Sec. 6002. Improving academic achievement

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Part A of title VI ( 20 U.S.C. 7301 et seq. ) is amended— by striking subparts 1 and 4; by redesignating subpart 2 as subpart 1; by redesignating sections 6121 through 6123 as sections 6111 through 6113, respectively; in section 6113, as redesignated by paragraph (3)— in subsection (a)— in paragraph (1)— in the matter preceding subparagraph (A), by striking not more than 50 percent of the nonadministrative State funds and inserting all, or any lesser amount, of State funds ; and by striking subparagraphs

(A)through

(D)and inserting the following: Part A of title II. Part A of title IV. Part G of title V. ; and in paragraph (2), by striking and subject to the 50 percent limitation described in paragraph

(1); and in subsection (b)— in paragraph (1)— in subparagraph (A), by striking (except and all that follows through subparagraph (C)) and inserting may transfer all, or any lesser amount, of the funds allocated to it ; by striking subparagraph (B); by redesignating subparagraph

(C)as subparagraph (B); and in subparagraph (B), as redesignated by subclause (III), by striking and subject to the percentage limitation described in subparagraph

(A)or (B), as applicable ; and in paragraph (2)— by striking subparagraph (A), (B), or

(C)and inserting subparagraph

(A)or

(B); and by striking subparagraphs

(A)through

(D)and inserting the following: Part A of title II. Part A of title IV. Part G of title V. ; and by striking subpart 3 and inserting the following: The purpose of the pilot program under this section is to provide local educational agencies with flexibility to consolidate Federal, State, and local funding in order to create a single school funding system based on weighted per pupil allocations for low-income and otherwise disadvantaged students. The Secretary may, on a competitive basis, enter into local flexibility demonstration agreements— for not more than 2 years with local educational agencies that are selected under subsection

(c)and submit proposed agreements that meet the requirements of subsection (d); and under which such agencies may consolidate and use funds in accordance with subsection

(d)in order to develop and implement a school funding system based on weighted per pupil allocations for low-income and otherwise disadvantaged students. The Secretary may enter into local flexibility demonstration agreements with not more than 25 local educational agencies, reflecting the size and geographic diversity of all such agencies nationwide to the maximum extent feasible. Each local educational agency shall be selected on a competitive basis from among those local educational agencies that— submit a proposed local flexibility demonstration agreement under subsection

