exceed 50 percent of the cost of carrying out its annual program plan. (b) The State's matching share of expenditures under the annual program plan may be on a state-wide basis. (c) Except for the fiscal requirements for the national priority programs described in § 400.303, State administration described in § 400.306, and local administration described in § 400.307, it is not necessary that Federal funds be matched by non-Federal funds for each purpose and program under the Act. (Interprets sec. 111(a); 20 U.S.C. 2311) § 400.303 Federal share of expendituresnational priority programs. (a) The Secretary will pay to each State an amount not to exceed 50 percent of the excess cost (i.e., costs of special educational and related services above the costs for non-handicapped students) of programs, services, and activities under the basic grant in Subpart 2 and program improvement and supportive services in Subpart 3 for handicapped persons. (b) The Secretary will pay to each State an amount not to exceed 50 percent of: (1) The excess cost (i.e., costs of special educational and related services above the costs for non-disadvantaged persons) of programs, services, and activities under the basic grant in Subpart 2 and program improvement and supportive services in Subpart 3 for disadvantaged persons (other than handicapped persons); (2) The excess cost (i.e., costs of special education and related services above the costs for persons who are not classified as persons of "limited English-speaking ability") of programs, services, and activities under the basic grant in Subpart 2 and program improvement and supportive services in Subpart 3 for persons who have limited English-speaking ability; and (3) Stipends for students entering or already enrolled in vocational education programs who have acute economic needs which cannot be met under work-study programs. cent of the cost of programs, services, and activities under the basic grant in Subpart 2 and program improvement and supportive services in Subpart 3 for: (1) Postsecondary programs for: (i) Persons who have completed or left high school; (ii) who are enrolled in organized programs of study for which credit is given toward an associate or other degree; and (iii) who are not enrolled in programs designed as baccalaureate or higher degree programs; and (2) Adult programs for: (i) Persons who have already entered the labor market; (ii) persons who are unemployed; or (iii) persons who have completed or left high school and who are enrolled in organized programs of study for which credit is not given toward an associate or other degree. (Sec. 110; 20 U.S.C. 2310) § 400.304 Allowable expenditures for vocational education for national priority programs. A State shall use the funds allotted for national priority programs under section 110 of the Act only for expenditures which are attributable to vocational education programs, services, and activities described in § 400.303. (Sec. 110; 20 U.S.C. 2310; 45 CFR 100, App. B, Part II) § 400.305 Federal share of expenditures100 percent payments. (a) The Secretary will pay to each State an amount up to 100 percent of the cost of: (1) Cooperative vocational education programs which include students enrolled in nonprofit private schools pursuant to secton 122(f) of the Act; (2) Exemplary and innovative programs which include students enrolled in nonprofit private schools pursuant to section 132(b) of the Act; and (3) Special programs for disadvantaged persons in areas of the State which have high concentrations of youth unemployment or school dropouts under section 140 of the Act. (b) The Secretary will pay to the Trust Territory of the Pacific Islands, (c) The Secretary will pay to each the Northern Mariana Islands, Guam, State an amount not to exceed 50 per- the Virgin Islands, and American Samoa up to 100 percent of the cost of carrying out all programs listed in §§ 400.302 and 400.303. (Sec. 111(a)(1); 20 U.S.C. 2311) § 400.306 Federal share of expendituresState administration. (a) The Secretary will pay, from the funds allotted pursuant to section 102(a) of the Act, up to 50 percent of the cost of administration of the fiveyear State plan and annual program plan, except as indicated in paragraphs (b) and (c) of this section. (Sec. 111(a)(2)(B); 20 U.S.C. 2311) (b) The Federal share of the cost of administration of the five-year State plan and annual program plan in fiscal year 1978 is up to 80 percent and in fiscal year 1979 is up to 60 percent. (Sec. 111(a)(2)(B); 20 U.S.C. 2311) (c) The Federal share of the cost of administration of the five-year State plan and annual program plan in fiscal year 1978 may be in excess of 80 percent under the following conditions: (1) State and local expenditures for vocational education in a State for the latest fiscal year for which reliable data are available preceding fiscal year 1978 exceed the Federal expenditures for vocational education in that State by ten times. For example, if the Federal allocation in fiscal year 1977 is $2 million, the aggregate of State and local expenditures must be greater than $20 million; and (2) The Secretary determines that the costs of administration of the fiveyear State plan and annual program plan in fiscal year 1977 were necessary for the proper and efficient performance of the State's duties under the Act; and (3) The Secretary determines that the 80 percent ceiling on the Federal share of the cost of administration is insufficient