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select, at the first meeting of the State legis-
lature after such date, any such option in
accordance with this subsection, which op-
tion shall take effect for the fiscal year that
begins after such meeting.
(C) CHANGES.—
(i) BLOCK GRANT OPTIONS.—If a State
selects the option described in subparagraph
(A) or (B) of paragraph (1), the State may
alter the selection made under paragraph
(1) only once and only after receiving the
applicable funding for 3 years pursuant to
the option described in such subparagraph.
(ii) FEDERAL STATUTE OPTION.—Sub-
ject to clause (i), if a State selects the op-
tion described in paragraph (1)(C) for a fis-
cal year, the State may select the option de-
scribed in subparagraph (A) or (B) of para-
graph (1) for the succeeding fiscal year.
(3) MINIMUM.—No State shall receive an amount
under this section for a fiscal year that is less than
0.5 percent of the applicable funding available for the
fiscal year.
(4) DEFINITIONS.—In this section—
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(A) the term ‘‘State’’ means each of the sev-
eral States of the United States, the District of
Columbia, and the Commonwealth of Puerto
Rico; and
(B) the term ‘‘outlying area’’ means Guam,
American Samoa, the Commonwealth of the
Northern Mariana Islands, the United States
Virgin Islands, the Republic of the Marshall Is-
lands, the Federated States of Micronesia, and
the Republic of Palau.
(b) RESERVATION AND APPLICABILITY.—
(1) RESERVATION.—From the total amount of
applicable funding available for a fiscal year, the Sec-
retary shall reserve 1 percent to make awards to the
Bureau of Indian Affairs and the outlying areas ac-
cording to their respective needs for assistance under
this section.
(2) APPLICABILITY.—The provisions of this sec-
tion shall not apply—
(A) for fiscal year 1999, if the total amount
appropriated to carry out the provisions of law
described in subsection (e) for the fiscal year is
less than $2,564,000,000;
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(B) for fiscal year 2000, if the total amount
so appropriated for the fiscal year is less than
$2,625,000,000;
(C) for fiscal year 2001, if the total amount
so appropriated for the fiscal year is less than
$2,687,000,000;
(D) for fiscal year 2002, if the total amount
so appropriated for the fiscal year is less than
$2,750,000,000; and
(E) for fiscal year 2003, if the total amount
so appropriated for the fiscal year is less than
$2,817,000,000.
(c) BLOCK GRANTS.—
(1) ALLOTMENTS.—
(A) STATES.—From the total applicable
funding available for a fiscal year, and not re-
served under subsection (b)(1) for the fiscal year,
the Secretary may make allotments to each State
selecting the option described in subsection
(a)(1)(A) in an amount that bears the same rela-
tion—
(i) to 50 percent of such total applica-
ble funding as the number of individuals in
the State who are aged 5 through 17 bears
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to the total number of such individuals in
all States; and
(ii) to 50 percent of such total applica-
ble funding as the total amount all local
educational agencies in the State are eligi-
ble to receive under part A of title I of the
Elementary and Secondary Education Act
of 1965 for the fiscal year bears to the total
amount all local educational agencies in all
States are eligible to receive under such part
for the fiscal year.
(B) LOCAL EDUCATIONAL AGENCIES.—From
the total applicable funding available for a fiscal
year, and not reserved under subsection (b)(1)
for the fiscal year, the Secretary may make allot-
ments to each local educational agency in a
State selecting the option described in subsection
(a)(1)(B) in an amount that bears the same rela-
tion—
(i) to 50 percent of such total applica-
ble funding as the number of individuals in
the school district served by the local edu-
cational agency who are aged 5 through 17
bears to the total number of such individ-
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uals in all school districts served by all
local educational agencies in all States; and
(ii) to 50 percent of such total amount
as the total amount all local educational
agencies in the State are eligible to receive
under part A of title I of the Elementary
and Secondary Education Act of 1965 for
the fiscal year bears to the total amount all
local educational agencies in all States are
eligible to receive under such part for the
fiscal year.
(2) USE OF ALLOTTED FUNDS.—
(A) IN GENERAL.—A State or local edu-
cational agency receiving an allotment under
paragraph (1) shall use the allotted funds for in-
novative assistance programs described in sub-
paragraph (B).
