Local Taxpayer Relief Act - Amends the Elementary and Secondary Education Act of 1965 (ESEA) to make permanent amendments made to the Impact Aid program (which compensates local educational agencies [LEAs] for the financial burden of federal activities affecting their school districts) by the Impact Aid Improvement Act of 2012 that:
(Such amendments are currently set to expire on January 2, 2015.)
Alters the formula for determining the payments due LEAs for eligible federally-connected children.
Includes not only children in average daily attendance, but also those enrolled pursuant to a state open enrollment policy.
Continues an LEA's eligibility for such payments while activities associated with military base closures and realignments or force structure changes or relocations are ongoing.
Allows the calculation of such payments using current student counts instead of prior fiscal year data when LEAs experience a specified influx of new federally-connected students due to federal activities or the closure of an LEA that was receiving Impact Aid due to federally-connected children.
Requires the Secretary to allow LEAs to count their federally-connected children using the date they register their students for the fiscal year for which their application is filed.
Alters the formula for determining the construction payments due LEAs that are eligible for other Impact Aid payments.
Divides 80% of the construction funds evenly between LEAs impacted by military dependent children and LEAs impacted by children residing on Indian lands, with the remainder reserved for emergency repair and modernization grants to LEAs serving Indian lands or experiencing a specified influx of new students due to federal activities.
Alters the formula for determining whether a state's plan for equalizing assistance to its LEAs will except it from the prohibition on state aid to LEAs being affected by Impact Aid payments.
Requires new LEAs applying for Impact Aid to have boundaries established by state law and the authority to tax or receive an imputed local tax.
Reauthorizes appropriations for the Impact Aid program through FY2017.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1108 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1108
To reauthorize the impact aid program under the Elementary and
Secondary Education Act of 1965.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 6, 2013
Ms. Hirono (for herself and Mr. Thune) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To reauthorize the impact aid program under the Elementary and
Secondary Education Act of 1965.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Local Taxpayer Relief Act''.
SEC. 2. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
(a) Amendments.--Section 8002 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7702) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``for a fiscal year ending prior to October 1,
2003''; and
(B) in the flush text following paragraph (2), by
inserting ``or (h)'' after ``subsection (b)'';
(2) in subsection (b)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Application of current levied real property tax
rate.--In calculating the amount that a local educational
agency is eligible to receive for a fiscal year, the Secretary
shall apply the current levied real property tax rate for
current expenditures levied by fiscally independent local
educational agencies, or imputed for fiscally dependent local
educational agencies, to the current annually determined
estimated taxable value of such acquired Federal property as
calculated under paragraph (3).''; and
(B) by striking paragraph (3) and inserting the
following:
``(3) Determination of taxable value for eligible federal
property.--
``(A) In general.--In determining the total taxable
value of such acquired Federal property for fiscal year
2010 and each succeeding fiscal year, the Secretary
shall--
``(i) first determine the total taxable
value for the purpose of levying property tax
for school purposes for current expenditures of
real property located within the boundaries of
such local educational agency;
``(ii) then determine the per acre value of
the eligible Federal property by dividing the
total taxable value as determined in clause
(i), by the difference between the total acres
located within the boundaries of the local
educational agency and the number of Federal
acres eligible under this section; and
``(iii) then determine the total taxable
value of the eligible Federal property by
multiplying the per acre value as calculated
under clause (ii) by the number of Federal
acres eligible under this section.
``(B) Special rule.--In the case of Federal
property eligible under this section that is within the
boundaries of 2 or more local educational agencies, any
one of the local educational agencies affected may ask
the Secretary to calculate the per acre value of each
local educational agency as provided under subparagraph
(A) and apply the average of the per acre values to the
acres of the Federal property to the agency or agencies
making such request.'';
(3) in subsection (f), by striking paragraphs (4) and (5);
(4) by striking subsection (g) and inserting the following:
``(g) Former Districts.--
``(1) Consolidations.--For fiscal year 2006 and all
succeeding fiscal years, if a local educational agency
described in paragraph (2) is formed at any time after 1938 by
the consolidation of 2 or more former school districts, the
local educational agency may elect to have the Secretary
determine its eligibility and any amount for which the local
educational agency is eligible under this section for any
fiscal year on the basis of 1 or more of those former
districts, as designated by the local educational agency.
``(2) Eligible local educational agencies.--A local
educational agency referred to in paragraph (1) is--
``(A) any local educational agency that, for fiscal
year 1994 or any preceding fiscal year, applied, and
was determined to be eligible under, section 2(c) of
the Act of September 20, 1950 (Public Law 874, 81st
Congress), as that section was in effect for that
fiscal year; or
``(B) a local educational agency formed by the
consolidation of 2 or more districts, at least 1 of
which was eligible for assistance under this section
for the fiscal year preceding the year of the
consolidation, if--
``(i) for fiscal years 2006 through 2013,
the local educational had notified the
Secretary of the designation not later than 30
days after the date of enactment of the Local
Taxpayer Relief Act; and
``(ii) for fiscal year 2014 and any
subsequent fiscal year, the local educational
agency includes the designation in its
application under section 8005 or any timely
amendment to such application.
