be made available for the affected children through various agencies of the Federal Government, as well as through State and local agencies and private nonprofit organizations, and has coordinated the program or project with programs available through such agencies or organizations, including community action programs under Title II (42 U.S.C. 27812831) of the Economic Opportunity Act of 1964 and shall further demonstrate that there will be similar coordination in the operation of the program or project. The purpose of the foregoing is to avoid a duplication of benefits and to assure the most effective use of funds under Title I of the Act toward meeting the special educational needs of educationally deprived children. (b) Each application by a State educational agency for a grant to establish or improve programs of education for migratory children of migratory agricultural workers shall demonstrate that in planning the program and the projects comprising that program there has been, and in carrying out such program and projects there will be, appropriate coordination with programs administered under Part B of Title III (42 U.S.C. 2861) of the Economic Opportunity Act of 1964. Each such application shall also describe the manner in which the program and projects are coordinated with similar programs and projects in other States, including the transmittal of pertinent information with respect to school records of such migratory children. (c) In the coordination with other programs the commingling of funds under Title I of the Act with funds under such other programs is not authorized, but the simultaneous use of funds under each of those programs to finance identifiable portions of a single project is permitted. (d) The application by the Department of the Interior for payment to meet the special educational needs of educationally deprived children on reservations serviced by elementary and secondary schools operated for Indian children shall contain an assurance that the program and projects have been developed in cooperation with appropriate Indian representatives and community action agencies and that the program and projects will be coordinated with appropriate Federal, State, and local authorities and private nonprofit organizations. § 116.25 Dissemination and utilization of results of educational research and demonstrations. (a) Each application by a State or local educational agency for a grant, or by the Department of the Interior for a payment, shall describe the methods to be used by the applicant for reviewing, selecting, and disseminating to teachers and educational administrators significant information on the latest developments and most recent experiments in education so that such information will be available for use in program planning and operation. The provisions in that regard may include, among other things, in-service education, the use of professional librarians on library informational systems, professional workshops and seminar consultations and visitations, and reports on the organization, operation and outcome of projects under Title I of the Act. (b) Promising educational practices developed through projects of the applicant, or through information disseminated to it by other applicants, shall be considered for, and to the extent deemed appropriate and not in violation of the assurance called for by paragraph (h) of § 116.17, may be adopted in, all of the schools of the applicant through the use of available funds other than those under Title I of the Act. [Reserved] §§ 116.26-116.30 Subpart D-Duties and Functions of State Educational Agencies § 116.31 Participation by States. (a) Any State desiring to participate in the grant programs under Title I of the Act shall, through its State educational agency, submit to the Commissioner an application for such a participation. Each State educational agency seeking a grant for establishing or improving programs of education for migratory children of migratory agricultural workers shall submit a separate application for such a grant to the Commissioner pursuant to § 116.17(k). (b) Each application by a State educational agency shall provide the official name of the agency responsible for carrying out the functions of a State educational agency under Title I of the Act. (c) The application for participation by the State in the grant program shall contain an assurance of the State educational agency that each application by a local educational agency (including a State agency directly responsible for providing free public education for handicapped children or for children in institutions for neglected or delinquent children) approved by the State educational agency will comply with the requirements of Title I of the Act and the regulations in subpart C of this part, that the State educational agency will require each such local educational agency to carry out all assurances given by it in, and to perform all obligations imposed on it in connection with, its approved applications for grants, and that the State educational agency will in all other respects comply with the requirements imposed on it by Title I of the Act and the regulations in this part. (d) The application for participation by the State in the grant program shall contain an assurance that fiscal control and fund accounting procedures will be adopted to assure the proper disbursement of, and accounting for, Title I funds paid to the State, including such sums as may be paid to State and local educational agencies with respect to approved projects. (e) The State educational agency shall designate the officer who will receive and have custody of funds granted to the State under Title I of the Act, who will pay to State and local educational agencies the amounts distributed to them, who will receive the repayments by State and local educational agencies of such portion of the funds paid to them as remain unexpended at the close of the period for which they were made available for expenditure, and who will pay out the amounts expended by the State educational agency for the performance of those duties which are imposed on it pursuant to Title I of the Act and the regulations in this part. (f) Each application by a State educational agency shall contain an assurance that it will make periodic reports to the Commissioner evaluating the effectiveness of the programs and projects of State and local educational agencies, and the use by such educational agencies of grants under Title I of the Act, in improving the educational attainment of educationally deprived children. Such reports shall include the results of objective measurements of educational achievement under the programs of the several participating educational agencies with particular reference to progress made toward meeting 86-096-68-17 the special educational needs of educationally deprived children. (g) Each application by a State educational agency shall contain an assurance that it will make such other reports to the Commissioner as he may reasonably require from time to time to enable him to perform his duties under Title I of the Act. Such reports shall include a disclosure of any allegations of substance which may be made by local educational agencies or private individuals or organizations of