I 

112TH CONGRESS 

1ST SESSION H. R. 1342 

To reauthorize the impact aid program under the Elementary and Secondary 

Education Act of 1965. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 4, 2011 

Ms. HIRONO (for herself and Mrs. NOEM) introduced the following bill; which 

was referred to the Committee on Education and the Workforce 

A BILL 

To reauthorize the impact aid program under the Elementary 

and Secondary Education Act of 1965. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Local Taxpayer Relief 

5 Act’’. 

6 SEC. 2. PAYMENTS RELATING TO FEDERAL ACQUISITION 

7 OF REAL PROPERTY. 

8 (a) AMENDMENTS.—Section 8002 of the Elementary 

9 and Secondary Education Act of 1965 (20 U.S.C. 7702) 

10 is amended— 


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1 (1) in subsection (a)(1)(C), by amending the 

2 matter preceding clause (i) to read as follows: 

3 ‘‘(C) had an assessed value according to 

4 original records (including facsimiles or other 

5 reproductions of those records) or other records 

6 that the Secretary determines to be appropriate 

7 and reliable, including Federal agency records 

8 or local historical records aggregating 10 per9 cent or more of the assessed value of—’’; 

10 (2) in subsection (b)— 

11 (A) in paragraph (1), by adding at the end 

12 the following: 

13 ‘‘(D) Notwithstanding any other provision of 

14 this subsection, a local educational agency may not 

15 be paid an amount under this section that exceeds 

16 the total current expenditures of the agency in the 

17 second prior fiscal year.’’; 

18 (B) by striking paragraph (2) and insert19 ing the following: 

20 ‘‘(2) DETERMINATION OF ESTIMATED AS21 SESSED VALUE FOR ELIGIBLE FEDERAL PROP22 ERTY.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), in determining the estimated taxable 

25 value of eligible Federal property located within 


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1 the boundaries of a local educational agency for 

2 fiscal year 2010 and each succeeding fiscal 

3 year, the Secretary shall— 

4 ‘‘(i) determine the total taxable value 

5 for the purpose of levying a property tax 

6 for school purposes for current expendi7 tures of real property located within the 

8 boundaries of such local educational agen9 cy; 

10 ‘‘(ii) determine the per acre value of 

11 the eligible Federal property by dividing— 

12 ‘‘(I) the total taxable value as de13 termined in clause (i), by 

14 ‘‘(II) the total acres located with15 in the boundaries of the local edu16 cational agency minus the number of 

17 Federal acres eligible under this sec18 tion; and 

19 ‘‘(iii) multiply the per acre value as 

20 calculated under clause (ii) by the number 

21 of Federal acres eligible under this section. 

22 ‘‘(B) SPECIAL RULE.—In a case in which 

23 a local educational agency shares eligible Fed24 eral property with 2 or more local educational 


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1 agencies, the local educational agency may ask 

2 the Secretary to— 

3 ‘‘(i) calculate the per acre value of 

4 each such local educational agency in ac5 cordance with subparagraph (A); and 

6 ‘‘(ii) apply the average of the per acre 

7 values to the acres of the Federal property 

8 in that agency.’’; and 

9 (C) by striking paragraph (3) and insert10 ing the following: 

11 ‘‘(3) APPLICATION OF CURRENT LEVIED REAL

12 PROPERTY TAX RATE.—In calculating the amount 

13 that a local educational agency is eligible to receive 

14 for a fiscal year the Secretary shall apply the cur15 rent levied real property tax rate for current expend16 itures levied by fiscally independent local educational 

17 agencies, or imputed for fiscally dependent local edu18 cational agencies, to the current annually deter19 mined estimated taxable value of such acquired Fed20 eral property as calculated under paragraph (2).’’; 

21 (3) in subsection (f), by striking paragraphs (4) 

22 and (5); 

23 (4) by amending subsection (g) to read as fol24 lows: 

25 ‘‘(g) FORMER DISTRICTS.— 


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1 ‘‘(1) CONSOLIDATIONS.—For fiscal year 2006 

2 and all succeeding fiscal years, if a local educational 

3 agency described in paragraph (2) is formed at any 

4 time after 1938 by the consolidation of 2 or more 

5 former school districts, the local educational agency 

6 may elect to have the Secretary determine its eligi7 bility and any amount for which the local edu8 cational agency is eligible under this section for any 

9 fiscal year on the basis of 1 or more of those former 

10 districts, as designated by the local educational 

11 agency in such election. 

12 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN13 CIES.—A local educational described in this para14 graph is— 

15 ‘‘(A) any local educational agency that, for 

16 fiscal year 1994 or any preceding fiscal year, 

17 applied for, and was determined to be eligible 

18 under, section 2(c) of the Act of September 20, 

19 1950 (Public Law 874, 81st Congress), as that 

20 section was in effect for that fiscal year; or 

21 ‘‘(B) a local educational agency formed by 

22 the consolidation of 2 or more districts, at least 

23 1 of which was eligible for assistance under this 

24 section for the fiscal year preceding the year of 

25 the consolidation, if— 


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1 ‘‘(i) for fiscal years 2006 through 

2 2011, the local educational agency notifies 

3 the Secretary of the designation made by 

4 the agency in the election described in 

5 paragraph (1) not later than 30 days after 

6 the date of enactment of the Local Tax7 payer Relief Act; and 

8 ‘‘(ii) for fiscal year 2012 and any sub9 sequent fiscal year, the local educational 

10 agency includes the designation in its ap11 plication under section 8005 or any timely 

12 amendment to such application. 

