S. 3263 (106th): Children’s Classroom Trust Fund Act

106th Congress, 1999–2000. Text as of Oct 30, 2000 (Introduced).

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S 3263 IS1S

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106th CONGRESS

2d Session

S. 3263

To designate a portion of the federal budget surplus to create and fund the Children’s Classroom Trust Fund to increase direct education funding and expand local control of education.

IN THE SENATE OF THE UNITED STATES

October 30 (legislative day, SEPTEMBER 22), 2000

Mr. LOTT (for Mr. ASHCROFT) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions


A BILL

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Children’s Classroom Trust Fund Act.’

SEC. 2. PURPOSE.

    The purposes of this title are--

      (1) to dedicate a substantial portion of the on-budget surplus to enhancing the education system in the nation;

      (2) to promote excellence in elementary and secondary education programs in the Nation;

      (3) to increase parental involvement in the education of their children;

      (4) to boost student achievement in academic subjects to high levels;

      (5) to improve basic skills instruction, and to increase teacher performance and accountability;

      (6) to return the responsibility and control for education to parents, teachers, schools, and local communities;

      (7) to increase direct education funding to local schools; and

      (8) to give States and communities maximum freedom in determining how to boost academic achievement and implement education reforms.

SEC. 3. DEFINITIONS.

    In this title:

    (a) LOCAL EDUCATIONAL AGENCY- The term ‘local educational agency’ has the meaning given the term in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).

    (b) SECRETARY- The term ‘Secretary’ means the Secretary of Education.

    (c) ON-BUDGET SURPLUS- For purposes of this section, the on-budget, non-Medicare part A surplus for that fiscal year, shall be determined by combining the on-budget surplus and the Medicare part A surplus as set forth in the ‘Budget and Economic Outlook’ as reported by the Congressional Budget Office in January of the year preceding the concurrent resolution on the budget pursuant to section 301(a)(3) for that fiscal year.

SEC. 4. ESTABLISHMENT OF TRUST FUND.

    (a) IN GENERAL- There is established in the Treasury of the United States a fund to be known as the Children’s Classroom Trust Fund (in this title referred to as the ‘Trust Fund’), consisting of such amounts as provided for in subsection (b). Amounts in the accounts of the Trust Fund shall remain available until expended for the purposes established by this Act.

    (b) TRANSFER TO FUND OF AMOUNTS SPECIFIED- At the beginning of each Fiscal Year, the Secretary of the Treasury shall transfer to the Children’s Classroom Trust Fund, for each fiscal year 2001 through 2010, the amount equivalent to eleven percent of the on-budget, non-Medicare part A surplus for that fiscal year. In the case of a fiscal year in which there is no on-budget surplus, exclusive of Medicare Part A surpluses, there shall be no transfers to the Trust Fund under this section.

    (c) EXPENDITURES FROM TRUST FUND- Amounts in the accounts of the Trust Fund are available to the Secretary for making payments under section 5.

    (d) POINT OF ORDER-

      (1) It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report if--

        (A) the enactment of that bill or resolution as reported;

        (B) the adoption and enactment of that amendment; or

        (C) the enactment of that bill or resolution in the form recommended in

that conference report, would reduce the amount of the Children’s Classroom Trust Fund for any purposes other than those established in Section 5 of this legislation.

      (2) WAIVER- Subsection (d)(1) of this section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

SEC. 5. DIRECT AWARDS TO LOCAL EDUCATIONAL AGENCIES.

    (a) DIRECT AWARDS- The Secretary shall make direct awards to local educational agencies from the Children’s Classroom Trust Fund in amounts determined under subsection (b) to enable the local educational agencies to support programs or activities, for kindergarten through grade 12 students, that the local educational agencies deem appropriate.

    (b) DETERMINATION OF AWARDS AMOUNT-

      (1) PER CHILD AMOUNT- The Secretary, using the information provided under subsection (c), shall determine a per child amount for a year by dividing the total amount appropriated under section 5 for the year, by the average daily attendance of kindergarten through grade 12 students in all States for the preceding year.

      (2) LOCAL EDUCATIONAL AGENCY AWARD- The Secretary, using the information provided under subsection (c), shall determine the amount to be provided to each local educational agency under this section for a year by multiplying--

        (A) the per child amount determined under paragraph (1) for the year; by

        (B) the average daily attendance of kindergarten through grade 12 students that are served by the local educational agency for the preceding year.

    (c) CENSUS DETERMINATION-

      (1) IN GENERAL- Not later than December 1 of each year, each local educational agency shall conduct a census to determine the average daily attendance of kindergarten through grade 12 students served by the local educational agency.

      (2) SUBMISSION- Not later than March 1 of each year, each local educational agency shall submit the number described in paragraph (1) to the Secretary.

      (3) PENALTY- If the Secretary determines that a local educational agency has knowingly submitted false information under paragraph (1) for the purpose of gaining additional funds under this section, then the local educational agency shall be fined an amount equal to twice the difference between the amount the local educational agency received under this section, and the correct amount the local educational agency would have received under this section if the agency had submitted accurate information under paragraph (1).

    (d) DISBURSAL- The Secretary shall disburse the amount awarded to a local educational agency under this title for a fiscal year not later than July 1 of each year.