``(3) Availability of funds.--Notwithstanding any other
provision of law limiting the period during which the Secretary
may obligate funds appropriated for any fiscal year after 2005,
the Secretary may obligate funds remaining after final payments
have been made from any of such fiscal years to carry out this
subsection.'';
(5) in subsection (h)--
(A) in paragraph (1)--
(i) in the paragraph heading, by striking
``For pre-1995 recipients'' and inserting ``For
pre-2010 recipients''; and
(ii) by striking subparagraphs (A) and (B)
and inserting the following:
``(A) In general.--The Secretary shall first make a
foundation payment to each local educational agency
that is determined by the Secretary to be eligible to
receive a payment under this section for the fiscal
year involved and that filed a timely application, and
met, or has been determined by statute to meet, the
eligibility requirements of subsection (a) for fiscal
year 2009.
``(B) Amount.--
``(i) In general.--The amount of a payment
under subsection (b) for a local educational
agency shall be equal to the greater of 90
percent of the payment the local educational
agency received from dollars appropriated for
fiscal year 2009 or 90 percent of the average
payment that the local educational agency
received from dollars appropriated for fiscal
years 2006, 2007, 2008, and 2009, and shall be
calculated without regard to the provisions in
subsection (b)(1)(A)(i)(III) or (b)(1)(C).
``(ii) Exception.--In calculating such
average payment for a local educational agency
that did not receive a payment under subsection
(b) for 1 or more of the fiscal years between
fiscal year 2006 and 2009, inclusive, the
lowest such payment made to the agency for
fiscal year 2006, 2007, 2008, or 2009, shall be
treated as the payment that the agency received
under subsection (b) for each fiscal year for
which the agency did not receive such a
payment.''; and
(B) by striking paragraphs (2) through (4) and
inserting the following:
``(2) Foundation payments for new applicants.--
``(A) First year.--From any amounts remaining after
making payments under paragraph (1) and subsection
(i)(1) for the fiscal year involved, the Secretary
shall make a payment in an amount determined in
accordance with subparagraph (C), to each local
educational agency that the Secretary determines
eligible for a payment under this section for a fiscal
year after fiscal year 2009 and that did not receive a
payment under paragraph (1) for the fiscal year for
which such agency was determined eligible for such
payment.
``(B) Second and succeeding years.--For any
succeeding fiscal year after the first fiscal year that
a local educational agency receives a foundation
payment under subparagraph (A), the amount of the local
educational agency's foundation payment under this
paragraph for such succeeding fiscal year shall be
equal to the local educational agency's foundation
payment under this paragraph for the first fiscal year.
``(C) Amounts.--The amount of a payment under
subparagraph (A) for a local educational agency shall
be determined as follows:
``(i) Calculate the local educational
agency's maximum payment under subsection (b).
``(ii) Calculate the percentage that the
amount appropriated under section 8014(a) for
the most recent fiscal year for which the
Secretary has completed making payments under
this section is of the total maximum payments
for such fiscal year for all local educational
agencies eligible for a payment under
subsection (b) and multiply the agency's
maximum payment by such percentage.
``(iii) Multiply the amount determined
under clause (ii) by 90 percent.
``(D) Insufficient funds.--If the amount
appropriated under section 8014(a) of this title is
insufficient to pay the full amount determined under
this paragraph for all eligible local educational
agencies for this fiscal year, then the Secretary shall
ratably reduce the payment to each local educational
agency under this paragraph.
``(3) Remaining funds.--From any funds remaining after
making payments under paragraphs (1) and (2) for the fiscal
year involved, the Secretary shall make a payment to each local
educational agency that received a foundation payment under
paragraph (1) or (2) or subsection (i)(1), for the fiscal year
involved in an amount that bears the same relation to the
remainder as a percentage share determined for the local
educational agency (by dividing the maximum amount that the
agency is eligible to receive under subsection (b) by the total
of the maximum amounts for all such agencies) bears to the
percentage share determined (in the same manner) for all local
educational agencies eligible to receive a payment under this
section for the fiscal year involved, except that, for the
purpose of calculating a local educational agency's maximum
amount under subsection (b), data from the most current fiscal
year shall be used.
``(4) Data.--For each local educational agency that
received a payment under this section for fiscal year 2010
through the fiscal year in which the Local Taxpayer Relief Act
was enacted, the Secretary shall not make a payment under
paragraph (3) to a local educational agency that fails to
submit, within 60 days of the date the Secretary notified the
agency that the information is needed, the data necessary to
calculate the maximum amount of a payment under subsection (b)
for that local educational agency.'';
(6) by striking subsections (k) and (m); and
(7) by redesignating subsections (l) and (n) as subsections
(j) and (k), respectively.
(b) Effective Date.--Notwithstanding the date of enactment of this
Act, the amendments made by this section shall apply to applications
submitted for fiscal year 2010 and all succeeding fiscal years.
SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
Section 8003 of that Act (20 U.S.C. 7703) is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by inserting after ``such agency,''
the following: ``including those children enrolled in a
State that has a State open enrollment policy (but not
including those children enrolled in a distance
learning program not residing within the defined
boundaries of the agency),'';
(B) by striking paragraph (4) and inserting the
following:
``(4) Military installation and indian housing undergoing
renovation or rebuilding.--
``(A) Military installation housing.--Beginning in
fiscal year 2014, in determining the amount of a
payment for a local educational agency for children
described in paragraph (1)(D)(i), the Secretary shall
consider those children as if they were children
described in paragraph (1)(B) if the Secretary
determines, on the basis of a certification provided to
the Secretary of Defense, that those children would
have resided in housing on Federal property if the
housing was not undergoing renovation or rebuilding.
