CFR > Title 34 - Education > SUBTITLE B—Regulations of the Offices of the Department of Education > CHAPTER IV—OFFICE OF VOCATIONAL AND ADULT EDUCATION, DEPARTMENT OF EDUCATION (parts 400 to 491) > PART 403—STATE VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION PROGRAM > SUBPART E—What Kinds of Activities Does the Secretary Assist Under the Basic Programs? (§403.60 to §403.120) > 403.112—How does a State allocate funds under the Secondary School Vocational Education Program to local educational agencies?

403.112—How does a State allocate funds under the Secondary School Vocational Education Program to local educational agencies?

(a) Reservation of funds. From the portion of its allotment under § 403.180(b)(1) for the basic programs, each fiscal year a State may reserve funds for the Secondary School Vocational Education Program.
(b) General rule. Except as provided in paragraphs (c) and (d) of this section and § 401.119, a State shall distribute funds reserved for the Secondary School Vocational Education Program to local educational agencies (LEAs) according to the following formula:
(1) From 70 percent of the amount reserved, an LEA must be allocated an amount that bears the same relationship to the 70 percent as the amount the LEA was allocated under section 1005 of chapter 1 (20 U.S.C. 2711) in the fiscal or program year preceding the fiscal or program year in which the allocation is made bears to the total amount received under section 1005 of chapter 1 by all LEAs in the State in that preceding year.
(2) From 20 percent of the amount reserved, an LEA must be allocated an amount that bears the same relationship to the 20 percent as the number of students with disabilities who have individualized education programs under section 614(a)(5) of the IDEA served by the LEA in the fiscal or program year preceding the fiscal or program year in which the allocation is made bears to the total number of those students served by all LEAs in the State in that preceding year.
(3) From 10 percent of the amount reserved, an LEA must be allocated an amount that bears the same relationship to the 10 percent as the number of students enrolled in schools and adults enrolled in vocational education training programs under the jurisdiction of the LEA in the fiscal or program year preceding the fiscal or program year in which the allocation is made bears to the number of students enrolled in schools in kindergarten through 12th grade and adults enrolled in vocational education training programs under the jurisdiction of all LEAs in the State in that preceding year.

Code of Federal Regulations

Example: Assume that a State has reserved $5,000,000 of its basic programs funds under Title II of the Act for secondary school programs. (a)(1) All LEAs in the State were allocated a total of $80,000,000 under section 1005 of Chapter 1 in the preceding fiscal year. Of that amount, school district “A” was allocated $400,000. (2) The allocation for school district “A” is calculated by multiplying $3,500,000 (70 percent of $5,000,000) by .005 of the State total ($400,000÷$80,000,000). The allocation for school district “A” would be $17,500 under paragraph (b)(1) of this section. (b)(1) All LEAs in a State served a total of 100,000 students with disabilities who have individualized education programs under section 614(a)(5) of the IDEA in the preceding fiscal year. Of that total, school district “A” served 400 of those students in the preceding fiscal year. (2) The allocation for school district “A” is calculated by multiplying $1,000,000 (20 percent of $5,000,000) by .004 of the State total (400÷100,000). The allocation for school district “A” would be $4,000 under paragraph (b)(2) of this section. (c)(1) All LEAs in a State enrolled a total of 1,000,000 students (including adults enrolled in vocational education training programs in those LEAs) in the preceding fiscal year. Of that number school district “A” enrolled 3,500 of those students in the preceding fiscal year. (2) The allocation for school district “A” is calculated by multiplying 500,000 (10 percent of $5,000,000) by .0035 of the State total (3,500÷1,000,000). The allocation for school district “A” would be $1,750 under paragraph (b)(3) of this section.
(c) Exception to the general rule. In applying the provisions in paragraph (b) of this section, a State may not distribute funds to an LEA that operates only elementary schools, but shall instead distribute funds that would have been allocated for those ineligible LEAs as follows:
(1) If an LEA that operates only elementary schools sends its graduating students to a single local or regional educational agency that provides secondary school services to secondary school students in the same attendance area, a State shall distribute to that local or regional educational agency any amounts under paragraph (b) of this section that would otherwise have been allocated to LEAs operating only elementary schools.
(2) If an LEA that operates only elementary schools sends its graduating students to two or more local or regional educational agencies that provide secondary school services to secondary students in the same attendance area, the State shall distribute to those local or regional educational agencies an amount based on the proportionate number of students each agency received in the previous year from the LEA that operates only elementary schools.
(d) (1) Minimum grant amount. Except as provided in paragraph (d)(3) of this section, an LEA is not eligible for a grant under the Secondary School Vocational Education Program unless the amount allocated to the LEA under paragraph (b) of this section is not less than $15,000.
(2) (i) An LEA may enter into a consortium with one or more LEAs for the purpose of providing services under the Secondary School Vocational Education Program in order to meet the minimum grant requirement in paragraph (d)(1) of this section.
(ii) A consortium arrangement under paragraph (d)(2)(i) of this section must serve primarily as a structure for operating joint projects that provide services to all participating local educational agencies.
(iii) A project operated by a consortium must meet the size, scope, and quality requirement of § 403.111(c)(1).

Code of Federal Regulations

Example: Under the distribution formula for the Secondary School Vocational Education Program, three LEAs earn $5,000 each (which is less than the $15,000 minimum grant amount for each LEA). The LEAs form a consortium in order to receive an award. One of the LEAs is designated as the fiscal agent for the consortium and receives the $15,000 award for the consortium. The consortium may operate and fund with the $15,000 a project or projects for the benefit of all participating LEAs. The fiscal agent of the consortium may not subgrant back to the participating LEAs the amounts they contributed to the consortium.
(3) A State may waive paragraph (d)(1) of this section in any case in which the LEA—
(i) Is located in a rural, sparsely populated area;
(ii) Demonstrates that it is unable to enter into a consortium for purposes of providing services under the Secondary School Vocational Education Program; and
(iii) Demonstrates that the projects to be assisted meet the size, scope, and quality requirements in § 403.111(c)(1).
(4) Any amounts that are not distributed by reason of paragraph (d)(1) of this section must be redistributed in accordance with the provisions in paragraph (b) of this section.

Code of Federal Regulations

(Authority: 20 U.S.C. 2341 (a), (b), and (c))