1. Short title This Act may be cited as the Career and Technical Education State Flexibility Act . 2. Maintenance of effort Section 311(b) of the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2391(b) ) is amended— (1) in paragraph (1)— (A) by striking subparagraph (A) and inserting the following: (A) In general (i) In general In order for a State to receive its full allotment of funds under this Act for any applicable fiscal year, the State’s fiscal effort per student, or the aggregate expenditures of such State, with respect to career and technical education for the fiscal year preceding such applicable fiscal year shall be not less than 80 percent the fiscal effort per student, or the aggregate expenditures of such State, for the second fiscal year preceding such applicable fiscal year. (ii) Applicable fiscal year In clause (i), the term applicable fiscal year means any fiscal year beginning with the third fiscal year that begins after the date of enactment of the Career and Technical Education State Flexibility Act . (iii) No application for first two fiscal years; reset The maintenance of effort requirement under clause (i) shall not be applicable for the first 2 fiscal years that begin after the date of enactment of the Career and Technical Education State Flexibility Act . After the date of enactment of the Career and Technical Education State Flexibility Act , a State may establish a new level of fiscal effort per student or aggregate expenditures for purposes of compliance with this subsection. ; and (B) in subparagraph (B), by striking shall exclude capital expenditures, special 1-time project costs, and the cost of pilot programs and inserting shall exclude competitive or incentive-based programs established by the State, capital expenditures, special 1-time project costs, and the cost of pilot programs