The total number of children treated as children
described in paragraph (1)(B) shall not exceed the
lessor of--
``(i) the total number of children eligible
under paragraph (1)(B) for the year prior to
the initiation of the housing project on
Federal property undergoing renovation or
rebuilding; or
``(ii) the total number of federally
connected children enrolled in the local
educational agency as stated in the application
filed for the payment for the year for which
the determination is made.
``(B) Indian lands.--Beginning in fiscal year 2014,
in determining the amount of a payment for a local
educational agency that received a payment for children
that resided on Indian lands in accordance with
paragraph (1)(C) for the fiscal year prior to the
fiscal year for which the local educational agency is
making an application, the Secretary shall consider
those children to be children described in paragraph
(1)(C) if the Secretary determines on the basis of
certification provided to the Secretary by a designated
representative of the Secretary of the Interior or the
Secretary of Housing and Urban Development that those
children would have resided in housing on Indian lands
if the housing was not undergoing renovation or
rebuilding. The total number of children treated as
children described in paragraph (1)(C) shall not exceed
the lessor of--
``(i) the total number of children eligible
under paragraph (1)(C) for the year prior to
the initiation of the housing project on Indian
lands undergoing renovation or rebuilding; or
``(ii) the total number of federally
connected children enrolled in the local
educational agency as stated in the application
filed for the payment for the year for which
the determination is made.
``(C) Eligible housing.--Renovation or rebuilding
shall be defined as projects considered as
capitalization, modernization, or restoration, as
defined by the Secretary of Defense or the Secretary of
the Interior (as the case may be) and are projects that
last more than 30 days, but do not include `sustainment
projects' such as painting, carpeting, or minor
repairs.''; and
(C) in paragraph (5)(A), by striking ``1984, to be
children described under paragraph (1)(B) if the
property described is within the fenced security
perimeter of the military facility upon which such
housing is situated.'' and inserting ``1984, or under
lease of off-base property under subchapter IV of
chapter 169 of part IV of subtitle (A) of title 10 of
the United States Code (10 U.S.C. 2871 et seq.) to be
children described under paragraph (1)(B) if the
property described is within the fenced security
perimeter of the military facility or attached to and
under any type of force protection agreement with the
military installation where such housing is
situated.'';
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (B)--
(I) in the subparagraph heading by
striking ``continuing'';
(II) by amending clause (i) to read
as follows:
``(i) In general.--A heavily impacted local
educational agency is eligible to receive a
basic support payment under subparagraph (A)
with respect to a number of children determined
under subsection (a)(1) if the agency--
``(I) is a local educational agency
whose boundaries are the same as a
Federal military installation or the
boundaries are the same as island
property designated by the Secretary of
the Interior to be property that is
held in trust by the Federal Government
and the agency has no taxing authority;
``(II) is a local educational
agency--
``(aa) that has an
enrollment of children
described in subsection (a)(1)
that constitutes a percentage
of the total student enrollment
of the agency that is not less
than 45 percent;
``(bb) that has a per-pupil
expenditure that is less than--
``(AA) for an
agency that has a total
student enrollment of
500 or more students,
125 percent of the
average per-pupil
expenditure of the
State in which the
agency is located; or
``(BB) for an
agency that has a total
student enrollment of
less than 500, 150
percent of the average
per-pupil expenditure
of the State in which
the agency is located,
or the average per
pupil expenditure of 3
or more comparable
local educational
agencies in the State
in which the agency is
located; and
``(cc) that is an agency
that--
``(AA) has a tax
rate for general fund
purposes that is at
least 95 percent of the
average tax rate for
general fund purposes
of comparable local
educational agencies in
the State; or
``(BB) was eligible
to receive a payment
under this subsection
for fiscal year 2013
and is located in a
State that by State law
has eliminated ad
valorem tax as a
revenue source for
local educational
agencies;
``(III) is a local educational
agency that has a total student
enrollment of not less than 25,000
students, of which not less than 50
percent are children described in
subsection (a)(1) and not less than
5,500 of such children are children
described in subparagraphs (A) and (B)
of subsection (a)(1); or
``(IV) is a local educational
agency that was eligible for and
received a payment under this paragraph
in fiscal year 2012 and--
``(aa) has an enrollment of
children described in
subsection (a)(1) that
constitutes a percentage of the
total student enrollment of the
agency that is not less than 20
percent;
``(bb) for the 3 fiscal
years preceding the fiscal year
for which the determination is
made, the average enrollment of
children who are not described
in subsection (a)(1) and who
are eligible for a free or
reduced price lunch under the
Richard B. Russell National
School Lunch Act constitutes a
percentage of the total student
enrollment of the agency that
is not less than 65 percent;
and
``(cc) has a tax rate for
general fund purposes which is
not less than 1.25 percent of
the average tax rate for
general fund purposes for
comparable local educational
agencies in the State.'';
(III) by amending clause (ii) to
read as follows:
``(ii) Loss of eligibility.--
``(I) In general.--Subject to
subclause (II), a heavily impacted
local educational agency that met the
requirements of clause (i) for a fiscal
year shall be ineligible to receive a
basic support payment under
subparagraph (A) if the agency fails to
meet the requirements of clause (i) for
a subsequent fiscal year, except that
such agency shall continue to receive a
basic support payment under this
paragraph for the fiscal year for which
the ineligibility determination is
made.
