TO S T A T. ]
PUBLIC LAW 949-AUG. 3, 1956
" (B) in determining the number of children under subsection (a) or (b) with respect to whom such agency is entitled to receive payment, the agency shall be entitled to receive payment with respect to only so many of the number of children whose attendance serves as the basis for eligibility under such subsection, as exceeds 3 per centum of the number of all children in average daily attendence at the schools of such agency during the fiscal year for which payment is to be made." (b) Paragraph (2) of subsection (c) of section 3 of such Act is amended (1) by redesignating such paragraph as paragraph (4), (2) by striking out "1957" and inserting in lieu thereof "1958", (3) by striking out "the preceding fiscal year" and inserting in lieu thereof "such fiscal year", (4) by striking out "succeeding fiscal year" and inserting in lieu thereof "two succeeding fiscal years", (5) by striking out "the preceding year" and inserting in lieu thereof "such year, and (6) by striking out "such preceding year" and inserting in lieu thereof "such year". (c) Subsection (c) of section 3 of such Act is amended by adding at the end thereof the following new paragraph: "(5) The determinations whether a local educational agency has met the percentage requirements for eligibility under paragraphs (2), (3), or (4) of this subsection for any fiscal year shall be made on the basis of estimates by the Commissioner made prior to the close of such year, except that an underestimate made by the Commissioner pursuant to the foregoing provisions of this sentence shall not operate to deprive an agency of its entitlement to any payments under this section to which it would be entitled had the estimate been accurate." (d) Subsection (e) of section 3 of such Act is amended by striking out "subsection (c)(2) " and inserting in lieu thereof "subsection (c)
971
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SEC. 205. Subsection (d) of section 3 of such Act is amended (1) by striking out "generally comparable" and inserting in lieu thereof "most nearly comparable" and (2) by amending the next to the last sentence thereof to read as follows: " I n no event shall the local con- tion rate. contribut.,}f^^^ tribution rate for any local educational agency in any State in the continental United States for any fiscal year be less tnan (i) 50 per centum of the average per pupil expenditure in such State or (ii) the national average per pupil local contribution rate but not to exceed the average per pupil expenditure in such State. For purposes of the preceding sentence 'average per pupil expenditure in such State' means the aggregate current expenditures, during the second fiscal year preceding the fiscal year for which the computation is made, of all local educational agencies in such State (without regard to the sources of funds from which such expenditures are made), divided by the aggregate number of children in average daily attendance to whom such agencies provided free public education during such second preceding fiscal year; and 'national average per pupil local contribution rate' means the aggregate amounts to which local educational agencies in the continental United States became entitled under section.3 (c) (1) for such second preceding fiscal year, divided by the aggregate number of children used Under section 3(c)(1) in computing such amounts (counting children under section 3(b) as one-half those under section 3(a)). " SEC. 206. Section 3 of such Act is amended by adding at the end thereof the following new subsection: "ADJUSTMENT FOR CERTAIN DECREASES IN FEDERAL ACTIVITIES
" (f) Whenever the Commissioner determines that— "(1) a local educational agency has made preparations to pro-
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