(B) what services will be offered; (C) how and where the services will be provided; (E) the size and scope of the equitable services to be provided to the eligible private school children, and what is the proportion of funds allocated under subsection (a)(4) for such services. (2) TIMING.-Such consultation shall occur before the local educational agency makes any decision that affects the opportunities of eligible private school children to participate in programs under this part. (3) DISCUSSION.-Such consultation shall include a discussion of service delivery mechanisms a local educational agency can use to provide equitable services to eligible private school children. (c) PUBLIC CONTROL OF FUNDS. (1) IN GENERAL.-The control of funds provided under this part, and title to materials, equipment, and property purchased with such funds, shall be in a public agency, and a public agency shall administer such funds and property. (2) PROVISION OF SERVICES. (A) The provision of services under this section shall be provided (i) by employees of a public agency; or (ii) through contract by such public agency with an individual, association, agency, or organization. (B) In the provision of such services, such employee, person, association, agency, or organization shall be independent of such private school and of any religious organization, and such employment or contract shall be under the control and supervision of such public agency. (d) STANDARDS FOR A BYPASS.-If a local educational agency is prohibited by law from providing for the participation on an equitable basis of eligible children enrolled in private elementary and secondary schools or if the Secretary determines that a local educational agency has substantially failed or is unwilling to provide for such participation, as required by this section, the Secretary shall (1) waive the requirements of this section for such local educational agency; and (2) arrange for the provision of services to such children through arrangements that shall be subject to the requirements of this section and sections 14505 and 14506. (e) CAPITAL EXPENSES. (1) IN GENERAL. (A) From the amount appropriated for this subsection under section 1002(e) for any fiscal year, each State is eligible to receive an amount that bears the same ratio to the amount so appropriated as the number of private school children who received services under this part in the State in the most recent year for which data satisfactory to the Secretary are available bears to the number of such children in all States in that same year. (B) The Secretary shall reallocate any amounts allocated under subparagraph (A) that are not used by a State for the purpose of this subsection to other States on the basis of their respective needs, as determined by the Secretary. (2) CAPITAL EXPENSES. (A) A local educational agency may apply to the State educational agency for payments for capital expenses consistent with this subsection. (B) State educational agencies shall distribute such funds under this subsection to local educational agencies based on the degree of need set forth in their respective applications for assistance under this subsection. (3) USES OF FUNDS.-Any funds appropriated to carry out this subsection shall be used only for capital expenses incurred to provide equitable services for private school children under this section. (4) DEFINITION.-For the purpose of this subsection, the term "capital expenses" means (A) expenditures for noninstructional goods and services, such as the purchase, lease, or renovation of real and personal property, including mobile educational units and leasing of neutral sites or spaces; (B) insurance and maintenance costs; (D) other comparable goods and services. SEC. 1120A. [20 U.S,C. 6322] FISCAL REQUIREMENTS. (a) MAINTENANCE OF EFFORT.-A local educational agency may receive funds under this part for any fiscal year only if the State educational agency finds that the local educational agency has maintained its fiscal effort in accordance with section 14501 of this Act. (b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT, NONFEDERAL FUNDS. (1) IN GENERAL.-A State or local educational agency shall use funds received under this part only to supplement the amount of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the education of pupils participating in programs assisted under this part, and not to supplant such funds. (2) SPECIAL RULE.-No local educational agency shall be required to provide services under this part through a particular instructional method or in a particular instructional setting in order to demonstrate such agency's compliance with paragraph (1). (c) COMPARABILITY OF SERVICES.— (1) IN GENERAL. (A) Except as provided in paragraphs (4) and (5), a local educational agency may receive funds under this part only if State and local funds will be used in schools served under this part to provide services that, taken as a whole, are at least comparable to services in schools that are not receiving funds under this part. (B) If the local educational agency is serving all of such agency's schools under this part, such agency may receive funds under this part only if such agency will use State and local funds to provide services that, taken as a whole, are substantially comparable in each school. (C) A local educational agency may meet the requirements of subparagraphs (A) and (B) on a grade-span by grade-span basis or a school-by-school basis. (2) WRITTEN ASSURANCE. (A) A local educational agency shall be considered to have met the requirements of paragraph (1) if such agency has filed with the State educational agency a written assurance that such agency has established and implemented (i) a local educational agency-wide salary schedule; (ii) a policy to ensure equivalence among schools in teachers, administrators, and other staff; and (iii) a policy to ensure equivalence among schools in the provision of curriculum materials and instructional supplies. (B) For the purpose of subparagraph (A), in the determination of expenditures per pupil from State and local funds, or instructional salaries per pupil from State and local funds, staff salary differentials for years of employment shall not be included in such determinations. (C) 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 comparability of services under this subsection. (3) PROCEDURES AND RECORDS.-Each local educational agency assisted under this part shall (A) develop procedures for compliance with this subsection; and (B) maintain records that are updated biennially documenting such agency's compliance with this subsection. (4) INAPPLICABILITY.