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

SEC. 308. STATE USE OF FUNDS.

(a) FIRST YEAR.--In the first year for which a State educational agency receives an allotment under this title, such agency--
(1) if the amount made available under section 303 for such year is equal to or greater than $50,000,000, shall use at least 60 percent of such allotted funds to award subgrants--
(A) in accordance with section 309(a), to local educational agencies for the development or implementation of local improvement plans; and
(B) in accordance with section 309(b), to improve educator preservice programs and for professional development activities consistent with the State improvement plan;
(2) if the amount made available under section 303 for such year is less than $50,000,000, may use such funds for the subgrants described in paragraph (1); and
(3) shall use any such allotted funds not used in accordance with paragraphs (1) and (2) to develop, revise, expand, or implement a State improvement plan described in section 306.
(b) SUCCEEDING YEARS.--Each State educational agency that receives an allotment under this title for any year after the first year of such agency receives assistance under this title shall--
(1) use at least 90 percent of such allotment to make subgrants--
(A) in accordance with section 309(a), to local educational agencies for the implementation of the State improvement plan and of local improvement plans; and
(B) in accordance with section 309(b), to improve educator preservice programs and for professional development activities that are consistent with the State improvement plan; and
(2) use the remainder of such assistance for State activities designed to implement its State improvement plan, such as--
(A) supporting the development or adoption of State content standards and State student performance standards, State opportunity-to-learn standards, and State assessments linked to such standards, including--
(i) through consortia of States; or
(ii) with the assistance of the National Education Standards and Improvement Council established under part B of title II;
(B) supporting the implementation of high-performance management and organizational strategies, such as site-based management, shared decisionmaking, or quality management principles, to promote effective implementation of such plan;
(C) supporting the development and implementation, at the local educational agency and school building level, of improved human resource development systems for recruiting, selecting, mentoring, supporting, evaluating and rewarding educators;
(D) providing special attention to the needs of minority, limited-English proficient, disabled, and female students, including instructional programs and activities that encourage such students in elementary and secondary schools to aspire to enter and complete post-secondary education or training;
(E) supporting innovative and proven methods of enhancing a teacher's ability to identify student learning needs, and motivating students to develop higher order thinking skills, discipline, and creative resolution methods;
(F) supporting the development, at the State or local level, of performance-based accountability and incentive systems for schools;
(G) outreach to and training for parents, tribal officials, organizations serving young children, classroom teachers, related services personnel, and other educators, and the public, related to education improvement;
(H) providing technical assistance and other services to increase the capacity of local educational agencies and schools to develop and implement systemic local improvement plans, implement new State assessments, and develop curricula consistent with the State content standards and State student performance standards;
(I) promoting public magnet schools, public "charter schools", and other mechanisms for increasing choice among public schools, including information and referral programs which provide parents with information on available choices;
(J) supporting activities relating to the planning of, and evaluation of, projects under which local educational agencies or schools contract with private management organizations to reform a school;
(K) supporting intergenerational mentoring programs;
(L) supporting the development, at the State or local level, of school-based programs that restore discipline and reduce violence in schools and communities, such as community mobilization programs; and
(M) collecting and analyzing data.
(c) LIMIT ON ADMINISTRATIVE COSTS.--A State educational agency that receives an allotment under this title in any fiscal year shall use not more than 4 percent of such allotment in such year, or $100,000, whichever is greater, for administrative expenses, which administrative expenses shall not include the expenses related to the activities of the panel established under section 306(b)(1).
(d) SPECIAL RULE.--Any new public school established under this title--
(1) shall be nonsectarian;
(2) shall not be affiliated with a nonpublic sectarian school or religious institution; and
(3) shall operate under the authority of a State educational agency or local educational agency.

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SEC. 307. SECRETARY'S REVIEW OF APPLICATIONS; PAYMENTS. Table of Contents SEC. 309. SUBGRANTS FOR LOCAL REFORM AND PROFESSIONAL DEVELOPMENT.