of the
IDEA, must be spent in accordance with that statute and its regulations,
which means that the funds must be used for the excess costs of
providing special education and related services to children with
disabilities.

**E5. What requirements apply to the funds that are used to carry out
activities under Part B of the IDEA?**

> 14
>
> The requirements that apply to the use of funds granted under section
> 321 to carry out activities under Part B of the IDEA are the same
> requirements that apply to use of funds provided under Part B of the
> IDEA. As noted in E4, these include the requirement that the funds be
> used for the excess costs of providing special education and related
> services to students with disabilities, as well as maintenance of
> effort and supplement, not supplant, requirements. The applicable
> regulations regarding these
>
> requirements can be found at 34 CFR sections 300.152-300.155,
> 300.230-300.235.
>
> Since these provisions have special meaning under the IDEA, distinct
> from the way these terms are applied under the ESEA, we advise you to
> consult with your State and local staff who administer the IDEA if you
> need additional information on IDEA requirements.

***[Requirements Relating to Participation]{.underline}***

***[of Private School Students]{.underline}***

**E6. Are LEAs that receive grants for technology or IDEA, Part B
projects required to provide services to private school students within
their borders?**

The private school student participation requirements of Part B of the
IDEA apply to funds under section 321 that are used to carry out IDEA
activities. Generally, these provisions require that a public agency
spend a proportionate amount of the Federal grant on special education
and related services for students who have been placed by their parents
in private schools.

More details about this obligation are in the Part B, IDEA statute (20
U.S.C. 1412(a)(10)(A)) and regulations (34 CFR sections
300.450-300.462). The Department also has developed additional guidance
in the form of questions and answers concerning the Part B, IDEA private
school student participation requirements (OSEP Memorandum: 00-14 --
Questions and Answers on Obligations of Public Agencies in Serving
Children with Disabilities Placed by Their Parents at Private Schools)
that is available at <http://www.ed.gov/offices/OSERS/OSEP/index.html>.
Neither the IDEA nor Technology grants are subject to the equitable
participation rules regarding private schools that apply to the school
repair and renovation grants.

**F. PUBLIC COMMENT, REPORTING, AND OTHER RELEVANT**

**REQUIREMENTS**

> **F1. Must LEAs provide an opportunity for public comment on the
> school renovation, IDEA, and technology projects to be supported under
> this program?**

LEAs that receive school repair and renovation or IDEA/technology grants
must provide parents, educators, and interested community members with
an opportunity to consult and comment on the use of funds. Adequate and
efficient notice of that opportunity shall be included in a widely read
and distributed vehicle and in accordance with State or local law
regarding how comments may be received and reviewed by the public.

> 15
>
> **F2. Are there any requirements regarding contracts for school
> repairs and renovations?**

Any laborers and mechanics employed by contractors or subcontractors on
repair and renovation projects assisted with these Federal education
funds must be paid in accordance with prevailing wage requirements in
the Davis-Bacon Act. In addition,

all LEAs receiving funds under this section and using a contracting
process for school repair and renovation, must maximize the number of
qualified bidders, and include small, minority and women-owned
businesses through a full and open competition.

> **F3. What are the reporting requirements for this program?**

-   LEAs must submit reports to their SEA, at such time as the SEA may
    require, describing their use of funds for these grants.

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-   SEAs must submit reports to the Department of Education by December
    31, 2002, describing the school repair and renovation, IDEA, and
    technology activities carried out with their grants. The Secretary
    will provide information about these reports at a later date.

> **F4. May States or LEAs apply to the Secretary of Education for
> waivers of requirements of the School Renovation, IDEA and Technology
> program?**
>
> Since the funds for this program were appropriated under Title VI of
> the ESEA, States and LEAs are generally eligible to apply for waivers
> of program requirements that may impede LEA reform efforts. However,
> the waiver authority is subject to the provisions of Title XIV of the
> ESEA and in a program such as this is very limited. The Secretary will
> not grant a waiver that would undermine the underlying purposes of the
> program, nor grant waivers relating to the allocation or distribution
> of funds; supplement, not supplant, provisions; equitable
> participation for private school students; or other restrictions in
> Title XIV. In addition, funds used to carry out activities under Part
> B of the IDEA are subject to the requirements of that statute, which
> may not be waived.
>
> The following are examples of the types of waiver requests that would
> [not]{.underline} be appropriate under this program:
>
> o Waivers of the prohibition on using the funds for construction may
> not be granted.
>
> o Waivers of the 75/25 split between renovation and IDEA/technology
> grants may not be granted. (See notice at the front of this guidance
> regarding the Administration\'s proposal to provide States greater
> flexibility in determining how funds will be used.)
>
> o Waivers of the requirement that established a minimum amount that
> States must award to high-poverty and rural school districts for
> school repair and renovation projects may not be granted.

