PUBLIC LAW 103-382—OCT. 20, 1994 108 STAT. 3933 "(1) Of the funds received under subsection (a) by any State for any fiscal year— "(A) a State may use not more than 25 percent of such funds in accordance with paragraph (2); and "(B) except as provided in paragraph (4), the State shall distribute at least 75 percent of such funds to local educational agencies and intermediate educational units, in accordance with subsection (d), for use in accordance with priorities established under section 612(3),"; and (2) in paragraph (2), by amending subparagraph (A) to read as follows: "(A) From the funds that any State may use under paragraph (1)(A) for any fiscal year, the State— "(i) may use 5 percent of the funds received under this section or $450,000, whichever is greater, for administrative costs related to carrying out sections 612 and 613; and "(ii) shall use the remainder— "(I) to provide support services and direct services, subject to subparagraph (B), in accordance with priorities established under section 612(3); and "(II) for the administrative costs of monitoring and complaint investigation, but only to the extent that such costs exceed the costs of administration incurred during fiscal year 1985.". (d) FORMULA.— Subsection (d) of section 611 of the Act (20 U.S.C. 1411(d)) is amended to read as follows: "(d)(1) From the total amount of funds available for any fiscal year under subsection (c)(1)(B), the State shall provide to each local educational agency or intermediate educational unit an amount that bears the same ratio to such total amount as the number of children, aged 3 through 21, determined under subsection (a)(3) for such agency or unit bears to the total number of such children determined for all such agencies and units that apply for such funds. "(2)(A) To the extent necessary, the State— "(i) shall use funds available under subsection (c)(2)(A)(ii) to ensure that each State agency that received funds for fiscal year 1994 under subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (as such subpart was in effect on the day preceding the date of enactment of the Improving America's Schools Act of 1994) receives, from the sum of such funds and funds provided under paragraph (1), an amount equal to— "(I) the number of children, aged 6 through 21, determined under subsection (a)(3) for such agency; multiplied by "(II) the per-child amount provided under such subpart for fiscal year 1994; and "(ii) may use such funds to ensure that each local educational agency that received for fiscal year 1994 under such subpart for children who had transferred from a State-owned, State-operated, or State-supported school or program assisted under such subpart receives, from the sum of such funds and funds provided under paragraph (1), an amount for each such child, aged 3 through 21, determined under subsection (a)(3)
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