13 ‘‘(3) AVAILABILITY OF FUNDS.—Notwith14 standing any other provision of law limiting the pe15 riod during which the Secretary may obligate funds 

16 appropriated for any fiscal year after 2005, the Sec17 retary may obligate funds remaining after final pay18 ments have been made from any of such fiscal years 

19 to carry out this subsection.’’; 

20 (5) by amending subsection (h) to read as fol21 lows: 

22 ‘‘(h) PAYMENTS WITH RESPECT TO FISCAL YEARS

23 IN WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.— 

24 For any fiscal year for which the amount appropriated 

25 under section 8014(a) is insufficient to pay to each eligible 


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1 local educational agency the full amount determined under 

2 subsection (b), the Secretary shall make payments to each 

3 local educational agency under this section as follows: 

4 ‘‘(1) FOUNDATION PAYMENTS.— 

5 ‘‘(A) IN GENERAL.—From the amount ap6 propriated under section 8014(a), the Secretary 

7 shall first make payments to the following local 

8 educational agencies: 

9 ‘‘(i) Each local educational agency 

10 that received a payment under this section 

11 for fiscal year 2006; and that was eligible 

12 for a payment under this section for fiscal 

13 year 2006. 

14 ‘‘(ii) Each local educational agency 

15 that did not receive a payment under this 

16 section for fiscal year 2006 but was newly 

17 eligible for a payment under this section 

18 after fiscal year 2006. 

19 ‘‘(B) AMOUNT.—The amount of payment 

20 under subparagraph (A) for a local educational 

21 shall be determined as follows: 

22 ‘‘(i) For a local educational agency 

23 described in subparagraph (A)(i), the 

24 amount of payment shall be equal to 90 

25 percent of the amount received by such 


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1 local educational agency under subsection 

2 (b) for fiscal year 2006. 

3 ‘‘(ii) For a local educational agency 

4 described in subparagraph (A)(ii) the 

5 amount of payment shall be determined 

6 by— 

7 ‘‘(I) calculating a payment esti8 mate for fiscal year 2006 under the 

9 same provisions and in the same man10 ner as payments were determined for 

11 those local educational agencies eligi12 ble for and receiving payments for fis13 cal year 2006; and 

14 ‘‘(II) multiplying the amount de15 termined under clause (i) by 90 per16 cent. 

17 ‘‘(C) FOUNDATION PAYMENT.—The 

18 amount of payments calculated under clauses 

19 (i) and (ii) of subparagraph (B) shall be consid20 ered the agencies foundation payments for each 

21 succeeding fiscal year. 

22 ‘‘(D) INSUFFICIENT APPROPRIATIONS.—If 

23 the amount appropriated under section 8014(a) 

24 is insufficient to pay the full amount deter25 mined under this paragraph for all eligible local 


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1 educational agencies for a fiscal year, the Sec2 retary shall ratably reduce the payment to each 

3 local educational agency under this paragraph 

4 for such fiscal year. 

5 ‘‘(2) REMAINING FUNDS.—From any funds re6 maining after making payments under paragraph 

7 (1) for a fiscal year, the Secretary shall— 

8 ‘‘(A) sum the amounts determined under 

9 paragraph (b)(2) for all eligible local edu10 cational agencies; 

11 ‘‘(B) determine each eligible local edu12 cational agency’s proportional share of the 

13 amount calculated under subparagraph (A); and 

14 ‘‘(C) pay each eligible local educational 

15 agency its share of the remaining funds based 

16 on the proportion calculated under subpara17 graph (B).’’; 

18 (6) by striking subsections (i), (k), and (m); 

19 and 

20 (7) by redesignating subsections (l) and (n) as 

21 subsections (i) and (j), respectively. 

22 (b) EFFECTIVE DATE.—Notwithstanding the date of 

23 enactment of this Act, the amendments made by this sec24 tion shall apply to applications submitted for fiscal year 

25 2010 and all succeeding fiscal years. 


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1 SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED 

2 CHILDREN. 

3 Section 8003 of that Act (20 U.S.C. 7703) is amend4 ed— 

5 (1) in subsection (a)— 

6 (A) in paragraph (1), in the matter pre7 ceding subparagraph (A), by inserting after 

8 ‘‘such agency,’’ the following: ‘‘including those 

9 children enrolled in a State that has a State 

10 open enrollment policy (but not including chil11 dren enrolled in a distance learning program 

12 not residing within the geographic boundaries 

13 of the agency),’’; 

14 (B) in paragraph (4)— 

15 (i) by inserting ‘‘rebuilding or author16 ized for demolition’’ after ‘‘renovation’’ in 

17 each place it appears; and 

18 (ii) in each of clauses (i)(I) and (ii) 

19 (I) of subparagraph (B), by striking ‘‘3 fis20 cal years’’ and inserting ‘‘4 fiscal years 

21 (which are not required to run consecu22 tively)’’; and 

23 (C) in paragraph (5)(A), by inserting after 

24 ‘‘1984,’’ the following: ‘‘or under lease of off25 base property under subchapter IV of chapter 


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1 169 of part IV of subtitle A of title 10, United 

2 States Code (10 U.S.C. 2871 et. seq.),’’; 

3 (2) subsection (b)(2)— 

4 (A) in subparagraph (B)— 

5 (i) in the subparagraph heading, by 

6 striking ‘‘CONTINUING’’; 

7 (ii) by amending clause (i) to read as 

8 follows: 

9 ‘‘(i) IN GENERAL.—A heavily im10 pacted local educational agency is eligible 

11 to receive a basic support payment under 

12 subparagraph (A) with respect to a num13 ber of children determined under sub14 section (a)(1) if the agency— 

15 ‘‘(I) is a local educational agency 

16 whose boundaries are the same as a 

17 Federal military installation or the 

18 boundaries are the same as island 

19 property designated by the Secretary 

20 of the Interior to be property that is 

21 held in trust by the Federal Govern22 ment and the agency has no taxing 

23 authority; 

24 ‘‘(II) is a local educational agen25 cy— 


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1 ‘‘(aa) that has an enrollment 

2 of children described in sub3 section (a)(1) that constitutes a 

4 percentage of the total student 

5 enrollment of the agency that is 

6 not less than 45 percent; 