16

o Waivers of IDEA requirements may not be granted.

> For further general information on waivers, call the waiver assistance
> line at (202) 401-7801 or visit the Department's website on waivers at
> [www.ed.gov/flexibility]{.underline}.
>
> **F5. May an Ed-Flex State waive requirements for LEAs under this
> program?**
>
> Consistent with the scope of their waiver authority, Ed-Flex States
> may waive certain program requirements applicable to districts or
> schools. Like the Secretary\'s waiver authority, however, an Ed-Flex
> State\'s authority to waive requirements in a program such as this is
> quite limited. (See F4 above for a more detailed description of the
> types of requirements that may [not]{.underline} be waived by Ed-Flex
> States.)

17

**School Renovation, IDEA, and Technology Grants**

**P.L. 106-554**

SEC. 321. (a) GRANTS TO NATIVE AMERICAN SCHOOLS AND STATE EDUCATIONAL
AGENCIES-

\(1\) ALLOCATION OF FUNDS- Of the amount made available under the
heading \`School improvement programs\' for grants made in accordance
with this section for school repair and renovation, activities under
part B of the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.), and

technology activities, the Secretary of Education shall allocate\--

\* \* \* \* \*

\(B\) \$3,250,000 for grants to outlying areas for school repair and
renovation in high-need schools and communities, allocated on such
basis, and subject to such terms and conditions, as the Secretary
determines appropriate;

\* \* \* \* \*

\(D\) the remainder to State educational agencies in proportion to the
amount each State received under part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for fiscal year
2000, except that no State shall receive less than 0.5 percent of the
amount allocated under this subparagraph.

\* \* \* \* \*

\(b\) WITHIN-STATE ALLOCATIONS- (1) ADMINISTRATIVE COSTS- (A) STATE
EDUCATIONAL AGENCY ADMINISTRATION- Except as provided in subparagraph
(B), each State educational agency may reserve not more than 1 percent
of its allocation under subsection (a)(1)(D) for the purpose of
administering the distribution of grants under this subsection.

\(B\) STATE ENTITY ADMINISTRATION- If the State educational agency
transfers funds to a State entity described in paragraph (2)(A), the
agency shall transfer to such entity 0.75 of the amount reserved under
this paragraph for the purpose of administering the distribution of
grants under this subsection.

\(2\) RESERVATION FOR COMPETITIVE SCHOOL REPAIR AND RENOVATION GRANTS TO
LOCAL EDUCATIONAL AGENCIES-

\(A\) IN GENERAL- Subject to the reservation under paragraph (1), of the
funds allocated to a State educational agency under subsection
(a)(1)(D), the State educational agency shall distribute 75 percent of
such funds to local educational agencies or, if such State educational
agency is not responsible for the financing of education facilities, the
agency shall transfer such funds to the State entity responsible for

the financing of education facilities (referred to in this

section as the \`State entity\') for distribution by such

entity to local educational agencies in accordance with this paragraph,
to be used, consistent with subsection (c), for school repair and
renovation.

\(B\) COMPETITIVE GRANTS TO LOCAL EDUCATIONAL AGENCIES-

\(i\) IN GENERAL- The State educational agency or State entity shall
carry out a program of competitive grants to local educational agencies
for the purpose described in subparagraph (A). Of the total amount
available for distribution to such agencies under this paragraph, the
State educational agency or State entity, shall, in carrying out the
competition\--

\(I\) award to high poverty local educational agencies described in
clause (ii), in the aggregate, at least an amount which bears the same
relationship to such total amount as the aggregate amount such local
educational agencies received under part A of title I of the Elementary
and Secondary Education Act of 1965 for fiscal year 2000 bears to the
aggregate amount received for such fiscal year under such part by all
local educational agencies in the State;

\(II\) award to rural local educational agencies in the State, in the
aggregate, at least an amount which bears the same relationship to such
total amount as the aggregate amount such rural local educational
agencies received under part A of title I of the Elementary and
Secondary Education Act of 1965 for fiscal year 2000 bears to the
aggregate amount received for such fiscal year under such part by all
local educational agencies in the State; and

\(III\) award the remaining funds to local educational agencies not
receiving an award under subclause (I) or (II), including high poverty
and rural local educational agencies that did not receive such an award.

