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‘‘(d) PAYMENTS TO STATE EDUCATIONAL AGEN-
CIES.—(1) The Secretary shall pay to each State edu-
cational agency the total amount needed to make
subgrants to State agencies in that State, as determined
under this section.
‘‘(2) Each State educational agency may retain a por-
tion of such total amount for State administration of, in
accordance with section 1601(c) of this title.
‘‘STATE REALLOCATION OF FUNDS
‘‘SEC. 1404. If a State educational agency determines
that a State agency does not need the full amount of the
subgrant for which it is eligible under this part for any
fiscal year, the State educational agency may reallocate
the amount that will not be needed to other State agencies
that need additional funds to carry out the purpose of this
part, in such amounts as the State educational agency
shall determine.
‘‘STATE PLAN AND STATE AGENCY APPLICATIONS
‘‘SEC. 1405. (a) STATE PLAN.—(1)(A) Each State
educational agency that desires to receive payments under
this part shall submit, for approval by the Secretary, a
plan for meeting the needs of neglected and delinquent
children, which shall be revised and updated as needed,
that—
‘‘(i) is integrated with the State’s plan, either
approved or being developed, under title III of the
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Goals 2000: Educate America Act, and satisfies the
requirements of this section that are not already ad-
dressed by that State plan; or
‘‘(ii) if the State does not have an approved
plan under title III of the Goals 2000: Educate
America Act and is not developing such a plan, is
integrated with other State plans under this Act and
satisfies the requirements of this section.
‘‘(B) A State plan submitted under paragraph
(1)(A)(i) may, if necessary, be submitted as an amend-
ment to the State’s plan under title III of the Goals 2000:
Educate America Act.
‘‘(2) Each such plan shall also—
‘‘(A) describe the State-established program
goals, objectives, and performance measures that will
be used to assess the effectiveness of the program in
improving academic and vocational skills of children
in the program;
‘‘(B) provide that, to the extent feasible, such
children will have the same opportunities to learn as
they would have if they were in the schools of local
educational agencies in the State; and
‘‘(C) contain assurances that the State edu-
cational agency will—
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‘‘(i) ensure that programs assisted under
this part will be carried out in accordance with
the State plan described in this subsection;
‘‘(ii) carry out the evaluation requirements
of section 1409 of this part;
‘‘(iii) ensure that its State agencies comply
with all applicable statutory and regulatory re-
quirements; and
‘‘(iv) provide such other information as the
Secretary may reasonably require.
‘‘(b) SECRETARIAL APPROVAL; PEER REVIEW.—(1)
The Secretary shall approve each State plan that meets
the requirements of this part.
‘‘(2) The Secretary may review any such plan with
the assistance and advice of individuals with relevant ex-
pertise.
‘‘(c) STATE AGENCY APPLICATIONS.—Any State
agency that desires to receive funds to carry out a pro-
gram under this part shall submit an application to the
State educational agency that—
‘‘(1) describes the procedures to be used, con-
sistent with the State plan under part A of this title,
to assess the educational needs of the children to be
served;
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‘‘(2) describes the program, including a budget
for the first year of the program, with annual up-
dates to be provided;
‘‘(3) describes how the program will meet the
goals and objectives of the State plan under this
part;
‘‘(4) describes how the State agency will consult
with experts and provide the necessary training for
appropriate staff, to ensure that the planning and
operation of institution-wide projects under section
1407 are of high quality;
‘‘(5) describes how the agency will carry out the
evaluation requirements of section 1409 and how the
results of the most recent evaluation were used to
plan and improve the program;
‘‘(6) includes data showing that the agency has
maintained fiscal effort as if it were a local edu-
cational agency, in accordance with section 9501 of
this title;
‘‘(7) describes how the programs will be coordi-
nated with other State and Federal programs ad-
ministered by the State agency;
‘‘(8) describes how appropriate professional de-
velopment will be provided to teachers and other in-
structional and administrative personnel;
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‘‘(9) designates an individual in each affected
institution to be responsible for issues relating to the
transition of children from the institution to locally
operated programs.
‘‘USE OF FUNDS
‘‘SEC. 1406. (a) GENERAL.—(1) A State agency shall
use funds received under this part only for programs and
projects that—
‘‘(A) are consistent with the State plan referred
to in section 1405(a); and
‘‘(B) concentrate on providing participants with
the knowledge and skills needed to make a success-
ful transition to further education or employment.
‘‘(2) Such programs and projects—
‘‘(A) may include the acquisition of equipment;
‘‘(B) shall be designed to support educational
services that—
‘‘(i) except for institution-wide projects
under section 1407, are provided to children
identified by the State agency as failing, or
most at risk of failing, to meet the State’s chal-
lenging performance standards;
‘‘(ii) supplement and improve the quality
of the educational services provided to such
children by the State agency; and
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‘‘(iii) afford those children an opportunity
to learn to those challenging State standards;
‘‘(C) shall be carried out in a manner consistent
with section 1119(b) and part F of this title; and
‘‘(D) may include the costs of meeting the eval-
uation requirements of section 1409.
‘‘(b) SUPPLEMENT, NOT SUPPLANT.—A program
under this part that supplements the number of hours of
instruction students receive from State and local sources
shall be considered to comply with the ‘supplement, not
supplant’ requirement of section 1119(b) of this title with-
out regard to the subject areas in which instruction is
given during those hours.
‘‘INSTITUTION-WIDE PROJECTS
‘‘SEC. 1407. (a) PROJECTS AUTHORIZED.—A State
agency that provides free public education for children in
an institution for neglected or delinquent children (other
than an adult correctional institution) or attending a com-
munity-day program for such children may use funds re-
ceived under this part to serve all children in, and upgrade
the entire educational effort of, that institution or pro-
gram if the State agency has developed, and the State edu-
cational agency has approved, a comprehensive plan for
that institution or program that—
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‘‘(1) provides for a comprehensive assessment
of the educational needs of all individuals under the
age of 21 in the institution or program;
‘‘(2) describes the steps the State agency has
taken, or will take, to provide all children under 21
with the opportunity to meet challenging academic
and vocational standards in order to improve the
likelihood that they will complete high school and
find employment after leaving the institution;
‘‘(3) describes the instructional program, pupil
services, and procedures that will be used to meet
the needs described in paragraph (1), including, to
the extent feasible, the provision of mentors for sec-
ondary school students;
‘‘(4) specifically describes how such funds will
be used;
‘‘(5) describes the measures and procedures
that will be used to assess student progress;
‘‘(6) describes how the agency has planned, and
will implement and evaluate, the institution-wide or
program-wide project in consultation with personnel
providing direct instructional services and support
services in institutions or community-day programs
for neglected or delinquent children and personnel
from the State educational agency; and