``(II) Exception.--A local
educational agency that is eligible
under subparagraph (A) but whose tax
rate for general fund purposes falls
below 95 percent of the average tax
rate for general fund purposes of local
educational agencies in the State for 2
consecutive years shall lose its
eligibility and be subject to subclause
(I).'';
(IV) by amending clause (iii) to
read as follows:
``(iii) Application.--With respect to the
first year for which a heavily impacted local
educational agency described in clause (i)
applies for a basic support payment under
subparagraph (A), or with respect to the first
fiscal year for which a heavily impacted local
educational agency applies for a basic support
payment under subparagraph (A) after becoming
ineligible under clause (i) for 1 or more
preceding fiscal years, the agency shall apply
for such payment at least 1 year prior to the
start of that fiscal year.''; and
(V) by adding the following after
clause (iii):
``(iv) Special rule.--Notwithstanding
clause (i)(II), a local educational agency
shall be considered eligible to receive a basic
support payment under subparagraph (A) with
respect to the number of children determined
under subsection (a)(1) if the agency--
``(I) has an enrollment of children
described in subsection (a)(1),
including, for purposes of determining
eligibility, those children described
in subparagraphs (F) and G) of such
subsection, that constitutes a
percentage of the total student
enrollment of the agency that is not
less than 35 percent; and
``(II) was eligible to receive
assistance under subsection (b)(2) for
fiscal year 2001.'';
(ii) by amending subparagraph (C) to read
as follows:
``(C) Maximum amount for heavily impacted local
educational agencies.--
``(i) In general.--The maximum amount that
a heavily impacted local educational agency is
eligible to receive under this paragraph for
any fiscal year is the sum of the total
weighted student units, as computed under
subsection (a)(2) and subject to clause (ii),
multiplied by the greater of--
``(I) four-fifths of the average
per-pupil expenditure of the State in
which the local educational agency is
located for the third fiscal year
preceding the fiscal year for which the
determination is made; or
``(II) four-fifths of the average
per-pupil expenditure of all of the
States for the third fiscal year
preceding the fiscal year for which the
determination is made.
``(ii) Special rule.--(I)(aa) For a local
educational agency with respect to which 35
percent or more of the total student enrollment
of the schools of the agency are children
described in subparagraph (D) or (E) (or a
combination thereof) of subsection (a)(1), and
has an enrollment of children described in
subparagraph (A), (B), or (C) of such
subsection equal to at least 10 percent of the
agency's total enrollment, the Secretary shall
calculate the weighted student units of those
children described in subparagraph (D) or (E)
of such subsection by multiplying the number of
such children by a factor of 0.55.
``(bb) For any local educational agency
that received a payment under this clause in
fiscal year 2012, the local educational agency
shall not be required to have an enrollment of
children described in subparagraph (A), (B), or
(C) of such subsection equal to at least 10
percent of the agency's total enrollment.
``(II) For a local educational agency that
has an enrollment of 100 or fewer children
described in subsection (a)(1), the Secretary
shall calculate the total number of weighted
student units for purposes of subsection (a)(2)
by multiplying the number of such children by a
factor of 1.75.
``(III) For a local educational agency that
does not qualify under subparagraph (B)(i)(I)
of this subsection and has an enrollment of
more than 100 but not more than 1,000 children
described in subsection (a)(1), the Secretary
shall calculate the total number of weighted
student units for purposes of subsection (a)(2)
by multiplying the number of such children by a
factor of 1.25.'';
(iii) by amending subparagraph (D) to read
as follows:
``(D) Maximum amount for large heavily impacted
local educational agencies.--(i)(I) Subject to clause
(ii), the maximum amount that a heavily impacted local
educational agency described in subclause (II) is
eligible to receive under this paragraph for any fiscal
year shall be determined in accordance with the formula
described in paragraph (1)(C).
``(II) A heavily impacted local educational agency
described in this subclause is a local educational
agency that has a total student enrollment of not less
than 25,000 students, of which not less than 50 percent
are children described in subsection (a)(1) and not
less than 5,500 of such children are children described
in subparagraphs (A) and (B) of subsection (a)(1).