7 ‘‘(bb) that has a per-pupil 

8 expenditure that is less than— 

9 ‘‘(AA) for an agency 

10 that has a total student en11 rollment of 500 or more stu12 dents, 125 percent of the av13 erage per-pupil expenditure 

14 of the State in which the 

15 agency is located; or 

16 ‘‘(BB) for an agency 

17 that has a total student en18 rollment of less than 500, 

19 150 percent of the average 

20 per-pupil expenditure of the 

21 State in which the agency is 

22 located, or the average per23 pupil expenditure of 3 or 

24 more comparable local edu25 cational agencies in the 


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1 State in which the agency is 

2 located; and 

3 ‘‘(cc) that is an agency 

4 that— 

5 ‘‘(AA) has a tax rate 

6 for general fund purposes 

7 that is at least 95 percent of 

8 the average tax rate for gen9 eral fund purposes of com10 parable local educational 

11 agencies in the State; or 

12 ‘‘(BB) was eligible to 

13 receive a payment under this 

14 subsection for fiscal year 

15 2008 and is located in a 

16 State that by State law has 

17 eliminated ad valorem tax as 

18 a revenue source for local 

19 educational agencies; 

20 ‘‘(III) is a local educational agen21 cy that has a total student enrollment 

22 of not less than 25,000 students, of 

23 which not less than 50 percent are 

24 children described in subsection (a)(1) 

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1 dren are children described in sub2 paragraphs (A) and (B) of subsection 

3 (a)(1); or 

4 ‘‘(IV) is a local educational agen5 cy that— 

6 ‘‘(aa) has an enrollment of 

7 children described in subsection 

8 (a)(1) that constitutes a percent9 age of the total student enroll10 ment of the agency that is not 

11 less than 20 percent; 

12 ‘‘(bb) for the 3 fiscal years 

13 preceding the fiscal year for 

14 which the determination is made, 

15 the average enrollment of chil16 dren who are not described in 

17 subsection (a)(1) and who are eli18 gible for a free or reduced price 

19 lunch under the Richard B. Rus20 sell National School Lunch Act 

21 constitutes a percentage of the 

22 total student enrollment of the 

23 agency that is not less than 65 

24 percent; and 


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1 ‘‘(cc) has a tax rate for gen2 eral fund purposes which is not 

3 less than 1.25 percent of the av4 erage tax rate for general fund 

5 purposes for comparable local 

6 educational agencies in the 

7 State.’’; and 

8 (iii) by amending clause (ii) to read as 

9 follows: 

10 ‘‘(ii) LOSS OF ELIGIBILITY.— 

11 ‘‘(I) IN GENERAL.—Subject to 

12 subclause (II), a heavily impacted 

13 local education agency that met the 

14 requirements of clause (i) for a fiscal 

15 year shall be ineligible to receive a 

16 basic support payment under subpara17 graph (A) if the agency fails to meet 

18 the requirements of clause (i) for a 

19 subsequent fiscal year, except that 

20 such agency shall continue to receive 

21 a basic support payment under this 

22 paragraph for the fiscal year for 

23 which the ineligibility determination is 

24 made. 


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1 ‘‘(II) EXCEPTION.—For a local 

2 educational agency that is eligible 

3 under subparagraph (A) but whose 

4 tax rate for general fund purposes 

5 falls below 95 percent of the average 

6 tax rate for general fund purposes of 

7 local educational agencies in the State 

8 for two consecutive years shall lose its 

9 eligibility and be subject to subclause 

10 (I).’’; and 

11 (iv) by adding at the end, the fol12 lowing: 

13 ‘‘(iv) SPECIAL RULE.—Notwith14 standing clause (i)(II), a local educational 

15 agency shall be considered eligible to re16 ceive a basic support payment under sub17 paragraph (A) with respect to the number 

18 of children determined under subsection 

19 (a)(1) if the agency— 

20 ‘‘(I) has an enrollment of chil21 dren described in subsection (a)(1), 

22 including, for purposes of determining 

23 eligibility, those children described in 

24 subparagraphs (F) and (G) of such 

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1 age of the total student enrollment of 

2 the agency that is not less than 35 

3 percent; and 

4 ‘‘(II) was eligible to receive as5 sistance under subsection (b)(2) for 

6 fiscal year 2001.’’; 

7 (B) by amending subparagraph (C) to read 

8 as follows: 

9 ‘‘(C) MAXIMUM AMOUNT FOR HEAVILY IM10 PACTED LOCAL EDUCATIONAL AGENCIES.— 

11 ‘‘(i) IN GENERAL.—The maximum 

12 amount that a heavily impacted local edu13 cational agency is eligible to receive under 

14 this paragraph for any fiscal year is the 

15 sum of the total weighted student units, as 

16 computed under subsection (a)(2) and sub17 ject to clause (ii), multiplied by the greater 

18 of— 

19 ‘‘(I) four-fifths of the average 

20 per-pupil expenditure of the State in 

21 which the local educational agency is 

22 located for the third fiscal year pre23 ceding the fiscal year for which the 

24 determination is made; or 


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1 ‘‘(II) four-fifths of the average 

2 per-pupil expenditure of all of the 

3 States for the third fiscal year pre4 ceding the fiscal year for which the 

5 determination is made. 

6 ‘‘(ii) SPECIAL RULE.—(I)(aa) For a 

7 local educational agency with respect to 

8 which 35 percent or more of the total stu9 dent enrollment of the schools of the agen10 cy are children described in subparagraphs 

11 (D) or (E) (or a combination thereof) of 

12 subsection (a)(1), and has an enrollment of 

13 children described in subparagraphs (A), 

14 (B), or (C) of such subsection equal to at 

15 least 10 percent of the agency’s total en16 rollment, the Secretary shall calculate the 

17 weighted student units of those children 

18 described in subparagraphs (D) or (E) of 

19 such subsection by multiplying the number 

20 of such children by a factor of 0.55. 