(B) INNOVATIVE ASSISTANCE.—The innova-
tive assistance programs referred to in subpara-
graph (A) include—
(i) technology programs related to the
implementation of school-based reform pro-
grams, including professional development
to assist teachers and other school officials
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regarding how to use effectively such equip-
ment and software;
(ii) programs for the acquisition and
use of instructional and educational mate-
rials, including library services and mate-
rials (including media materials), assess-
ments, reference materials, computer soft-
ware and hardware for instructional use,
and other curricular materials that—
(I) are tied to high academic
standards;
(II) will be used to improve stu-
dent achievement; and
(III) are part of an overall edu-
cation reform program;
(iii) promising education reform pro-
grams, including effective schools and mag-
net schools;
(iv) programs to improve the higher
order thinking skills of disadvantaged ele-
mentary school and secondary school stu-
dents and to prevent students from drop-
ping out of school;
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(v) programs to combat illiteracy in
the student and adult populations, includ-
ing parent illiteracy;
(vi) programs to provide for the edu-
cational needs of gifted and talented chil-
dren;
(vii) hiring of teachers or teaching as-
sistants to decrease a school, school district,
or statewide student-to-teacher ratio; and
(viii) school improvement programs or
activities described in sections 1116 and
1117 of the Elementary and Secondary
Education Act of 1965.
(3) STATE FUNDING RULE.—
(A) 
ADMINISTRATIVE
EXPENSES
AND
STATEWIDE ACTIVITIES.—A State that receives
an allotment under paragraph (1)(A) for a fiscal
year may use not more than 5 percent of the al-
lotted funds for the fiscal year for administrative
expenses or statewide activities.
(B) STATE FUNDING RULES.—A State that
receives an allotment under paragraph (1)(A)—
(i) may, at the State’s discretion, place
limits on the use of the allotted funds; and
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(ii) may allocate the allotted funds to
public and private entities within the State
as the State determines appropriate.
(4) HOLD HARMLESS REQUIREMENTS.—
(A) STATES.—Notwithstanding any other
provision of this section, no State that selects the
option described in subsection (a)(1)(A) for a fis-
cal year shall receive an amount under this sec-
tion for the fiscal year that is less than the
amount the State is, or all local educational
agencies in the State are, eligible to receive pur-
suant to the provisions of law described in sub-
section (e) for the fiscal year.
(B) LOCAL EDUCATIONAL AGENCIES.—Not-
withstanding any other provision of this section,
no local educational agency for which the option
described in subsection (a)(1)(B) is applicable
for a fiscal year shall receive an amount under
this section for the fiscal year that is less than
the amount the local educational agency is eligi-
ble to receive pursuant to the provisions of law
described in subsection (e) for the fiscal year.
(d) FEDERAL STATUTE OPTION.—
(1) IN GENERAL.—From the applicable funding
that remains after making the reservation under sub-
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section (b)(1) and allotments under subsection (c) for
a fiscal year, the Secretary may make awards accord-
ing to the provisions of law described in subsection
(e), to State and local recipients, in States making
the election described in subsection (a)(1)(C).
(2) PERCENTAGE REDUCTIONS.—The Secretary,
after making the allotments under subsection (c) for
a fiscal year, shall reduce the total amount of appli-
cable funding available to carry out the provisions of
law described in subsection (e) for the fiscal year, for
any State selecting the option described in subsection
(a)(1)(C), by an equal percentage for each such provi-
sion.
(e) APPLICABLE FUNDING.—
(1) DEFINITION.—In this section, the term ‘‘ap-
plicable funding’’ means all funds not used to carry
out paragraph (2) for a fiscal year that are appro-
priated for the Department of Education for the fiscal
year to carry out programs or activities under the fol-
lowing provisions of law:
(A) Title III of the Goals 2000: Educate
America Act (20 U.S.C. 5881 et seq.).
(B) Title IV of the Goals 2000: Educate
America Act (20 U.S.C. 5911 et seq.).
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(C) Title VI of the Goals 2000: Educate
America Act (20 U.S.C. 5951).
(D) Titles II, III, and IV of the School-to-
Work Opportunities Act of 1994 (20 U.S.C. 6121
et seq., 6171 et seq., and 6191 et seq.).