to meet the needs of the State. (d) The State shall use the following computation in determining its expenditure of Federal funds under paragraph (a) of this section, for administration of the five-year plan and annual program plan: (1) Not more than 80 percent of the total amount used for State adminis § 400.307 tration shall be made from the basic grant in Subpart 2; (2) Not more than 20 percent of the total amount used for State administration shall be made from program improvement and supportive services in Subpart 3. (e) The computation in paragraph (d) of this section does not require the State to use administrative funds in an 80/20 ratio between Subpart 2 and Subpart 3 activities. The State may use its administrative funds in whatever distribution best meets its needs. (Interprets sec. 111(a)(2)(B); 20 U.S.C. 2311) § 400.307 Federal share of expenditureslocal administration. (a) The Secretary will pay, from the funds allotted pursuant to section 102(a) of the Act, a part of the costs of supervision and administration of vocational education programs carried out by an eligible recipient. (b) The eligible recipient shall use either the method set forth in paragraph (b)(1) or (2) of this section in determining the payment of local administrative costs. (1) The percentage of Federal funds used by an eligible recipient for the costs of supervision and administration of vocational education programs may be no greater than the percentage of Federal funds used to support the total vocational education program carried out by the eligible recipient. For example, the total cost of the vocational education program of the eligible recipient is $100,000 and the Federal contribution to this eligible recipient is $25,000, or 25 percent of the total. If local administrative costs are $10,000, then up to 25 percent of this amount, or $2,500, may be charged against the Federal funds. (2) Up to 50 percent of the cost of supervision and administration of the vocational education program of the eligible recipient may be charged to the Federal funds: Provided, That State funds match the Federal funds dollar for dollar. State funds used to match Federal funds shall be specifically made available for the purpose of local administration. For example, if the total cost of local administration is $10,000, then up to $5,000 may be charged to the Federal funds as long as the State contributes the same amount from a specific State appropriation. (c) The State shall use the following computation in determining the amount of Federal funds available for the costs of local supervision and administration: (1) Not more than 80 percent of the total amount used for supervision and administration by eligible recipients shall be made from the basic grant in Subpart 2. (2) Not more than 20 percent of the total amount used for supervision and administration by eligible recipients shall be made from program improvement and supportive services in Subpart 3. (d) The computation in paragraph (c) of this section does not require the State to use administrative funds in an 80/20 ratio between Subpart 2 and Subpart 3 activities. The State may use its administrative funds in whatever proportion best meets its needs. (Interprets sec. 111(a); 20 U.S.C. 2311) MINIMUM PERCENTAGES § 400.311 Percentage requirements with respect to State distribution of Federal funds. The minimum percentages set forth in §§ 400.312, 400.313, and 400.314 are applicable to each State's allotment under section 102(a) of the Act. (Interprets sec. 110(a); 20 U.S.C. 2310) § 400.312 Minimum percentage for the handicapped. The State shall expend at least 10 percent of the allotment under section 102(a) of the Act for vocational education for handicapped persons as described in § 400.303(a). The State shall use these funds to the maximum extent possible to assist handicapped persons to participate in regular vocational education programs. (Sec. 110(a); 20 U.S.C. 2310) § 400.313 Minimum percentage for the disadvantaged. (a) The State shall expend at least 20 percent of the section 102(a) allotment, subject to the conditions of paragraph (b) of this section, for the following purposes: (1) Vocational education for disadvantaged persons (other than handicapped persons) as described in § 400.303(b)(1); (2) Vocational education for persons who have limited English-speaking ability as described in § 400.303(b)(2); and (3) Stipends for students entering or already enrolled in vocational education programs who have acute economic needs which cannot be met under work-study programs. (Sec. 110(b); 20 U.S.C. 2310) (b) The State shall use, to the maximum extent possible, the funds expended for disadvantaged persons and persons of limited English-speaking ability to enable these persons to participate in regular vocational education programs. (Sec. 110(d); 20 U.S.C. 2310) (c) The State shall use the following formula in determining its expenditures of funds under paragraph (a) of this section for vocational education for persons who have limited Englishspeaking ability: (1) First determine the amount of Federal funds reserved for the purposes of paragraph (a) of this section; (2) Determine the population having limited English-speaking ability who are between the ages of 15 and 24 inclusively; (3) Determine the total population of the State aged 15 to 24 inclusively; (4) Divide step two by step three; (5) Multiply the quotient from step four by the total amount reserved for paragraph (a) of this section as indicated in step one; (6) Expend at least this amount for vocational education for persons having limited English-speaking ability. The amount expended for this purpose shall not exceed the total amount reserved for paragraph (a) of this section. For example, a State reserves $500,000 for the purposes fo paragraph (a) of this section. The State determines its limited English-speaking population between the ages of 15 and 24 is 10,000. The total population of the State aged 15 to 24 is 200,000. 