21 ‘‘(bb) For any local educational agen22 cy that received a payment under this 

23 clause for fiscal year 2006, the local edu24 cational agency shall not be required to 

25 have an enrollment of children described in 


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1 subparagraph (A), (B), or (C) of such sub2 section equal to at least 10 percent of the 

3 agency’s total enrollment. 

4 ‘‘(II) For a local educational agency 

5 that has an enrollment of 100 or fewer 

6 children described in subsection (a)(1), the 

7 Secretary shall calculate the total number 

8 of weighted student units for purposes of 

9 subsection (a)(2) by multiplying the num10 ber of such children by a factor of 1.75. 

11 ‘‘(III) For a local educational agency 

12 that does not qualify under subparagraph 

13 (B)(i)(I) of this subsection and has an en14 rollment of more than 100 but not more 

15 than 1,000 children described in subsection 

16 (a)(1), the Secretary shall calculate the 

17 total number of weighted student units for 

18 purposes of subsection (a)(2) by multi19 plying the number of such children by a 

20 factor of 1.25.’’; 

21 (C) by amending subparagraph (D) to read 

22 as follows: 

23 ‘‘(D) MAXIMUM AMOUNT FOR LARGE

24 HEAVILY IMPACTED LOCAL EDUCATIONAL

25 AGENCIES.—(i)(I) Subject to clause (ii), the 


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1 maximum amount that a heavily impacted local 

2 educational agency described in subclause (II) 

3 is eligible to receive under this paragraph for 

4 any fiscal year shall be determined in accord5 ance with the formula described in paragraph 

6 (1)(C). 

7 ‘‘(II) A heavily impacted local educational 

8 agency described in this subclause is a local 

9 educational agency that has a total student en10 rollment of not less than 25,000 students, of 

11 which not less than 50 percent are children de12 scribed in subsection (a)(1) and not less than 

13 5,500 of such children are children described in 

14 subparagraph (A) and (B) of subsection (a)(1). 

15 ‘‘(ii) For purposes of calculating the max16 imum amount described in clause (i), the factor 

17 used in determining the weighted student units 

18 under subsection (a)(2) with respect to children 

19 described in subparagraph (A) and (B) of sub20 section (a)(1) shall be 1.35.’’. 

21 (D) by striking subparagraph (E); 

22 (E) by redesignating subparagraph (F) as 

23 subparagraph (E); 

24 (F) in subparagraph (E) (as so redesig25 nated by subparagraph (G))— 


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1 (i) by striking clause (ii); 

2 (ii) by striking ‘‘; and’’ at the end of 

3 clause (i) and inserting a period; and 

4 (iii) by striking ‘‘the Secretary’’ and 

5 all that follows through ‘‘shall use’’ and in6 serting ‘‘the Secretary shall use’’; 

7 (G) by redesignating subparagraph (G) as 

8 subparagraph (F); 

9 (H) in subparagraph (F) (as so redesig10 nated by subparagraph (I)), in the matter pre11 ceding clause (i), by striking ‘‘(C)(i)(II)(bb)’’ 

12 and inserting ‘‘(B)(i)(II)(bb)’’; 

13 (I) by redesignating subparagraph (H) as 

14 subparagraph (G); and 

15 (J) in subparagraph (G) (as so redesig16 nated by subparagraph (K))— 

17 (i) in clause (i)— 

18 (I) by striking ‘‘(B), (C), (D), or 

19 (E),’’ and inserting ‘‘(B), (C), or 

20 (D),’’; 

21 (II) by striking ‘‘by reason of’’ 

22 and inserting ‘‘due to’’; 

23 (III) by inserting after ‘‘clause 

24 (iii),’’ the following: ‘‘or as the direct 

25 result of base realignment and closure 


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1 or modularization as determined by 

2 the Secretary of Defense and force 

3 structure change or force relocation,’’; 

4 and 

5 (IV) by inserting before the pe6 riod at the end the following: ‘‘or dur7 ing such time as activities associated 

8 with base closure and realignment, 

9 modularization, force structure 

10 change, or force relocation is ongo11 ing’’; and 

12 (ii) in clause (ii) by striking ‘‘(D) or 

13 (E)’’ in both places such term appears and 

14 inserting ‘‘(C) or (D)’’; 

15 (3) in subsection (b)(3)(B)— 

16 (A) by redesignating clause (iv) as clause 

17 (v); and 

18 (B) by inserting after clause (iii) the fol19 lowing: 

20 ‘‘(iv) For any local educational agency 

21 that is providing a program of distant 

22 learning to children not residing within the 

23 geographic boundaries of the agency, the 

24 Secretary shall disregard such children 

25 from such agency’s total enrollment when 


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1 calculating the percentage under subclause 

2 (I) of clause (i) and shall disregard any 

3 funds received for such children when cal4 culating the total current expenditures at5 tributed to the operation of such agency 

6 when calculating the percentage under sub7 clause (II) of clause (i).’’; 

8 (4) in subsection (b)(3)(C) by striking ‘‘or (E) 

9 of paragraph (2), as the case may be’’ and inserting 

10 ‘‘of paragraph (2)’’; 

11 (5) by amending subsection (b)(3)(D) to read 

12 as follows: 

13 ‘‘(D) RATABLE DISTRIBUTION.—For any 

14 fiscal year described in subparagraph (A) for 

15 which the sums available exceed the amount re16 quired to pay each local educational agency 110 

17 percent of its threshold payment the Secretary 

18 shall distribute the excess sums to each eligible 

19 local educational agency that has not received 

20 its full amount computed under paragraphs (1) 

21 or (2) (as the case may be) by multiplying— 

22 ‘‘(i) a percentage, the denominator of 

23 which is the difference between the full 

24 amount computed under paragraphs (1) or 

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1 cational agencies and the amount of the 

2 threshold payment as calculated under sub3 paragraphs (B) and (C) of all local edu4 cational agencies, and the numerator of 

5 which is the aggregate amount of the ex6 cess sums, by 

7 ‘‘(ii) the difference between the full 

8 amount computed under paragraphs (1) or 

9 (2) (as the case may be) for the agency 

10 and the amount of the threshold payment 

11 as calculated under subparagraphs (B) and 

12 (C) of the agency.’’; 

