PUBLIC LAW 107-110-^AN. 8, 2002 115 STAT. 1779 local educational agencies based on the factors set forth in subparagraph (A). "(d) PAYMENT OF ALLOCATIONS. — "(1) DISTRIBUTION. —From the funds paid to a State educational agency under this subpart for a fiscal year, the State educational agency shall distribute to each eligible local educational agency that has submitted an application as required by section 5133 the amount of such local educational agency's allocation, as determined under subsection (a). "(2) ADDITIONAL FUNDS.— "(A) USE.— Additional funds resulting from higher perpupil allocations provided to a local educational agency on the basis of adjusted enrollments of children described in subsection (a)(1) may, in the discretion of the local educational agency, be allocated for expenditures to provide services for children enrolled in public schools and private nonprofit schools in direct proportion to the number of children described in subsection (a)(1) and enrolled in such schools within the area served by the local educational agency. "(B) ALLOCATION.— In any fiscal year, any local educational agency that elects to allocate such additional funds in the manner described in subparagraph (A) shall allocate all additional funds to schools within the area served by the local educational agency in such manner. "(C) RULE OF CONSTRUCTION. —Subparagraphs (A) and (B) may not be construed to require any school to limit the use of the additional funds described in subparagraph (A) to the provision of services to specific students or categories of students. "Subpart 2—State Programs "SEC. 5121. STATE USES OF FUNDS. 20 USC 7213. "A State educational agency may use funds made available for State use under section 5112(b) only for one or more of the following: "(1) State administration of programs under this part, including— "(A) allocating funds to local educational agencies; "(B) planning, supervising, and processing State educational agency funds; and "(C) monitoring and evaluating programs under this part. "(2) Support for the planning, design, and initial implementation of charter schools as described in part B. "(3) Statewide education reform, school improvement programs and technical assistance and direct grants to local educational agencies, which assist such agencies under section 513L "(4) Support for the design and implementation of highquality yearly student assessments. "(5) Support for implementation of challenging State and local academic achievement standards. "(6) Support for arrangements that provide for independent analysis to measure and report on school district achievement.
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