Ill STAT. 104 PUBLIC LAW 105-17-JUNE 4, 1997 "(i) the amount it received for fiscal year , 1997; and "(ii) an amount that bears the same relation to any remaining funds as the increase the State received for the preceding fiscal year over fiscal year 1997 bears to the total of all such increases for all States. "(B) If the amount available for allocations is equal to or less than the amount allocated to the States for fiscal year 1997, each State shall be allocated the amount it received for that year, ratably reduced, if necessary. "(4) OUTLYING AREAS. — The Secretary shall increase the fiscal year 1998 allotment of each outlying area under section 611 by at least the amount that that area received under this section for fiscal year 1997. "(d) RESERVATION FOR STATE ACTIVITIES. — "(1) IN GENERAL. —Each State may retain not more than the amount described in paragraph (2) for administration and other State-level activities in accordance with subsections (e) and (f). "(2) AMOUNT DESCRIBED.— For each fiscal year, the Secretary shall determine and report to the State educational agency an amount that is 25 percent of the amount the State received under this section for fiscal year 1997, cumulatively adjusted by the Secretary for each succeeding fiscal year by the lesser of— "(A) the percentage increase, if any, from the preceding fiscal year in the State's allocation under this section; or "(B) the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. "(e) STATE ADMINISTRATION.— "(1) IN GENERAL.— For the purpose of administering this section (including the coordination of activities under this part with, and providing technical assistance to, other programs that provide services to children with disabilities) a State may use not more than 20 percent of the maximum amount it may retain under subsection (d) for any fiscal year. "(2) ADMINISTRATION OF PART C. — Funds described in paragraph (1) may also be used for the administration of part C of this Act, if the State educational agency is the lead agency for the State under that part. "(f) OTHER STATE-LEVEL ACTIVITIES. —Each State shall use any funds it retains under subsection (d) and does not use for administration under subsection (e)— "(1) for support services (including establishing and implementing the mediation process required by section 615(e)), which may benefit children with disabilities younger than 3 or older than 5 as long as those services also benefit children with disabilities aged 3 through 5; "(2) for direct services for children eligible for services under this section; "(3) to develop a State improvement plan under subpart 1ofpartD; "(4) for activities at the State and local levels to meet the performance goals established by the State under section
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