13 (6) in subsection (c), by amending paragraph 

14 (2) to read as follows: 

15 ‘‘(2) EXCEPTION.—Calculation of payments for 

16 a local educational agency shall be based on data 

17 from the fiscal year for which the agency is making 

18 an application for payment if such agency— 

19 ‘‘(A) is newly established by a State, for 

20 the first year of operation of such agency only; 

21 ‘‘(B) was eligible to receive a payment 

22 under this section for the previous fiscal year 

23 and has had an overall increase in enrollment 

24 (as determined by the Secretary in consultation 

25 with the Secretary of Defense, the Secretary of 


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1 Interior, or the heads of other Federal agen2 cies)— 

3 ‘‘(i) of not less than 10 percent, or 

4 100 students, of children described in— 

5 ‘‘(I) subparagraph (A), (B), (C), 

6 or (D) of subsection (a)(1); or 

7 ‘‘(II) subparagraph (F) or (G) of 

8 subsection (a)(1), but only to the ex9 tent such children are civilian depend10 ents of employees of the Department 

11 of Defense or the Department of the 

12 Interior; and 

13 ‘‘(ii) that is the direct result of closure 

14 or realignment of military installations 

15 under the base closure process or the relo16 cation of members of the Armed Forces 

17 and civilian employees of the Department 

18 of Defense as part of force structure 

19 changes or movements of units or per20 sonnel between military installations or be21 cause of actions initiated by the Secretary 

22 of Interior or the head of another Federal 

23 agency; or 

24 ‘‘(C) was eligible to receive a payment 

25 under this section for the previous fiscal year 


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1 and has had an overall increase in enrollment 

2 (as determined by the Secretary)— 

3 ‘‘(i) of not less than 10 percent, or 

4 100 students, of children described in sub5 section (a)(1); and 

6 ‘‘(ii) that is the direct result of the 

7 closure of a local educational agency that 

8 received a payment under subsection (b)(1) 

9 or (b)(2) in the previous fiscal year.’’; 

10 (7) by amending subsection (e) to read as fol11 lows: 

12 ‘‘(e) HOLD HARMLESS.— 

13 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

14 the total amount the Secretary shall pay a local edu15 cation agency under subsection (b)— 

16 ‘‘(A) for fiscal year 2012, shall be not less 

17 than 95 percent of the total amount that the 

18 local educational agency received under sub19 section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 

20 year 2011; 

21 ‘‘(B) for fiscal year 2013, shall be not less 

22 than 90 percent of the total amount that the 

23 local educational agency received under sub24 section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 

25 year 2011; and 


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1 ‘‘(C) for fiscal year 2014, shall be not less 

2 than 85 percent of the total amount that the 

3 local educational agency received under sub4 section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 

5 year 2011. 

6 ‘‘(2) MAXIMUM PAYMENT.—The total amount 

7 provided to a local educational agency under sub8 paragraph (A), (B), or (C) of paragraph (1) for a 

9 fiscal year shall not exceed the maximum basic sup10 port amount for such agency determined under 

11 paragraph (1) or (2) of subsection (b), as the case 

12 may be. 

13 ‘‘(3) RATABLE REDUCTION.— 

14 ‘‘(A) IN GENERAL.—If the sums made 

15 available under this title for any fiscal year are 

16 insufficient to pay the full amounts that all 

17 local educational agencies in all States are eligi18 ble to receive under paragraph (1) for such fis19 cal year, then the Secretary shall ratably reduce 

20 the payments to all agencies for such year. 

21 ‘‘(B) ADDITIONAL FUNDS.—If additional 

22 funds become available for making payments 

23 under paragraph (1) for such fiscal year, pay24 ments that were reduced under subparagraph 


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1 (A) shall be increased on the same basis as 

2 such payments were reduced.’’; and 

3 (8) by striking subsection (g). 

4 SEC. 4. APPLICATION FOR PAYMENTS UNDER SECTIONS 

5 8002 AND 8003. 

6 Section 8005 of that Act (20 U.S.C. 7705) is amend7 ed by adding at the end the following: 

8 ‘‘(e) STUDENT COUNT.—For the purpose of meeting 

9 the requirements of section 222.35 of the Code of Federal 

10 Regulations, the Secretary shall establish a third option 

11 for an applicant when counting its federally connected 

12 children by using the date established by the applicant to 

13 register the students of such applicant for the fiscal year 

14 for which the application is filed.’’. 

15 SEC. 5. CONSTRUCTION. 

16 Section 8007 of that Act (20 U.S.C. 7707) is amend17 ed— 

18 (1) in subsection (a)— 

19 (A) in paragraph (1), by striking ‘‘40 per20 cent’’ and inserting ‘‘80 percent.’’; 

21 (B) in paragraph (2) by adding at the end 

22 the following: 

23 ‘‘(C) The agency is eligible under section 

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1 ment under circumstances described in section 

2 8003(b)(2)(B)(ii).’’; and 

3 (C) by striking paragraph (3) and insert4 ing the following: 

5 ‘‘(3) AMOUNT OF PAYMENTS.— 

6 ‘‘(A) LOCAL EDUCATION AGENCIES IM7 PACTED BY MILITARY DEPENDENT CHIL8 DREN.—The amount of a payment to each local 

9 educational agency described in this subsection 

10 that is impacted by military dependent children 

11 for a fiscal year shall be equal to— 

12 ‘‘(i)(I) 40 percent of the amount ap13 propriated under section 8014(e) for such 

14 fiscal year; divided by 

15 ‘‘(II) the number of children described 

16 in subparagraphs (B) and (D)(i) of section 

17 (8003)(a)(1) who were in average daily at18 tendance for all local educational agencies 

19 described in paragraph (2), including the 

20 number of children attending a school fa21 cility described in section 8008(a) if the 

22 Secretary does not provide assistance for 

23 the school facility under that section for 

24 the fiscal year; multiplied by 


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1 ‘‘(ii) the number of children deter2 mined for such agency; 

3 ‘‘(I) but not less than $25,000, 

4 except that this subparagraph shall 

5 not apply if the amount available to 

6 carry out paragraph (1) for such fis7 cal year is less than $32,000,000; and 

8 ‘‘(II) not more than $4,000,000. 

