View all text of Subchapter VII [§ 7701 - § 7714]
§ 7709. State consideration of payments in providing State aid
(a) General prohibitionExcept as provided in subsection (b), a State may not—
(1) consider payments under this subchapter in determining for any fiscal year—
(A) the eligibility of a local educational agency for State aid for free public education; or
(B) the amount of such aid; or
(2) make such aid available to local educational agencies in a manner that results in less State aid to any local educational 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
(2) Computation
(A) In general
(B) Other factorsIn making a determination under this subsection, the Secretary shall—
(i) disregard local educational agencies with per-pupil 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) ExceptionNotwithstanding 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 affected local educational agency the amount by which the State reduced State aid to the local educational agency.
(c) Procedures for review of State equalization plans
(1) Written notice
(A) In general
(B) Contents
(2) Opportunity to present views
(3) Qualification proceduresIf the Secretary determines that a program of State aid qualifies under subsection (b), the Secretary shall—
(A) certify the program and so notify the State; and
(B) afford an opportunity for a hearing, in accordance with section 7711(a) of this title, to any local educational agency adversely affected by such certification.
(4) Nonqualification proceduresIf the Secretary determines that a program of State aid does not qualify under subsection (b), the Secretary shall—
(A) so notify the State; and
(B) afford an opportunity for a hearing, in accordance with section 7711(a) of this title, to the State, and to any local educational agency adversely affected by such determination.
(d) Treatment of State aid
(1) In generalIf a State has in effect a program of State aid for free public education for any fiscal year, which is designed to equalize expenditures for free public education among the local educational agencies of that State, payments under this subchapter for any fiscal year may be taken into consideration by such State in determining the relative—
(A) financial resources available to local educational agencies in that State; and
(B) financial need of such agencies for the provision of free public education for children served by such agency, except that a State may consider as local resources funds received under this subchapter only in proportion to the share that local tax revenues covered under a State equalization program are of total local tax revenues.
(2) Prohibition
(e) Remedies for State violations
(1) In general
(2) Immunity
(3) Relief
(Pub. L. 89–10, title VII, § 7009, formerly title VIII, § 8009, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3764; amended Pub. L. 104–195, § 10, Sept. 16, 1996, 110 Stat. 2384; Pub. L. 106–398, § 1 [[div. A], title XVIII, § 1812], Oct. 30, 2000, 114 Stat. 1654, 1654A–386; Pub. L. 107–110, title VIII, § 804, Jan. 8, 2002, 115 Stat. 1956; renumbered title VII, § 7009, and amended Pub. L. 114–95, title VII, §§ 7001(c)(2), (d)(1), (7), (8), 7009, Dec. 10, 2015, 129 Stat. 2074, 2087.)