-This subsection shall not apply to a local educational agency that does not have more than one building for each grade span. (5) COMPLIANCE.-For the purpose of determining compliance with paragraph (1), a local educational agency may exclude State and local funds expended for (A) bilingual education for children of limited English proficiency; and (B) excess costs of providing services to children with disabilities as determined by the local educational agency. (d) EXCLUSION OF FUNDS.-For the purpose of complying with subsections (b) and (c), a State or local educational agency may exclude supplemental State or local funds expended in any school attendance area or school for programs that meet the intent and purposes of this part. SEC. 1120B. [20 U.S.C. 6323] COORDINATION REQUIREMENTS. (a) IN GENERAL.-Each local educational agency receiving assistance under this part shall carry out the activities described in subsection (b) to the extent feasible and appropriate to the circumstances, including the extent to which such local educational agency is able to secure the cooperation of parents and local Head Start agencies and, if feasible, other early childhood development programs. (b) ACTIVITIES.-The activities referred to in subsection (a) are activities that increase coordination between the local educational agency and a Head Start agency, and, if feasible, other early childhood development programs, serving children who will attend the schools of such agency, including (1) developing and implementing a systematic procedure for receiving records regarding such children transferred with parental consent from a Head Start program or, where applicable, other early childhood development programs; (2) establishing channels of communication between school staff and their counterparts in such Head Start agencies (including teachers, social workers, and health staff) or other early childhood development programs, as appropriate, to facilitate coordination of programs; (3) conducting meetings involving parents, kindergarten or elementary school teachers, and Head Start teachers or, if appropriate, teachers from other early childhood development programs, to discuss the developmental and other needs of individual children; and (4) organizing and participating in joint transition related training of school staff, Head Start staff, and, where appropriate, other early childhood staff. (c) COORDINATION OF REGULATIONS.-The Secretary shall work with the Secretary of Health and Human Services to coordinate regulations promulgated under this part with regulations promulgated under the Head Start Act Amendments of 1994. Subpart 2-Allocations SEC. 1121. [20 U.S.C. 6331] GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE INTERIOR. (a) RESERVATION OF FUNDS.-From the amount appropriated for payments to States for any fiscal year under section 1002(a), the Secretary shall reserve a total of 1 percent to provide assistance to (1) the outlying areas on the basis of their respective need for such assistance according to such criteria as the Secretary determines will best carry out the purpose of this part; and (2) the Secretary of the Interior in the amount necessary to make payments pursuant to subsection (c). (b) ASSISTANCE TO THE OUTLYING AREAS. (1) IN GENERAL.-From amounts made available under subsection (a) in each fiscal year the Secretary shall make grants to local educational agencies in the outlying areas (other than the outlying areas assisted under paragraph (3)). (2) COMPETITIVE GRANTS. (A) The Secretary shall reserve $5,000,000 from the amounts made available under subsection (a) in each fiscal year to award grants on a competitive basis, to local educational agencies in the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. The Secretary shall award such grants according to the recommendations of the Pacific Region Educational Laboratory which shall conduct a competition for such grants. (B) Except as provided in subparagraph (D), grant funds awarded under this part only may be used for programs described in this Act, including teacher training, curriculum development, instructional materials, or general school improvement and reform. (C) Grant funds awarded under this paragraph only may be used to provide direct educational services. (D) The Secretary may provide 5 percent of the amount made available for grants under this paragraph to pay the administrative costs of the Pacific Region Educational Laboratory regarding activities assisted under this paragraph. (c) ALLOTMENT TO THE SECRETARY OF THE INTERIOR. - (1) IN GENERAL.-The amount allotted for payments to the Secretary of the Interior under subsection (a)(2) for any fiscal year shall be, as determined pursuant to criteria established by the Secretary, the amount necessary to meet the special educational needs of (A) Indian children on reservations served by elementary and secondary schools for Indian children operated or supported by the Department of the Interior; and (B) out-of-State Indian children in elementary and secondary schools in local educational agencies under special contracts with the Department of the Interior. (2) PAYMENTS.-From the amount allotted for payments to the Secretary of the Interior under subsection (a)(2), the Secretary of the Interior shall make payments to local educational agencies, upon such terms as the Secretary determines will best carry out the purposes of this part, with respect to outof-State Indian children described in paragraph (1). The amount of such payment may not exceed, for each such child, the greater of (A) 40 percent of the average per pupil expenditure in the State in which the agency is located; or (B) 48 percent of such expenditure in the United States. SEC. 1122. [20 U.S.C. 6332] ALLOCATIONS TO STATES. (a) IN GENERAL. (1) FISCAL YEAR 1995.-For fiscal year 1995, appropriations for this part shall be allocated according to the provisions of sections 1005, except subsection (a)(3), and 1006, part A of chapter 1 of title I, Elementary and Secondary Education Act of 1965, as in effect on September 30, 1994, except that the State minimum for section 1005 shall be the lesser of 0.25 percent of total appropriations or the average of 0.25 percent of total appropriations and 150 percent of the national average grant per child counted for grants under section 1005 multiplied by the State's number of children counted for such grants, and for grants under section 1006, the State minimum shall be the lesser of (A) 0.25 percent of total appropriations; and (i) 0.25 percent of total appropriations; and |