DEPARTMENT OF
EDUCATION
State Fiscal
Stabilization Fund
For necessary
expenses for a State Fiscal Stabilization Fund,
$53,600,000,000, which shall be administered by
the Department of Education.
GENERAL
PROVISIONS--THIS TITLE
SEC. 14001.
ALLOCATIONS.
(a) Outlying
Areas- From the amount appropriated to carry out
this title, the Secretary of Education shall
first allocate up to one-half of 1 percent to
the outlying areas on the basis of their
respective needs, as determined by the
Secretary, in consultation with the Secretary of
the Interior, for activities consistent with
this title under such terms and conditions as
the Secretary may determine.
(b) Administration
and Oversight- The Secretary may, in addition,
reserve up to $14,000,000 for administration and
oversight of this title, including for program
evaluation.
(c) Reservation
for Additional Programs- After reserving funds
under subsections (a) and (b), the Secretary
shall reserve $5,000,000,000 for grants under
sections 14006 and 14007.
(d) State
Allocations- After carrying out subsections (a),
(b), and (c), the Secretary shall allocate the
remaining funds made available to carry out this
title to the States as follows:
(1) 61 percent
on the basis of their relative population of
individuals aged 5 through 24.
(2) 39 percent
on the basis of their relative total
population.
(e) State Grants-
From funds allocated under subsection (d), the
Secretary shall make grants to the Governor of
each State.
(f) Reallocation-
The Governor shall return to the Secretary any
funds received under subsection (e) that the
Governor does not award as subgrants or
otherwise commit within two years of receiving
such funds, and the Secretary shall reallocate
such funds to the remaining States in accordance
with subsection (d).
SEC. 14002. STATE
USES OF FUNDS.
(1) IN
GENERAL- For each fiscal year, the Governor
shall use 81.8 percent of the State's
allocation under section 14001(d) for the
support of elementary, secondary, and
postsecondary education and, as applicable,
early childhood education programs and
services.
(2) RESTORING
STATE SUPPORT FOR EDUCATION-
(A) IN
GENERAL- The Governor shall first use
the funds described in paragraph (1)--
(i) to
provide the amount of funds, through
the State's primary elementary and
secondary funding formulae, that is
needed--
(I) to restore, in each of
fiscal years 2009, 2010, and
2011, the level of State support
provided through such formulae
to the greater of the fiscal
year 2008 or fiscal year 2009
level; and
(II) where applicable, to allow
existing State formulae
increases to support elementary
and secondary education for
fiscal years 2010 and 2011 to be
implemented and allow funding
for phasing in State equity and
adequacy adjustments, if such
increases were enacted pursuant
to State law prior to October 1,
2008.
(ii)
to provide, in each of fiscal years
2009, 2010, and 2011, the amount of
funds to public institutions of
higher education in the State that
is needed to restore State support
for such institutions (excluding
tuition and fees paid by students)
to the greater of the fiscal year
2008 or fiscal year 2009 level.
(B)
SHORTFALL- If the Governor determines
that the amount of funds available under
paragraph (1) is insufficient to
support, in each of fiscal years 2009,
2010, and 2011, public elementary,
secondary, and higher education at the
levels described in clauses (i) and (ii)
of subparagraph (A), the Governor shall
allocate those funds between those
clauses in proportion to the relative
shortfall in State support for the
education sectors described in those
clauses.
(C) FISCAL
YEAR- For purposes of this paragraph,
the term `fiscal year' shall have the
meaning given such term under State law.
(3) SUBGRANTS
TO IMPROVE BASIC PROGRAMS OPERATED BY LOCAL
EDUCATIONAL AGENCIES- After carrying out
paragraph (2), the Governor shall use any
funds remaining under paragraph (1) to
provide local educational agencies in the
State with subgrants based on their relative
shares of funding under part A of title I of
the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311 et seq.) for the
most recent year for which data are
available.
(b) Other
Government Services-
(1) IN
GENERAL- The Governor shall use 18.2 percent
of the State's allocation under section
14001 for public safety and other government
services, which may include assistance for
elementary and secondary education and
public institutions of higher education, and
for modernization, renovation, or repair of
public school facilities and institutions of
higher education facilities, including
modernization, renovation, and repairs that
are consistent with a recognized green
building rating system.
(2)
AVAILABILITY TO ALL INSTITUTIONS OF HIGHER
EDUCATION- A Governor shall not consider the
type or mission of an institution of higher
education, and shall consider any
institution for funding for modernization,
renovation, and repairs within the State
that--
(A)
qualifies as an institution of higher
education, as defined in subsection
14013(3); and
(B)
continues to be eligible to participate
in the programs under title IV of the
Higher Education Act of 1965.
(c) RULE OF
CONSTRUCTION- Nothing in this section shall
allow a local educational agency to engage in
school modernization, renovation, or repair that
is inconsistent with State law.
