118 STAT. 2742 PUBLIC LAW 108–446—DEC. 3, 2004 fiscal year 1997 bears to the total of all such increases for all States. ‘‘(B) RATABLE REDUCTIONS.—If the amount available for allocations is equal to or less than the amount allocated to the States for fiscal year 1997, each State shall be allocated the amount the State received for fiscal year 1997, ratably reduced, if necessary. ‘‘(d) RESERVATION FOR STATE ACTIVITIES.— ‘‘(1) IN GENERAL.—Each State may reserve not more than the amount described in paragraph (2) for administration and other State level activities in accordance with subsections (e) and (f). ‘‘(2) AMOUNT DESCRIBED.—For each fiscal year, the Sec retary shall determine and report to the State educational agency an amount that is 25 percent of the amount the State received under this section for fiscal year 1997, cumulatively adjusted by the Secretary for each succeeding fiscal year by the lesser of— ‘‘(A) the percentage increase, if any, from the preceding fiscal year in the State’s allocation under this section; or ‘‘(B) the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. ‘‘(e) STATE ADMINISTRATION.— ‘‘(1) IN GENERAL.—For the purpose of administering this section (including the coordination of activities under this part with, and providing technical assistance to, other programs that provide services to children with disabilities) a State may use not more than 20 percent of the maximum amount the State may reserve under subsection (d) for any fiscal year. ‘‘(2) ADMINISTRATION OF PART C.—Funds described in para graph (1) may also be used for the administration of part C. ‘‘(f) OTHER STATE LEVEL ACTIVITIES.—Each State shall use any funds the State reserves under subsection (d) and does not use for administration under subsection (e)— ‘‘(1) for support services (including establishing and imple menting the mediation process required by section 615(e)), which may benefit children with disabilities younger than 3 or older than 5 as long as those services also benefit children with disabilities aged 3 through 5; ‘‘(2) for direct services for children eligible for services under this section; ‘‘(3) for activities at the State and local levels to meet the performance goals established by the State under section 612(a)(15); ‘‘(4) to supplement other funds used to develop and imple ment a statewide coordinated services system designed to improve results for children and families, including children with disabilities and their families, but not more than 1 percent of the amount received by the State under this section for a fiscal year; ‘‘(5) to provide early intervention services (which shall include an educational component that promotes school readi ness and incorporates preliteracy, language, and numeracy Reports.
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