[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR403.112]

[Page 45-46]
 
                           TITLE 34--EDUCATION
 
  CHAPTER IV--OFFICE OF VOCATIONAL AND ADULT EDUCATION, DEPARTMENT OF 
                                EDUCATION
 
PART 403_STATE VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION PROGRAM--Table of 
 
 Subpart E_What Kinds of Activities Does the Secretary Assist Under the 
                             Basic Programs?
 
Sec. 403.112  How does a State allocate funds under the Secondary School 

Vocational Education Program to local educational agencies?

    (a) Reservation of funds. From the portion of its allotment under 
Sec. 403.180(b)(1) for the basic programs, each fiscal year a State may 
reserve funds for the Secondary School Vocational Education Program.
    (b) General rule. Except as provided in paragraphs (c) and (d) of 
this section and Sec. 401.119, a State shall distribute funds reserved 
for the Secondary School Vocational Education Program to local 
educational agencies (LEAs) according to the following formula:
    (1) From 70 percent of the amount reserved, an LEA must be allocated 
an amount that bears the same relationship to the 70 percent as the 
amount the LEA was allocated under section 1005 of chapter 1 (20 U.S.C. 
2711) in the fiscal or program year preceding the fiscal or program year 
in which the allocation is made bears to the total amount received under 
section 1005 of chapter 1 by all LEAs in the State in that preceding 
year.
    (2) From 20 percent of the amount reserved, an LEA must be allocated 
an amount that bears the same relationship to the 20 percent as the 
number of students with disabilities who have individualized education 
programs under section 614(a)(5) of the IDEA served by the LEA in the 
fiscal or program year preceding the fiscal or program year in which the 
allocation is made bears to the total number of those students served by 
all LEAs in the State in that preceding year.
    (3) From 10 percent of the amount reserved, an LEA must be allocated 
an amount that bears the same relationship to the 10 percent as the 
number of students enrolled in schools and adults enrolled in vocational 
education training programs under the jurisdiction of the LEA in the 
fiscal or program year preceding the fiscal or program year in which the 
allocation is made bears to the number of students enrolled in schools 
in kindergarten through 12th grade and adults enrolled in vocational 
education training programs under the jurisdiction of all LEAs in the 
State in that preceding year.

    Example: Assume that a State has reserved $5,000,000 of its basic 
programs funds under Title II of the Act for secondary school programs.
    (a)(1) All LEAs in the State were allocated a total of $80,000,000 
under section 1005 of Chapter 1 in the preceding fiscal year. Of that 
amount, school district ``A'' was allocated $400,000.
    (2) The allocation for school district ``A'' is calculated by 
multiplying $3,500,000 (70 percent of $5,000,000) by .005 of the State 
total ($400,000/$80,000,000). The allocation for school district ``A'' 
would be $17,500 under paragraph (b)(1) of this section.
    (b)(1) All LEAs in a State served a total of 100,000 students with 
disabilities who have individualized education programs under section 
614(a)(5) of the IDEA in the preceding fiscal year. Of that total, 
school district ``A'' served 400 of those students in the preceding 
fiscal year.
    (2) The allocation for school district ``A'' is calculated by 
multiplying $1,000,000 (20 percent of $5,000,000) by .004 of the State 
total (400/100,000). The allocation for school district ``A'' would be 
$4,000 under paragraph (b)(2) of this section.
    (c)(1) All LEAs in a State enrolled a total of 1,000,000 students 
(including adults enrolled in vocational education training programs in 
those LEAs) in the preceding fiscal year. Of that number school district 
``A'' enrolled 3,500 of those students in the preceding fiscal year.
    (2) The allocation for school district ``A'' is calculated by 
multiplying 500,000 (10 percent of $5,000,000) by .0035 of the State 
total (3,500/1,000,000). The allocation for school district ``A'' would 
be $1,750 under paragraph (b)(3) of this section.

    (c) Exception to the general rule. In applying the provisions in 
paragraph (b) of this section, a State may not distribute funds to an 
LEA that operates only elementary schools, but shall instead distribute 
funds that would have been allocated for those ineligible LEAs as 
follows:

[[Page 46]]

    (1) If an LEA that operates only elementary schools sends its 
graduating students to a single local or regional educational agency 
that provides secondary school services to secondary school students in 
the same attendance area, a State shall distribute to that local or 
regional educational agency any amounts under paragraph (b) of this 
section that would otherwise have been allocated to LEAs operating only 
elementary schools.
    (2) If an LEA that operates only elementary schools sends its 
graduating students to two or more local or regional educational 
agencies that provide secondary school services to secondary students in 
the same attendance area, the State shall distribute to those local or 
regional educational agencies an amount based on the proportionate 
number of students each agency received in the previous year from the 
LEA that operates only elementary schools.
    (d)(1) Minimum grant amount. Except as provided in paragraph (d)(3) 
of this section, an LEA is not eligible for a grant under the Secondary 
School Vocational Education Program unless the amount allocated to the 
LEA under paragraph (b) of this section is not less than $15,000.
    (2)(i) An LEA may enter into a consortium with one or more LEAs for 
the purpose of providing services under the Secondary School Vocational 
Education Program in order to meet the minimum grant requirement in 
paragraph (d)(1) of this section.
    (ii) A consortium arrangement under paragraph (d)(2)(i) of this 
section must serve primarily as a structure for operating joint projects 
that provide services to all participating local educational agencies.
    (iii) A project operated by a consortium must meet the size, scope, 
and quality requirement of Sec. 403.111(c)(1).

    Example: Under the distribution formula for the Secondary School 
Vocational Education Program, three LEAs earn $5,000 each (which is less 
than the $15,000 minimum grant amount for each LEA). The LEAs form a 
consortium in order to receive an award. One of the LEAs is designated 
as the fiscal agent for the consortium and receives the $15,000 award 
for the consortium. The consortium may operate and fund with the $15,000 
a project or projects for the benefit of all participating LEAs. The 
fiscal agent of the consortium may not subgrant back to the 
participating LEAs the amounts they contributed to the consortium.

    (3) A State may waive paragraph (d)(1) of this section in any case 
in which the LEA--
    (i) Is located in a rural, sparsely populated area;
    (ii) Demonstrates that it is unable to enter into a consortium for 
purposes of providing services under the Secondary School Vocational 
Education Program; and
    (iii) Demonstrates that the projects to be assisted meet the size, 
scope, and quality requirements in Sec. 403.111(c)(1).
    (4) Any amounts that are not distributed by reason of paragraph 
(d)(1) of this section must be redistributed in accordance with the 
provisions in paragraph (b) of this section.

    Cross-Reference: See 34 CFR 403.113(d).

(Authority: 20 U.S.C. 2341 (a), (b), and (c))