SEC. 14003. USES
OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.
(a) In General- A
local educational agency that receives funds
under this title may use the funds for any
activity authorized by the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6301
et seq.) (`ESEA'), the Individuals with
Disabilities Education Act (20 U.S.C. 1400 et
seq.) (`IDEA'), the Adult and Family Literacy
Act (20 U.S.C. 1400 et seq.), or the Carl D.
Perkins Career and Technical Education Act of
2006 (20 U.S.C. 2301 et seq.) (`the Perkins
Act') or for modernization, renovation, or
repair of public school facilities, including
modernization, renovation, and repairs that are
consistent with a recognized green building
rating system.
(b) PROHIBITION- A
local educational agency may not use funds
received under this title for--
(1) payment of
maintenance costs;
(2) stadiums
or other facilities primarily used for
athletic contests or exhibitions or other
events for which admission is charged to the
general public;
(3) purchase
or upgrade of vehicles; or
(4)
improvement of stand-alone facilities whose
purpose is not the education of children,
including central office administration or
operations or logistical support facilities.
(c) RULE OF
CONSTRUCTION- Nothing in this section shall
allow a local educational agency to engage in
school modernization, renovation, or repair that
is inconsistent with State law.
SEC. 14004. USES
OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.
(a) In General- A
public institution of higher education that
receives funds under this title shall use the
funds for education and general expenditures,
and in such a way as to mitigate the need to
raise tuition and fees for in-State students, or
for modernization, renovation, or repair of
institution of higher education facilities that
are primarily used for instruction, research, or
student housing, including modernization,
renovation, and repairs that are consistent with
a recognized green building rating system.
(b) Prohibition-
An institution of higher education may not use
funds received under this title to increase its
endowment.
(c) Additional
Prohibition- No funds awarded under this title
may be used for--
(1) the
maintenance of systems, equipment, or
facilities;
(2)
modernization, renovation, or repair of
stadiums or other facilities primarily used
for athletic contests or exhibitions or
other events for which admission is charged
to the general public; or
(3)
modernization, renovation, or repair of
facilities--
(A) used
for sectarian instruction or religious
worship; or
(B) in
which a substantial portion of the
functions of the facilities are subsumed
in a religious mission.
SEC. 14005. STATE
APPLICATIONS.
(a) In General-
The Governor of a State desiring to receive an
allocation under section 14001 shall submit an
application at such time, in such manner, and
containing such information as the Secretary may
reasonably require.
(b) Application-
In such application, the Governor shall--
(1) include
the assurances described in subsection (d);
(2) provide
baseline data that demonstrates the State's
current status in each of the areas
described in such assurances; and
(3) describe
how the State intends to use its allocation,
including whether the State will use such
allocation to meet maintenance of effort
requirements under the ESEA and IDEA and, in
such cases, what amount will be used to meet
such requirements.
(c) Incentive
Grant Application- The Governor of a State
seeking a grant under section 14006 shall--
(1) submit an
application for consideration;
(2) describe
the status of the State's progress in each
of the areas described in subsection (d),
and the strategies the State is employing to
help ensure that students in the subgroups
described in section 1111(b)(2)(C)(v)(II) of
the ESEA (20 U.S.C. 6311(b)(2)(C)(v)(II))
who have not met the State's proficiency
targets continue making progress toward
meeting the State's student academic
achievement standards;
(3) describe
the achievement and graduation rates (as
described in section 1111(b)(2)(C)(vi) of
the ESEA (20 U.S.C. 6311(b)(2)(C)(vi)) and
as clarified in section 200.19(b)(1) of
title 34, Code of Federal Regulations) of
public elementary and secondary school
students in the State, and the strategies
the State is employing to help ensure that
all subgroups of students identified in
section 1111(b)(2) of the ESEA (20 U.S.C.
6311(b)(2)) in the State continue making
progress toward meeting the State's student
academic achievement standards;
(4) describe
how the State would use its grant funding to
improve student academic achievement in the
State, including how it will allocate the
funds to give priority to high-need local
educational agencies; and
(5) include a
plan for evaluating the State's progress in
closing achievement gaps.
(d) Assurances- An
application under subsection (b) shall include
the following assurances:
(1)
MAINTENANCE OF EFFORT-
(A)
ELEMENTARY AND SECONDARY EDUCATION- The
State will, in each of fiscal years
2009, 2010, and 2011, maintain State
support for elementary and secondary
education at least at the level of such
support in fiscal year 2006.
(B) HIGHER
EDUCATION- The State will, in each of
fiscal years 2009, 2010, and 2011,
maintain State support for public
institutions of higher education (not
including support for capital projects
or for research and development or
tuition and fees paid by students) at
least at the level of such support in
fiscal year 2006.
