Page:United States Statutes at Large Volume 108 Part 5.djvu/275

 PUBLIC LAW 103-382—OCT. 20, 1994 108 STAT. 3765 cational agency that is eligible for such payment than such agency would receive if such agency were not so eligible. "(b) STATE EQUALIZATION PLANS.— "(1) IN GENERAL.—^A State may reduce State aid to a local educational agency that receives a payment under section 8002 or 8003(b) (except the amount calculated in excess of 1.0 under subparagraph (B) of section 8003(a)(2)) or under the Act of September 30, 1950 (Public Law 874, 81st Congress) as such Act was in effect on the day preceding the date of enactment of the Improving America's Schools Act of 1994 (other than an increase in payments described in paragraphs (2)(B), (2)(C), (2)(D), or (3)(B)(ii) of section 3(d) of such Act of September 30, 1950) for any fiscal year if the Secretary determines, and certifies under subsection (c)(3)(A), that such State has in effect a program of State aid that equalizes expenditures for free public education among local educational agencies in such State. "(2) COMPUTATION.— "(A) IN GENERAL.— For purposes of paragraph (1), a program of State aid 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— "(i) 25 percent for fiscal year 1995, 1996, or 1997; and "(ii) 20 percent for fiscal year 1998 or 1999. "(B) OTHER FACTORS. — In making a determination under this subsection, the Secretary shall— "(i) disregard local educational agencies with perpupil expenditures or revenues above the 95th percentile or below the 5th percentile of such expenditures or revenues in the State; and "(ii) 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. "(3) EXCEPTION. — Notwithstanding paragraph (2), if the Secretary determines that the State has substantially revised its program of State aid, the Secretary may certify such program for any fiscal year only if— "(A) the Secretary determines, on the basis of projected data, that the State's program will meet the disparity standard described in paragraph (2) for the fiscal year for which the determination is made; and "(B) the State provides an assurance to the Secretary that, if final data do not demonstrate that the State's program met such standard for the fiscal year for which the determination is made, the State will pay to each

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