(E) Part A of title II of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6621 et seq.).
(F) Section 3122 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6832).
(G) Sections 3132 and 3136 of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 6842 and 6846).
(H) Section 3141 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6861).
(I) Part B of title III of the Elementary
and Secondary Education Act of 1965 (20
U.S.C. 6891 et seq.).
(J) Part C of title III of the Elementary
and Secondary Education Act of 1965 (20
U.S.C. 6921 et seq.).
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(K) Part D of title III of the Elementary
and Secondary Education Act of 1965 (20
U.S.C. 6951 et seq.).
(L) Subpart 1 of part A of title IV of the
Elementary and Secondary Education Act of
1965 (20 U.S.C. 7111 et seq.).
(M) Subpart 2 of part A of title IV of the
Elementary and Secondary Education Act of
1965 (20 U.S.C. 7131 et seq.).
(N) Part A of title V of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
7201 et seq.).
(O) Title VI of the Elementary and Second-
ary Education Act of 1965 (20 U.S.C. 311 et
seq.).
(P) Part A of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
8001 et seq.).
(Q) Part B of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
8031 et seq.).
(R) Part G of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
8161 et seq.).
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(S) Part I of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
8241 et seq.).
(T) Part A of title XIII of the Elementary
and Secondary Education Act of 1965 (20
U.S.C. 8621 et seq.).
(U) Part C of title XIII of the Elementary
and Secondary Education Act of 1965 (20
U.S.C. 8671 et seq.).
(2) MULTIYEAR AWARDS.—The Secretary shall
use funds appropriated to carry out the provisions of
law described in paragraph (1) (other than subpara-
graphs (A), (B), and (O) of paragraph (1)) for each
fiscal year to make payments to eligible recipients
under such provisions pursuant to any multiyear
award made under such provisions prior to the date
of enactment of this Act. The payments shall be made
for the duration of the multiyear award.
(f) CENSUS DETERMINATION.—
(1) IN GENERAL.—Each local educational agency
shall conduct a census to determine the number of
kindergarten through grade 12 students that are in
the school district served by the local educational
agency for an academic year.
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(2) PRIVATE SCHOOL STUDENTS.—In carrying
out paragraph (1), each local educational agency
shall determine the number of private school students
described in such paragraph for an academic year on
the basis of data the agency determines reliable.
(3) SUBMISSION.—Each local educational agency
shall submit the total number of public and private
school children described in this paragraph for an
academic year to the Secretary not later than Feb-
ruary 1 of the academic year.
(4) PENALTY.—If the Secretary determines that
a local educational agency has knowingly submitted
false information under this subsection for the pur-
pose of gaining additional funds under this section,
then the local educational agency shall be fined an
amount equal to twice the difference between the
amount the local educational agency received under
this section, and the correct amount the local edu-
cational agency would have received if the agency had
submitted accurate information under this subsection.
SEC. 502. DIRECT AWARDS OF PART A OF TITLE I FUNDING.
(a) DIRECT AWARDS.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law and subject to subsection (c), the Sec-
retary shall award the total amount of funds appro-
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priated to carry out part A of title I of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 6311 et seq.) for a fiscal year directly to local
educational agencies in accordance with paragraph
(2) to enable the local educational agencies to support
programs or activities, for kindergarten through grade
12 students, that the local educational agencies deem
appropriate.
(2) ELIGIBLE LOCAL EDUCATIONAL AGENCIES.—
The Secretary shall make awards under this section
for a fiscal year only to local educational agencies
that are eligible for assistance under part A of title
I of the Elementary and Secondary Education Act of
1965 for the fiscal year.
(b) AMOUNT.—Each local educational agency shall re-
ceive an amount awarded under this subsection for a fiscal
year equal to the amount the local educational agency is
eligible to receive under part A of title I of the Elementary
and Secondary Education Act of 1965 for the fiscal year.
