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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.).
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