1 each State the amount which the local educational agencies 2 of that State are entitled to receive under this title. 3 (2) From the funds paid to it pursuant to paragraph 4 (1) cach State educational agency shall distribute to each 5 local educational agency of the State which has submitted an 6 application approved pursuant to section 103 the amount for 7 which such application has been approved, except that this 8 amount shall not exceed the basic grant to which such agency 9 is entitled pursuant to section 102. 10 (b) The Commissioner shall pay to each State an 11 amount equal to the amount expended by it for the proper 12 and efficient performance of its duties under this title (includ13 ing technical assistance for the measurements and evalua14 tions required by section 103), except that the total of such 15 payments in any fiscal year shall not exceed 16 17 18 19 20 21 22 (1) 1 per centum of the total grants made to local educational agencies of such State within that fiscal year; or (2) $150,000, whichever is the greater, or $25,000 in the case of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Trust Territory of the Pacific Islands. 1 REDUCTIONS WIIERE NECESSITATED BY INSUFFICIENT 2 APPROPRIATIONS 3 SEC. 107. (a) If for any fiscal year the amount ap 4 propriated is insufficient to provide to local educational agen 5 6 7 cies the full amount of their entitlements under section 102, the amount of each such agency's entitlement shall be reduced by a percentage (which shall be uniform for each such 8 agency) which will result in allocations which do not exceed the appropriations available therefor. 9 10 (b) In case additional funds become available during 11 any fiscal year for making payments under this title amounts 12 13 14 15 reduced pursuant to subsection (a) shall be increased on the same basis that they were reduced. TITLE II-EQUALIZATION GRANTS FINDING AND PURPOSE 16 SEC. 201. (a) The Congress finds that the Federal 17 Government has an obligation to assist the States in equal18 izing the resources available within the States so that an 19 opportunity to obtain an education appropriate to individual 20 need will be available to all children regardless of their 21 place of residence within the States. 22 (b) It is therefore the purpose of this title to provide 1 financial assistance to the States to assist them in equalizing 2 educational opportunity. 3 4 CREATION OF TRUST FUND SEC. 202. (a) (1) There is created in the books of the 5 Treasury of the United States a trust fund to be known as 6 the Education Trust Fund (hereinafter referred to as the 7 "trust fund"), which shall remain available without fiscal 8 year limitation and shall consist of the amounts appropriated 9 to it as provided in subsections (b) and (c). 10 (2) The Commissioner shall be the trustee of the trust. 11 fund and shall report to the Congress not later than March 1 12 of each year on the operation and status of the trust fund 13 during the preceding fiscal year. 14 (b) There are authorized to be appropriated and de15 posited in the trust fund, for the fiscal year ending June 30, 16 1974, and for each of the succeeding fiscal years, such sums 17 as the States may be entitled to in equalization grants for 18 each fiscal year pursuant to section 203. 19 (c) There is also authorized to be appropriated and de20 posited in the trust fund for each fiscal year an amount 21 equal to not more than 2 per centum of the amount appro22 priated for such year for payments to States under subsection 23 (b). The Commissioner shall allot the amount appropriated 24 pursuant to this subsection among Puerto Rico, Guam, 25 American Samoa, the Virgin Islands, and the Trust Ter 1 ritory of the Pacific Islands according to their respective 2 needs for such assistance under this title. 3 4 AMOUNT OF EQUALIZATION GRANTS SEC. 203. (a) Upon approval of a State's application 5 for an equalization grant under section 204, the Commis6 sioner shall pay out of the trust fund to each State the 7 amount to which it is entitled under this section. 8 (b) The amount of an equalization grant to which a Stato is entitled shall be an amount equal to the product 10 obtained by multiplying (1) the number of children in average daily membership in the elementary and secondary schools in the State by (2) (A) $200 for the first fiscal year in which the State participates in the program authorized by this title; (B) $300 for the second such fiscal year; (C) $400 for the third such fiscal year; 15 16 17 18 19 (D) $500 for the fourth such fiscal 20 21 225 22 year; and (E) $600 for each succeeding fiscal year. APPLICATIONS FOR EQUALIZATION GRANTS SEC. 204. (a) Any State desiring to receive its entitle 23 ment for equalization grants under this title, in lieu of basic 24 grants under title I of this Act, shall submit to the Com25 missioner a State plan to achieve an equalization of resources 1 for elementary and secondary education within such State. 2 within five fiscal years of the date of its application. 3 (b) The equalization plan referred to in subsection (a) 4 of this section must guarantee that (1) the quality of education provided to a child within that State cannot be the result of the wealth of the school district in which he attends school but rather must result from the wealth of the State taken as a whole; (2) by the end of the fifth fiscal year of such State's participation in this program the per pupil expenditure (exclusive of Federal funds, except for funds provided under this program) of any local educational agency within such State (not including additional expenditures commensurate with need and cost as required by para graphs (3) and (4) of this subsection) shall not vary by more than 10 per centum from such expenditure in any other local educational agency within such State; (3) amounts commensurate with their needs are expended on children with greater educational needs, including educationally disadvantaged, handicapped, and vocational education students; (4) amounts commensurate with the costs are ex pended in school districts with greater costs, including |