(c) APPLICABILITY.—The provisions of this section
shall not apply—
(1) for fiscal year 1999, if the total amount ap-
propriated to carry out part A of title I of the Ele-
mentary and Secondary Education Act of 1965 for
the fiscal year is less than $7,694,000,000;
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(2) for fiscal year 2000, if the total amount so
appropriated for the fiscal year is less than
$7,875,000,000;
(3) for fiscal year 2001, if the total amount so
appropriated for the fiscal year is less than
$8,064,000,000;
(4) for fiscal year 2002, if the total amount so
appropriated for the fiscal year is less than
$8,251,000,000; and
(5) for fiscal year 2003, if the total amount so
appropriated for the fiscal year is less than
$8,426,000,000.
(d) REQUIREMENTS.—
(1) ELIGIBLE SCHOOL ATTENDANCE AREAS.—A
local educational agency shall use funds received
under this section only in eligible school attendance
areas determined in accordance with section 1113 of
the Elementary and Secondary Education Act of
1965 other than subsection (c) of such section.
(2) ELIGIBLE
PUPILS.—A local educational
agency shall use funds received under this section—
(A) in the case of a school that meets the
criteria described in section 1114(a)(1), to serve
all pupils in the school; and
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(B) in the case of a school that does not
meet such criteria, to serve the children attend-
ing the school who are eligible children described
in section 1115(b).
SEC. 503. DIRECT AWARDS OF BILINGUAL EDUCATION
FUNDING.
(a) STATE OPTIONS.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law and subject to subsection (b)(2), each
State shall notify the Secretary regarding the State’s
election to receive the State’s portion of the finds ap-
propriated to carry out parts A, B, and C of title VII
of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7401 et seq., 7511 et seq., and 7541
et seq.) according to one of the following options:
(A) STATE
BLOCK
GRANT
OPTION.—The
State may receive the funding pursuant to a
State allotment described in subsection (c)(1)(A).
(B) LOCAL
BLOCK
GRANT
OPTION.—The
State may direct the Secretary to send the fund-
ing directly to local educational agencies in the
State that serve the recipients in the State under
parts A, B, and C pursuant to a local allotment
described in subsection (c)(1)(B).
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(C) FEDERAL STATUTE OPTION.—The State
may receive the funding according to the provi-
sions of law described in subsection (e).
(2) OPTION REQUIREMENTS.—
(A) IN GENERAL.—A State shall select an
option described in paragraph (1)—
(i) within 1 year of the date of enact-
ment of this Act;
(ii) pursuant to a majority vote of the
State legislature; and
(iii) with the concurrence of the Gov-
ernor.
(B) FAILURE TO SELECT AN OPTION.—
(i) IN GENERAL.—If a State legislature
meets within 1 year of the date of enact-
ment of this Act and fails to select an op-
tion in accordance with this subsection, the
Secretary shall award the applicable fund-
ing pursuant to paragraph (1)(B).
(ii) LEGISLATURE
WHICH
DOES
NOT
MEET.—If a State does not select an option
described in paragraph (1) in accordance
with this subsection because the State legis-
lature does not meet within 1 year of the
date of enactment of this Act, the State may
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select, at the first meeting of the State legis-
lature after such date, any such option in
accordance with this subsection, which op-
tion shall take effect for the fiscal year that
begins after such meeting.
(C) CHANGES.—
(i) BLOCK GRANTS.—If a State selects
the option described in subparagraph (A) or
(B) of paragraph (1), the State may alter
the selection made under paragraph (1)
only once and only after receiving the fund-
ing for 3 years pursuant to the option de-
scribed in such subparagraph.
(ii) FEDERAL STATUTE OPTION.—Sub-
ject to clause (i), if a State selects the op-
tion described in paragraph (1)(C) for a fis-
cal year, the State may select the option de-
scribed in subparagraph (A) or (B) of para-
graph (1) for the succeeding fiscal year.
(3) MULTIYEAR AWARDS.—The Secretary shall
use funds appropriated to carry out parts A, B, and
C of title VII of the Elementary and Secondary Edu-
cation Act of 1965 for each fiscal year to make pay-
ments to eligible recipients under such parts pursuant
to any multiyear award under such parts made prior
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to the date of enactment of this Act. The payments
shall be made for the duration of the multiyear
award.
(4) DEFINITIONS.—In this section—
(A) the term ‘‘State’’ means each of the sev-
eral States of the United States and the District
of Columbia; and
(B) the term ‘‘outlying area’’ means the
Commonwealth of Puerto Rico, Guam, American
Samoa, the Commonwealth of the Northern Mar-
iana Islands, the United States Virgin Islands,
the Republic of the Marshall Islands, the Fed-
erated States of Micronesia, and the Republic of
Palau.
