Narrative: f. 2. B.

Under the Act, at least 85 percent of all funds must be allocated to eligible recipients (see definitions for description) for basic programs. An amount not more than 10 percent of the allotment will be available for State programs and leadership, which will include at least $60,000 to be used for services that prepare individuals for non– traditional training and employment, and an amount equal to not more than 1% of the amount allocated to the state under section 111 shall be available to serve individuals in state institutions such as State correctional institutions or institutions that serve individuals with disabilities.

Minnesota will exercise the reserve option under Section 112 (c) under the following conditions:

1. Up to 10 % of the allocation under Section 131of the Act will be held in reserve.

The state intends to distribute 10% reserve fund of the remaining Basic Grant funds using a modified formula that should enable large rurally–based local Perkins IV consortia that exist outside the Twin Cities metropolitan area to overcome more significant planning obstacles encountered mainly because educational programming and support require covering large geographical areas.

a. One half on the ratio of the geographic area of the consortium to the geographic area of the state. Such a distribution recognizes that geographically sparse regions have additional costs associated with such sparsity, especially with the emphasis in the Minnesota plan on consortium development and operations.

b. One half on the basis of participation in career and technical education programs weighted 3 to 1 for secondary participants. Such a distribution rewards high quality career and technical education programs that attract high levels of participation, but recognized through its secondary weighting that guidance activities and pre–career and technical programming that had been supported in secondary schools by tech prep funds remain an important focus of each new consortium.