Part B—Flexibility in the Use of Administrative and Other Funds

Part Referred to in Other Sections

This part is referred to in section 8802 of this title.

§8821. Consolidation of State administrative funds for elementary and secondary education programs

(a) Consolidation of administrative funds

(1) In general

A State educational agency may consolidate the amounts specifically made available to such agency for State administration under one or more of the programs specified under paragraph (2) if such State educational agency can demonstrate that the majority of such agency's resources come from non-Federal sources.

(2) Applicability

This section applies to programs under subchapter I of this chapter, those covered programs described in subparagraphs (C), (D), (E), and (F) of section 8801(10) of this title, and administrative funds under section 308(c) ¹ of the Goals 2000: Educate America Act.

(b) Use of funds

(1) In general

A State educational agency shall use the amount available under this section for the administration of the programs included in the consolidation under subsection (a) of this section.

(2) Additional uses

A State educational agency may also use funds available under this section for administrative activities designed to enhance the effective and coordinated use of funds under the programs included in the consolidation under subsection (a) of this section, such as—

(A) the coordination of such programs with other Federal and non-Federal programs;

(B) the establishment and operation of peer-review mechanisms under this chapter;

(C) the administration of this subchapter;

(D) the dissemination of information regarding model programs and practices; and

(E) technical assistance under programs specified in subsection (a)(2) of this section.

(c) Records

A State educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of programs included in the consolidation under subsection (a) of this section.

(d) Review

To determine the effectiveness of State administration under this section, the Secretary may periodically review the performance of State educational agencies in using consolidated administrative funds under this section and take such steps as the Secretary finds appropriate to ensure the effectiveness of such administration.

(e) Unused administrative funds

If a State educational agency does not use all of the funds available to such agency under this section for administration, such agency may use such funds during the applicable period of availability as funds available under one or more programs included in the consolidation under subsection (a) of this section.

(f) Consolidation of funds for standards and assessment development

In order to develop challenging State standards and assessments, a State educational agency may consolidate the amounts made available to such agency for such purposes under subchapter I of this chapter and title III ¹ of the Goals 2000: Educate America Act.

(Pub. L. 89–10, title XIV, §14201, as added Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3890.)

References in Text

The Goals 2000: Educate America Act, referred to in subsec. (f), is Pub. L. 103–227, Mar. 31, 1994, 108 Stat. 125 (except titles V and IX), as amended. Title III of the Act was classified generally to subchapter III (§5881 et seq.) of chapter 68 of this title and was repealed by Pub. L. 106–113, div. B, §1000(a)(4) [title III, §310(i)], Nov. 29, 1999, 113 Stat. 1535, 1501A-265. Section 308 of the Act was classified to section 5888 of this title and was repealed by Pub. L. 106–113. For complete classification of this Act to the Code, see Short Title note set out under section 5801 of this title and Tables.

Section Referred to in Other Sections

This section is referred to in section 8823 of this title.

¹ See References in Text note below.

§8822. Single local educational agency States

A State educational agency that also serves as a local educational agency, in such agency's applications or plans under this chapter, shall describe how such agency will eliminate duplication in the conduct of administrative functions.

(Pub. L. 89–10, title XIV, §14202, as added Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3891.)

§8823. Consolidation of funds for local administration

(a) General authority

In accordance with regulations of the Secretary, a local educational agency, with the approval of its State educational agency, may consolidate and use for the administration of one or more covered programs for any fiscal year not more than the percentage, established in each covered program, of the total amount available to the local educational agency under such covered programs.

(b) State procedures

Within one year from October 20, 1994, a State educational agency shall, in collaboration with local educational agencies in the State, establish procedures for responding to requests from local educational agencies to consolidate administrative funds under subsection (a) of this section and for establishing limitations on the amount of funds under covered programs that may be used for administration on a consolidated basis.

(c) Conditions

A local educational agency that consolidates administrative funds under this section for any fiscal year shall not use any other funds under the programs included in the consolidation for administration for that fiscal year.

(d) Uses of administrative funds

A local educational agency that consolidates administrative funds under this section may use such consolidated funds for the administration of covered programs and for the uses described in section 8821(b)(2) of this title.

(e) Records

A local educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual covered program, to account for costs relating to the administration of covered programs included in the consolidation.

(Pub. L. 89–10, title XIV, §14203, as added Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3892.)

§8824. Administrative funds studies

(a) Federal funds study

(1) In general

The Secretary shall conduct a study of the use of funds under this chapter for the administration, by State and local educational agencies, of all covered programs, including the percentage of grant funds used for such purpose in all covered programs.

