I

104TH CONGRESS

1ST SESSION H. R. 1894

To amend title VIII of the Elementary and Secondary Education Act of

1965 regarding impact aid payments, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 20, 1995

Mr. JOHNSON of South Dakota introduced the following bill; which was

referred to the Committee on Economic and Educational Opportunities

A BILL

To amend title VIII of the Elementary and Secondary Education Act of 1965 regarding impact aid payments, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. IMPACT AID.

4 (a) HOLD-HARMLESS AMOUNTS FOR PAYMENTS RE5 LATING TO FEDERAL ACQUISITION OF REAL PROP6 ERTY.—Section 8002 of the Elementary and Secondary

7 Education Act of 1965 (20 U.S.C. 7702) is amended by

8 adding at the end the following new subsections:

9 ‘‘(g) FORMER DISTRICTS.—
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1 ‘‘(1) IN GENERAL.—Where the school district of

2 any local educational agency described in paragraph

3 (2) is formed at any time after 1938 by the consoli4 dation of two or more former school districts, such

5 agency may elect (at any time such agency files an

6 application under section 8005) for any fiscal year

7 to have (A) the eligibility of such local educational

8 agency, and (B) the amount which such agency shall

9 be eligible to receive, determined under this section

10 only with respect to such of the former school dis11 tricts comprising such consolidated school districts

12 as such agency shall designate in such election.

13 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN14 CIES.—A local educational agency referred to in

15 paragraph (1) is any local educational agency that,

16 for fiscal year 1994 or any preceding fiscal year, ap17 plied for and was determined eligible under section

18 2(c) of the Act of September 30, 1950 (Public Law

19 874, 81st Congress) as such section was in effect on

20 September 30, 1994.

21 ‘‘(h) HOLD-HARMLESS AMOUNTS.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2)(A), the total amount that the Secretary

24 shall pay a local educational agency under sub25 section (b)—
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1 ‘‘(A) for fiscal year 1995 shall not be less

2 than 85 percent of the amount such agency re3 ceived for fiscal year 1994 under section 2 of

4 the Act of September 30, 1950 (Public Law

5 874, 81st Congress) as such section was in ef6 fect on September 30, 1994; or

7 ‘‘(B) for fiscal year 1996 shall not be less

8 than 85 percent of the amount such agency re9 ceived for fiscal year 1995 under subsection (b).

10 ‘‘(2) RATABLE REDUCTIONS.—(A)(i) If nec11 essary in order to make payments to local edu12 cational agencies in accordance with paragraph (1)

13 for any fiscal year, the Secretary first shall ratably

14 reduce payments under subsection (b) for such year

15 to local educational agencies that do not receive a

16 payment under this subsection for such year.

17 ‘‘(ii) If additional funds become available for

18 making payments under subsection (b) for such

19 year, then payments that were reduced under clause

20 (i) shall be increased on the same basis as such pay21 ments were reduced.

22 ‘‘(B)(i) If the sums made available under this

23 title for any fiscal year are insufficient to pay the

24 full amounts that all local educational agencies in all

25 States are eligible to receive under paragraph (1)
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1 after the application of subparagraph (A) for such

2 year, then the Secretary shall ratably reduce pay3 ments under paragraph (1) to all such agencies for

4 such year.

5 ‘‘(ii) If additional funds become available for

6 making payments under paragraph (1) for such fis7 cal year, then payments that were reduced under

8 clause (i) shall be increased on the same basis as

9 such payments were reduced.’’.

10 (b) COMPUTATION OF PAYMENT.—Paragraph (3) of

11 section 8003(a) of such Act (20 U.S.C. 7703(a)) is

12 amended by striking ‘‘and such’’ and inserting ‘‘, or such’’.

13 (c) PAYMENTS FOR ELIGIBLE FEDERALLY CON14 NECTED CHILDREN.—Subsection (f) of section 8003 of

15 such Act (20 U.S.C. 7703) is amended—

16 (1) in paragraph (2)—

17 (A) in the matter preceding clause (i) of

18 subparagraph (A), by striking ‘‘only if such

19 agency’’ and inserting ‘‘if such agency is eligible

20 for a supplementary payment in accordance

21 with subparagraph (B) or such agency’’; and

22 (B) by adding at the end the following new

23 subparagraph:

24 ‘‘(C) A local educational agency shall only

25 be eligible to receive additional assistance under
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1 this subsection if the Secretary determines

2 that—

3 ‘‘(i) such agency is exercising due dili4 gence in availing itself of State and other

5 financial assistance; and

6 ‘‘(ii) the eligibility of such agency

7 under State law for State aid with respect

8 to the free public education of children de9 scribed in subsection (a)(1) and the

