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1 the allotment (or portion thereof) of such State for such 2 year under subsection (c) or (d) shall be available for re3 allotment from time to time, on such date or dates during 4 such year as the Secretary may fix, to other States in pro5 portion to the original amount of the allotments to such other 6 States under such subsection for that year, but with such 7 proportionate amount for any of such other States being 8 reduced by the extent it exceeds the amount the Secretary 9 estimates such State needs and will be able to use; and the 10 total of such reductions shall be reallotted in the same manner 11 among the States whose proportionate amounts were not so 12 reduced. Any amount for a fiscal year so reallotted to a State 13 under this subsection shall be deemed part of its allotment 14 under such subsection (c) or (d), as the case may be, for 15 such year.

16 (f) The amounts appropriated and allotted pursuant to 17 this Act shall be paid to the States at such intervals and in 18 such installments as the Secretary may determine. Such amounts paid for any purpose under this Act shall also be 20 available for construction to carry out such purpose.

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DISTRIBUTION OF SHARED REVENUES WITHIN EACH

STATE

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23

SEC. 5. (a) Each State shall pay to each of its local

24 educational agencies for a fiscal year an amount equal to the

sums allotted to such State under section 4 (a) for such year

1

on account of the number of children in average daily at

2 tendance who resided on Federal property in the school dis

3 trict of such agency.

4 (b) (1) From the sums allotted to a State under section

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4 (c) for the fiscal year ending June 30, 1974, such State

shall pay to each of its local educational agencies an amount

7 equal to the amount paid to each such agency for the fiscal 8 year ending June 30, 1973, under title I of the Elementary 9 and Secondary Education Act of 1965.

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11

(2) From the remainder of such sums and from the

sums allotted to such State under section 4 (c) for any other 12 fiscal year, such State shall retain such amounts as it deems 13 necessary for meeting the special educational needs of ne14 glected or delinquent children and migratory children of mi15 gratory agricultural workers, except that the amount re16 tained by such State under this paragraph for any fiscal year shall not exceed an amount equal to the expenditure 18 index for such State for such year multiplied by the number 19 of such children in such State during such year.

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(3) From the remainder of the sums allotted to such 21 State under section 4 (c) for a fiscal year and not paid to 22 any local educational agency under paragraph (1) nor re23 tained under paragraph (2), such State shall pay to each 24 of its local educational agencies which has more than five 25 thousand children aged five to seventeen, inclusive, from

9

1 families with incomes below the poverty level, or has more 2 than 15 per centum of the total enrollment of its schools 3 consisting of such children, an amount equal the product

4

5

of

(A) the expenditure index for such State for such year multiplied by

(B) the number of such children from such families

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in the school district of such agency,

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9 less any amount paid to such agency under paragraph (1). (4) If for any fiscal year the portion of the sums 11 allotted to a State under section 4 (c) and available for pay12 ments under paragraph (3) of this subsection are insufficient 13 to make the payments to all local educational agencies re14 quired by such paragraph, such State shall reduce the pay15 ment to each local educational agency under such paragraph 16 by the percentage by which such portion of the sums so 17 allotted and available is less than the total of the payments 18 required by such paragraph for all such agencies.

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(5) If the allotment to such State under section 4 (c) 20 for any fiscal year exceeds the amounts required under para21 graphs (1), (2), and (3) of this subsection, such State 22 shall rank all of its local educational agencies which are not 23 eligible for payments for such year under paragraph (3) by 24 the number of children in the school district of each such

II.R. 5823- -2

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1 agency aged five to seventeen, inclusive, from families with 2 incomes below the poverty level, or, if such State so elects, 3 by the percentage which the number of such children in each 4 such district is of the total number of children aged five to 5 seventeen, inclusive, in such district. Subject to clause (A) 6 of paragraph (6) of this subsection, such State shall then 7 make payments to such agencies as though they were eli8 gible under paragraph (3), beginning with the agency or 9 agencies with the largest number, or, if such State has so 10 elected, the largest percentage, of such children from such 11 families, and following such order of ranking until the re12 maining portion of such allotment is exhausted. 13 (6) No local educational agency may receive payments 14 under this subsection for any fiscal year unless

(A) the total amount of such payments for such year to such agency is at least $10,000,

(B) the State agency (designated under section 9(a)) determines, in accordance with such criteria as the Secretary may prescribe, that the services provided

in each of the schools of such local agency with funds

other than funds received under this Act will for such

year be comparable with the services so provided in all

of the other schools of such local agency,

(C) such local agency provides satisfactory assurance to the State agency (designated under section

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1 9(a)) that if such State agency does not conduct such

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3

4

5

6

7

8

9

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evaluations of programs and projects carried out with

funds paid to such local agency under this subsection as the Secretary may require, such local agency will do so, and

(D) such local agency provides satisfactory assurance to the State agency (designated under section

9(a)) that it will comply with the applicable provisions of this Act.

(7) Each local educational agency which receives a 11 payment for a fiscal year under this section shall rank all 12 of its schools by the number of educationally deprived chil13 dren enrolled in such schools, or, if such agency so chooses, 14 by the percentage which the number of such children en15 rolled in any school is of the total number of such children 16 enrolled in such school, except that, upon the approval of 17 the State agency designated under section 9 (a), such local 18 educational agency may, for the purpose of such ranking, 19 group its schools by the grade levels in such schools, each 20 such group containing all of such schools having the same 21 grade levels. Programs and projects carried out with pay22 ments received by such agency under this section for such 23 year shall be designed in such a manner that the total cost 24 (consistent with cost allocation criteria prescribed by the 25 Secretary) of such programs and projects for such year shall