(2) ACHIEVING
EQUITY IN TEACHER DISTRIBUTION- The State
will take actions to improve teacher
effectiveness and comply with section
1111(b)(8)(C) of the ESEA (20 U.S.C.
6311(b)(8)(C)) in order to address
inequities in the distribution of highly
qualified teachers between high- and
low-poverty schools, and to ensure that
low-income and minority children are not
taught at higher rates than other children
by inexperienced, unqualified, or
out-of-field teachers.
(3) IMPROVING
COLLECTION AND USE OF DATA- The State will
establish a longitudinal data system that
includes the elements described in section
6401(e)(2)(D) of the America COMPETES Act
(20 U.S.C. 9871).
(4) STANDARDS
AND ASSESSMENTS- The State--
(A) will
enhance the quality of the academic
assessments it administers pursuant to
section 1111(b)(3) of the ESEA (20 U.S.C.
6311(b)(3)) through activities such as
those described in section 6112(a) of
such Act (20 U.S.C. 7301a(a));
(B) will
comply with the requirements of
paragraphs (3)(C)(ix) and (6) of section
1111(b) of the ESEA (20 U.S.C. 6311(b))
and section 612(a)(16) of the IDEA (20
U.S.C. 1412(a)(16)) related to the
inclusion of children with disabilities
and limited English proficient students
in State assessments, the development of
valid and reliable assessments for those
students, and the provision of
accommodations that enable their
participation in State assessments; and
(C) will
take steps to improve State academic
content standards and student academic
achievement standards consistent with
section 6401(e)(1)(9)(A)(ii) of the
America COMPETES Act.
(5) SUPPORTING
STRUGGLING SCHOOLS- The State will ensure
compliance with the requirements of section
1116(a)(7)(C)(iv) and section 1116(a)(8)(B)
of the ESEA with respect to schools
identified under such sections.
SEC. 14006. STATE
INCENTIVE GRANTS.
(1)
RESERVATION- From the total amount reserved
under section 14001(c) that is not used for
section 14007, the Secretary may reserve up
to 1 percent for technical assistance to
States to assist them in meeting the
objectives of paragraphs (2), (3), (4), and
(5) of section 14005(d).
(2) REMAINDER-
Of the remaining funds, the Secretary shall,
in fiscal year 2010, make grants to States
that have made significant progress in
meeting the objectives of paragraphs (2),
(3), (4), and (5) of section 14005(d).
(b) Basis for
Grants- The Secretary shall determine which
States receive grants under this section, and
the amount of those grants, on the basis of
information provided in State applications under
section 14005 and such other criteria as the
Secretary determines appropriate, which may
include a State's need for assistance to help
meet the objective of paragraphs (2), (3), (4),
and (5) of section 14005(d).
(c) Subgrants to
Local Educational Agencies- Each State receiving
a grant under this section shall use at least 50
percent of the grant to provide local
educational agencies in the State with subgrants
based on their relative shares of funding under
part A of title I of the ESEA (20 U.S.C. 6311 et
seq.) for the most recent year.
SEC. 14007.
INNOVATION FUND.
(1) ELIGIBLE
ENTITIES- For the purposes of this section,
the term `eligible entity' means--
(A) a
local educational agency; or
(B) a
partnership between a nonprofit
organization and--
(i)
one or more local educational
agencies; or
(ii) a
consortium of schools.
(2) PROGRAM
ESTABLISHED- From the total amount reserved
under section 14001(c), the Secretary may
reserve up to $650,000,000 to establish an
Innovation Fund, which shall consist of
academic achievement awards that recognize
eligible entities that meet the requirements
described in subsection (b).
(3) BASIS FOR
AWARDS- The Secretary shall make awards to
eligible entities that have made significant
gains in closing the achievement gap as
described in subsection (b)(1)--
(A) to
allow such eligible entities to expand
their work and serve as models for best
practices;
(B) to
allow such eligible entities to work in
partnership with the private sector and
the philanthropic community; and
(C) to
identify and document best practices
that can be shared, and taken to scale
based on demonstrated success.
(b) Eligibility-
To be eligible for such an award, an eligible
entity shall--
(1) have
significantly closed the achievement gaps
between groups of students described in
section 1111(b)(2) of the ESEA (20 U.S.C.
6311(b)(2));
(2) have
exceeded the State's annual measurable
objectives consistent with such section
1111(b)(2) for 2 or more consecutive years
or have demonstrated success in
significantly increasing student academic
achievement for all groups of students
described in such section through another
measure, such as measures described in
section 1111(c)(2) of the ESEA;
(3) have made
significant improvement in other areas, such
as graduation rates or increased recruitment
and placement of high-quality teachers and
school leaders, as demonstrated with
meaningful data; and
(4)
demonstrate that they have established
partnerships with the private sector, which
may include philanthropic organizations, and
that the private sector will provide
matching funds in order to help bring
results to scale.
