(a) The Secretary may waive the maintenance of effort requirement in Sec. 403.182 for a State for one year only if--
(1) The Secretary determines that a waiver would be equitable due to exceptional or uncontrollable circumstances affecting the State's ability to maintain fiscal effort; and
(2) The State has decreased its expenditures for vocational education from non-Federal sources by no more than five percent.
(b) For purposes of this section, ``exceptional or uncontrollable circumstances'' include, but are not limited to, the following:
(1) A natural disaster.
(2) An unforeseen and precipitous decline in financial resources.
(c) The Secretary does not consider tax initiatives or referenda to be exceptional or uncontrollable circumstances. (Authority: 20 U.S.C. 2463(b))