(2) State data

Beginning in fiscal year 1995 and each succeeding fiscal year thereafter, each State educational agency which receives funds under subchapter I of this chapter shall submit to the Secretary a report on the use of subchapter I funds for the State administration of activities assisted under subchapter I of this chapter. Such report shall include the proportion of State administrative funds provided under section 6513 of this title that are expended for—

(A) basic program operation and compliance monitoring;

(B) statewide program services such as development of standards and assessments, curriculum development, and program evaluation; and

(C) technical assistance and other direct support to local educational agencies and schools.

(3) Federal funds report

The Secretary shall complete the study conducted under this section not later than July 1, 1997, and shall submit to the President and the appropriate committees of the Congress a report regarding such study within 30 days of the completion of such study.

(4) Results

Based on the results of the study described in subsection (a)(1) of this section, which may include collection and analysis of the data under paragraph (2) and section 9009(b) of this title, the Secretary shall—

(A) develop a definition of what types of activities constitute the administration of programs under this chapter by State and local educational agencies; and

(B) within one year of the completion of such study, promulgate final regulations or guidelines regarding the use of funds for administration under all programs, including the use of such funds on a consolidated basis and limitations on the amount of such funds that may be used for administration where such limitation is not otherwise specified in law.

(b) General administrative funds study and report

Upon the date of completion of the pilot model data system described in section 9009(b) of this title, the Secretary shall study the information obtained through the use of such data system and other relevant information, as well as any other data systems which are in use on such date that account for administrative expenses at the school, local educational agency, and State educational agency level, and shall report to the Congress not later than July 1, 1997, regarding—

(1) the potential for the reduction of administrative expenses at the school, local educational agency, and State educational agency levels;

(2) the potential usefulness of such data system to reduce such administrative expenses;

(3) any other methods which may be employed by schools, local educational agencies or State educational agencies to reduce administrative expenses and maximize the use of funds for functions directly affecting student learning; and

(4) if appropriate, steps which may be taken to assist schools, local educational agencies and State educational agencies to account for and reduce administrative expenses.

(Pub. L. 89–10, title XIV, §14204, as added Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3892.)

§8825. Consolidated set-aside for Department of the Interior funds

(a) General authority

(1) Transfer

The Secretary shall transfer to the Department of the Interior, as a consolidated amount for covered programs, the Indian education programs under part A of subchapter IX of this chapter, and the education for homeless children and youth program under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11431 et seq.], the amounts allotted to the Department of the Interior under those programs.

(2) Agreement

(A) The Secretary and the Secretary of the Interior shall enter into an agreement, consistent with the requirements of the programs specified in paragraph (1), for the distribution and use of those program funds under terms that the Secretary determines best meet the purposes of those programs.

(B) The agreement shall—

(i) set forth the plans of the Secretary of the Interior for the use of the amount transferred, the steps to be taken to achieve the National Education Goals, and performance measures to assess program effectiveness, including measurable goals and objectives; and

(ii) be developed in consultation with Indian tribes.

(b) Administration

The Department of the Interior may use not more than 1.5 percent of the funds consolidated under this section for such department's costs related to the administration of the funds transferred under this section.

(Pub. L. 89–10, title XIV, §14205, as added Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3893; amended Pub. L. 106–400, §2, Oct. 30, 2000, 114 Stat. 1675.)

References in Text

The McKinney-Vento Homeless Assistance Act, referred to in subsec. (a)(1), is Pub. L. 100–77, July 22, 1987, 101 Stat. 482, as amended. Subtitle B of title VII of the Act is classified generally to part B (§11431 et seq.) of subchapter VI of chapter 119 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 11301 of Title 42 and Tables.

Amendments

2000—Subsec. (a)(1). Pub. L. 106–400 substituted "McKinney-Vento Homeless Assistance Act" for "Stewart B. McKinney Homeless Assistance Act".

§8826. Availability of unneeded program funds

(a) Unneeded program funds

With the approval of its State educational agency, a local educational agency that determines for any fiscal year that funds under a covered program (other than part A of subchapter I of this chapter) are not needed for the purpose of that covered program, may use such funds, not to exceed five percent of the total amount of such local educational agency's funds under that covered program, for the purpose of another covered program.

(b) Coordination of services

A local educational agency, individual school, or consortium of schools may use a total of not more than five percent of the funds such agency, school, or consortium, respectively, receives under this chapter for the establishment and implementation of a coordinated services project in accordance with the requirements of subchapter XI of this chapter.

(Pub. L. 89–10, title XIV, §14206, as added Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3894.)

Section Referred to in Other Sections

This section is referred to in sections 8403, 8404, 8405, 8406 of this title.