 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
                   SUBCHAPTER XIV--GENERAL PROVISIONS
 
                       Part E--Uniform Provisions
 
Sec. 8891. Maintenance of effort


(a) In general

    A local educational agency may receive funds under a covered program 
for any fiscal year only if the State educational agency finds that 
either the combined fiscal effort per student or the aggregate 
expenditures of such agency and the State with respect to the provision 
of free public education by such agency for the preceding fiscal year 
was not less than 90 percent of such combined fiscal effort or aggregate 
expenditures for the second preceding fiscal year.

(b) Reduction in case of failure to meet

                           (1) In general

        The State educational agency shall reduce the amount of the 
    allocation of funds under a covered program in any fiscal year in 
    the exact proportion to which a local educational agency fails to 
    meet the requirement of subsection (a) of this section by falling 
    below 90 percent of both the combined fiscal effort per student and 
    aggregate expenditures (using the measure most favorable to such 
    local agency).

                          (2) Special rule

        No such lesser amount shall be used for computing the effort 
    required under subsection (a) of this section for subsequent years.

(c) Waiver

    The Secretary may waive the requirements of this section if the 
Secretary determines that such a waiver would be equitable due to--
        (1) exceptional or uncontrollable circumstances such as a 
    natural disaster; or
        (2) a precipitous decline in the financial resources of the 
    local educational agency.

(Pub. L. 89-10, title XIV, Sec. 14501, as added Pub. L. 103-382, title 
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3901.)

                  Section Referred to in Other Sections

    This section is referred to in sections 6322, 6434 of this title.