(b) RESERVATION AND APPLICABILITY.—
(1) RESERVATION.—From the total amount of
funds appropriated to carry out parts A, B, and C
of title VII of the Elementary and Secondary Edu-
cation Act of 1965 for a fiscal year that are not used
to carry out subsection (a)(3) for the fiscal year, the
Secretary shall reserve 1 percent to make awards to
the Bureau of Indian Affairs and the outlying areas
according to their respective needs for assistance
under this section.
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(2) APPLICABILITY.—The provisions of this sec-
tion shall not apply—
(A) for fiscal year 1999, if the total amount
appropriated to carry out parts A, B, and C of
title VII of the Elementary and Secondary Edu-
cation Act of 1965 for the fiscal year is less than
$362,000,000;
(B) for fiscal year 2000, if the total amount
so appropriated for the fiscal year is less than
$370,000,000;
(C) for fiscal year 2001, if the total amount
so appropriated for the fiscal year is less than
$379,000,000;
(D) for fiscal year 2002, if the total amount
so appropriated for the fiscal year is less than
$388,000,000; and
(E) for fiscal year 2003, if the total amount
so appropriated for the fiscal year is less than
$398,000,000.
(c) BLOCK GRANTS.—
(1) ALLOTMENTS.—
(A) STATES.—From the total amount of
funds appropriated to carry out parts A, B, and
C of title VII of the Elementary and Secondary
Education Act of 1965 for a fiscal year that are
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not used to carry out subsection (a)(3) for the
fiscal year, and are not reserved under subsection
(b)(1) for the fiscal year, the Secretary may
make allotments to each State selecting the op-
tion described in subsection (a)(1)(A) in an
amount that bears the same relation to such total
amount of funds as the amount all entities in the
State received under such parts for fiscal year
1998 bears to the total amount all entities in all
States received under such parts for fiscal year
1998.
(B) LOCAL EDUCATIONAL AGENCIES.—From
the total amount of funds appropriated to carry
out parts A, B, and C of title VII of the Elemen-
tary and Secondary Education Act of 1965 for
a fiscal year that are not used to carry out sub-
section (a)(3) for the fiscal year, and are not re-
served under subsection (b)(1) for the fiscal year,
the Secretary may make allotments to each local
educational agency in a State selecting the op-
tion described in subsection (a)(1)(B) in an
amount that bears the same relation to such total
amount of funds as the amount all recipients in
the area served by the local educational agency
received under such parts for fiscal year 1998
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bears to the total amount all recipients in all
areas served by all local educational agencies re-
ceived under such parts for fiscal year 1998.
(2) USE OF ALLOTTED FUNDS.—Funds awarded
under this section shall be used to pay for enhanced
instructional opportunities for limited English pro-
ficient children and youth, that may include—
(A) family literacy, parent outreach, and
training activities designed to assist parents to
become active participants in the education of
their children;
(B) salaries of personnel, including teacher
aids, who have been specifically trained, or are
being trained, to provide services to limited
English proficient children and youth;
(C) tutorials, mentoring, and academic or
career counseling for limited English proficient
children and youth;
(D) identification and acquisition of cur-
ricular materials, educational software, and
technologies to be used;
(E) basic instructional services that are di-
rectly attributable to the presence of limited
English proficient children, including the costs of
providing additional classroom supplies, over-
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head costs, costs of construction, acquisition or
rental of space, costs of transportation, or such
other costs as are directly attributable to such
additional basic instructional services; and
(F) such other activities, related to innova-
tive programs described in subparagraphs (A)
through (E), as the Secretary may authorize.
(3) STATE FUNDING RULE.—
(A) 
ADMINISTRATIVE
EXPENSES
AND
STATEWIDE ACTIVITIES.—A State that receives
an allotment under paragraph (1)(A) for a fiscal
year may use not more than 5 percent of the al-
lotted funds for the fiscal year for administrative
expenses or statewide activities.
(B) STATE FUNDING RULES.—A State that
receives an allotment under paragraph (1)(A)—
(i) may, at the State’s discretion, place
limits on the use of the allotted funds; and
(ii) subject to subsection (f), may allo-
cate the allotted funds to public and private
entities within the State as the State deter-
mines appropriate.
