 
             CHAPTER 44--VOCATIONAL AND TECHNICAL EDUCATION
 
                   SUBCHAPTER III--GENERAL PROVISIONS
 
                Part A--Federal Administrative Provisions
 
Sec. 2391. Fiscal requirements


(a) Supplement not supplant

    Funds made available under this chapter for vocational and technical 
education activities shall supplement, and shall not supplant, non-
Federal funds expended to carry out vocational and technical education 
activities and tech-prep activities.

(b) Maintenance of effort

                          (1) Determination

        (A) In general

            Except as provided in subparagraphs (B) and (C), no payments 
        shall be made under this chapter for any fiscal year to a State 
        for vocational and technical education programs or tech-prep 
        programs unless the Secretary determines that the fiscal effort 
        per student or the aggregate expenditures of such State for 
        vocational and technical education programs for the fiscal year 
        preceding the fiscal year for which the determination is made, 
        equaled or exceeded such effort or expenditures for vocational 
        and technical education programs, for the second fiscal year 
        preceding the fiscal year for which the determination is made.

        (B) Computation

            In computing the fiscal effort or aggregate expenditures 
        pursuant to subparagraph (A), the Secretary shall exclude 
        capital expenditures, special one-time project costs, and the 
        cost of pilot programs.

        (C) Decrease in Federal support

            If the amount made available for vocational and technical 
        education programs under this chapter for a fiscal year is less 
        than the amount made available for vocational and technical 
        education programs under this chapter for the preceding fiscal 
        year, then the fiscal effort per student or the aggregate 
        expenditures of a State required by subparagraph (B) for such 
        preceding fiscal year shall be decreased by the same percentage 
        as the percentage decrease in the amount so made available.

                             (2) Waiver

        The Secretary may waive the requirements of this section, with 
    respect to not more than 5 percent of expenditures by any eligible 
    agency for 1 fiscal year only, on making a determination that such 
    waiver would be equitable due to exceptional or uncontrollable 
    circumstances affecting the ability of the eligible agency to meet 
    such requirements, such as a natural disaster or an unforeseen and 
    precipitous decline in financial resources. No level of funding 
    permitted under such a waiver may be used as the basis for computing 
    the fiscal effort or aggregate expenditures required under this 
    section for years subsequent to the year covered by such waiver. The 
    fiscal effort or aggregate expenditures for the subsequent years 
    shall be computed on the basis of the level of funding that would, 
    but for such waiver, have been required.

(Pub. L. 88-210, title III, Sec. 311, as added Pub. L. 105-332, 
Sec. 1(b), Oct. 31, 1998, 112 Stat. 3121.)


                            Prior Provisions

    Provisions similar to this section were contained in section 2463 of 
this title, prior to the general amendment of this chapter by Pub. L. 
105-332.
    A prior section 2391, Pub. L. 88-210, title III, Sec. 331, formerly 
Sec. 341, as added Pub. L. 98-524, Sec. 1, Oct. 19, 1984, 98 Stat. 2463; 
renumbered Sec. 331 and amended Pub. L. 101-392, title III, 
Sec. 307(a)(2), (c), Sept. 25, 1990, 104 Stat. 787, stated findings of 
Congress, prior to the general amendment of this chapter by Pub. L. 105-
332.
    A prior section 311 of Pub. L. 88-210 was classified to section 2361 
of this title, prior to the general amendment of this chapter by Pub. L. 
105-332.
