A r c h i v e d  I n f o r m a t i o n

SEC. 304. ALLOTMENT OF FUNDS.

(a) RESERVATIONS OF FUNDS.--From funds appropriated under section 303, the Secretary--
(1) shall reserve a total of one percent to provide assistance, in amounts determined by the Secretary--
(A) to the outlying areas;
(B) to the Secretary of the Interior to benefit Indian students in schools operated or funded by the Bureau; and
(C) to the Alaska Federation of Natives in cooperation with the Alaska Native Education Council to benefit Alaska Native students; and
(2) may reserve a total of not more than 5 percent for--
(A) national leadership activities under sections 313 and 314;
(B) the costs of peer review of State improvement plans and applications under this title; and
(C) evaluation activities under section 221.
(b) STATE ALLOTMENTS.--From the amount appropriated under section 303 and not reserved under subsection (a) in each fiscal year the Secretary shall make allotments to State educational agencies as follows:
(1) 50 percent of such amount shall be allocated in accordance with the relative amounts each State would have received under chapter 1 of title I of the Elementary and Secondary Education Act of 1965 for the preceding fiscal year if funds under such chapter in such preceding fiscal year were not reserved for the outlying areas.
(2) 50 percent of such amount shall be allocated in accordance with the relative amounts each State would have received under part A of chapter 2 of title I of the Elementary and Secondary Education Act of 1965 for the preceding fiscal year if funds under such chapter in such preceding fiscal year were not reserved for the outlying areas.
(c) REALLOTMENTS.--If the Secretary determines that any amount of a State educational agency's allotment for any fiscal year under subsection (b) will not be needed for such fiscal year by the State, the Secretary shall reallot such amount to other State educational agencies that need additional funds, in such manner as the Secretary determines is appropriate.
(d) MAINTENANCE OF EFFORT.--Each recipient of funds under this title, in utilizing the proceeds of an allotment received under this title, shall maintain the expenditures of such recipient for the activities assisted under this title at a level equal to not less than the level of such expenditures maintained by such recipient for the fiscal year preceding the fiscal year for which such allotment is received, except that the Secretary may reduce, temporarily or permanently, the level of expenditures required by this subsection if the Secretary determines that such recipient has justifiable reasons for a reduction in the level of expenditures required by this subsection.

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SEC. 303. AUTHORIZATION OF APPROPRIATIONS. Table of Contents SEC. 305. STATE APPLICATIONS.