SECTION 1. COMPARABILITY OF SERVICES.

    Section 1120A of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6321) is amended--
            (1) in subsection (a), by striking ``involved''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Comparability.--
            ``(1) In general.--
                    ``(A) Comparability.--Beginning for the 2015-2016 
                school year, a local educational agency may receive 
                funds under this part only if the local educational 
                agency demonstrates to the State educational agency 
                that the combined State and local per-pupil 
                expenditures (including actual personnel and actual 
                non-personnel expenditures) in each school served under 
                this part, in the most recent year for which such data 
                were available, are not less than the average combined 
                State and local per-pupil expenditures (including 
                actual personnel and actual non-personnel expenditures) 
                for those schools that are not served under this part.
                    ``(B) Alternative comparability.--If the local 
                educational agency is serving all of the schools under 
                its jurisdiction under this part, the agency shall 
                demonstrate to the State educational agency that the 
                average combined State and local per-pupil expenditures 
                (including actual personnel and actual non-personnel 
                expenditures) for its high-poverty schools, in the most 
                recent year for which such data are available, were not 
                less than the average combined State and local per-
                pupil expenditures (including actual personnel and 
                actual non-personnel expenditures) for its low-poverty 
                schools.
                    ``(C) Basis.--A local educational agency may meet 
                the requirements of subparagraphs (A) and (B) on a 
                grade-span by grade-span or school-by-school basis.
                    ``(D) Exclusion of funds.--
                            ``(i) In general.--For the purpose of 
                        complying with this paragraph, a local 
                        educational agency shall exclude any State or 
                        local funds expended in any school for--
                                    ``(I) excess costs of providing 
                                services to English learners;
                                    ``(II) excess costs of providing 
                                services to children with disabilities;
                                    ``(III) capital expenditures; and
                                    ``(IV) such other expenditures as 
                                the Secretary determines appropriate.
                            ``(ii) Changes after the beginning of the 
                        school year.--A local educational agency need 
                        not include unpredictable changes in student 
                        enrollment or personnel assignments that occur 
                        after the beginning of a school year in 
                        determining compliance under this subsection.
            ``(2) Documentation.--A local educational agency shall 
        demonstrate that it is meeting the requirements of paragraph 
        (1) by submitting to the State educational agency the per-pupil 
        expenditures, personnel expenditures, non-personnel 
        expenditures, and total expenditures for each school served by 
        the local educational agency.
            ``(3) Inapplicability.--This subsection shall not apply to 
        a local educational agency that does not have more than one 
        building for each grade span.
            ``(4) Process and procedures.--
                    ``(A) Local educational agency responsibilities.--
                Each local educational agency assisted under this part 
                shall, by October 31, 2014, report to the State 
                educational agency on its compliance with the 
                requirements of this subsection for the preceding 
                school year by submitting to the State educational 
                agency the per-pupil expenditures, personnel 
                expenditures, non-personnel expenditures, and total 
                expenditures for each school served by the local 
                educational agency.
                    ``(B) State educational agency responsibilities.--
                Each State educational agency assisted under this part 
                shall ensure that such information is made publicly 
                available by the State or the local educational agency, 
                including the school by school listing described in 
                subparagraph (A).
                    ``(C) Plan.--A local educational agency that does 
                not meet the requirements of this subsection in any 
                year shall develop and implement a plan to ensure 
                compliance for the subsequent school year and may be 
                required by the State educational agency to report on 
                its progress in implementing such plan.
            ``(5) Transition provisions.--
                    ``(A) School years preceding the 2015-2016 school 
                year.--For school years preceding the 2015-2016 school 
                year, a local educational agency may receive funds 
                under this part only if the local educational agency 
                demonstrates to the State educational agency that the 
                local educational agency meets the requirements of this 
                subsection, as in effect before the effective date of 
                the most recent amendment to this section.
                    ``(B) Transition between requirements.--The 
                Secretary shall take such steps as are necessary to 
                provide for the orderly transition between the 
                requirements under this section, as in effect before 
                the effective date of the most recent amendment to this 
                section, and the new requirements under this section, 
                as so amended.
            ``(6) Definitions.--The Secretary shall promulgate 
        regulations defining the terms used in this subsection, 
        including the terms `per-pupil expenditure', `personnel 
        expenditure', `non-personnel expenditure', `high-poverty 
        school', and `low-poverty school'.''.
Output: Amends the school improvement program under part A of title I of the Elementary and Secondary Education Act of 1965 to modify the requirement that state and local funds be used to provide services to schools receiving school improvement funds that are comparable to services received by schools not receiving such funds.

Conditions a local educational agency's (LEA's) receipt of school improvement funds, beginning with the 2015-2016 school year, on the LEA showing its state that combined state and local per-pupil expenditures in each of its schools served under the school improvement program are not less than the average combined state and local per-pupil expenditures for each of its schools not served under that program.

Requires an LEA that serves all of its schools under the school improvement program to show its state that the average combined state and local per-pupil expenditures for its high-poverty schools were not less than those expenditures for its low-poverty schools.

Allows LEAs to meet these requirements on a grade-span by grade-span or school-by-school basis.

Requires LEAs to exclude from these calculations state and local funds expended in any school for capital expenditures or the excess costs of providing services to English learners or disabled children.