\(ii\) HIGH POVERTY LOCAL EDUCATIONAL AGENCIES- A local educational
agency is described in this clause if\--

\(I\) the percentage described in subparagraph (C)(i) with respect to
the agency is 30 percent or greater; or

\(II\) the number of children described in such subparagraph with
respect to the agency is at least 10,000.

\(C\) CRITERIA FOR AWARDING GRANTS- In awarding competitive grants under
this paragraph, a State educational agency or State entity shall take
into account the following criteria:

\(i\) The percentage of poor children 5 to 17 years of age, inclusive,
in a local educational agency.

\(ii\) The need of a local educational agency for school repair and
renovation, as demonstrated by the condition of its public school
facilities.

\(iii\) The fiscal capacity of a local educational agency

i

to meet its needs for repair and renovation of public

school facilities without assistance under this section, including its
ability to raise funds through the use of local bonding capacity and
otherwise.

\(iv\) In the case of a local educational agency that proposes to fund a
repair or renovation project for a charter school or schools, the extent
to which the school or schools have access to funding for the project
through the financing methods available to other public schools or local
educational agencies in the State.

\(v\) The likelihood that the local educational agency will maintain, in
good condition, any facility whose repair or renovation is assisted
under this section.

\(D\) POSSIBLE MATCHING REQUIREMENT-

\(i\) IN GENERAL- A State educational agency or State entity may require
local educational agencies to match funds awarded under this subsection.

\(ii\) MATCH AMOUNT- The amount of a match described in clause (i) may
be established by using a sliding scale that takes into account the
relative poverty of the population served by the local educational
agency.

\(3\) RESERVATION FOR COMPETITIVE IDEA OR TECHNOLOGY GRANTS TO LOCAL
EDUCATIONAL AGENCIES-

\(A\) IN GENERAL- Subject to the reservation under paragraph (1), of the
funds allocated to a State educational agency under subsection
(a)(1)(D), the State educational agency shall distribute 25 percent of
such funds to local educational agencies through competitive grant
processes, to be used for the following:

\(i\) To carry out activities under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.).

\(ii\) For technology activities that are carried out in connection with
school repair and renovation, including\--

\(I\) wiring;

\(II\) acquiring hardware and software;

\(III\) acquiring connectivity linkages and resources; and

\(IV\) acquiring microwave, fiber optics, cable, and satellite
transmission equipment.

\(B\) CRITERIA FOR AWARDING IDEA GRANTS- In awarding competitive grants
under subparagraph (A) to be used to carry out activities under part B
of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et
seq.), a State educational agency shall take into account the following
criteria:

\(i\) The need of a local educational agency for additional funds for a
student whose individually allocable cost for expenses related to the
Individuals with Disabilities Education Act substantially exceeds the
State\'s average per-pupil expenditure (as defined

section 14101(2) of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 8801(2))).

\(ii\) The need of a local educational agency for additional funds for
special education and related services under part B of the Individuals
with Disabilities Education Act (20 U.S.C. 1411 et seq.).

\(iii\) The need of a local educational agency for additional funds for
assistive technology devices (as defined in section 602 of the
Individuals with Disabilities Education Act (20 U.S.C. 1401)) or
assistive technology services (as so defined) for children being served
under part B of the Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.).

\(iv\) The need of a local educational agency for additional funds for
activities under part B of the Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.) in order for children with disabilities to
make progress toward meeting the performance goals and indicators
established by the State under section 612(a)(16) of such Act (20 U.S.C.
1412).