(c) SPECIAL RULE-
In the case of an eligible entity that includes
a nonprofit organization, the eligible entity
shall be considered to have met the eligibility
requirements of paragraphs (1), (2), (3) of
subsection (b) if such nonprofit organization
has a record of meeting such requirements.
SEC. 14008. STATE
REPORTS.
For each year of
the program under this title, a State receiving
funds under this title shall submit a report to
the Secretary, at such time and in such manner
as the Secretary may require, that describes--
(1) the uses
of funds provided under this title within
the State;
(2) how the
State distributed the funds it received
under this title;
(3) the number
of jobs that the Governor estimates were
saved or created with funds the State
received under this title;
(4) tax
increases that the Governor estimates were
averted because of the availability of funds
from this title;
(5) the
State's progress in reducing inequities in
the distribution of highly qualified
teachers, in implementing a State
longitudinal data system, and in developing
and implementing valid and reliable
assessments for limited English proficient
students and children with disabilities;
(6) the
tuition and fee increases for in-State
students imposed by public institutions of
higher education in the State during the
period of availability of funds under this
title, and a description of any actions
taken by the State to limit those increases;
(7) the extent
to which public institutions of higher
education maintained, increased, or
decreased enrollment of in-State students,
including students eligible for Pell Grants
or other need-based financial assistance;
and
(8) a
description of each modernization,
renovation and repair project funded, which
shall include the amounts awarded and
project costs.
SEC. 14009.
EVALUATION.
The Comptroller
General of the United States shall conduct
evaluations of the programs under sections 14006
and 14007 which shall include, but not be
limited to, the criteria used for the awards
made, the States selected for awards, award
amounts, how each State used the award received,
and the impact of this funding on the progress
made toward closing achievement gaps.
SEC. 14010.
SECRETARY'S REPORT TO CONGRESS.
The Secretary
shall submit a report to the Committee on
Education and Labor of the House of
Representatives, the Committee on Health,
Education, Labor, and Pensions of the Senate,
and the Committees on Appropriations of the
House of Representatives and of the Senate, not
less than 6 months following the submission of
State reports, that evaluates the information
provided in the State reports under section
14008 and the information required by section
14005(b)(3) including State-by-State
information.
SEC. 14011.
PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.
No recipient of
funds under this title shall use such funds to
provide financial assistance to students to
attend private elementary or secondary schools.
SEC. 14012. FISCAL
RELIEF.
(a) IN GENERAL-
For the purpose of relieving fiscal burdens on
States and local educational agencies that have
experienced a precipitous decline in financial
resources, the Secretary of Education may waive
or modify any requirement of this title relating
to maintaining fiscal effort.
(b) DURATION- A
waiver or modification under this section shall
be for any of fiscal year 2009, fiscal year
2010, or fiscal year 2011, as determined by the
Secretary.
(c) CRITERIA- The
Secretary shall not grant a waiver or
modification under this section unless the
Secretary determines that the State or local
educational agency receiving such waiver or
modification will not provide for elementary and
secondary education, for the fiscal year under
consideration, a smaller percentage of the total
revenues available to the State or local
educational agency than the amount provided for
such purpose in the preceding fiscal year.
(d) MAINTENANCE OF
EFFORT- Upon prior approval from the Secretary,
a State or local educational agency that
receives funds under this title may treat any
portion of such funds that is used for
elementary, secondary, or postsecondary
education as non-Federal funds for the purpose
of any requirement to maintain fiscal effort
under any other program, including part C of the
Individuals with Disabilities Education Act (20
U.S.C. 1431 et seq.), administered by the
Secretary.
(e) SUBSEQUENT
LEVEL OF EFFORT- Notwithstanding (d), the level
of effort required by a State or local
educational agency for the following fiscal year
shall not be reduced.
SEC. 14013.
DEFINITIONS.
Except as
otherwise provided in this title, as used in
this title--
(1) the terms
`elementary education' and `secondary
education' have the meaning given such terms
under State law;
(2) the term
`high-need local educational agency' means a
local educational agency--
(A) that
serves not fewer than 10,000 children
from families with incomes below the
poverty line; or
(B) for
which not less than 20 percent of the
children served by the agency are from
families with incomes below the poverty
line;
(3) the term
`institution of higher education' has the
meaning given such term in section 101 of
the Higher Education Act of 1965 (20 U.S.C.
1001);
(4) the term
`Secretary' means the Secretary of
Education;
(5) the term
`State' means each of the 50 States, the
District of Columbia, and the Commonwealth
of Puerto Rico; and
(6) any other
term used that is defined in section 9101 of
the ESEA (20 U.S.C. 7801) shall have the
meaning given the term in such section.
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