For purposes of this subchapter:
(1)
Armed Forces
The term “Armed Forces” means the Army, Navy, Air Force, and Marine Corps.
(2)
Average per-pupil expenditure
The term “average per-pupil expenditure” means—
(A)
the aggregate current expenditures of all local educational agencies in the State; divided by
(B)
the total number of children in average daily attendance for whom such agencies provided free public education.
(3)
Construction
The term “construction” means—
(A)
the preparation of drawings and specifications for school facilities;
(B)
erecting, building, acquiring, altering, remodeling, repairing, or extending school facilities;
(C)
inspecting and supervising the construction of school facilities; and
(D)
debt service for such activities.
(4)
Current expenditures
The term “current expenditures” means expenditures for free public education, including expenditures for administration, instruction, attendance and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities, but does not include expenditures for community services, capital outlay, and debt service, or any expenditures made from funds awarded under part A of subchapter I of this chapter and subchapter VI of this chapter. The determination of whether an expenditure for the replacement of equipment is considered a current expenditure or a capital outlay shall be determined in accordance with generally accepted accounting principles as determined by the State.
(5)
Federal property
(A)
In general
Except as provided in subparagraphs (B) through (F), the term “Federal property” means real property that is not subject to taxation by any State or any political subdivision of a State due to Federal agreement, law, or policy, and that is—
(i)
owned by the United States or leased by the United States from another entity;
(ii)
(I)
held in trust by the United States for individual Indians or Indian tribes;
(II)
held by individual Indians or Indian tribes subject to restrictions on alienation imposed by the United States;
(III)
conveyed at any time under the Alaska Native Claims Settlement Act [43 U.S.C. 1601 et seq.] to a Native individual, Native group, or village or regional corporation;
(IV)
public land owned by the United States that is designated for the sole use and benefit of individual Indians or Indian tribes; or
(V)
used for low-rent housing, as described in paragraph (10), that is located on land described in subclause (I), (II), (III), or (IV) of this clause or on land that met one of those descriptions immediately before such property’s use for such housing;
(iii)
(I)
part of a low-rent housing project assisted under the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.];
(II)
used to provide housing for homeless children at closed military installations pursuant to section
11411 of title
42; or
(III)
used for affordable housing assisted under the Native American Housing Assistance and Self-Determination Act of 1996 [25 U.S.C. 4101 et seq.]; or
(iv)
owned by a foreign government or by an international organization.
(B)
Schools providing flight training to members of Air Force
The term “Federal property” includes, so long as not subject to taxation by any State or any political subdivision of a State, and whether or not that tax exemption is due to Federal agreement, law, or policy, any school providing flight training to members of the Air Force under contract with the Air Force at an airport owned by a State or political subdivision of a State.
(C)
Non-Federal easements, leases, licenses, permits, improvements, and certain other real property
The term “Federal property” includes, whether or not subject to taxation by a State or a political subdivision of a State—
(i)
any non-Federal easement, lease, license, permit, or other such interest in Federal property as otherwise described in this paragraph, but not including any non-Federal fee-simple interest;
(ii)
any improvement on Federal property as otherwise described in this paragraph; and
(iii)
real property that, immediately before its sale or transfer to a non-Federal party, was owned by the United States and otherwise qualified as Federal property described in this paragraph, but only for one year beyond the end of the fiscal year of such sale or transfer.
(D)
Certain Postal Service property and pipelines and utility lines
Notwithstanding any other provision of this paragraph, the term “Federal property” does not include—
(i)
any real property under the jurisdiction of the United States Postal Service that is used primarily for the provision of postal services; or
(ii)
pipelines and utility lines.
(E)
Property with respect to which State or local tax revenues may not be expended, allocated, or available for free public education
Notwithstanding any other provision of this paragraph, “Federal property” does not include any property on which children reside that is otherwise described in this paragraph if—
(i)
no tax revenues of the State or of any political subdivision of the State may be expended for the free public education of children who reside on that Federal property; or
(ii)
no tax revenues of the State are allocated or available for the free public education of such children.
(F)
Property located in the State of Oklahoma owned by Indian housing authority for low-income housing
The term “Federal property” includes any real property located in the State of Oklahoma that—
(i)
is owned by an Indian housing authority and used for low-income housing (including housing assisted under or authorized by the Native American Housing Assistance and Self-Determination Act of 1996 [25 U.S.C. 4101 et seq.]); and
(ii)
at any time—
(I)
was designated by treaty as tribal land; or
(II)
satisfied the definition of Federal property under section 403(1)(A) of the Act of September 30, 1950 (Public Law 874, 81st Congress) (as such Act was in effect on the day preceding October 20, 1994).
(6)
Free public education
The term “free public education” means education that is provided—
(A)
at public expense, under public supervision and direction, and without tuition charge; and
(B)
as elementary or secondary education, as determined under State law, except that, notwithstanding State law, such term—
(i)
includes preschool education; and
(ii)
does not include any education provided beyond grade 12.
(7)
Indian lands
The term “Indian lands” means any Federal property described in paragraph (5)(A)(ii) or (5)(F).
(8)
Local contribution percentage
(A)
In general
The term “local contribution percentage” means the percentage of current expenditures in the State derived from local and intermediate sources, as reported to and verified by the National Center for Education Statistics.
(B)
Hawaii and District of Columbia
Notwithstanding subparagraph (A), the local contribution percentage for Hawaii and for the District of Columbia shall be the average local contribution percentage for the 50 States and the District of Columbia.
(9)
Local educational agency
(A)
In general
Except as provided in subparagraph (B), the term “local educational agency”—
(i)
means a board of education or other legally constituted local school authority having administrative control and direction of free public education in a county, township, independent school district, or other school district; and
(ii)
includes any State agency that directly operates and maintains facilities for providing free public education.
(B)
Exception
The term “local educational agency” does not include any agency or school authority that the Secretary determines on a case-by-case basis—
(i)
was constituted or reconstituted primarily for the purpose of receiving assistance under this subchapter or the Act of September 30, 1950 (Public Law 874, 81st Congress) (as such Act was in effect on the day preceding October 20, 1994) or increasing the amount of such assistance; or
(ii)
is not constituted or reconstituted for legitimate educational purposes.
(10)
Low-rent housing
The term “low-rent housing” means housing located on property that is described in paragraph (5)(A)(iii).
(11)
Modernization
The term “modernization” means repair, renovation, alteration, or construction, including—
(A)
the concurrent installation of equipment; and
(B)
the complete or partial replacement of an existing school facility, but only if such replacement is less expensive and more cost-effective than repair, renovation, or alteration of the school facility.
(12)
Revenue derived from local sources
The term “revenue derived from local sources” means—
(A)
revenue produced within the boundaries of a local educational agency and available to such agency for such agency’s use; or
(B)
funds collected by another governmental unit, but distributed back to a local educational agency in the same proportion as such funds were collected as a local revenue source.
(13)
School facilities
The term “school facilities” includes—
(A)
classrooms and related facilities; and
(B)
equipment, machinery, and utilities necessary or appropriate for school purposes.