10 amount of such aid are determined on a

11 basis no less favorable to such agency than

12 the basis used in determining the eligibility

13 of local educational agencies for State aid,

14 and the amount of such aid, with respect

15 to the free public education of other chil16 dren in the State.’’; and

17 (2) in paragraph (3)—

18 (A) in subparagraph (A)—

19 (i) in the matter preceding clause (i),

20 by inserting ‘‘(other than any amount re21 ceived under paragraph (2)(B))’’ after

22 ‘‘subsection’’;

23 (ii) in subclause (I) of clause (i), by

24 striking ‘‘or the average per-pupil expendi25 ture of all the States’’;
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1 (iii) by amending clause (ii) to read as

2 follows:

3 ‘‘(ii) The Secretary shall next multiply

4 the amount determined under clause (i) by

5 the total number of students in average

6 daily attendance at the schools of the local

7 educational agency.’’; and

8 (iv) by amending clause (iii) to read

9 as follows:

10 ‘‘(iii) The Secretary shall next sub11 tract from the amount determined under

12 clause (ii) all funds available to the local

13 educational agency for current expendi14 tures, but shall not so subtract funds pro15 vided—

16 ‘‘(I) under this Act; or

17 ‘‘(II) by any department or agen18 cy of the Federal Government (other

19 than the Department) that are used

20 for capital expenses.’’; and

21 (B) by amending subparagraph (B) to read

22 as follows:

23 ‘‘(B) SPECIAL RULE.—With respect to

24 payments under this subsection for a fiscal year

25 for a local educational agency described in
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1 clause (ii) or (iii) of paragraph (2)(A), the max2 imum amount of payments under this sub3 section shall be equal to—

4 ‘‘(i) the product of—

5 ‘‘(I) the average per-pupil ex6 penditure in all States multiplied by

7 0.7, except that such amount may not

8 exceed 125 percent of the average per9 pupil expenditure in all local edu10 cational agencies in the State; multi11 plied by

12 ‘‘(II) the number of students de13 scribed in subparagraph (A) or (B) of

14 subsection (a)(1) for such agency;

15 minus

16 ‘‘(ii) the amount of payments such

17 agency receives under subsections (b) and

18 (d) for such year.’’.

19 (d) CURRENT YEAR DATA.—Paragraph (4) of section

20 8003(f) of such Act (20 U.S.C. 7703(f)) is amended to

21 read as follows:

22 ‘‘(4) CURRENT YEAR DATA.—For purposes of

23 providing assistance under this subsection the Sec24 retary—
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1 ‘‘(A) shall use student and revenue data

2 from the fiscal year for which the local edu3 cational agency is applying for assistance under

4 this subsection; and

5 ‘‘(B) shall derive the per-pupil expenditure

6 amount for such year for the local educational

7 agency’s comparable school districts by increas8 ing or decreasing the per pupil expenditure data

9 for the second fiscal year preceding the fiscal

10 year for which the determination is made by the

11 same percentage increase or decrease reflected

12 between the per pupil expenditure data for the

13 fourth fiscal year preceding the fiscal year for

14 which the determination is made and the per

15 pupil expenditure data for such second year.’’.

16 (e) SPECIAL RULE FOR 1994 PAYMENTS.—The Sec17 retary shall not consider any payment to a local edu18 cational agency by the Department of Defense, that is

19 available to such agency for current expenditures and used

20 for capital expenses, as funds available to such agency for

21 purposes of making a determination for fiscal year 1994

22 under section 3(d)(2)(B)(i) of the Act of September 30,

23 1950 (Public Law 874, 81st Congress) (as such Act was

24 in effect on September 30, 1994).

25 (f) APPLICATIONS FOR INCREASED PAYMENTS.—
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1 (1) IN GENERAL.—Notwithstanding any other

2 provision of law, the Bonesteel-Fairfax School Dis3 trict Number 26–5, South Dakota, and the Wagner

4 Community School District Number 11–4, South

5 Dakota, shall be eligible to apply for payment for

6 fiscal year 1994 under section 3(d)(2)(B) of the Act

7 of September 30, 1950 (Public Law 874, 81st Con8 gress) (as such section was in effect on September

9 30, 1994).

10 (2) APPLICATION.—In order to be eligible to re11 ceive a payment described in subsection (a), a school

12 district described in such subsection shall apply for

13 such payment within 30 days after the date of en14 actment of this Act.

15 (3) CONSTRUCTION.—Nothing in this section

16 shall be construed to require a local educational

17 agency that received a payment under section

18 3(d)(2)(B) of the Act of September 30, 1950 (Public

19 Law 874, 81st Congress) (as such section was in ef20 fect on September 30, 1994) for fiscal year 1994 to

21 return such payment or a portion of such payment

22 to the Federal Government.

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