(d) FEDERAL STATUTE OPTION.—
(1) IN
GENERAL.—From the total amount of
funds appropriated to carry out parts A, B, and C
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of the Elementary and Secondary Education Act of
1965 for a fiscal year that remain after carrying out
subsection (a)(3) for the fiscal year, making the res-
ervation under subsection (b) for the fiscal year, and
making allotments under subsection (c) for the fiscal
year, the Secretary may make awards according to
the provisions of such parts A, B, and C, respectively,
to State and local recipients, in States making the
election described in subsection (a)(1)(C).
(2) PERCENTAGE REDUCTIONS.—The Secretary,
after making the allotments under subsection (c) for
a fiscal year, shall reduce the total amount of funding
available to carry out such parts A, B, and C for the
fiscal year, for any State selecting the option de-
scribed in subsection (a)(1)(C), by an equal percent-
age for each such part.
(e) CONSTRUCTION.—Nothing in this section shall be
construed—
(1) to prohibit a local educational agency from
serving limited English proficient children simulta-
neously with students with similar educational needs,
in the same educational settings where appropriate;
and
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(2) to mandate a particular type of curriculum
or educational method for limited English proficient
children and youth, which decisions—
(A) shall be the sole responsibility of the
State educational agency, local educational agen-
cy, or other State or local recipients; and
(B) shall be made in accordance with appli-
cable State law.
SEC. 504. PARTICIPATION OF CHILDREN ENROLLED IN PRI-
VATE SCHOOLS.
(a) IN GENERAL.—Each local educational agency that
receives assistance under section 501 or 503 shall provide
for the participation of children enrolled in private schools
in the activities and services assisted under section 501 or
503, respectively, in the same manner as the children par-
ticipate in activities and services under the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
pursuant to sections 14503, 14504, 14505, and 14506 of
such Act (20 U.S.C. 8893, 8894, 8895, and 8896).
(b) PART A OF TITLE I FUNDING.—Each local edu-
cational agency that receives assistance under section 502
shall provide for the participation of children enrolled in
private schools in the activities and services assisted under
section 502 in the same manner as the children participate
in activities and services under the Elementary and Sec-
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ondary Education Act of 1965 (20 U.S.C. 6301 et seq.) pur-
suant to section 1120 such Act (20 U.S.C. 6321).
SEC. 505. ACCOUNTABILITY.
(a) 
STANDARD
APPLICATION
AND
REPORTING
FORMS.—The Secretary shall develop standard forms for
applications for assistance under this title and for reporting
with respect to activities assisted under this title. In devel-
oping the forms, the Secretary shall ensure that not more
than 2 percent of the assistance provided to an entity under
this title is used to complete the forms.
(b) PUBLIC INPUT.—Each entity receiving assistance
under this title shall—
(1) involve parents and members of the public in
planning for the use of funds provided under this
title; and
(2) disseminate to the public reports regarding
the use and effects of funds provided under this title.
SEC. 506. DEFINITIONS.
In this title—
(1) the term ‘‘local educational agency’’ has the
meaning given the term in section 14101 of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 8801); and
(2) the term ‘‘Secretary’’ means the Secretary of
Education.
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SEC. 507. CONSTRUCTION.
Nothing in this title shall be construed to supersede
the authority of a State or State educational agency over
State education policies.
TITLE VI—SENSE OF CONGRESS
SEC. 601. FINDINGS.
Congress makes the following findings:
(1) The people of the United States know that ef-
fective teaching takes place when the people of the
United States begin (A) helping children master basic
academics, (B) engaging and involving parents, (C)
creating safe and orderly classrooms, and (D) getting
dollars to the classroom.
(2) Our Nation’s children deserve an educational
system which will provide opportunities to excel.
(3) States and localities must spend a signifi-
cant amount of Federal education tax dollars apply-
ing for and administering Federal education dollars.
(4) Several States have reported that although
the States receive less than 10 percent of their edu-
cation funding from the Federal Government, more
than 50 percent of their paperwork is associated with
those Federal dollars.
