The basic support payment maximum amount (formerly referred to as full entitlement) is calculated by utilizing weighted student units multiplied by the highest of four local contribution rate options.

Weighted student units are determined by multiplying the following:

1. The ADA of "uniformed services, civilian, and foreign military" children residing on federal property by a factor of 1.00.
2. The ADA of children residing on Indian lands by a factor of 1.25.
3. The ADA of "uniformed services, civilian, and foreign military" children residing on federal property in an LEA with at least 6,500 such children and a total ADA exceeding 100,000 by a factor of 1.35.
4. The ADA of "uniformed services and foreign military" children who do not reside on federal property by a factor of 0.20.
5. The ADA of children residing in low-rent housing by a factor of 0.10.
6. The eligible ADA of children who reside on federal property and children whose parents are employed on federal property ("civilian b" children) by a factor of 0.05.

The sum of all the weighted student units is then multiplied by the local contribution rate to determine the maximum basic support payment for a district. In those years in which the appropriations are insufficient to fund the full basic support payments for all LEAs, payments are determined by employing the learning opportunity threshold (LOT) provision.

A new clause at section 8003 (b)(3)(B)(iv) establishes a minimum LOT percentage for "small districts." In the case of a local educational agency that has a total student enrollment of fewer than 1,000 students and that has a per-pupil expenditure that is less than the average per-pupil expenditure of the State in which the agency is located, or less than the average per-pupil expenditure of all the States, the total percentage used to calculate threshold payments under clause (i) shall not be less than 40 percent.

The law allows for a payment that is the greater of either the LOT or the hold harmless payment calculation.

In both fiscal years 2001 and 2002, a recipient's hold harmless amount will be based on the amount paid in FY 2000. For FY 2001, the hold harmless is calculated at 85 percent of the FY 2000 payment and for FY 2002, the hold harmless is calculated at 70 percent of the FY 2000 payment. However, the hold harmless amount cannot exceed the Basic Support Payment Maximum Amount.

LEAs that qualified for 8003(f) payments in FY 2000 are eligible for a hold harmless amount that is based on the payment received in FY 2000 for both 8003(b) and 8003(f).

Annual appropriations provide specific amounts for these payments. Payments to LEAs for federally connected children with disabilities are calculated separately from basic support payments. Funds are distributed on a prorated basis, determined by dividing the available funds by the sum of the following:

1. The number of children with disabilities in average daily attendance who reside on Indian lands or who are military dependents or accredited foreign military dependents residing on federal property multiplied by a factor of 1.00.
2. The number of children with disabilities in average daily attendance who do not reside on federal property but are military dependents or accredited foreign military dependents multiplied by a factor of 0.50.

This calculation results in the payment per weighted student unit for children with disabilities.

An LEA receiving these funds must demonstrate that its total excess costs for educating federally connected children with disabilities equal or exceed the amount of its additional Impact Aid payment for children with disabilities.

School districts that enroll certain percentages of federally connected children and meet other statutory requirements receive increased formula payments under section 8003(b)(2).

Construction formula payments are based on the total number of weighted student units of eligible federally connected students in eligible LEAs. Of the amount appropriated for section 8007 each year, 20 percent is distributed among those eligible LEAs that are impacted by children who reside on Indian lands, and 20 percent is distributed among those eligible LEAs that are impacted by children who have a parent on active duty in the uniformed services of the United States.