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 Edu-
cation Act of 1965 regarding impact aid payments, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. IMPACT AID.
(a) HOLD-HARMLESS AMOUNTS FOR PAYMENTS RE-
LATING
TO FEDERAL ACQUISITION
OF REAL PROP-
ERTY.—Section 8002 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7702) is amended by
adding at the end the following new subsections:
‘‘(g) FORMER DISTRICTS.—
‘‘(1) IN GENERAL.—Where the school district of
any local educational agency described in paragraph
(2) is formed at any time after 1938 by the consoli-
dation of two or more former school districts, such
agency may elect (at any time such agency files an
application under section 8005) for any fiscal year
to have (A) the eligibility of such local educational
agency, and (B) the amount which such agency shall
be eligible to receive, determined under this section
only with respect to such of the former school dis-
tricts comprising such consolidated school districts
as such agency shall designate in such election.
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency referred to in
paragraph (1) is any local educational agency that,
for fiscal year 1994 or any preceding fiscal year, ap-
plied for and was determined eligible under section
2(c) of the Act of September 30, 1950 (Public Law
874, 81st Congress) as such section was in effect on
September 30, 1994.
‘‘(h) HOLD-HARMLESS AMOUNTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2)(A), the total amount that the Secretary
shall pay a local educational agency under sub-
section (b)—
after the application of subparagraph (A) for such
year, then the Secretary shall ratably reduce pay-
ments under paragraph (1) to all such agencies for
such year.
‘‘(ii) If additional funds become available for
making payments under paragraph (1) for such fis-
cal year, then payments that were reduced under
clause (i) shall be increased on the same basis as
such payments were reduced.’’.
(b) COMPUTATION OF PAYMENT.—Paragraph (3) of
section 8003(a) of such Act (20 U.S.C. 7703(a)) is
amended by striking ‘‘and such’’ and inserting ‘‘, or such’’.
(c) PAYMENTS
FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN.—Subsection (f) of section 8003 of
such Act (20 U.S.C. 7703) is amended—
(1) in paragraph (2)—
(A) in the matter preceding clause (i) of
subparagraph (A), by striking ‘‘only if such
agency’’ and inserting ‘‘if such agency is eligible
for a supplementary payment in accordance
with subparagraph (B) or such agency’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(C) A local educational agency shall only
be eligible to receive additional assistance under
this subsection if the Secretary determines
that—
‘‘(i) such agency is exercising due dili-
gence in availing itself of State and other
financial assistance; and
‘‘(ii) the eligibility of such agency
under State law for State aid with respect
to the free public education of children de-
scribed in subsection (a)(1) and the
amount of such aid are determined on a
basis no less favorable to such agency than
the basis used in determining the eligibility
of local educational agencies for State aid,
and the amount of such aid, with respect
to the free public education of other chil-
dren in the State.’’; and
(2) in paragraph (3)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i),
by inserting ‘‘(other than any amount re-
ceived under paragraph (2)(B))’’ after
‘‘subsection’’;
(ii) in subclause (I) of clause (i), by
striking ‘‘or the average per-pupil expendi-
ture of all the States’’;
(iii) by amending clause (ii) to read as
follows:
‘‘(ii) The Secretary shall next multiply
the amount determined under clause (i) by
the total number of students in average
daily attendance at the schools of the local
educational agency.’’; and
(iv) by amending clause (iii) to read
as follows:
‘‘(iii) The Secretary shall next sub-
tract from the amount determined under
clause (ii) all funds available to the local
educational agency for current expendi-
tures, but shall not so subtract funds pro-
vided—
‘‘(I) under this Act; or
‘‘(II) by any department or agen-
cy of the Federal Government (other
than the Department) that are used
for capital expenses.’’; and
(B) by amending subparagraph (B) to read
as follows:
‘‘(B) SPECIAL
RULE.—With respect to
payments under this subsection for a fiscal year
for a local educational agency described in
clause (ii) or (iii) of paragraph (2)(A), the max-
imum amount of payments under this sub-
section shall be equal to—
‘‘(i) the product of—
‘‘(I) the average per-pupil ex-
penditure in all States multiplied by
0.7, except that such amount may not
exceed 125 percent of the average per-
pupil expenditure in all local edu-
cational agencies in the State; multi-
plied by
‘‘(II) the number of students de-
scribed in subparagraph (A) or (B) of
subsection (a)(1) for such agency;
minus
‘‘(ii) the amount of payments such
agency receives under subsections (b) and
(d) for such year.’’.
(d) CURRENT YEAR DATA.—Paragraph (4) of section
8003(f) of such Act (20 U.S.C. 7703(f)) is amended to
read as follows:
‘‘(4) CURRENT YEAR DATA.—For purposes of
providing assistance under this subsection the Sec-
retary—
‘‘(A) shall use student and revenue data
from the fiscal year for which the local edu-
cational agency is applying for assistance under
this subsection; and
‘‘(B) shall derive the per-pupil expenditure
amount for such year for the local educational
agency’s comparable school districts by increas-
ing or decreasing the per pupil expenditure data
for the second fiscal year preceding the fiscal
year for which the determination is made by the
same percentage increase or decrease reflected
between the per pupil expenditure data for the
fourth fiscal year preceding the fiscal year for
which the determination is made and the per
pupil expenditure data for such second year.’’.
(e) SPECIAL RULE FOR 1994 PAYMENTS.—The Sec-
retary shall not consider any payment to a local edu-
cational agency by the Department of Defense, that is
available to such agency for current expenditures and used
for capital expenses, as funds available to such agency for
purposes of making a determination for fiscal year 1994
under section 3(d)(2)(B)(i) of the Act of September 30,
1950 (Public Law 874, 81st Congress) (as such Act was
in effect on September 30, 1994).
(f) APPLICATIONS FOR INCREASED PAYMENTS.—