PUBLIC LAW 106-554—APPENDIX A 114 STAT. 2763A-85 (1) an amount that bears the same ratio to 50 percent of such funds as the number of children 4 years of age and younger in the State bears to the number of such children in all States; and (2) an amount that bears the same ratio to 50 percent of such funds as the number of children 4 years of age and younger living in families with incomes below the poverty line in the State bears to the number of such children in all States. (c) MINIMUM ALLOTMENT. —No State shall receive an allotment under subsection (b) for a fiscal year in an amount that is less than.40 percent of the total amount appropriated for the fiscal year under this title. (d) AVAILABILITY OF FuNDS.Any portion of the allotment to a State that is not expended for activities under this title in the fiscal year for which the allotment is made shall remain available to the State for two additional years, after which any unexpended funds shall be returned to the Secretary. The Secretary shall use the returned funds to carry out a discretionary grant program for research-based early learning demonstration projects. (e) DATA.— The Secretary shall make allotments under this title on the basis of the most recent data available to the Secretary. SEC. 810. GRANT ADMINISTRATION. (a) FEDERAL ADMINISTRATIVE COSTS. —The Secretary may use not more than 3 percent of the amount appropriated under section 805 for a fiscal year to pay for the administrative costs of carrying out this title, including the monitoring and evaluation of State and local efforts. (b) STATE ADMINISTRATIVE COSTS.— A State that receives a grant under this title may use— (1) not more than 2 percent of the funds made available through the grant to carry out activities designed to coordinate early learning programs on the State level, including programs funded or operated by the State educational agency, health, children and family, and human service agencies, and any State-level collaboration or coordination council involving early learning and education, such as the entities funded under section 640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5)); (2) not more than 2 percent of the funds made available through the grant for the administrative costs of carrying out the grant program and the costs of reporting State and local efforts to the Secretary; and (3) not more than 3 percent of the funds made available through the grant for training, technical assistance, and wage incentives provided by the State to Local Councils. (c) LEAD STATE AGENCY.— (1) IN GENERAL. — To be eligible to receive an allotment under this title, the Governor of a State shall appoint, after consultation with the leadership of the State legislature, a Lead State Agency to carry out the functions described in paragraph (2). (2) LEAD STATE AGENCY. — (A) ALLOCATION OF FUNDS. —The Lead State Agency described in paragraph (1) shall allocate funds to Local Councils as described in section 812.