Education Act

Education Act of 1978 - Title I: Amendments to Existing Law Authorizing Federal Assistance for Elementary and Secondary Education - Amends Title I of the Elementary and Secondary Education Act of 1965 to (1) extend to 1980 the Commissioner of Education's authority to make grants under such Title; and (2) end special incentive grants.

Revises procedures regarding local educational agency grant applications to: (1) require submission of such applications directly to the Commissioner of Education rather than to the State agency; and (2) require establishment of appeal and hearing and complaint resolution procedures by local educational agencies.

Directs the Commissioner to (1) establish criteria to be used in determining the adequacy of such applications; and (2) provide reasonable notice and opportunity for a hearing before disapproval of such applications. Stipulates that any such application will be considered approved 60 days after receipt by the Commissioner unless prior to such time notice of intent to disapprove has been given by the Commissioner to the submitting local agency.

Revises provisions pertaining to State administration of Title I programs to allow the Commissioner to delegate to a State the authority to approve local educational agency applications if certain requirements are satisfied, including allowing local educational agencies to appeal a State's action directly to the Commissioner under certain circumstances.

Authorizes Title I payments to be made directly to local educational agencies from the Commissioner.

Provides that hearing and review procedures regarding specified actions by the Commissioner under Title I shall be in conformity with the Administrative Procedure Act.

Amends the Elementary and Secondary Education Act of 1965 to extend to 1980 programs for (1) school library resources, books, and instructional material; (2) supplementary educational services and centers, and guidance and counseling programs; (3) State and local leadership resources and planning and education grants; (4) dropout prevention; (5) nutrition and health services in public and private schools; and (6) libraries and educational support. Revises provisions under Title IV regarding State assistance plans for libraries and educational support grants.

Extends to 1983 programs for (1) bilingual education; (2) emergency school aid; (3) adult education, including special projects for elderly people with limited English language ability; (4) school construction in federally affected areas; and (5) disaster area school reconstruction.

Revises provisions regarding school construction assistance in federally affected areas, with regard to (1) determination of the maximum payment; (2) temporary attendance of children as the result of Department of Defense activities; and (3) immediate assistance for certain specified disasters.

Amends provisions regarding Federal maintenance and operation assistance to local educational agencies in federally affected areas to (1) extend certain assistance programs to 1980; (2) revise local educational agency eligibility requirements where the United States owns Federal property within the school district of such agency; (3) revise the formula for determining local educational agencies contribution rates; (4) authorize the Commissioner to increase payments to local educational agencies because of unusual geographic factors; and (5) provide local educational agencies adversely affected by actions of the Commissioner with hearing and review procedures.

Extends Indian education grant programs for (1) local educational agencies for the education of Indian children; (2) the improvement of educational opportunities for Indian children; (3) special education training for teachers of Indian children; (4) adult Indian education; and (5) higher education fellowships for Indians.

Amends the Indian Education Act to authorize the Commissioner to make grants for (1) research in the field of Indian history and culture; and (2) elementary and secondary curriculum development in schools serving Indian children. Revises the authority of the National Advisory Council on Indian Education.

Amends the Special Projects Act to extend educational programs for (1) metric system education, (2) gifted children, (3) community schools, (4) community education, (5) educational equity for women, (6) elementary and secondary education in the arts, and (7) consumer education.

Title II: Grants to Local Educational Agencies - Rewrites title IV of the Elementary and Secondary Education Act of 1965. Changes the method of determining the amount of grants to local educational agencies under such title to base the size of the grant on (1) the number of dependents of Federal employees attending schools run by the locality, (2) the number of dependents of military personnel attending schools run by the locality, (3) the number of children from low-income families attending schools run by the locality, and (4) the total number of children attending schools run by the locality. Specifies certain administrative changes in programs under such title.

Amends the Elementary and Secondary Education Act of 1965 to add Title VI providing financial assistance to the States to enable them to equalize educational expenditures among the local educational agencies within the State.

Provides a formula for such grants based on State wealth and limited real property taxation.