(5) While it is unknown exactly what percentage
of Federal education dollars reaches the classroom, a
recent audit of New York City public schools found
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that only 43 percent of their local education budget
reaches the classroom; further, it is thought that only
85 percent of funds administered by the Department
of Education for elementary and secondary education
reach the school district level; and even if 65 percent
of Federal education funds reach the classroom, it still
means that billions of dollars are not directly spent
on children in the classroom.
(6) American students are not performing up to
their full academic potential, despite the more than
760 Federal education programs, which span 39 Fed-
eral agencies at the price of nearly $100,000,000,000
annually.
(7) According to the Digest of Education Statis-
tics, 
in 
1993 
only 
$141,598,786,000 
out 
of
$265,285,370,000 spent on elementary and secondary
education was spent on instruction.
(8) According to the National Center for Edu-
cation Statistics, in 1994 only 52 percent of staff em-
ployed in public elementary and secondary school sys-
tems were teachers.
(9) Too much of our Federal education funding
is spent on bureaucracy, and too little is spent on our
Nation’s youth.
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(10) Getting 95 percent of Department of Edu-
cation elementary and secondary education funds to
the classroom could provide approximately $2,094 in
additional funding per classroom across the United
States.
(11) More education funding should be put in
the hands of someone in a child’s classroom who
knows the child’s name.
(12) President Clinton has stated: ‘‘We cannot
ask the American people to spend more on education
until we do a better job with the money we’ve got
now.’’.
(13) President Clinton and Vice President Gore
agree that the reinventing of public education will not
begin in Washington but in communities across the
United States and that the people of the United
States must ask fundamental questions about how our
Nation’s public school systems’ dollars are spent.
(14) President Clinton and Vice President Gore
agree that in an age of tight budgets, our Nation
should be spending public funds on teachers and chil-
dren, not on unnecessary overhead and bloated bu-
reaucracy.
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SEC. 602. SENSE OF CONGRESS.
It is the sense of Congress that the Department of Edu-
cation, States, and local educational agencies should work
together to ensure that not less than 95 percent of all funds
appropriated for the purpose of carrying out elementary
and secondary education programs administered by the De-
partment of Education is spent for our Nation’s children
in their classrooms.
TITLE VII—READING
EXCELLENCE
SEC. 701. SHORT TITLE.
This title may be cited as the ‘‘Reading Excellence
Act’’.
Subtitle A—Reading Grants
SEC. 711. AMENDMENT TO ESEA FOR READING GRANTS.
Title II of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6601 et seq.) is amended—
(1) by redesignating part D as part E; and
(2) by inserting after part C the following:
‘‘PART D—READING GRANTS
‘‘SEC. 2351. PURPOSE.
‘‘The purposes of this part are as follows:
‘‘(1) To teach every child to read in their early
childhood years—
‘‘(A) as soon as they are ready to read; or
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‘‘(B) as soon as possible once they enter
school, but not later than 3d grade.
‘‘(2) To improve the reading skills of students,
and the in-service instructional practices for teachers
who teach reading, through the use of findings from
reliable, replicable research on reading, including
phonics.
‘‘(3) To expand the number of high-quality fam-
ily literacy programs.
‘‘(4) To reduce the number of children who are
inappropriately referred to special education due to
reading difficulties.
‘‘SEC. 2352. DEFINITIONS.
‘‘For purposes of this part:
‘‘(1) ELIGIBLE
PROFESSIONAL
DEVELOPMENT
PROVIDER.—The term ‘eligible professional develop-
ment provider’ means a provider of professional devel-
opment in reading instruction to teachers that is
based on reliable, replicable research on reading.
‘‘(2) ELIGIBLE
RESEARCH
INSTITUTION.—The
term ‘eligible research institution’ means an institu-
tion of higher education at which reliable, replicable
research on reading has been conducted.
‘‘(3) FAMILY
LITERACY
SERVICES.—The term
‘family literacy services’ means services provided to
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participants on a voluntary basis that are of suffi-
cient intensity in terms of hours, and of sufficient du-
ration, to make sustainable changes in a family (such
as eliminating or reducing welfare dependency) and
that integrate all of the following activities:
‘‘(A) Interactive literacy activities between
parents and their children.
‘‘(B) Equipping parents to partner with
their children in learning.
