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(3) in subparagraph (B), by striking ‘‘such year’’ and insert-
ing ‘‘the fiscal year for which the local educational agency
is applying for assistance under this subsection’’.
(b) DETERMINATION OF AVAILABLE FUNDS.—Paragraph (3) of
section 8003(f) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7703(f)) is amended—
(1) in the matter preceding subclause (I) of subparagraph
(A)(iii), by inserting ‘‘, except as provided in subparagraph
(C),’’ after ‘‘but’’; and
(2) by adding at the end the following new subparagraph:
‘‘(C) DETERMINATION
OF
AVAILABLE
FUNDS.—When
determining the amount of funds available to the local
educational agency for current expenditures for purposes
of subparagraph (A)(iii) for a fiscal year, the Secretary
shall include, with respect to the local educational agency’s
opening cash balance for such fiscal year, the portion of
such balance that is the greater of—
‘‘(i) the amount that exceeds the maximum amount
of funds for current expenditures that the local edu-
cational agency was allowed by State law to carry
over from the prior fiscal year, if State restrictions
on such amounts were applied uniformly to all local
educational agencies in the State; or
‘‘(ii) the amount that exceeds 30 percent of the
local educational agency’s operating costs for the prior
fiscal year.’’.
(c) EFFECTIVE DATE.—The amendments made by subsections
(a) and (b) shall apply with respect to fiscal years after fiscal
year 1996.
SEC. 6. PAYMENTS RELATING TO FEDERAL PROPERTY.
Section 8002 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7702) (as amended by section 1) is further
amended by adding at the end thereof the following new subsection:
‘‘(i) PRIORITY PAYMENTS.—Notwithstanding subsection (b)(1)(B),
and for any fiscal year beginning with fiscal year 1997 for which
the amount appropriated to carry out this section exceeds the
amount so appropriated for fiscal year 1996, the Secretary shall
first use such excess amount to increase the payment that would
otherwise be made under this section to not more than 50 percent
of the maximum amount determined under subsection (b) for any
local educational agency that—
‘‘(1) received a payment under this section for fiscal year
1996;
‘‘(2) serves a school district that contains all or a portion
of a United States military academy;
‘‘(3) serves a school district in which the local tax assessor
has certified that at least 60 percent of the real property
is federally owned; and
‘‘(4) demonstrates to the satisfaction of the Secretary that
such agency’s per-pupil revenue derived from local sources for
current expenditures is not less than that revenue for the
preceding fiscal year.’’.
SEC. 7. TREATMENT OF IMPACT AID PAYMENTS.
(a) IN GENERAL.—The Secretary of Education shall treat any
State as having met the requirements of section 5(d)(2)(A) of the
Act of September 30, 1950 (Public Law 874, 81st Congress) for
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fiscal year 1991 (as such section was in effect for such fiscal year),
and as not having met those requirements for each of the fiscal
years 1992, 1993, and 1994 (as such section was in effect for
fiscal year 1992, 1993, and 1994, respectively), if—
(1) the State’s program of State aid was not certified by
the Secretary under section 5(d)(2)(C)(i) of the Act of September
30, 1950 (Public Law 874, 81st Congress) for any fiscal year
prior to fiscal year 1991;
(2) the State submitted timely notice under that section
of the State’s intention to seek that certification for fiscal year
1991;
(3) the Secretary determined that the State did not meet
the requirements of section 5(d)(2)(A) of such Act for fiscal
year 1991; and
(4) the State made a payment to each local educational
agency in the State (other than a local educational agency
that received a payment under section 3(d)(2)(B) of such Act
for fiscal year 1991) in an amount equal to the difference
between the amount such agency received under such Act for
fiscal year 1991 and the amount such agency would have
received under such Act for fiscal year 1991 if payments under
such Act had not been taken into consideration in awarding
State aid to such agencies for fiscal year 1991.
(b) REPAYMENT NOT REQUIRED.—Notwithstanding any other
provision of law, any local educational agency in a State that
meets the requirements of paragraphs (1) through (4) of subsection
(a) and that received funds under section 3(d)(2)(B) of the Act
of September 30, 1950 (Public Law 874, 81st Congress) for fiscal
year 1991 (as such section was in effect for such fiscal year) shall
not, by virtue of subsection (a), be required to repay those funds
to the Secretary of Education.
SEC. 8. SPECIAL RULE RELATING TO AVAILABILITY OF FUNDS FOR
THE LOCAL EDUCATIONAL AGENCY SERVING THE NORTH
HANOVER TOWNSHIP PUBLIC SCHOOLS, NEW JERSEY,
UNDER PUBLIC LAW 874, 81ST CONGRESS.
The Secretary of Education shall not consider any funds that
the Secretary of Education determines the local educational agency
serving the North Hanover Township Public Schools, New Jersey,
has designated for a future liability under an early retirement
incentive program as funds available to such local educational
agency for purposes of determining the eligibility of such local
educational agency for a payment for fiscal year 1994, or the amount
of any such payment, under section 3(d)(2)(B) of the Act of Septem-
ber 30, 1950 (Public Law 874, 81st Congress), as such section
was in effect for such fiscal year.
SEC. 9. CORRECTED LOCAL CONTRIBUTION RATE.
(a) COMPUTATION.—The Secretary of Education shall compute
a payment for a local educational agency under the Act of September
30, 1950 (Public Law 874, 81st Congress) for each of the fiscal
years 1991 through 1994 (as such Act was in effect for each of
those fiscal years, as the case may be) using a corrected local
contribution rate based on generally comparable school districts,
if—
(1) an incorrect local contribution rate was submitted to
the Secretary of Education by the State in which such agency
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is located, and the incorrect local contribution rate was verified
as correct by the Secretary of Education; and
(2) the corrected local contribution rate is subject to review
by the Secretary of Education.
(b) PAYMENT.—Using funds appropriated under the Act of
September 30, 1950 (Public Law 874, 81st Congress) for fiscal
years 1991 through 1994 that remain available for obligation (if
any), the Secretary of Education shall make payments based on
the computations described in subsection (a) to the local educational
agency for such fiscal years.
SEC. 10. STATE EQUALIZATION PLANS.
Subparagraph (A) of section 8009(b)(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7709(b)(2)) is amended
by striking ‘‘more than’’ and all that follows through the period
and inserting ‘‘more than 25 percent.’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.