actions by State or local educational agencies contrary to the provisions of Title I of the Act or the regulations in this part, a summary of the result of any investigations made or hearings held with respect to those allegations, and a statement of the disposition by the State educational agency of those allegations. It is recognized that the responsibility with respect to the resolution of such matters rests, in the first instance, in the State educational agency. (h) Each application by a State educational agency shall contain an assurance that it will keep such records, and afford the Commissioner such access thereto, as he may find necessary to assure the correctness of the reports required to be made and the adequacy of the fiscal control over and the accounting for Title I funds paid to the States. § 116.32 Certificate of State attorney general. The application for participation by a State in the grant program under Title I of the Act, and each application for a grant to establish or improve programs of education for migratory children of migratory agricultural workers, shall include a certificate by the State attorney general or other appropriate State legal officer to the effect that the agency submitting the application has the authority under State law to perform the duties and functions of a State educational agency under Title I of the Act and the regulations in this part, including those arising from the assurances given in the application. agency (c) The State educational shall advise the Commissioner of the amounts needed to fund those applications by local educational agencies for grants which are approved by the State educational agency, together with appropriate information concerning each of the projects covered by such applications, and of the additional amount not in excess of (1) one percent of the maximum grants to State and local educational agencies of the State as adjusted pursuant to § 116.9 or (2) $75,000 (or $25,000 in the case of Puerto Rico, Wake Island, Guam, American Samoa, the Virgin Islands, or the Trust Territory of the Pacific Islands), whichever is greater, which is required by the State educational agency for administration and for technical assistance to local educational agencies with respect to the measurement of educational achievement and evaluation of programs called for by § 116.22. § 116.34 Approval of applications from local educational agencies. (a) The State educational agency shall review all applications by local educational agencies (including State agencies directly responsible for providing free public education for handicapped children or for children in institutions for neglected or delinquent children) in the State for grants under Title I of the Act to determine whether such applications meet the requirements of the Act and the regulations in subpart C of this part. The State educational agency shall not approve such an application unless it determines that the application does effectively meet the requirements of the Act and the regulations in subpart C of this part and that the State educational agency is able to give the Commissioner the assurances with respect to that application which are required by the regulations in this subpart. The State educational agency shall not approve an application by a local educational agency which, together with other approved applications by that agency, exceeds the amount available for grants to that agency. (b) The State educational agency may approve an application in part or for less funds than is called for by the application only if such an approval does not have the effect of altering the project to such an extent that it no longer provides reasonable promise of substantial progress toward meeting the special educational needs of educationally deprived children. (c) The State educational agency shall not finally disapprove any application in whole or in part without first affording the local educational agency submitting the application reasonable notice and opportunity for a hearing with respect to such action. (d) The terms and provisions of each approved project shall be made available, by the State educational agency, and by the affected local educational agency or agencies, for public inspection. §§ 116.35-116.40 [Reserved] Subpart E-Payments § 116.41 Payments to States. (a) The maximum amount of all payments which may be made to a State for grants under Title I of the Act is the aggregate of the maximum eligibilities of all State and local educational agencies of the State for grants and the maximum eligibility of the State educational agency for administration and technical assistance with respect to the measurement of educational achievement and evaluation of projects, as that aggregate is adjusted pursuant to § 116.9. (b) The Commissioner will, during the fiscal year, pay to each State an amount which is equal to the aggregate amount for which projects of State and local educational agencies are approved by the State educational agency or by the Commissioner, plus such amount as the State educational agency is entitled to and expends for such administration and technical assistance. The Commissioner may make advances to each State submitting an application for participation in the program under Title I of the Act and requesting such an advance. (c) Until such time as the Commissioner has finally determined the maximum eligibilities for grants of all State and local educational agencies in all the States, he will make a tentative ratable reduction in the amounts payable to States and will further limit such amounts in order for him to be in a position to make such final ratable reductions as may be necessitated by the amount of the available appropriations. (d) Each local educational agency receiving a distribution of grants for approved programs and projects shall, at the end of the period for which expenditures of such grants are authorized, release to the State educational agency any unexpended balances of such grants. The State educational agency shall report to the Commissioner the amount of such unexpended balances as well as the unexpended balances of grants to the State educational agency for such administration and technical assistance, and all such unexpended balances shall be taken into account by the Commissioner in making payments to the State thereafter. § 116.42 Obligation of Federal appropriations. (a) The notification to the Commissioner of the approval by State educational agencies of projects under Title I of the Act by local educational agencies for specified amounts within the limits of the amounts available for that purpose will be regarded as obligating the Government of the United States in such specified amounts. Federal appropriations so obligated will remain available for use by such local educational agencies as prescribed in § 116.46. (b) Amounts made available for expenditure by State educational agencies for administration and technical assistance with respect to the measurement of educational achievement and evaluation of programs in accordance with the provisions of section 207(b) in Title I of the Act will be regarded as obligations of the Government of the United States. Federal appropriations so obligated will remain available for use by