9 ‘‘(B) LOCAL EDUCATIONAL AGENCIES IM10 PACTED BY CHILDREN WHO RESIDE ON INDIAN

11 LANDS.—The amount of a payment to each 

12 local educational agency described in the sub13 section that is impacted by children who reside 

14 on Indian lands for a fiscal year shall be equal 

15 to— 

16 ‘‘(i)(I) 40 percent of the amount ap17 propriated under section 8014(e) for such 

18 fiscal year; divided by 

19 ‘‘(II) the number of children described 

20 in section 8003(a)(1)(C) who were in aver21 age daily attendance for all local edu22 cational agencies described in paragraph 

23 (2); multiplied by— 

24 ‘‘(ii) the number of children deter25 mined for such agency; 


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1 ‘‘(I) but not less than $25,000, 

2 except that this subparagraph shall 

3 not apply if the amount available to 

4 carry out paragraph (1) for such fis5 cal year is less than $32,000,000; and 

6 ‘‘(II) not more than 

7 $4,000,000.’’; and 

8 (2) in subsection (b)— 

9 (A) in paragraph (1), in the matter pre10 ceding subparagraph (A), by striking ‘‘60 per11 cent’’ and inserting ‘‘20 percent’’; 

12 (B) in paragraph (3)(A), in the matter 

13 preceding clause (i), by inserting after ‘‘an 

14 emergency grant under paragraph (2)(A)’’ the 

15 following: ‘‘if the agency is covered by para16 graph (7), or’’; 

17 (C) in paragraph (3)(C)(i)(I) by striking 

18 ‘‘the agency meets at least one’’ and all that 

19 follows through the period at the end and in20 serting ‘‘the number of children determined 

21 under section 8003(a)(1)(C) for the agency for 

22 the preceding school year constituted at least 

23 40 percent of the total student enrollment in 

24 the schools of the agency during the preceding 

25 school year.’’; 


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1 (D) by striking paragraph (3)(D)(ii)(II) 

2 and inserting the following: 

3 ‘‘(II) The number of children de4 termined under section 8003(a)(1)(C) 

5 for the school for the preceding school 

6 year constituted at least 40 percent of 

7 the total student enrollment in the 

8 school during the preceding school 

9 year.’’; 

10 (E) in paragraph (4)(C) by striking ‘‘(A), 

11 (B), (C), and (D)’’ and inserting ‘‘(A) and 

12 (C)’’; 

13 (F) by redesignating paragraph (7) as 

14 paragraph (8); and 

15 (G) by inserting after paragraph (6) the 

16 following: 

17 ‘‘(7) SPECIAL RULE.—Notwithstanding para18 graphs (3)(C)(i)(I) and (3)(D)(ii)(II), a local edu19 cational agency is eligible to receive a grant under 

20 this subsection not to exceed $4,000,000 in any one 

21 fiscal year if such agency— 

22 ‘‘(A) was eligible to receive a payment 

23 under section 8003 for the fiscal year prior to 

24 the year for which the application is made; and 


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1 ‘‘(B) has had an overall increase in enroll2 ment— 

3 ‘‘(i) during the period between the end 

4 of the school year preceding the fiscal year 

5 for which the application is made and the 

6 beginning of the school year immediately 

7 preceding that school year; 

8 ‘‘(ii) of not less than 250 students or 

9 10 percent (whichever is lower), are chil10 dren described in— 

11 ‘‘(I) subparagraphs (A), (B), (C), 

12 or (D) of section 8003(a)(1); or 

13 ‘‘(II) subparagraphs (F) or (G) 

14 of section 8003(a)(1), but only to the 

15 extent such children are civilian de16 pendents of employees of the Depart17 ment of Defense; and 

18 ‘‘(iii) that is the direct result of one or 

19 more of the following: 

20 ‘‘(I) Base realignment and clo21 sure or global rebasing, as determined 

22 by the Secretary of Defense. 

23 ‘‘(II) Force structure changes or 

24 force reductions. 


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1 ‘‘(III) An action initiated by the 

2 Secretary of Interior or head of an3 other Federal agency.’’. 

4 SEC. 6. STATE CONSIDERATION OF PAYMENTS IN PRO5 VIDING STATE AID. 

6 Section 8009 of that Act (20 U.S.C. 7709) is amend7 ed— 

8 (1) in subsection (b)(1) by inserting before the 

9 period at the end the following: ‘‘and for which the 

10 average per-pupil expenditure is equal to or greater 

11 than the average per-pupil expenditure of all the 

12 States in the third fiscal year preceding the fiscal 

13 year for which the State is applying for equalization 

14 under this section’’; 

15 (2) by amending subsection (b)(2) to read as 

16 follows: 

17 ‘‘(2) COMPUTATION.— 

18 ‘‘(A) STATE CURRENTLY QUALIFYING.— 

19 ‘‘(i) IN GENERAL.—For purposes of 

20 paragraph (1), a program of State aid for 

21 any State qualifying under this section for 

22 fiscal year 2006 equalizes expenditures 

23 among local educational agencies if, in the 

24 second fiscal year preceding the fiscal year 

25 for which the determination is made the 


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1 amount of per-pupil expenditures made by, 

2 or per-pupil revenues available to, the local 

3 educational agency in the State with the 

4 highest such per-pupil expenditures or rev5 enues did not exceed the amount of such 

6 per-pupil expenditures made by, or per7 pupil revenues available to, the local edu8 cational agency in the State with the low9 est such expenditures or revenues by more 

10 than 25 percent as calculated under clause 

11 (ii). 

