To provide block grant options for certain education funding.

SECTION 1. BLOCK GRANT OPTIONS.

    (a) State Options.--Notwithstanding any other provision of law, 
each State shall notify the Secretary regarding the State's election to 
receive the State's portion of the applicable funding described in 
subsection (b) according to one of the following options:
            (1) State block grant option.--The State may receive the 
        funding pursuant to a State allotment described in section 
        2(a)(1).
            (2) Local block grant option.--The State may direct the 
        Secretary to send the funding directly to local educational 
        agencies in the State pursuant to a local allotment described 
        in section 2(a)(2).
            (3) Federal statute option.--The State may receive the 
        funding according to the provisions of law described in 
        subsection (b).
    (b) Applicable Funding.--In this section, the term ``applicable 
funding'' means all funds that are appropriated for the Department of 
Education for fiscal year 2000 or any succeeding fiscal year to carry 
out programs or activities under the following provisions of law:
            (1) The Goals 2000: Educate America Act (20 U.S.C. 5801 et 
        seq.), other than titles I and X of such Act (20 U.S.C. 5811 et 
        seq. and 6061 et seq.).
            (2) The Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6301 et seq.), other than titles VIII, IX, and XIV of 
        such Act (20 U.S.C. 7701 et seq., 7801 et seq., and 8801 et 
        seq.).
            (3) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
        6101 et seq.).
            (4) The Carl D. Perkins Vocational and Applied Technology 
        Education Act (20 U.S.C. 2301 et seq.).

SEC. 2. BLOCK GRANTS.

    (a) Allotments.--
            (1) States.--From the total applicable funding available 
        for a fiscal year, the Secretary may make allotments to each 
        State selecting the option described in section 1(a)(1) in an 
        amount that bears the same relation to such total applicable 
        funding as the number of individuals in the State who are aged 
        5 through 17 bears to the total number of such individuals in 
        all States.
            (2) Local educational agencies.--From the total applicable 
        funding available for a fiscal year, the Secretary may make 
        allotments to each local educational agency in a State 
        selecting the option described in section 1(a)(2) in an amount 
        that bears the same relation to such total applicable funding 
        as the number of individuals in the school district served by 
        the local educational agency who are aged 5 through 17 bears to 
        the total number of such individuals in all school districts 
        served by all local educational agencies in all States.
            (3) Enrollment determination.--The Secretary shall 
        determine the number of children described in paragraphs (1) 
        and (2)--
                    (A) for the academic year for which the 
                determination is made, after the beginning of the 
                academic year; and
                    (B) on the basis of the most recent data available 
                to the Secretary.
    (b) Distribution of Allotted Funds.--
            (1) Reservations.--
                    (A) States.--Each State that receives funds 
                allotted under subsection (a) may reserve not more than 
                1 percent of the funds for the cost of administration, 
                evaluation, reporting, and other activities related to 
                activities assisted under this Act.
                    (B) Local educational agencies.--Each local 
                educational agency that receives funds allotted under 
                subsection (a) may reserve not more than 2 percent of 
                the funds for the costs of administration, overhead 
                costs, or indirect costs.
            (2) Awards.--In States selecting the State block grant 
        option described in section 1(a)(1), all funds allotted under 
        subsection (a)(1) that are not reserved under paragraph (1)(A) 
        shall be made available, in accordance with paragraph (3), on 
        behalf of each student who resides in the State and is enrolled 
        in a public elementary school or secondary school, or in a 
        private or home elementary school or secondary school, located 
        in the State. In States selecting the local block grant option 
        described in section 1(a)(2), all funds allotted under 
        subsection (a)(2) that are not reserved under paragraph (1)(B) 
        shall be made available, in accordance with paragraph (3), on 
        behalf of each student who resides in the school district 
        served by a local educational agency and is enrolled in a 
        public elementary school or secondary school, or in a private 
        or home elementary school or secondary school, in the school 
        district. In States selecting the State block grant option or 
        the local block grant option, the amount allotted on behalf of 
        each student shall be adjusted in accordance with paragraph 
        (5).
            (3) Recipients.--Funds awarded under paragraph (2)--
                    (A) in the case of a public school student, 
                including a charter school student, shall be made 
                available to the public school or charter school, 
                respectively; and
                    (B) in the case of a private school or home school 
                student, shall be made available to the parent or legal 
                guardian of the student.
            (4) Uses.--
                    (A) Public school students.--Each public school 
                that receives assistance under this Act shall use the 
                assistance for any qualified elementary and secondary 
                education expenses.
                    (B) Private school students.--Each parent or 
                guardian of a private school student that receives 
                assistance under this Act shall use the assistance to 
                pay the costs of attendance at the private school.
                    (C) Home school students.--Each parent or guardian 
                of a home school student that receives assistance under 
                this Act shall use the assistance for any qualified 
                elementary and secondary education expenses.
            (5) Adjustments.--A State or local educational agency shall 
        adjust the amount awarded for students under paragraph (2) to 
        account for--
                    (A) high need students, such as students from poor 
                families; or
                    (B) different costs of living in urban and rural 
                areas.