such local educational agencies as prescribed in § 116.46. (c) The approval by the Commissioner of applications by State educational agencies for establishing or improving programs of education for children of migratory agricultural workers will be regarded as obligating the Government of the United States for the amounts approved for such projects. Federal appropriations so obligated will remain available for use by such State educational agencies as prescribed in § 116.46. § 116.43 Distributions to State or local educational agencies. (a) Subject to the provisions of § 116.45, the State educational agency in each State participating in the program under Title I of the Act shall distribute to eligible State and local educational agencies the sums made available to the State educational agency by the Commissioner for the programs or projects of such State and local educational agencies approved by the State educational agency or the Commissioner during the fiscal year for which the Federal appropriations are made available. (b) Federal funds so made available to a State educational agency shall be drawn down by the State educational agency or transferred to local educational agencies in installments substantially coinciding with the need for such funds based upon the estimated rates of expenditure by such State or local educational agencies. § 116.44 Limitation on payments to a State. No payments by the Commissioner under Title I of the Act will be made to a State for any fiscal year in which the State has taken such payments into consideration in determining the eligibility of a local educational agency for State aid, or in determining the amount of that aid, with respect to the free public education of children in such a way as to penalize the local educational agency in relation to the availability of State or local funds. § 116.45 Limitations on payments to a local educational agency. (a) No payments to a State under Title I of the Act for any fiscal year may be paid by the State educational agency to a local educational agency unless the State educational agency finds that the combined fiscal effort of that local educational agency and the State with respect to the provision of free public education by that local educational agency for the preceding fiscal year was not less than such a combined fiscal effort for that purpose for the second preceding fiscal year. (b) For purposes of this section, fiscal effort by a local educational agency shall be measured by the amount of the current expenditures per pupil by the local educational agency other than expenditures from funds derived from Federal sources for which the local educational agency is required to account to the Federal Government directly or through the State educational agency, such as funds under Titles I, II, and III of the Act, Titles III and V of the National Defense Education Act of 1958, and the Economic Opportunity Act of 1964. Expenditures by a State with respect to a local educational agency rather than by such a local educational agency itself shall be deemed to have been maintained at the same level in the preceding fiscal year as in the second preceding fiscal year unless the basis for making such expenditures has been altered or if such expenditures are assumed by such a local educational agency. In such an event, the actual expenditures of that nature shall be taken into account in both years in determining combined fiscal effort. A combined fiscal effort in the preceding fiscal year shall not be deemed to be a reduction from that in the second preceding fiscal year unless the per pupil expenditure in the preceding fiscal year is less than that in the second preceding fiscal year by more than 5 percent. Any such reduction in fiscal effort by a local educational agency for any fiscal year by more than 5 percent will disqualify a local educational agency unless the local educational agency is able to demonstrate to the satisfaction of the State educational agency that such a reduction was occasioned by an unusual event, such as the removal of a large segment of property from the tax rolls, that could not have been fully anticipated or reasonably compensated for by the local educational agency and that fiscal effort of the local educational agency does not otherwise indicate a diminished fiscal effort. § 116.46 Use of Federal funds and liquidation of obligations by State or local educational agencies. (a) Federal funds granted under Title I of the Act to State and local educational agencies shall remain available until August 31 following the fiscal year in which such amounts were made available for use by such State and local educational agencies for projects approved during that fiscal year. Grants for construction of school facilities shall remain available for use for that purpose for a reasonable period of time as determined pursuant to § 116.21(c). (b) Federal funds made available under Title I of the Act to State educational agencies for administration and technical assistance will remain available for such use until the close of the current fiscal year. (c) For the purposes of this section a use of funds under Title I of the Act by a State or local educational agency will be determined on the basis of documentary evidence of binding commitments for the acquisition of goods or property, for the construction of school facilities, or for the performance of work, or on the basis of a reservation of funds for administrative activities in connection with the completion of project activities such as evaluation and auditing activities, except that the use of funds for personal services other than those for administrative activities for which such a reservation of funds has been made, for services performed by public utilities, for travel, and for rental of equipment and facilities shall be determined respectively on the basis of the time such services were rendered, such travel was performed, and such rented equipment and facilities were used. (d) Federal funds under Title I of the Act shall not be available for use with respect to binding commitments (other than those relating to personal services. utility services, travel, or the rental of equipment or facilities) entered into, or with respect to personal services, utility services, travel or the rental of equipment or facilities rendered or performed by or for a State educational agency with respect to administration or technical assistance prior to the effective date of the approval by the Commissioner of the State application for participation, which in no event will be earlier than the date on which it was received by the Commissioner in substantially approvable form and appropriations are made for that purpose. (e) Federal funds granted to State educational agencies for establishing or improving programs of education under Title I of the Act for migratory children of migratory agricultural workers, and Federal funds distributed to local educational agencies (including State agencies directly responsible for providing free public education for handicapped children or for children in institutions for neglected or delinquent children) for programs under Title I of the Act, shal not be available with respect to binding commitments (other than those relat |