``(ii) For purposes of calculating the maximum
amount described in clause (i), the factor used in
determining the weighted student units under subsection
(a)(2) with respect to children described in
subparagraphs (A) and (B) of subsection (a)(1) shall be
1.35.'';
(iv) by striking subparagraph (E);
(v) by redesignating subparagraph (F) as
subparagraph (E);
(vi) in subparagraph (E) (as so
redesignated by clause (v))--
(I) by striking clause (ii);
(II) by striking ``; and'' at the
end of clause (i) and inserting a
period; and
(III) by striking ``the Secretary''
and all that follows through ``shall
use'' and inserting ``the Secretary
shall use'';
(vii) by redesignating subparagraph (G) as
subparagraph (F);
(viii) in subparagraph (F) (as so
redesignated by clause (vii)), in the matter
preceding clause (i), by striking
``(C)(i)(II)(bb)'' and inserting
``(B)(i)(II)(bb)(BB)'';
(ix) by redesignating subparagraph (H) as
subparagraph (G); and
(x) in subparagraph (G) (as so redesignated
by clause (ix))--
(I) in clause (i)--
(aa) by striking ``(B),
(C), (D). or (E),'' and
inserting ``(B), (C), or
(D),'';
(bb) by striking ``by
reason of'' and inserting ``due
to'';
(cc) by inserting after
``clause (iii),'' the
following: ``or as the direct
result of base realignment and
closure or modularization as
determined by the Secretary of
Defense and force structure
change or force relocation,'';
and
(dd) by inserting before
the period at the end the
following: ``or during such
time as activities associated
with base closure and
realignment, modularization,
force structure change, or
force relocation is ongoing'';
and
(II) in clause (ii), by striking
``(D) or (E)'' in both places such term
appears and inserting ``(C) or (D)'';
(B) in paragraph (3)--
(i) in subparagraph (B)--
(I) by redesignating clause (iv) as
clause (v); and
(II) by inserting after clause
(iii) the following:
``(iv) For any local educational agency
that is providing a program of distant learning
to children not residing within the legally
defined boundaries of the agency, the Secretary
shall disregard such children from such
agency's total enrollment when calculating the
percentage under subclause (I) of clause (i)
and shall disregard any funds received for such
children when calculating the total current
expenditures attributed to the operation of
such agency when calculating the percentage
under subclause (II) of clause (i).'';
(ii) in subparagraph (C), by striking ``or
(E) of paragraph (2), as the case may be'' and
inserting ``of paragraph (2)''; and
(iii) by striking subparagraph (D) and
inserting the following:
``(D) Ratable distribution.--For any fiscal year
described in subparagraph (A) for which the sums
available exceed the amount required to pay each local
educational agency 100 percent of its threshold payment
the Secretary shall distribute the excess sums to each
eligible local educational agency that has not received
its full amount computed under paragraph (1) or (2) (as
the case may be) by multiplying--
``(i) a percentage, the denominator of
which is the difference between the full amount
computed under paragraph (1) or (2) (as the
case may be) for all local educational agencies
and the amount of the threshold payment as
calculated under subparagraphs (B) and (C) of
all local educational agencies, and the
numerator of which is the aggregate amount of
the excess sums by--
``(ii) the difference between the full
amount computed under paragraph (1) or (2) (as
the case may be) for the agency and the amount
of the threshold payment as calculated under
subparagraphs (B) and (C) of the agency.'';
(3) in subsection (c), by amending paragraph (2) to read as
follows:
``(2) Exception.--Calculation of payments for a local
educational agency shall be based on data from the fiscal year
for which the agency is making an application for payment if
such agency--
``(A) is newly established by a State, for the
first year of operation of such agency only;
``(B) was eligible to receive a payment under this
section for the previous fiscal year and has had an
overall increase in enrollment (as determined by the
Secretary in consultation with the Secretary of
Defense, the Secretary of Interior or other Federal
agencies)--
``(i) of not less than 10 percent, or 100
students, of children described in--
``(I) subparagraph (A), (B), (C),
or (D) of subsection (a)(1); or
``(II) subparagraph (F) or (G) of
subsection (a)(1), but only to the
extent such children are civilian
dependents of employees of the
Department of Defense or the Department
of Interior; and
``(ii) that is the direct result of closure
or realignment of military installations under
the base closure process or the relocation of
members of the Armed Forces and civilian
employees of the Department of Defense as part
of force structure changes or movements of
units or personnel between military
installations or because of actions initiated
by the Secretary of Interior or head of another
Federal agency; and
``(C) was eligible to receive a payment under this
section for the previous fiscal year and has had an
overall increase in enrollment (as determined by the
Secretary)--
``(i) of not less than 10 percent, or 100
students, of children described in subsection
(a)(1); and
``(ii) that is the direct result of the
closure of a local educational agency that
received a payment under subsection (b)(1) or
(b)(2) in the previous fiscal year.'';
(4) by amending subsection (e) to read as follows:
``(e) Hold Harmless.--
``(1) In general.--Subject to paragraph (2) the total
amount the Secretary shall pay a local education agency under
subsection (b)--
``(A) for fiscal year 2014 shall not be less than
95 percent of the total amount that the local
educational agency received under subsection (b)(1),
(b)(2) or (b)(2)(B)(ii) for fiscal year 2013;
``(B) for fiscal year 2015 shall not be less than
90 percent of the total amount that the local
educational agency received under subsection (b)(1),
(b)(2) or (b)(2)(B)(ii) for fiscal year 2013; and
``(C) for fiscal year 2016 shall not be less than
85 percent of the total amount that the local
educational agency received under subsection (b)(1),
(b)(2) or (b)(2)(B)(ii) for fiscal year 2013.
``(2) Maximum payment.--The total amount provided to a
local educational agency under subparagraph (A), (B), or (C) of
paragraph (1) for a fiscal year shall not exceed the maximum
basic support amount for such agency determined under paragraph
(1) or (2) of subsection (b), as the case may be.