\(C\) CRITERIA FOR AWARDING TECHNOLOGY GRANTS- In awarding competitive
grants under subparagraph (A) to be used for technology activities that
are carried out in connection with school repair and renovation, a State
educational agency shall take into account the need of a local
educational agency for additional funds for such activities, including
the need for the activities described in subclauses (I) through (IV) of
subparagraph (A)(ii).

\(c\) RULES APPLICABLE TO SCHOOL REPAIR AND RENOVATION- With respect to
funds made available under this section that are used for school repair
and renovation, the following rules shall apply:

\(1\) PERMISSIBLE USES OF FUNDS- School repair and renovation shall be
limited to one or more of the following:

\(A\) Emergency repairs or renovations to public school facilities only
to ensure the health and safety of students and staff, including\--

\(i\) repairing, replacing, or installing roofs, electrical wiring,
plumbing systems, or sewage systems;

\(ii\) repairing, replacing, or installing heating, ventilation, or air
conditioning systems (including insulation); and

\(iii\) bringing public schools into compliance with fire and safety
codes.

\(B\) School facilities modifications necessary to render public school
facilities accessible in order to comply with the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).

\(C\) School facilities modifications necessary to render public school
facilities accessible in order to comply with section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794).

\(D\) Asbestos abatement or removal from public school facilities.

\(E\) Renovation, repair, and acquisition needs related to the building
infrastructure of a charter school.

\(2\) IMPERMISSIBLE USES OF FUNDS- No funds received under this section
may be used for\--

\(A\) payment of maintenance costs in connection with any projects
constructed in whole or part with Federal funds provided under this
section;

\(B\) the construction of new facilities, except for facilities for an
impacted local educational agency (as defined in subsection (a)(3)); or

\(C\) stadiums or other facilities primarily used for

ii

athletic contests or exhibitions or other events for which admission is
charged to the general public.

\(3\) CHARTER SCHOOLS- A public charter school that constitutes a local
educational agency under State law shall be eligible for assistance
under the same terms and conditions as any other local educational
agency (as defined in section 14101(18) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(18))).

\(4\) SUPPLEMENT, NOT SUPPLANT- Excluding the uses described in
subparagraphs (B) and (C) of paragraph (1), a local educational agency
shall use Federal funds subject to this subsection only to supplement
the amount of funds that would, in the absence of such Federal funds, be
made available from non-Federal sources for school repair and
renovation.

\(d\) SPECIAL RULE- Each local educational agency that receives funds
under this section shall ensure that, if it carries out repair or
renovation through a contract, any such contract process ensures the
maximum number of qualified bidders, including small, minority, and
women-owned businesses, through full and open competition.

\(e\) PUBLIC COMMENT- Each local educational agency receiving funds
under paragraph (2) or (3) of subsection (b)\--

\(1\) shall provide parents, educators, and all other interested members
of the community the opportunity to consult on the use of funds received
under such paragraph;

\(2\) shall provide the public with adequate and efficient notice of the
opportunity described in paragraph (1) in a widely read and distributed
medium; and

\(3\) shall provide the opportunity described in paragraph (1) in
accordance with any applicable State and local law specifying how the
comments may be received and how the comments may be reviewed by any
member of the public.

\(f\) REPORTING-

\(1\) LOCAL REPORTING- Each local educational agency receiving funds
under subsection (a)(1)(D) shall submit a report to the State
educational agency, at such time as the State educational agency may
require, describing the use of such funds for\--

\(A\) school repair and renovation (and construction, in the case of an
impacted local educational agency (as defined in subsection (a)(3)));

\(B\) activities under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); and

\(C\) technology activities that are carried out in connection with
school repair and renovation, including the activities described in
subclauses (I) through (IV) of subsection (b)(3)(A)(ii).

\(2\) STATE REPORTING- Each State educational agency shall submit to the
Secretary of Education, not later than December 31, 2002, a report on
the use of funds received under subsection (a)(1)(D) by local
educational agencies for\--

\(A\) school repair and renovation (and construction, in the case of an
impacted local educational agency (as defined in subsection (a)(3)));

\(B\) activities under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); and

\(C\) technology activities that are carried out in connection with
school repair and renovation, including the activities described in
subclauses (I) through (IV) of subsection (b)(3)(A)(ii).

