[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR222.17]

[Page 486]
 
                           TITLE 34--EDUCATION
 
              SECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 222--IMPACT AID PROGRAMS--Table of Contents
 
                           Subpart A--General
 
Sec. 222.17  How does the Secretary determine undue financial hardship and 
serious harm to a local educational agency's educational program?

    (a) The Secretary determines that repayment of an eligible 
overpayment will result in undue financial hardship on an LEA and 
seriously harm its educational program if the LEA meets the requirements 
in paragraph (a)(1), (2), or (3) of this section.
    (1) An LEA other than an LEA described in paragraphs (a)(2) and (3) 
of this section meets the requirements of paragraph (a) of this section 
if--
    (i) The LEA's eligible overpayments on the date of its request total 
at least $10,000;
    (ii) The LEA's local real property tax rate for current expenditure 
purposes, for the preceding fiscal year, is equal to or higher than the 
State average local real property tax rate for that preceding fiscal 
year; and
    (iii) The LEA's average per pupil expenditure (APPE) (as described 
in Sec. 222.16(a)(4)) for the preceding fiscal year is lower than the 
State APPE (as described in Sec. 222.16(a)(5)) for that preceding fiscal 
year.
    (2) The following LEAs qualify under paragraph (a) of this section 
if they meet the requirements in paragraph (a)(1)(i) of this section and 
their APPE (as described in Sec. 222.16(a)(4)) for the preceding fiscal 
year does not exceed 125 percent of the State APPE (as described in 
Sec. 222.16(a)(5)) for that preceding fiscal year:
    (i) An LEA with boundaries that are the same as a Federal military 
installation.
    (ii) Other LEAs with no local real property tax revenues, or with 
minimal local real property tax revenues per pupil due to substantial 
amounts of Federal property in the LEA as compared with the average 
amount of those revenues per pupil for all LEAs in the State.
    (3) An LEA qualifies under paragraph (a) of this section if neither 
the successor nor the predecessor LEA has the present or prospective 
ability to repay the eligible overpayment.
    (b) The Secretary uses the following methods to determine a tax rate 
for the purposes of paragraph (a)(1)(ii) of this section:
    (1) If an LEA is fiscally independent, the Secretary uses actual tax 
rates if all the real property in the taxing jurisdiction of the LEA is 
assessed at the same percentage of true value. In the alternative, the 
Secretary computes a tax rate for fiscally independent LEAs by using the 
methods described in Secs. 222.67--222.69.
    (2) If an LEA is fiscally dependent, the Secretary imputes a tax 
rate using the method described in Sec. 222.70(b).

(Authority: 20 U.S.C. 7712)

[62 FR 35413, July 1, 1997]