(b)
Allocation to Puerto Rico
(1)
In general
For each fiscal year, the grant which the Commonwealth of Puerto Rico shall be eligible to receive under this part shall be the amount determined by multiplying the number of children who would be counted under subsection (a)(1)(A) of this section if such subsection applied to the Commonwealth of Puerto Rico by the product of—
(A)
the percentage which the average per-pupil expenditure in the Commonwealth of Puerto Rico is of the lowest average per-pupil expenditure of any of the 50 States; and
(B)
32 percent of the average per-pupil expenditure in the United States.
(2)
Minimum percentage
The percentage in paragraph (1)(A) shall not be less than—
(A)
for fiscal year 2002, 77.5 percent;
(B)
for fiscal year 2003, 80.0 percent;
(C)
for fiscal year 2004, 82.5 percent; and
(D)
for fiscal year 2005 and succeeding fiscal years, 85.0 percent.
(3)
Limitation
If the application of paragraph (2) for any fiscal year would result in any of the 50 States or the District of Columbia receiving less under this part than it received under this part for the preceding fiscal year, then the percentage described in paragraph (1)(A) that is used for the Commonwealth of Puerto Rico for the fiscal year for which the determination is made shall be the greater of the percentage in paragraph (1)(A) for such fiscal year or the percentage used for the preceding fiscal year.
(d)
Consortium arrangements
(1)
In general
In the case of a State that receives a grant of $1,000,000 or less under this section, the Secretary shall consult with the State educational agency to determine whether consortium arrangements with another State or other appropriate entity would result in delivery of services in a more effective and efficient manner.
(2)
Proposals
Any State, regardless of the amount of such State’s allocation, may submit a consortium arrangement to the Secretary for approval.
(3)
Approval
The Secretary shall approve a consortium arrangement under paragraph (1) or (2) if the proposal demonstrates that the arrangement will—
(A)
reduce administrative costs or program function costs for State programs; and
(B)
make more funds available for direct services to add substantially to the welfare or educational attainment of children to be served under this part.