\(3\) ADDITIONAL REPORTS- Each entity receiving funds allocated under
subsection (a)(1)(A) or (B) shall submit to the Secretary, not later
than December 31, 2002, a report on its uses of funds under this
section, in such form and containing such information as the Secretary
may require.

\(g\) APPLICABILITY OF PART B OF IDEA- If a local educational agency
uses funds received under this section to carry out activities under
part B of the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.), such part (including provisions respecting the
participation of private school children), and any other provision of
law that applies to such part, shall apply to such use.

\(h\) REALLOCATION- If a State educational agency does not apply for an
allocation of funds under subsection (a)(1)(D) for fiscal year 2001, or
does not use its entire allocation for such fiscal year, the Secretary
may reallocate the amount of the State educational agency\'s allocation
(or the remainder thereof, as the case may be) to the remaining State
educational agencies in accordance with subsection (a)(1)(D).

\(i\) PARTICIPATION OF PRIVATE SCHOOLS-

\(1\) IN GENERAL- Section 6402 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7372) shall apply to subsection (b)(2) in the
same manner as it applies to activities under title VI of such Act,
except that\--

\(A\) such section shall not apply with respect to the

title to any real property renovated or repaired with assistance
provided under this section;

\(B\) the term \`services\' as used in section 6402 of such Act with
respect to funds under this section shall be provided only to private,
nonprofit elementary or secondary schools with a rate of child poverty
of at least 40 percent and may include for purposes of subsection (b)(2)
only\--

\(i\) modifications of school facilities necessary to meet the standards
applicable to public schools under the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.);

\(ii\) modifications of school facilities necessary to meet the
standards applicable to public schools under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794); and

\(iii\) asbestos abatement or removal from school facilities; and

\(C\) notwithstanding the requirements of section 6402(b) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7372(b)),
expenditures for services provided using funds made available under
subsection (b)(2) shall be considered equal for

iii

purposes of such section if the per-pupil expenditures for services
described in subparagraph (B) for students enrolled in private nonprofit
elementary and secondary schools that have child poverty rates of at
least 40 percent are consistent with the per-pupil expenditures under
this section for children enrolled in the public schools in the school
district of the local educational agency receiving funds under this
section.

\(2\) REMAINING FUNDS- If the expenditure for services described in
paragraph (1)(B) is less than the amount calculated under paragraph
(1)(C) because of insufficient need for such services, the remainder
shall be available to the local educational agency for renovation and
repair of public school facilities.

\(3\) APPLICATION- If any provision of this section, or the application
thereof, to any person or circumstances is judicially determined to be
invalid, the provisions of the remainder of the section and the
application to other persons or circumstances shall not be affected
thereby.

\(j\) DEFINITIONS- For purposes of this section:

\(1\) CHARTER SCHOOL- The term \`charter school\' has the meaning given
such term in section 10310(1) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 8066(1)).

\(2\) ELEMENTARY SCHOOL- The term \`elementary school\' has the meaning
given such term in section 14101(14) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(14)).

\(3\) LOCAL EDUCATIONAL AGENCY- The term \`local educational agency\'
has the meaning given such term in subparagraphs (A) and (B) of section
14101(18) of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801(18)).

\(4\) OUTLYING AREA- The term \`ou

tlying area\' has the meaning given such term in section 14101(21) of
the Elementary and Secondary Act of 1965 (20 U.S.C. 8801(21)).

\(5\) POOR CHILDREN AND CHILD POVERTY- The terms \`poor children\' and
\`child poverty\' refer to children 5 to 17 years of age, inclusive, who
are from families with incomes below the poverty line (as defined by the
Office of Management and Budget and revised annually in accordance with
section 673(2) of the Community Services Block Grant (42 U.S.C. 9902(2))
applicable to a family of the size involved for

the most recent fiscal year for which data satisfactory to the Secretary
are available.

\(6\) RURAL LOCAL EDUCATIONAL AGENCY- The term \`rural local educational
agency\' means a local educational agency that the State determines is
located in a rural area using objective data and a commonly employed
definition of the term \`rural\'.

\(7\) SECONDARY SCHOOL- The term \`secondary school\' has the meaning
given such term in section 14101(25) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(25)).

\(8\) STATE- The term \`State\' means each of the 50 states, the
District of Columbia, and the Commonwealth of Puerto Rico.

iv