‘‘(C) Parent literacy training, including
training that contributes to economic self-suffi-
ciency.
‘‘(D) Appropriate instruction for children of
parents receiving parent literacy services.
‘‘(4) READING.—The term ‘reading’ means the
process of comprehending the meaning of written text
by depending on—
‘‘(A) the ability to use phonics skills, that
is, knowledge of letters and sounds, to decode
printed words quickly and effortlessly, both si-
lently and aloud;
‘‘(B) the ability to use previously learned
strategies for reading comprehension; and
‘‘(C) the ability to think critically about the
meaning, message, and aesthetic value of the text.
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‘‘(5) READING READINESS.—The term ‘reading
readiness’ means activities that—
‘‘(A) provide experience and opportunity for
language development;
‘‘(B) create appreciation of the written
word;
‘‘(C) develop an awareness of printed lan-
guage, the alphabet, and phonemic awareness;
and
‘‘(D) develop an understanding that spoken
and written language is made up of phonemes,
syllables, and words.
‘‘(6) RELIABLE, REPLICABLE
RESEARCH.—The
term ‘reliable, replicable research’ means objective,
valid, scientific studies that—
‘‘(A) include rigorously defined samples of
subjects that are sufficiently large and represent-
ative to support the general conclusions drawn;
‘‘(B) rely on measurements that meet estab-
lished standards of reliability and validity;
‘‘(C) test competing theories, where multiple
theories exist;
‘‘(D) are subjected to peer review before
their results are published; and
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‘‘(E) discover effective strategies for improv-
ing reading skills.
‘‘SEC. 2353. GRANTS TO READING AND LITERACY PARTNER-
SHIPS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary may
make grants on a competitive basis to reading and literacy
partnerships for the purpose of permitting such partner-
ships to make subgrants under sections 2354 and 2355.
‘‘(b) READING AND LITERACY PARTNERSHIPS.—
‘‘(1) COMPOSITION.—
‘‘(A) REQUIRED
PARTICIPANTS.—In order
to receive a grant under this section, a State
shall establish a reading and literacy partner-
ship consisting of at least the following partici-
pants:
‘‘(i) The Governor of the State.
‘‘(ii) The chief State school officer.
‘‘(iii) The chairman and the ranking
member of each committee of the State legis-
lature that is responsible for education pol-
icy.
‘‘(iv) A representative, selected jointly
by the Governor and the chief State school
officer, of at least 1 local educational agency
that has at least 1 school that is identified
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for 
school 
improvement 
under 
section
1116(c) in the geographic area served by the
agency.
‘‘(v) A representative, selected jointly
by the Governor and the chief State school
officer, of a community-based organization
working with children to improve their
reading skills, particularly a community-
based organization using volunteers.
‘‘(B) OPTIONAL PARTICIPANTS.—A reading
and literacy partnership may include additional
participants, who shall be selected jointly by the
Governor and the chief State school officer, which
may include—
‘‘(i) State directors of appropriate Fed-
eral or State programs with a strong read-
ing component;
‘‘(ii) a parent of a public or private
school student or a parent who educates
their child or children in their home;
‘‘(iii) a teacher who teaches reading; or
‘‘(iv) a representative of (I) an institu-
tion of higher education operating a pro-
gram of teacher preparation in the State;
(II) a local educational agency; (III) an eli-
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the grant period, to be identified for school improvement
under section 1116(c).
‘‘(c) APPLICATIONS.—A local educational agency that
desires to receive a subgrant under this section shall submit
an application to the reading and literacy partnership at
such time, in such manner, and including such information
as the partnership may require. The application—
‘‘(1) shall describe how the local educational
agency will work with schools selected by the agency
under subsection (a)(2) to select 1 or more models of
reading 
instruction, 
developed 
using 
reliable,
replicable research on reading, as a model for imple-
menting and improving reading instruction by all
teachers and for all children in each of the schools se-
lected by the agency under such subsection and, where
appropriate, their parents;
‘‘(2) shall select 1 or more models described in
paragraph (1), for the purpose described in such
paragraph, and shall describe each such selected
model;
‘‘(3) shall demonstrate that a person responsible
for the development of each such model, or a person
with experience or expertise about such model and its
implementation, has agreed to work with the appli-