118 STAT. 2666 PUBLIC LAW 108–446—DEC. 3, 2004 ‘‘(B) AMOUNTS EQUAL TO OR LESS THAN FISCAL YEAR 1999 ALLOCATIONS.— ‘‘(i) IN GENERAL.—If the amount available for allocations under this paragraph is equal to or less than the amount allocated to the States for fiscal year 1999, each State shall be allocated the amount the State received for fiscal year 1999. ‘‘(ii) RATABLE REDUCTION.—If the amount available for allocations under this paragraph is insufficient to make the allocations described in clause (i), those allocations shall be ratably reduced. ‘‘(e) STATE LEVEL ACTIVITIES.— ‘‘(1) STATE ADMINISTRATION.— ‘‘(A) IN GENERAL.—For the purpose of administering this part, including paragraph (3), section 619, and the coordination of activities under this part with, and pro viding technical assistance to, other programs that provide services to children with disabilities— ‘‘(i) each State may reserve for each fiscal year not more than the maximum amount the State was eligible to reserve for State administration under this section for fiscal year 2004 or $800,000 (adjusted in accordance with subparagraph (B)), whichever is greater; and ‘‘(ii) each outlying area may reserve for each fiscal year not more than 5 percent of the amount the out lying area receives under subsection (b)(1) for the fiscal year or $35,000, whichever is greater. ‘‘(B) CUMULATIVE ANNUAL ADJUSTMENTS.—For each fiscal year beginning with fiscal year 2005, the Secretary shall cumulatively adjust— ‘‘(i) the maximum amount the State was eligible to reserve for State administration under this part for fiscal year 2004; and ‘‘(ii) $800,000, by the rate of inflation as measured by the percentage increase, if any, from the preceding fiscal year in the Con sumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor. ‘‘(C) CERTIFICATION.—Prior to expenditure of funds under this paragraph, the State shall certify to the Sec retary that the arrangements to establish responsibility for services pursuant to section 612(a)(12)(A) are current. ‘‘(D) PART C.—Funds reserved under subparagraph (A) may be used for the administration of part C, if the State educational agency is the lead agency for the State under such part. ‘‘(2) OTHER STATE LEVEL ACTIVITIES.— ‘‘(A) STATE LEVEL ACTIVITIES.— ‘‘(i) IN GENERAL.—Except as provided in clause (iii), for the purpose of carrying out State level activi ties, each State may reserve for each of the fiscal years 2005 and 2006 not more than 10 percent from the amount of the State’s allocation under subsection (d) for each of the fiscal years 2005 and 2006, respec tively. For fiscal year 2007 and each subsequent fiscal
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