PUBLIC LAW 103-382—OCT. 20, 1994 108 STAT. 3559 purpose of this subsection to other States on the basis of their respective needs, as determined by the Secretary. "(2) CAPITAL EXPENSES. —(A) A local educational agency may apply to the State educational agency for payments for capital expenses consistent with this subsection. "(B) State educational agencies shall distribute such funds under this subsection to local educational agencies based on the degree of need set forth in their respective applications for assistance under this subsection. "(3) USES OF FUNDS.— Any funds appropriated to carry out this subsection shall be used only for capital expenses incurred to provide equitable services for private school children under this section. "(4) DEFINITION.— For the purpose of this subsection, the term 'capital expenses' means— "(A) expenditures for noninstructional goods and services, such as the purchase, lease, or renovation of real and personal property, including mobile educational units and leasing of neutral sites or spaces; "(B) insurance and maintenance costs; "(C) transportation; and "(D) other comparable goods and services. "SEC. 1120A. FISCAL REQUIREMENTS. 20 USC 6322. "(a) MAINTENANCE OF EFFORT.— ^A local educational agency may receive funds under this part for 2iny fiscal year only if the State educational agency finds that the local educational agency has maintained its fiscal effort in accordance with section 14501 of this Act. "(b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT, NON - FEDERAL FUNDS. — "(1) IN GENERAL. —(A) Except as provided in subparagraph (B), a State or local educational agency shall use funds received under this part only to supplement the amount of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the education of pupils participating in programs assisted under this part, and not to supplant such funds. "(B) For the purpose of complying with subparagraph (A), a State or local educational agency may exclude supplemental State and local funds expended in any eligible school attendance area or school for programs that meet the requirements of section 1114 or 1115. "(2) SPECL\L RULE.—No local educational agency shall be required to provide semces under this part through a particular instructional method or in a particular instructional setting in order to demonstrate such agency's compliance with paragraph (1). "(c) COMPARABILITY OF SERVICES. — "(1) IN GENERAL. — (A) Except as provided in paragraphs (4) and (5), a local educational agency may receive funds under this part only if State and local funds will be used in schools served under this part to provide services that, taken as a whole, are at least comparable to services in schools that are not receiving funds under this part. "(B) If the local educational agency is serving all of such agency's schools under this part, such agency may receive funds
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