12 ‘‘(ii) OTHER FACTORS.—Notwith13 standing regulations in effect prior to the 

14 date of enactment of this subparagraph, in 

15 making a determination under this sub16 paragraph, the Secretary shall— 

17 ‘‘(I) arrange all local educational 

18 agencies in the State by per-pupil ex19 penditures or revenues in descending 

20 order from the highest to the lowest; 

21 ‘‘(II) using per-pupil expendi22 tures or revenues as the only criteria 

23 disregard those local educational 

24 agencies that are spending above the 


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1 95th percentile and those spending 

2 below the 5th percentile; 

3 ‘‘(III) identify the local edu4 cational agency at the 95th percentile 

5 and the local educational agency at 

6 the 5th percentile; 

7 ‘‘(IV) subtract the amount of 

8 per-pupil expenditures or revenues of 

9 the local educational agency at the 

10 5th percentile from the amount of 

11 per-pupil expenditures or revenues of 

12 the local educational agency at the 

13 95th percentile and divide the dif14 ference by the per-pupil expenditures 

15 or revenues of the local educational 

16 agency at the 5th percentile; and 

17 ‘‘(V) take into account the extent 

18 to which a program of State aid re19 flects the additional cost of providing 

20 free public education in particular 

21 types of local educational agencies, 

22 such as those that are geographically 

23 isolated, or to particular types of stu24 dents, such as children with disabil25 ities. 


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1 ‘‘(B) NEW STATES APPLICANTS.— 

2 ‘‘(i) IN GENERAL.—For purposes of 

3 paragraph (1), a program of State aid for 

4 any State qualifying under this section 

5 after fiscal year 2006 equalizes expendi6 tures among local educational agencies if, 

7 in the second fiscal year preceding the fis8 cal year for which the determination is 

9 made, the amount of per-pupil expendi10 tures made by, or per-pupil revenues avail11 able to, the local educational agency in the 

12 State with the highest such per-pupil ex13 penditures or revenues did not exceed the 

14 amount of such per-pupil expenditures 

15 made by, or per-pupil revenues available 

16 to, the local educational agency in the 

17 State with the lowest such expenditures or 

18 revenues by more than 10 percent as cal19 culated under clause (ii). 

20 ‘‘(ii) OTHER FACTORS.—Notwith21 standing regulations in effect prior to the 

22 date of the enactment of this subpara23 graph, in making a determination under 

24 this subparagraph, the Secretary shall— 


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1 ‘‘(I) arrange all local educational 

2 agencies in the State by per-pupil ex3 penditures or revenues in descending 

4 order from the highest to the lowest; 

5 ‘‘(II) using per-pupil expendi6 tures or revenues as the only criteria 

7 disregard those local educational 

8 agencies that are spending above the 

9 95th percentile and those spending 

10 below the 5th percentile; 

11 ‘‘(III) identify the local edu12 cational agency at the 95th percentile 

13 and the local educational agency at 

14 the 5th percentile; 

15 ‘‘(IV) subtract the amount of 

16 per-pupil expenditures or revenues of 

17 the local educational agency at the 

18 5th percentile from the amount of 

19 per-pupil expenditures or revenues of 

20 the local educational agency at the 

21 95th percentile and divide the dif22 ference by the per-pupil expenditures 

23 or revenues of the local educational 

24 agency at the 5th percentile; and 


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1 ‘‘(V) take into account the extent 

2 to which a program of State aid re3 flects the additional cost of providing 

4 free public education in particular 

5 types of local educational agencies, 

6 such as those that are geographically 

7 isolated, or to particular types of stu8 dents, such as children with disabil9 ities.’’; and 

10 (3) in subsection (d)(2)— 

11 (A) by striking ‘‘A State’’ and inserting 

12 the following: 

13 ‘‘(A) IN GENERAL.—A State’’; and 

14 (B) by adding at the end of the following: 

15 ‘‘(B) STATES THAT ARE NOT EQUALIZED

16 STATES.—A State that has not been approved 

17 as an equalized State under subsection (b) shall 

18 not consider funds received under section 8002 

19 or section 8003 of this title in any State for20 mula or place a limit or direct the use of such 

21 funds.’’. 

22 SEC. 7. TIMELY PAYMENTS. 

23 Section 8010 of the Elementary and Secondary Edu24 cation Act of 1965 (20 U.S.C. 7710) is amended by add25 ing at the end the following: 


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1 ‘‘(d) TIMELY PAYMENTS.— 

2 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

3 the Secretary shall pay a local educational agency 

4 the full amount that the agency is eligible to receive 

5 under this title for a fiscal year not later than Sep6 tember 30 of the second fiscal year following the fis7 cal year in which such amount has been appro8 priated if, not later than 1 calendar year following 

9 the fiscal year in which such amount has been ap10 propriated, each local educational agency that is eli11 gible to receive funds under this title for such fiscal 

12 year submits to the Secretary all the data and infor13 mation necessary for the Secretary to pay the full 

14 amount that the agency is eligible to receive under 

15 this title for such fiscal year. 

16 ‘‘(2) PAYMENTS WITH RESPECT TO FISCAL

17 YEARS IN WHICH INSUFFICIENT FUNDS ARE APPRO18 PRIATED.—For a fiscal year in which the amount 

19 appropriated under section 8014 is insufficient to 

20 pay the full amount a local educational agency is eli21 gible to receive under this title, paragraph (1) shall 

22 be applied by substituting ‘is available to pay the 

23 agency’ for ‘the agency is eligible to receive’ each 

24 place it appears.’’. 


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1 SEC. 8. DEFINITIONS. 