(d)to the Secretary; demonstrate to the satisfaction of the Secretary that the agreement meets the requirements of subsection (d); and agree to meet the continued demonstration requirements under subsection (e). Each local educational agency that desires to participate in the pilot program under this section shall submit, at such time, in such form, and including such information as the Secretary may prescribe, an application to enter into a local flexibility demonstration agreement with the Secretary in order to develop and implement a school funding system based on weighted per pupil allocations that meets the requirements of this section, including— a description of the school funding system based on weighted per pupil allocations, including how the system will meet the requirements under paragraph (2); a list of funding sources, including eligible Federal funds the local educational agency will include in such system; a description of the amount and percentage of total local educational agency funding, including State, local, and eligible Federal funds, that will be allocated through such system; the per-pupil expenditures (including actual personnel expenditures, including staff salary differentials for years of employment, and actual nonpersonnel expenditures) of State and local funds for each school served by the agency for the preceding fiscal year; the per-pupil amount of eligible Federal funds each school served by the agency, disaggregated by program, received in the preceding fiscal year; a description of how the system will continue to ensure that any eligible Federal funds allocated through the system will continue to meet the purposes of each Federal funding stream, including serving students from low-income families, English learners, migratory children, and children who are neglected, delinquent, or at risk, as applicable; a description of how the local educational agency will develop and employ a weighted student funding system to support public elementary schools and secondary schools in order to improve the academic achievement of students, including low-income students, the lowest achieving students, English learners, and students with disabilities; an assurance that the local educational agency developed and will implement the local flexibility demonstration agreement in consultation with teachers, principals, other school leaders, administrators of Federal programs impacted by the agreement, parents, civil rights leaders, and other relevant stakeholders; an assurance that the local educational agency will use fiscal control and sound accountability procedures that ensure proper disbursement of, and accounting for, eligible Federal funds consolidated and used under such system; an assurance that the local educational agency will continue to meet the fiscal provisions in section 1117; and an assurance that the local educational agency will meet the requirements of all applicable Federal civil rights laws in carrying out the agreement and in consolidating and using funds under the agreement. A local educational agency’s school funding system based on weighted per pupil allocations shall meet each of the following requirements: The system shall— allocate a significant portion of funds, including State, local, and eligible Federal funds, to the school level through a formula that determines per-pupil weighted amounts based on individual student characteristics; use weights or allocation amounts that allocate substantially more funding to students from low-income families and English learners than to other students; and demonstrate to the Secretary, that each high-poverty school received at least as much total per-pupil funding, including from Federal, State, and local sources, for low-income students and at least as much total per-pupil funding, including from Federal, State, and local sources, for English learners as the school received in the year prior to carrying out the pilot program. The system shall be used to allocate a significant portion, including all school level personnel expenditures for instructional staff and nonpersonnel expenditures, but not less than 65 percent, of all the local educational agency’s local and State funds to schools. After allocating funds through the school funding system, the local educational agency shall charge schools for the per-pupil expenditures of Federal, State, and local funds, including actual personnel expenditures for instructional staff and actual nonpersonnel expenditures. The system may include weights or allocation amounts according to other characteristics. Each local educational agency that is selected to participate in the pilot program under this section shall annually— demonstrate to the Secretary, that no high-poverty school served by the agency received less total per-pupil funding, including from Federal, State, and local sources, for low-income students or less total per-pupil funding, including from Federal, State, and local sources, for English learners than the school received in the previous year; make public and report to the Secretary the per-pupil expenditures (including actual personnel expenditures that include staff salary differentials for years of employment, and actual non-personnel expenditures) of State, local, and Federal funds for each school served by the agency, and disaggregated by student poverty quartile and by minority student quartile for the preceding fiscal year; and make public the total number of students enrolled in each school served by the agency and the number of students enrolled in each such school disaggregated by each of the categories of students, as defined in section 1111(b)(3)(A). In this section, the term eligible Federal funds means funds received by a local educational agency under titles I, II, III, and IV of this Act. Each local educational agency that has entered into a local flexibility demonstration agreement with the Secretary under this section may use, for administrative purposes, from eligible Federal funds not more than the percentage of funds allowed for such purpose under any of titles I, II, III, or IV. The Secretary may establish a peer-review process to assist in the review of a proposed local flexibility demonstration agreement. The Secretary may, after providing notice and an opportunity for a hearing (including the opportunity to provide information as provided for in subsection (j)), terminate a local flexibility demonstration agreement under this section if there is evidence that the local educational agency has failed to comply with the terms of the agreement and the requirements under subsections

(d)and (e). If a local educational agency believes that the Secretary’s determination under subsection

(i)is in error for statistical or other substantive reasons, the local educational agency may provide supporting evidence to the Secretary, and the Secretary shall consider that evidence before making a final termination determination. From the amount reserved for evaluation activities in section 9601, the Secretary, acting through the Director of the Institute of Education Sciences, shall, in consultation with the relevant program office at the Department, evaluate the implementation and impact of the local flexibility demonstration agreements under this section, consistent with section 9601 and specifically on improving the equitable distribution of State and local funding and increasing student achievement. The Secretary may renew for additional 3-year terms a local flexibility demonstration agreement under this section if— the local educational agency has met the requirements under subsections (d)(2) and

(e)and agrees to and has a high likelihood of continuing to meet such requirements; and the Secretary determines that renewing the local flexibility demonstration agreement is in the interest of students served under titles I and III, including students from low-income families, English learners, migratory children, and children who are neglected, delinquent, or at risk. In this section, the term high-poverty school means a school that is in the highest 2 quartiles of schools served by a local educational agency, based on the percentage of enrolled students from low-income families. .

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20 USC 7301

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Sec. 6002

Improving academic achievement

Cite20 USC 7301

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