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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 fiscal
year, then payments that were reduced under clause
(i) shall be increased on the same basis as such pay-
ments were reduced.’’.
SEC. 2. APPLICATIONS FOR INCREASED PAYMENTS.
(a) PAYMENTS.—Notwithstanding any other provision
of law—
(1) the Bonesteel-Fairfax School District Number
26–5, South Dakota, and the Wagner Community
School District Number 11–4, South Dakota, shall be
eligible to apply for payment for fiscal year 1994
under section 3(d)(2)(B) of the Act of September 30,
1950 (Public Law 874, 81st Congress) (as such sec-
tion was in effect on September 30, 1994); and
(2) the Secretary of Education shall use a sub-
group of 10 or more generally comparable local edu-
cational agencies for the purpose of calculating a pay-
ment described in paragraph (1) for a local edu-
cational agency described in such paragraph.
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(b) APPLICATION.—In order to be eligible to receive a
payment described in subsection (a), a school district de-
scribed in such subsection shall apply for such payment
within 30 days after the date of enactment of this Act.
(c) CONSTRUCTION.—Nothing in this section shall be
construed to require a local educational agency that re-
ceived a payment under section 3(d)(2)(B) of the Act of
September 30, 1950 (Public Law 874, 81st Congress) (as
such section was in effect on September 30, 1994) for fiscal
year 1994 to return such payment or a portion of such pay-
ment to the Federal Government.
SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED
CHILDREN RESIDING ON MILITARY INSTAL-
LATION 
HOUSING 
UNDERGOING 
RENOVA-
TION.
(a) IN GENERAL.—Section 8003(a) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7703(a))
is amended by adding at the end the following new para-
graph:
‘‘(4) MILITARY INSTALLATION HOUSING UNDER-
GOING RENOVATION.—For purposes of computing the
amount of a payment for a local educational agency
for children described in paragraph (1)(D)(i), the
Secretary shall consider such children to be children
described in paragraph (1)(B) if the Secretary deter-
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mines, on the basis of a certification provided to the
Secretary by a designated representative of the Sec-
retary of Defense, that such children would have re-
sided in housing on Federal property in accordance
with paragraph (1)(B) except that such housing was
undergoing renovation on the date for which the Sec-
retary determines the number of children under para-
graph (1).’’.
(b) EFFECTIVE DATE.—Paragraph (4) of section
8003(a) of the Elementary and Secondary Education Act
of 1965, as added by subsection (a), shall apply with respect
to fiscal years after fiscal year 1995.
SEC. 4. COMPUTATION OF PAYMENTS FOR ELIGIBLE FEDER-
ALLY 
CONNECTED 
CHILDREN 
IN 
STATES
WITH ONLY ONE LOCAL EDUCATIONAL AGEN-
CY.
(a) IN GENERAL.—Section 8003(b) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7703(b))
is amended by adding at the end the following new para-
graph:
‘‘(3) STATES
WITH
ONLY
ONE
LOCAL
EDU-
CATIONAL AGENCY.—
‘‘(A) IN GENERAL.—In any of the 50 States
of the United States in which there is only one
local educational agency, the Secretary shall, for
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purposes of paragraphs (1)(B), (1)(C), and (2) of
this subsection, and subsection (e), consider each
administrative school district in the State to be
a separate local educational agency.
‘‘(B) COMPUTATION OF MAXIMUM AMOUNT
OF BASIC SUPPORT PAYMENT AND THRESHOLD
PAYMENT.—In computing the maximum pay-
ment amount under paragraph (1)(C) and the
learning opportunity threshold payment under
paragraph (2)(B) for an administrative school
district described in subparagraph (A)—
‘‘(i) the Secretary shall first determine
the maximum payment amount and the
total current expenditures for the State as a
whole; and
‘‘(ii) the Secretary shall then—
‘‘(I) proportionately allocate such
maximum payment amount among the
administrative school districts on the
basis of the respective weighted student
units of such districts; and
‘‘(II) proportionately allocate such
total current expenditures among the
administrative school districts on the
basis of the respective number of stu-
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dents in average daily attendance at
such districts.’’.
(b) EFFECTIVE DATE.—Paragraph (3) of section
8003(b) of the Elementary and Secondary Education Act
of 1965, as added by subsection (a), shall apply with respect
to fiscal years after fiscal year 1994.
SEC. 5. DATA AND DETERMINATION OF AVAILABLE FUNDS.
(a) DATA.—Paragraph (4) of section 8003(f) of the El-
ementary and Secondary Education Act of 1965 (20 U.S.C.
7703(f)) is amended—
(1) in the heading, by striking ‘‘CURRENT
YEAR’’;
(2) by amending subparagraph (A) to read as
follows:
‘‘(A) shall use student, revenue, and tax
data from the second fiscal year preceding the
fiscal year for which the local educational agency
is applying for assistance under this sub-
section;’’; and
(3) in subparagraph (B), by striking ‘‘such
year’’ and inserting ‘‘the fiscal year for which the
local educational agency is applying for assistance
under this subsection’’.
(b) DETERMINATION OF AVAILABLE FUNDS.—Para-
graph (3) of section 8003(f) of the Elementary and Second-
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ary Education Act of 1965 (20 U.S.C. 7703(f)) is amend-
ed—
(1) in the matter preceding subclause (I) of sub-
paragraph (A)(iii), by inserting ‘‘, except as provided
in subparagraph (C),’’ after ‘‘but’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(C) 
DETERMINATION
OF
AVAILABLE
FUNDS.—When determining the amount of funds
available to the local educational agency for cur-
rent expenditures for purposes of subparagraph
(A)(iii) for a fiscal year, the Secretary shall in-
clude, with respect to the local educational agen-
cy’s opening cash balance for such fiscal year,
the portion of such balance that is the greater
of—
‘‘(i) the amount that exceeds the maxi-
mum amount of funds for current expendi-
tures that the local educational 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
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‘‘(ii) the amount that exceeds 30 per-
cent of the local educational agency’s oper-
ating costs for the prior fiscal year.’’.
(c) EFFECTIVE DATE.—The amendments made by sub-
sections (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 Edu-
cation Act of 1965 (20 U.S.C. 7702) (as amended by section
1) is further amended by adding at the end thereof the fol-
lowing new subsection:
‘‘(i) PRIORITY
PAYMENTS.—Notwithstanding sub-
section (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;
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‘‘(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 Sec-
retary 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 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 cer-
tified 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 certifi-
cation for fiscal year 1991;
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(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 edu-
cational agency in the State (other than a local edu-
cational agency that received a payment under sec-
tion 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 re-
ceived under such Act for fiscal year 1991 if pay-
ments under such Act had not been taken into consid-
eration 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 sec-
tion 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.
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SEC. 8. SPECIAL RULE RELATING TO AVAILABILITY OF
FUNDS FOR THE LOCAL EDUCATIONAL AGEN-
CY SERVING THE NORTH HANOVER TOWN-
SHIP 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 li-
ability under an early retirement incentive program as
funds available to such local educational agency for pur-
poses 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 September 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 Con-
gress) 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 sub-
mitted to the Secretary of Education by the State in
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which such agency is located, and the incorrect local
contribution rate was verified as correct by the Sec-
retary 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 sub-
section (a) to the local educational agency for such fiscal
years.
SEC. 10. STATE EQUALIZATION PLANS.
Subparagraph (A) of section 8009(b)(2) of the Elemen-
tary 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.’’.
Attest:
Secretary.
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