102 STAT. 162
PUBLIC LAW 100-297—APR. 28, 1988 or repayment of funds only to the amount or percentage by which the local educational agency has failed to comply.
Disadvantaged
pereons.
Records.
Minorities. Handicapped pe^'sons.
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"(d) EXCLUSION OF SPECIAL S T A T E AND LoCAL PROGRAM FuNDS.—
"(1)(A) For the purposes of determining compliance with the requirements of subsections (b) and (c), a local educational agency or a State agency operating a program under part D of this chapter may exclude State and local funds expended for carrying out special programs to meet the educational needs of educationally deprived children including compensatory education for educationally deprived children after prior determination pursuant to paragraphs (3) and (4) of this subsection that such programs meet the requirements of subparagraph (B). "(B) A State or local program meets the requirements of this subparagraph if it is similar to programs assisted under this part. The Secretary shall consider a State or local program to be similar to programs assisted under this part if— "(i) all children participating in the program are educationally deprived, "(ii) the program is based on similar performance objectives related to educational achievement and is evaluated in a manner consistent with those performance objectives, "(iii) the program provides supplementary services designed to meet the special educational needs of the children who are participating, "(iv) the local educational agency keeps such records and affords such access thereto as are necessary to assure the correctness and verification of the requirements of this subparagraph, and "(v) the State educational agency monitors performance under the program to assure that the requirements of this subparagraph are met. "(2)(A) For the purpose of determining compliance with the requirements of subsection (c), a local educational agency may exclude State and local funds expended for— "(i) bilingual education for children of limited English proficiency. "(ii) special education for handicapped children, and "(iii) certain State phase-in programs as described in subparagraph (B). "(B) A State education program which is being phased into full operation meets the requirements of this subparagraph if the Secretary is satisfied that— "(i) the program is authorized and governed specifically by the provisions of State law; "(ii) the purpose of the program is to provide for the comprehensive and systematic restructuring of the total educational environment at the level of the individual school; "(iii) the program is based on objectives, including but not limited to, performance objectives related to educational achievement and is evaluated in a manner consistent with those objectives; "(iv) parents and school staff are involved in comprehensive planning, implementation, and evaluation of the program; "(v) the program will benefit all children in a particular school or grade-span within a school;
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