10,000 is divided by 200,000 and the quotient is .05. $500,000 is multiplied by .05 and the product is $25,000. Accordingly, the State expends at least $25,000 for vocational education for persons who have limited-English speaking ability, but no more than $500,000. (Implements sec. 110(b)(2); 20 U.S.C. 2310) § 400.314 Minimum percentage for postsecondary and adult. The State shall expend at least 15 percent of the section 102(a) allotment for vocational education for: (a) Postsecondary programs for: (1) Persons who have completed or left high school; (2) Who are enrolled in organized programs of study for which credit is given toward an associate or other degree; and (3) Who are not enrolled in programs designed as baccalaureate or higher degree programs; and (b) Adult programs for: (1) Persons who have already entered the labor market; (2) Persons who are unemployed; or (3) Persons who have completed or left high school and who are enrolled in organized programs of study for which credit is not given toward an associate or other degree. (Sec. 110(c); 20 U.S.C. 2310) § 400.315 Expenditures for programs in secondary schools. (a) The State shall expend from its allotment for the basic grant (Subpart 2) approximately the same amount of Federal funds for programs in secondary schools during fiscal years 1978 and 1979 as it had expended during fiscal years 1975 and 1976. (b) The State shall set forth in the five-year State plan its justification for the need to shift funds in the event the projected Federal expenditures for programs in secondary schools, in either fiscal year 1978 or 1979 are not within 95 percent of the amount of Federal funds expended for programs in secondary schools during fiscal years 1975 and 1976. (Interprets sec. 107(b)(3)(A); 20 U.S.C. 2307) $ 400.324 MAINTENANCE OF EFFORT § 400.321 Maintenance of fiscal effort at the State level. A State shall maintain its fiscal effort on either a per student basis or on an aggregate basis for vocational education compared to the amount expended in the previous year. (Sec. 111(b)(1); 20 U.S.C. 2311) § 400.322 Withholding of payments. The Secretary will not make any payments to a State in a fiscal year unless the Secretary finds that the fiscal effort of the State or vocational education on a per student basis or on an aggregate basis in the previous fiscal year was not less than the fiscal effort of the State on a per student basis or on an aggregate basis in the second preceding fiscal year. (Sec. 111(b)(1); 20 U.S.C. 2311) § 400.323 Five percent rule. Total State fiscal effort for vocational education in the preceding fiscal year shall not be considered reduced from the fiscal year effort of the second preceding fiscal year unless the per student expenditure or aggregate expenditure in the preceding year is less than that in the second preceding fiscal year by more than five percent. For example, a State which expends an aggregate of $10 million for vocational education in one fiscal year and an aggregate of $9,600,000 in the succeeding fiscal year will not be considered to have reduced fiscal effort for the purposes of the Vocational Education Act. (Interprets sec. 111(b)(1); 20 U.S.C. 2311) 8 400.324 Unusual circumstance rule. Any reduction in fiscal effort for any fiscal year by more than five percent will disqualify the State from receiving Federal funds unless the State is able to demonstrate to the satisfaction of the Secretary the following: (a) In the preceding fiscal year, the reduction was occasioned by unusual circumstances that could not have been fully anticipated or reasonably compensated for by the State. Unusual circumstances may include unfore § 400.327 Exceptions. The 5 percent rule applicable to the State in § 400.323 and the unusual circumstances rule in § 400.324 are also applicable to local educational agencies. (Interprets sec. 111(b)(1); 20 U.S.C. 2311) § 400.328 Maintenance of fiscal effort by postsecondary educational institutions. A postsecondary educational institution shall maintain its fiscal effort on either a per student basis or on an aggregate basis for vocational education compared with the amount expended in the previous fiscal year. (Sec. 111(b)(2); 20 U.S.C. 2311) § 400.402 Evaluation by State board. The State board shall, during the five-year period of the State plan, evaluate in quantitative terms the effectiveness of each formally organized program or project supported by Federal, State, and local funds. These evaluations shall be in terms of: (a) Planning and operational processes, such as: (1) Quality and availability of instructional offerings; (2) Guidance, counseling, and placement and follow-up services; (3) Capacity and condition of facilities and equipment; (4) Employer participation in cooperative programs of vocational education; (5) Teacher/pupil ratios; and (6) Teacher qualifications (b) Results of student achievement as measured, for example, by: |