[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR222.17]



[Page 507-508]

 

                           TITLE 34--EDUCATION

 

                  CHAPTER II--OFFICE OF ELEMENTARY AND

              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



[[Page 508]]



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 Sec. Sec.  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]