SEC. 3. FEDERAL STATUTE OPTION.

    (a) In General.--From the applicable funding that remains after 
making the allotments under paragraphs (1) and (2) of section 2(a) for 
a fiscal year, the Secretary may make awards according to the 
provisions of law described in section 1(b), to State and local 
recipients, in States selecting the option described in section 
1(a)(3).
    (b) Percentage Reductions.--The Secretary, after making the 
allotments under paragraphs (1) and (2) of section 2(a) for a fiscal 
year, shall reduce the total amount of applicable funding available to 
carry out the provisions of law described in section 1(b) for the 
fiscal year, for any State selecting the option described in section 
2(a)(3), by an equal percentage for each such provision.

SEC. 4. ACCOUNTABILITY.

    (a) In General.--Each entity receiving assistance under this Act 
shall--
            (1) use the funds to supplement and not supplant State and 
        local funds; and
            (2) involve parents and members of the public in planning 
        for the use of funds provided under this Act, such as through a 
        representative advisory committee.
    (b) Reports.--
            (1) In general.--Each local educational agency receiving an 
        allotment under this Act shall prepare and submit to the State, 
        and each State receiving an allotment under this Act shall 
        prepare and submit to Congress, a report regarding the 
        distribution and use of the allotted funds, and how the use of 
        the funds effects student achievement.
            (2) Availability.--Each State and local educational agency 
        submitting a report under paragraph (1) shall make copies of 
        the report available to parents and other members of the 
        public.
            (3) Special rule.--Each State or local educational agency 
        receiving an allotment under this Act that has developed or 
        established challenging content or student performance 
        standards shall include in the report submitted under paragraph 
        (1) information regarding student achievement with respect to 
        the standards.

SEC. 5. DEFINITIONS.

    In this title:
            (1) Local educational agency.--The term ``local educational 
        agency'' has the meaning given the term in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
            (2) Qualified elementary and secondary education 
        expenses.--
                    (A) In general.--The term ``qualified elementary 
                and secondary education expenses'' means--
                            (i) expenses for tuition, fees, academic 
                        tutoring, special needs services, books, 
                        supplies, computer equipment (including related 
                        software and services), and other equipment 
                        which are incurred in connection with the 
                        enrollment or attendance of a student at a 
                        school; or
                            (ii) expenses for room and board, uniforms, 
                        transportation, and supplementary items and 
                        services (including extended day programs) 
                        which are required or provided by a school in 
                        connection with such enrollment or attendance.
                    (B) Special rule for homeschooling.--Such term 
                shall include expenses described in subparagraph (A)(i) 
                in connection with education provided by homeschooling 
                if the requirements of any applicable State or local 
                law are met with respect to such education.
            (2) School.--The term ``school'' means any school that 
        provides kindergarten education, elementary education or 
        secondary education, as determined under State law.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (4) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the United States 
        Virgin Islands, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau.

Summary: Directs each State to notify the Secretary of Education regarding its election to receive its portion of certain education funding according to: (1) a State block grant option, through a State allotment based on State population of individuals aged five through 17. (2) a local block grant option, with the Secretary sending the funding directly to local educational agencies (LEAs) in the State through a local allotment based on school district population of individuals aged five through 17. Or (3) a Federal statute option, based on a certain State and local allotment process and formula. Applies such block grant options to all funds appropriated for the Department of Education for FY 2000 or any succeeding fiscal year to carry out programs or activities under: (1) the Goals 2000: Educate America Act, (2) the Elementary and Secondary Education Act of 1965, (3) the School-to-Work Opportunities Act of 1994. And (4) the Carl D. Perkins Vocational and Applied Technology Education Act. Allows States and LEAs to reserve certain portions of their allotments for specified administrative and other activities.