In general
A local educational agency may receive funds under a covered program for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of the agency and the State with respect to the provision of free public education by the agency for the preceding fiscal year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year, subject to the requirements of subsection (b).
Reduction in case of failure to meet
In general
The State educational agency shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion by which a local educational agency fails to meet the requirement of subsection (a) of this section by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the local agency), if such local educational agency has also failed to meet such requirement (as determined using the measure most favorable to the local agency) for 1 or more of the 5 immediately preceding fiscal years.
Special rule
No such lesser amount shall be used for computing the effort required under subsection (a) of this section for subsequent years.
Waiver
Pub. L. 89–10, title VIII, § 8521Pub. L. 107–110, title IX, § 901115 Stat. 1980Pub. L. 114–95, title VIII129 Stat. 2088(, formerly title IX, § 9521, as added , , ; renumbered title VIII, § 8521, and amended , §§ 8001(a)(6), 8019, , , 2089, 2112.)
Editorial Notes
Prior Provisions
Pub. L. 89–10, title IX, § 9201Pub. L. 103–382, title I, § 101108 Stat. 3794Pub. L. 107–110A prior section 7901, , as added , , , set forth short title of the Native Hawaiian Education Act, prior to the general amendment of former subchapter IX of this chapter by .
Amendments
Pub. L. 114–95, § 8019(1)2015—Subsec. (a). , inserted “, subject to the requirements of subsection (b)” after “for the second preceding fiscal year”.
Pub. L. 114–95, § 8019(2)Subsec. (b)(1). , inserted before period at end “, if such local educational agency has also failed to meet such requirement (as determined using the measure most favorable to the local agency) for 1 or more of the 5 immediately preceding fiscal years”.
Pub. L. 114–95, § 8019(3)Subsec. (c)(1). , inserted “or a change in the organizational structure of the local educational agency” after “such as a natural disaster”.
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Pub. L. 114–95section 5 of Pub. L. 114–95section 6301 of this titleAmendment by effective , except with respect to certain noncompetitive programs and competitive programs, see , set out as a note under .