``(3) Ratable reduction.--
``(A) In general.--If the sums made available under
this title for any fiscal year are insufficient to pay
the full amounts that all local educational agencies in
all States are eligible to receive under paragraph (1)
for such year, then the Secretary shall ratably reduce
the payments to all such agencies for such year.
``(B) Additional funds.--If additional funds become
available for making payments under paragraph (1) for
such fiscal year, payments that were reduced under
subparagraph (A) shall be increased on the same basis
as such payments were reduced.''; and
(5) by striking subsection (g).
SEC. 4. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.
Section 8005 of that Act (20 U.S.C. 7705) is amended by adding at
the end the following:
``(e) Student Count.--For the purpose of meeting the requirements
of section 222.35 of the Code of the Federal Regulations, the Secretary
shall establish a third option for an applicant when counting its
federally connected children by using the date established by the
applicant to register the students of such applicant for the fiscal
year for which the application is filed.''.
SEC. 5. CONSTRUCTION.
Section 8007 of that Act (20 U.S.C. 7707) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``40 percent''
and inserting ``80 percent'';
(B) in paragraph (2) by adding at the end the
following:
``(C) The agency is eligible under section
8003(b)(2) or is receiving a basic support payment
under circumstances described in section
8003(b)(2)(B)(ii).''; and
(C) by striking paragraph (3) and inserting the
following:
``(3) Amount of payments.--
``(A) Local educational agencies impacted by
military dependent children.--The amount of a payment
to each local educational agency described in this
subsection that is impacted by military dependent
children for a fiscal year shall be equal to--
``(i)(I) 40 percent of the amount
appropriated under section 8014(e) for such
fiscal year; divided by
``(II) the number of children described in
subparagraphs (B) and (D)(i) of section
(8003)(a)(1) who were in average daily
attendance for all local educational agencies
described in paragraph (2), including the
number of children attending a school facility
described in section 8008(a) if the Secretary
does not provide assistance for the school
facility under that section for the fiscal
year; multiplied by
``(ii) the number of children determined
for such agency;
``(I) but not less than $25,000,
except that this subparagraph shall not
apply if the amount available to carry
out paragraph (1) for such fiscal year
is less than $32,000,000; and
``(II) not more than $4,000,000.
``(B) Local educational agencies impacted by
children who reside on indian lands.--The amount of a
payment to each local educational agency described in
this subsection that is impacted by children who reside
on Indian lands for a fiscal year shall be equal to--
``(i)(I) 40 percent of the amount
appropriated under section 8014(e) for such
fiscal year; divided by
``(II) the number of children described in
section 8003(a)(1)(C) who were in average daily
attendance for all local educational agencies
described in paragraph (2); multiplied by
``(ii) the number of children determined
for such agency;
``(I) but not less than $25,000,
except that this subparagraph shall not
apply if the amount available to carry
out paragraph (1) for such fiscal year
is less than $32,000,000; and
``(II) not more than $4,000,
000.''; and
(2) in subsection (b)--
(A) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``60 percent'' and
inserting ``20 percent'';
(B) in paragraph (3)--
(i) in subparagraph (A), in the matter
preceding clause (i), by inserting after ``an
emergency grant under paragraph (2)(A)'' the
following: ``if the agency is covered by
paragraph (7), or'';
(ii) in subparagraph (C)(i)(I), by striking
``the agency meets at least one'' and all that
follows through the period at the end and
inserting ``the number of children determined
under section 8003(a)(1)(C) for the agency for
the preceding school year constituted at least
40 percent of the total student enrollment in
the schools of the agency during the preceding
school year.'';
(iii) by striking subclause (II) of
subparagraph (D)(ii) and inserting the
following:
``(II) The number of children
determined under section 8003(a)(1)(C)
for the school for the preceding school
year constituted at least 40 percent of
the total student enrollment in the
school during the preceding school
year.'';
(C) in paragraph (4)(C), by striking ``(A), (B),
(C), and (D)'' and inserting ``(A) and (C)'';
(D) by redesignating paragraph (7) as paragraph
(8); and
(E) by inserting after paragraph (6) the following:
``(7) Special rule.--Notwithstanding paragraphs
(3)(C)(i)(I) and (3)(D)(ii)(II), a local educational agency is
eligible to receive a grant under this subsection not to exceed
$4,000,000 in any one fiscal year if such agency--
``(A) was eligible to receive a payment under
section 8003 for the fiscal year prior to the year for
which the application is made; and
``(B) has had an overall increase in enrollment--
``(i) during the period between the end of
the school year preceding the fiscal year for
which the application is made and the beginning
of the school year immediately preceding that
school year;
``(ii) of not less than 250 students or 10
percent (whichever is lower), of children
described in--
``(I) subparagraph (A), (B), (C),
or (D) of section 8003(a)(1); or
``(II) subparagraph (F) or (G) of
section 8003(a)(1), but only to the
extent such children are civilian
dependents of employees of the
Department of Defense; and
``(iii) that is the direct result of one or
more of the following:
``(I) Base realignment and closure
or global rebasing, as determined by
the Secretary of Defense.
``(II) Force structure changes or
force reductions.
``(III) An action initiated by the
Secretary of Interior or head of
another Federal agency.''.
SEC. 6. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.