2 Section 8013 of that Act (20 U.S.C. 7713) is amend3 ed— 

4 (1) in paragraph (1) by striking ‘‘and Marine 

5 Corps’’ and inserting ‘‘Marine Corps, and Coast 

6 Guard’’; 

7 (2) in paragraph (4)— 

8 (A) in the first sentence thereof, by strik9 ing ‘‘part (A) of title I and title VI’’ and insert10 ing ‘‘title I and part A of title V’’; and 

11 (B) in the second sentence, by striking ‘‘be 

12 determined’’ and inserting ‘‘be made’’; 

13 (3) in paragraph (5)(A)(iii)— 

14 (A) by amending subclause (II) to read as 

15 follows: 

16 ‘‘(II) used to provide housing for 

17 homeless children at closed military 

18 installations pursuant to section 501 

19 of the McKinney-Vento Homeless As20 sistance Act (42 U.S.C. 11411);’’; and 

21 (B) by amending subclause (III) to read as 

22 follows: 

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1 termination Act of 1996 (25 U.S.C. 

2 4101 et seq.); or’’; 

3 (4) in paragraph (5)(A), by adding at the end 

4 the following: 

5 ‘‘(VI) exempt from taxation of 

6 real property and personal property 

7 identified by a local governmental en8 tity, including a State government, if 

9 upon such property resides a child 

10 whose parents or guardians are cer11 tified to live on such property is con12 sidered to meet the eligibility require13 ments of section 151.4 of part 150 of 

14 subchapter H of title 25 of the Code 

15 of Federal Regulations; or’’; 

16 (5) in paragraph (8)(A), by inserting commas 

17 before and after ‘‘and verified by’’; and 

18 (6) in paragraph (9)— 

19 (A) by amending subparagraph (A) to read 

20 as follows: 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (C), the term ‘local educational 

23 agency’— 

24 ‘‘(i) means a board of education or 

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1 thority having administrative control and 

2 direction of free public education in a 

3 county, township, independent school dis4 trict, or other school district; and 

5 ‘‘(ii) includes any State agency that 

6 directly operates and maintains facilities 

7 for providing free public education; 

8 that, except for those local educational agencies 

9 determined to be eligible to receive a payment 

10 under section 8003 prior to the date of the en11 actment of the Local Taxpayer Relief Act, when 

12 submitting an application under this title for 

13 the first time on or after the date of the enact14 ment of such Act, has the authority to tax and 

15 has boundaries as defined by applicable State 

16 law for the purposes of levying such taxes, or 

17 has been granted the authority to receive an 

18 imputed tax from a city, county, township, or 

19 other general-purpose political subdivision of a 

20 State.’’; and 

21 (B) in subparagraph (B), by inserting a 

22 comma after ‘‘Secretary determines’’. 

23 SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

24 Section 8014 of that Act (20 U.S.C. 7714) is amend25 ed— 


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1 (1) in subsection (a) by striking ‘‘$32,000,000 

2 for fiscal year 2000’’ and inserting ‘‘$67,208,000 for 

3 fiscal year 2012’’; 

4 (2) in subsection (b) by striking ‘‘$809,400,000 

5 for fiscal year 2000’’ and inserting ‘‘$1,138,000,000 

6 for fiscal year 2012’’; 

7 (3) in subsection (c) by striking ‘‘$50,000,000 

8 for fiscal year 2000’’ and inserting ‘‘$48,602,000 for 

9 fiscal year 2012’’; 

10 (4) by redesignating subsection (e) as sub11 section (d); 

12 (5) in subsection (d) (as so redesignated by 

13 paragraph 4), by striking ‘‘$10,052,000’’ and all 

14 that follows through ‘‘and such sums’’ and inserting 

15 ‘‘$17,509,000 for fiscal year 2012 and such sums’’; 

16 (6) by redesignating subsection (f) as sub17 section (e); 

18 (7) in subsection (e) (as so redesignated by 

19 paragraph (6), by striking ‘‘$5,000,000 for fiscal 

20 year 2000’’ and inserting ‘‘$4,864,000 for fiscal 

21 year 2012’’; and 

22 (8) by adding at the end of the following: 

23 ‘‘(f) ALLOCATION OF DOLLARS FROM PREVIOUS FIS24 CAL YEARS.—When final payments are made for a fiscal 

25 year the Secretary shall add any remaining funds to those 


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1 funds appropriated for such section for the next fiscal year 

2 for the purpose of making payments subject to the provi3 sions of the applicable section.’’. 

4 SEC. 10. ADDITIONAL AND CONFORMING AMENDMENTS. 

5 (a) SUBPART 20 OF PART D OF TITLE V.—Subpart 

6 20 (20 U.S.C. 7281 et seq.) of part D of title V of that 

7 Act (relating to additional assistance for certain local edu8 cational agencies impacted by Federal property acquisi9 tion) is repealed. 

10 (b) TITLE VIII.—Title VIII of Elementary and Sec11 ondary Education Act (20 U.S.C. 7701 et seq.) is further 

12 amended— 

13 (1) in section 8004 (20 U.S.C. 7704)— 

14 (A) in subsection (e)(1)(B)(i), by striking 

15 ‘‘involved, or if’’ and inserting ‘‘involved or, if’’; 

16 and 

17 (B) in subsection (f), by striking ‘‘upon’’ 

18 and inserting ‘‘on’’; 

19 (2) in section 8008(a) (20 U.S.C. 7708(a)), by 

20 striking ‘‘section 8014(f)’’ and inserting ‘‘section 

21 8014(e)’’; 

22 (3) in section 8010 (20 U.S.C. 7710)— 

23 (A) in subsection (b), by striking out ‘‘re24 quire’’ and inserting in lieu thereof ‘‘need’’; and 

25 (B) in subsection (c)(1)— 


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1 (i) in subparagraph (A), by striking 

2 ‘‘paragraph (3)’’ and inserting ‘‘paragraph 

3 (2)’’; and 

4 (ii) in subparagraph (B), by striking 

5 ‘‘paragraph (3)’’ and inserting ‘‘paragraph 

6 (2)’’; and 

7 (4) in section 8011(a) (20 U.S.C. 7711 (a)), by 

8 striking ‘‘or under’’ and all that follows through ‘‘of 

9 1994)’’. 

Æ 


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