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``PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS
``SEC. 14201. 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 title I, those covered programs described in subparagraphs (C), (D), (E), and (F) of section 14101(10), and administrative funds under section 308(c) 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).
- ``(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), 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 Act;
- ``(C) the administration of this title;
- ``(D) the dissemination of information regarding model programs and practices; and
- ``(E) technical assistance under programs specified in subsection (a)(2).
- ``(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).
- ``(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).
- ``(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 title I of this Act and title III of the Goals 2000: Educate America Act.
SEC. 14103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED SCHOOLS.
SEC. 14202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.