Section 8009 of that Act (20 U.S.C. 7709) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by inserting before the
period at the end the following: ``and for which the
average per pupil expenditure is equal to or greater
than the average per pupil expenditure of all the
States in the third fiscal year preceding the fiscal
year for which the State is applying for equalization
under the section''; and
(B) by amending paragraph (2) to read as follows:
``(2) Computation.--
``(A) State currently qualifying.--For purposes of
paragraph (1), a program of State aid for any State
qualifying under this section for fiscal year 2006
equalizes expenditures among local educational agencies
if, in the second fiscal year preceding the fiscal year
for which the determination is made the amount of per-
pupil expenditures made by, or per-pupil revenues
available to, the local educational agency in the State
with the highest such per-pupil expenditures or
revenues did not exceed the amount of such per-pupil
expenditures made by, or per-pupil revenues available
to, the local educational agency in the State with the
lowest such expenditures or revenues by more than 25
percent as calculated under subparagraph (B)(ii).
``(B) Other factors.--Notwithstanding regulations
in effect prior to the enactment of this subparagraph,
in making a determination under this subparagraph, the
Secretary shall--
``(i) arrange all local educational
agencies in the State by per-pupil expenditures
or revenues in descending order from the
highest to the lowest;
``(ii) using per-pupil expenditures or
revenues as the only criteria disregard those
local educational agencies that are spending
above the 95th percentile and those spending
below the 5th percentile;
``(iii) identify the local educational
agency at the 95th percentile and the local
educational agency at the 5th percentile;
``(iv) subtract the amount of per-pupil
expenditures or revenues of the local
educational agency at the 5th percentile from
the amount of per-pupil expenditures or
revenues of the local educational agency at the
95th percentile and divide the difference by
the per-pupil expenditures or revenues of the
local educational agency at the 5th percentile;
and
``(v) take into account the extent to which
a program of State aid reflects the additional
cost of providing free public education in
particular types of local educational agencies
such as those that are geographically isolated,
or to particular types of students, such as
children with disabilities.
``(C) New states applicants.--
``(i) In general.--For purposes of
paragraph (1), a program of State aid for any
State equalizing under this section after
fiscal year 2006 equalizes expenditures among
local educational agencies if, in the second
fiscal year preceding the fiscal year for which
the determination is made, the amount of per-
pupil expenditures made by, or per-pupil
revenues available to, the local educational
agency in the State with the highest such per-
pupil expenditures or revenues did not exceed
the amount of such per-pupil expenditures made
by, or per-pupil revenues available to, the
local educational agency in the State with the
lowest such expenditures or revenues by more
than 10 percent as calculated under clause
(ii).
``(ii) Other factors.--In making a
determination under this subparagraph, the
Secretary, notwithstanding regulations in use
prior to the enactment of the Local Taxpayer
Relief Act, shall--
``(I) arrange all local educational
agencies in the State by per pupil
expenditures or revenues in descending
order from the highest to the lowest;
``(II) using per-pupil expenditures
or revenues as the only criteria
disregard those local educational
agencies that are spending above the
95th percentile and those spending
below the 5th percentile;
``(III) identify the local
educational agency at the 95th
percentile and the local educational
agency at the 5th percentile;
``(IV) subtract the amount of per-
pupil expenditures or revenues of the
local educational agency at the 5th
percentile from the amount of per-pupil
expenditures or revenues of the local
educational agency at the 95th
percentile and divide the difference by
the per-pupil expenditures or revenues
of the local educational agency at the
5th percentile; and
``(V) take into account the extent
to which a program of State aid
reflects the additional cost of
providing free public education in
particular types of local educational
agencies, such as those that are
geographically isolated, or to
particular types of students, such as
children with disabilities.''; and
(2) in subsection (d)(2)--
(A) by striking ``A State'' and inserting the
following:
``(A) In general.--A State''; and
(B) by adding at the end of the following:
``(B) States that are not equalized states.--A
State that has not been approved as an equalized State
under subsection (b) shall not consider funds received
under section 8002 or section 8003 of this title in any
State formula or place a limit or direct the use of
such funds or consider such funds.''.
SEC. 7. TIMELY PAYMENTS.
Section 8010 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7710) is amended by adding at the end the following:
``(d) Timely Payments.--
``(1) In general.--Subject to paragraph (2) the Secretary
shall pay a local educational agency the full amount that the
agency is eligible to receive under this title for a fiscal
year not later than September 30 of the fiscal year following
the fiscal year in which such amount has been appropriated if,
not later than 1 calendar year following the fiscal year in
which such amount has been appropriated, each local educational
agency that is eligible to receive funds under this title for
such fiscal year submits to the Secretary all the data and
information necessary for the Secretary to pay the full amount
that the agency is eligible to receive under this title for
such fiscal year.
``(2) Payments with respect to fiscal years in which
insufficient funds are appropriated.--For a fiscal year in
which the amount appropriated under section 8014 is
insufficient to pay the full amount a local educational agency
is eligible to receive under this title, paragraph (1) shall be
applied by substituting `is available to pay the agency' for
`the agency is eligible to receive' each place it appears.''.
SEC. 8. DEFINITIONS.