SEC. 6. REQUIREMENTS FOR FAILING LOCAL EDUCATIONAL AGENCIES.

    (a) IN GENERAL- In the case of a failing local educational agency receiving funds under section 4 for a fiscal year, such failing local educational agency shall use such award only for purposes directly related to improving elementary school and secondary school students’ academic performance consistent with subsection (d).

    (b) TITLE I FUNDING-

      (1) IN GENERAL- Notwithstanding any other provision of law, funds provided to a failing local educational agency under title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) shall be spent in accordance with this section.

      (2) APPLICABILITY PROVISION- The provisions of parts A, B, C, and D of title I of the Elementary and Secondary Education Act of 1965 shall not apply to a failing local educational agency other than the allocation and allotment provisions under part A of such title.

    (c) FAILING LOCAL AGENCY PLAN-

      (1) PLAN REQUIRED- Each failing local educational agency shall submit a plan to the Secretary at such time and in such manner as the Secretary may require. A plan submitted under this subsection--

        (A) shall describe the activities to be funded by the failing local educational agency under subsections (a) and (b) consistent with subsection (d); and

        (B) may request an exemption from the uses of funds restrictions under

subsection (d) for elementary schools and secondary schools served by the failing local educational agency that met the State’s performance-based accreditation or categorization standards for the previous fiscal year.

      (2) PLAN APPROVAL- The Secretary shall approve a plan submitted under paragraph (1) if the plan meets the requirements described in paragraph (1).

      (3) PLAN DISSEMINATION- Each failing local educational agency having a plan approved under paragraph (2) shall widely disseminate such plan, throughout the area served by such agency, and post the plan publicly, including on the Internet.

    (d) USES OF FUNDS- Each failing local educational agency having a plan approved under subsection (c)(2) for a fiscal year may use the award provided under section 103(a) and funds provided under title I of the Elementary and Secondary Education Act of 1965 (2) U.S.C. 6301 et seq.) for such fiscal year only for the following activities:

      (1) To recruit, retain, and reward high-quality teachers.

      (2) To focus on teaching basic educational skills.

      (3) To provide remedial instruction in core academic subjects that are assessed by standards set by the State educational agency or local educational agency.

      (4) To fund mentoring programs for elementary school and secondary school students who need assistance in reading, writing, or arithmetic.

      (5) To use proven methods of instruction, such as phonics, that are based upon reliable research.

      (6) To provide for extended day learning.

      (7) To ensure that parents of elementary school and secondary school students realize that parents play a significant role in their child’s educational success, and to encourage parents to become active in their child’s education; and

      (8) To provide any other activity that a local educational agency proposes, and the Secretary approves, as an activity that relates directly to improving students’ academic performance.

    (e) ANNUAL REPORT-

      (1) REPORT- A failing local educational agency shall annually submit a report to the Secretary describing--

        (A) the use of funds under this section; and

        (B) the annual performance of all children served by the failing local educational agency as measured by its State’s performance-based accreditation or categorization standards.

      (2) PRIVACY- The report required under this section shall not contain any information, such as names, addresses, or grades, that might be used to identify the children whose performance is described in the report.

      (3) DISSEMINATION- A failing local educational agency shall widely disseminate the report submitted under paragraph (1) throughout the area served by such agency, and post the report publicly, including on the Internet, so that parents and others in the community can account for Federal education funding under this title.

    (f) MEETING STANDARDS-

      (1) IN GENERAL- If, for 2 consecutive fiscal years after a failing local educational agency is required to use funds in accordance with subsection (d), such local educational agency succeeds in meeting its State’s performance-based accreditation or categorization standards, then the provisions of this section shall cease to apply to such local educational agency.

      (2) BONUS AWARDS-

        (A) IN GENERAL- A local educational agency described in paragraph (1) may receive a bonus award from amounts appropriated under subparagraph (C), to use for purposes such as rewarding elementary school and secondary school teachers and principals who improved student performance, and for professional development opportunities for such teachers and principals.

        (B) DISTRIBUTION- A local educational agency receiving a bonus award under this paragraph shall determine how to distribute the award to individual elementary schools and secondary schools. An elementary school or a secondary school receiving such an award shall determine how such award shall be spent.

        (C) FUNDING OF BONUS AWARDS- Of the amounts transferred to the Trust Under section 3(b); the Secondary shall set aside no more than 5 percent of the total amount to be used for bonus awards.

    (g) PENALTY- If a failing local educational agency spends funds subject to the use of funds restrictions described in subsection (d) in a manner inconsistent with subsection (d) for a fiscal year, then the Secretary shall reduce the funds such agency receives under section 103(a) for the succeeding fiscal year by an amount equal to the amount spent improperly by such agency.

SEC. 7. AUDIT.

    (a) IN GENERAL- The Secretary may conduct audits of the expenditures of local educational agencies under this Act to ensure that the funds made available under this Act are used in accordance with this Act.

    (b) SANCTIONS AND PENALTIES- If the Secretary determines that the funds made available under section 4 were not used in accordance with this Act, the Secretary may use the enforcement provisions available to the Secretary under part D of the General Education Provisions Act (20 U.S.C. 1234 et seq.).