To require the Secretary of Education to award grants to local governments that have experienced at least a 15 percent decrease in property tax revenues to fund certain elementary and secondary school education programs.

Summary: Temporary Recession Aid for Schools and Taxpayers Act - Directs the Secretary of Education to award three-year grants to local governments for elementary and secondary education programs within their jurisdiction if they experience at least a 15% decrease in property tax revenues from FY2008 to FY2009 or from FY2009 to FY2010.

Allows local governments to apply for two separate grants if they experience at least a 15% decrease in property tax revenues in each of such time periods.

Gives priority to local governments that experience the largest decreases in property tax revenues relative to their tax base and whose decrease is attributable to the permanent or temporary shutdown or closure of a large employer or several small employers.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Temporary Recession Aid for Schools 
and Taxpayers Act''.

SEC. 2. AUTHORIZATION OF GRANTS TO LOCAL GOVERNMENTS.

    (a) In General.--From the amounts appropriated under subsection 
(h), the Secretary of Education shall award grants to eligible local 
governments to fund elementary and secondary school education programs 
in accordance with subsection (g).
    (b) Number of Grants.--An eligible local government may receive--
            (1) 1 grant under this Act because it has experienced at 
        least a 15 percent decrease in property tax revenues from 
        fiscal year 2008 to fiscal year 2009; and
            (2) 1 grant under this Act because it has experienced at 
        least a 15 percent decrease in property tax revenues from 
        fiscal year 2009 to fiscal year 2010.
    (c) Grant Duration.--A grant under this Act shall be awarded in 
accordance with the amounts described in subsection (d) for a period of 
not longer than 3 years.
    (d) Grant Amounts.--
            (1) In general.--Subject to paragraph (2), a grant awarded 
        to an eligible local government under this Act shall not exceed 
        an amount that is equal to--
                    (A) in the first year of the grant period, 70 
                percent of the difference in the amount of property tax 
                revenues collected by such local government from fiscal 
                year 2008 to fiscal year 2009 or from fiscal year 2009 
                to fiscal year 2010, as applicable;
                    (B) in the second year of the grant period, 50 
                percent of such difference; and
                    (C) in the third year of the grant period, 25 
                percent of such difference.
            (2) Maximum amount.--A grant awarded under this Act shall 
        not exceed a total of $40,000,000 in a 3-year grant period.
    (e) Application Requirements.--To qualify to receive a grant under 
this Act, an eligible local government shall submit an application, not 
later than 2 months after the end of fiscal year 2009 or fiscal year 
2010, in such manner and containing such information as the Secretary 
of Education may require, which shall include--
            (1) the difference and the percentage of decrease in the 
        amount of property tax revenues collected by such local 
        government from fiscal year 2008 to fiscal year 2009 or from 
        fiscal year 2009 to fiscal year 2010, as applicable; and
            (2) how such local government plans to operate without the 
        funds it receives under this Act after the 3-year grant period, 
        including any plans to increase property taxes or reduce 
        elementary and secondary school budgets.
    (f) Priority.--In awarding grants under this Act, the Secretary of 
Education shall give priority to eligible local governments--
            (1) that have experienced the largest amount of decrease in 
        property tax revenues collected from fiscal year 2008 to fiscal 
        year 2009 or from fiscal year 2009 to fiscal year 2010, as 
        applicable, in proportion to the tax base of such local 
        government, relative to the total tax base of all eligible 
        local governments; and
            (2) where the decrease in property tax revenues collected 
        from fiscal year 2008 to fiscal year 2009 or from fiscal year 
        2009 to fiscal year 2010, as applicable, is attributable to the 
        permanent or temporary shutdown or closure of an establishment 
        of a large employer (as determined by the Secretary) or several 
        small employers (as determined by the Secretary).
    (g) Required Uses of Funds.--An eligible local government receiving 
a grant under this Act shall only use the grant funds to fund 
elementary and secondary school education programs, including--
            (1) programs for construction, maintenance, rehabilitation, 
        or repair of a school facility;
            (2) programs to maintain the salaries of teachers or other 
        faculty; or
            (3) school lunch programs or other nutrition programs that 
        are funded by such local government.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated $100,000,000 for each of fiscal years 2010 through 2013.
    (i) Definitions.--In this Act:
            (1) Eligible local government.--The term ``eligible local 
        government'' means a city, county, town, parish, village, or 
        other general-purpose political subdivision of a State that has 
        the authority to levy real property taxes and--
                    (A) has experienced at least a 15 percent decrease 
                in property tax revenues from fiscal year 2008 to 
                fiscal year 2009 or from fiscal year 2009 to fiscal 
                year 2010; and
                    (B) spend such tax funds on elementary and 
                secondary education programs within the jurisdiction of 
                such local government.
            (2) Fiscal year.--The term ``fiscal year'' has the meaning 
        given such term under applicable State or local law.
            (3) Property tax revenues.--The term ``property tax 
        revenues'' means the revenues generated by the levying of real 
        property taxes by a local government based on the assessment of 
        the value of real property located within the jurisdiction of 
        such local government.
            (4) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.
            (5) Tax base.--The term ``tax base'' means the assessment 
        by a local government of the total value of taxable real 
        property located within the jurisdiction of such local 
        government.

SEC. 3. EFFECTIVE DATE.

    This Act shall take effect not later than November 1, 2009.