Section 8013 of that Act (20 U.S.C. 7713) is amended--
(1) in paragraph (1) by striking ``and Marine Corps'' and
inserting ``Marine Corps, and Coast Guard'';
(2) in paragraph (4)--
(A) in the first sentence thereof, by striking
``part A of title I and title VI'' and inserting
``title I and part A of title V''; and
(B) in the second sentence, by striking ``be
determined'' and inserting ``be made'';
(3) in paragraph (5)(A)--
(A) in clause (ii)--
(i) in subclause (IV), by striking ``; or''
and inserting a semicolon;
(ii) in subclause (V), by inserting ``or''
after the semicolon; and
(iii) by adding at the end the following:
``(VI) exempt of taxation real
property and personal property
identified by a local governmental
entity, including State government, if
upon such property resides a child
whose parents or guardians are
certified to live on such property is
considered to meet the eligibility
requirements of section 151.4 of part
150 of subchapter H of title 25, Code
of Federal Regulations;''; and
(B) in clause (iii)--
(i) by amending subsclause (II) to read as
follows:
``(II) used to provide housing for
homeless children at closed military
installations pursuant to section 501
of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11411);'';
and
(ii) by amending subclause (III) to read as
follows:
``(III) used for affordable housing
assisted under the Native American
Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C.
4101 et.seq.); or'';
(4) in paragraph (8)(A), by inserting commas before and
after ``and verified by''; and
(5) in paragraph (9)--
(A) by amending subparagraph (A) to read as
follows:
``(A) In general.--Except as provided in
subparagraph (B), the term `local educational agency'--
``(i) means a board of education or other
legally constituted local school authority
having administrative control and direction of
free public education in a county, township,
independent school district, or other school
district; and
``(ii) includes any State agency that
directly operates and maintains facilities for
providing free public education; and that
except for those local educational agencies
determined to be eligible to receive a payment
under section 8003 prior to the date of the
enactment of the Local Taxpayer Relief Act,
when submitting an application under this title
for the first time on or after the date of the
enactment of such Act, has the authority to tax
and has boundaries as defined by applicable
State law for the purposes of levying such
taxes, or has been granted the authority to
receive an imputed tax from a city, county,
township, or other general purpose political
subdivision of a State.''; and
(B) in subparagraph (B), in the matter preceding
clause (i), by inserting a comma after ``Secretary
determines''.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
Section 8014 of that Act (20 U.S.C. 7714) is amended--
(1) in subsection (a), by striking ``$32,000,000 for fiscal
year 2000 and such sums as may be necessary for each of the
seven succeeding fiscal years'' and inserting ``such sums as
may be necessary for fiscal years 2014 through 2017'';
(2) in subsection (b), by striking ``$809,400,000 fiscal
year 2000 and such sums as may be necessary for each of the
seven succeeding fiscal years'' and inserting ``such sums as
may be necessary for fiscal years 2014 through 2017'';
(3) in subsection (c), by striking ``$50,000,000 for fiscal
year 2000 and such sums as may be necessary for each of the
seven succeeding fiscal years'' and inserting ``such sums as
may be necessary for fiscal years 2014 through 2017'';
(4) by redesignating subsection (e) as subsection (d);
(5) in subsection (d) (as so redesignated by paragraph
(4)), by striking ``$10,052,000 for fiscal year 2000 and such
sums as may be necessary for fiscal year 2001, $150,000,000 for
fiscal year 2002, and such sums as may be necessary for each of
the five succeeding fiscal years'' and inserting ``such sums as
may be necessary for fiscal years 2014 through 2017'';
(6) by redesignating subsection (f) as subsection (e);
(7) in subsection (e) (as so designated by paragraph (6)),
by striking ``$5,000,000 for fiscal year 2000 and such sums as
may be necessary for each of the seven succeeding fiscal
years'' and inserting ``such sums as may be necessary for
fiscal years 2014 through 2017''; and
(8) by adding at the end of the following:
``(f) Allocation of Dollars From Previous Fiscal Years.--When final
payments are made for a fiscal year the Secretary shall add any
remaining funds to those funds appropriated for such section for the
next fiscal year for the purpose of making payments subject to the
provisions of the applicable section.''.
SEC. 10. ADDITIONAL AND CONFORMING AMENDMENTS.
(a) Subpart 20 of Part D of Title V.--Subpart 20 (20 U.S.C. 7281 et
seq.) of part D of title V of that Act (relating to additional
assistance for certain local educational agencies impacted by Federal
property acquisition) is repealed.
(b) Title VIII.--Title VIII of Elementary and Secondary Education
Act (20 U.S.C. 7701 et seq.) is further amended--
(1) in section 8004 (20 U.S.C. 7704)--
(A) in subsection (e)(1)(B)(i), by striking
``involved, or if'' and inserting ``involved or, if'';
and
(B) in subsection (f), by striking ``upon'' and
inserting ``on'';
(2) in section 8008(a) (20 U.S.C. 7708(a)), by striking
``section 8014(f)'' and inserting ``section 8014(e)'';
(3) in section 8010 (20 U.S.C. 7710)--
(A) in subsection (b), by striking ``require'' and
inserting ``need''; and
(B) in subsection (c)(1)--
(i) in subparagraph (A), by striking
``paragraph (3)'' and inserting ``paragraph
(2)''; and
(ii) in subparagraph (B), by striking
``paragraph (3)'' and inserting ``paragraph
(2)''; and
(4) in section 8011(a) (20 U.S.C. 7711 (a)), by striking
``or under'' and all that follows through ``of 1994)''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
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