; and (iii) by adding after subparagraph (C), the following new subparagraph: (D) Establishing the State baseline (i) In general For purposes of subparagraph (A), the State may— (I) continue to use the State’s fiscal effort per student, or aggregate expenditures of such State, with respect to career and technical education, as was in effect on the day before the date of enactment of the Strengthening Career and Technical Education for the 21st Century Act; or (II) establish a new level of fiscal effort per student, or aggregate expenditures of such State, with respect to career and technical education, which is not less than 90 percent of the State’s fiscal effort per student, or the aggregate expenditures of such State, with respect to career and technical education for the preceding fiscal year. (ii) Amount The amount of the new level described in clause (i)(II) shall be the State’s fiscal effort per student, or aggregate expenditures of such State, with respect to career and technical education, for the first full fiscal year following the enactment of the Strengthening Career and Technical Education for the 21st Century Act . ; and (B) by striking paragraph (2) and inserting the following: (2) Failure to meet The Secretary shall reduce the amount of a State’s allotment of funds under this Act for any fiscal year in the exact proportion by which the State fails to meet the requirement of paragraph (1) by falling below the State’s fiscal effort per student or the State’s aggregate expenditures (using the measure most favorable to the State), if the State failed to meet such requirement (as determined using the measure most favorable to the State) for 1 or more of the 5 immediately preceding fiscal years. (3) Waiver The Secretary may waive paragraph (2) due to exceptional or uncontrollable circumstances affecting the ability of the State to meet the requirement of paragraph (1).