We are especially concerned with the possible loss of the support of our B category students while presently representing a relatively small part of the student population and the related revenue of the district. We anticipate that this trend in the next few years will increase substantially. There has been an indication and an assignment of additional military personnel to Ellsworth Air Force Base and since these individuals cannot be accommodated in housing on Ellsworth Air Force Base it dictates that they must use adjacent facilities for their housing accommodations. It is estimated that approximately 450 additional students will be added to the area, part of which will fall in the Douglas school District. Most of these individuals will live in accommodations representing low-cost facilities and many, of course, will live in mobile homes, neither of which will support the education of the students in terms of assessed value or taxable property. It is important to emphasize in our situation that both the local and state support of education has been at its maximum limit as established by law. That has been the case for more than 15 years. That represents 24 mills assessment against agricultural property and 40 mills against non-agricultural property. This we feel would substantiate the need for Public Law 874 funds, as cited on page 6 of the written testimony. Comparison of per pupil cost for the past three years is also provided and I think this is something we are extremely concerned about and our Board of Education is addressing on a continuing basis. In 1974-75, the district expenditures revealed $102 less per pupil than the ADA compared with the state of South Dakota. In 1974-76 the amount had increased to $127 less per pupil in ADA. In 1976-77 we project that amount will increase to $160. This increasing trend each year is an indication that we are falling further and further behind in our ability to provide a comparable educational service to the students in our community. Additional evidence is provided by the comparison of assessed valuation in the district per school age child. The state average in fiscal year 1976 was $20,000 and the Douglas assessed value was $2,000. Fiscal year '77, the state average was $22,000, and the assessed value per student, per school age child, is $2,279. In addition, while pupil-teacher ratio may not always be an indicator of quality of education, the school district finds itself, during the fiscal year '75 and '76 as having the highest ratio of pupils to certified personnel in South Dakota. The Douglas School System is also annually confronted with having to project revenue based on a number of variables. We are recipients not only of A category funds and B category funds, but several other minor sections of the law. It is not uncommon under these circumstances to receive the final entitlement or payment in the district as much as 12 to 15 months after the close of the fiscal year. Under those circumstances it is difficult to project a program of quality and to prepare a budget for succeeding years. In summary, let me indicate that the district is very much concerned about the future of the school program at Ellsworth Air Force Base and the annual uncertain status of being able to determine with any accuracy the extent of impact aid funds makes fiscal management and educational planning very difficult. We are faced with a declining trend which, if not averted, if not stopped, will have serious implications for the school district. Based on this information provided it is apparent it is a highly impacted school district, we are very dependent on the financial support of Federal impact aid, as much nows when the legislation was originally passed. We would support in this regard your continued funding of the provisions of this law. Thank you, Mr. Chairman. Chairman PERKINS. We will go now to Mr. Stormer, Director, Division of School Assistance in Federally-Affected Areas, U.S. Office of Education. STATEMENT OF WILLIAM L. STORMER Mr. STORMER. Mr. Chairman, I understand that the testimony offered here is relative to major disaster and pinpoint disaster assistance which deviates somewhat from my predecessor's remarks, and copies of the testimony have been provided to you. Chairman PERKINS. Without objection, all prepared statements will be inserted in the record. [The prepared statement of Mr. Stormer follows:] STATEMENT BY WILLIAM L. STORMER DIRECTOR, DIVISION OF SCHOOL ASSISTANCE BUREAU OF ELEMENTARY AND SECONDARY EDUCATION DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE SUBCOMMITTEE ON ELEMENTARY, SECONDARY, AND VOCATIONAL EDUCATION THURSDAY, JUNE 23, 1977 Mr. Stormer is accompanied by: Linda Chavez, Special Assistant to the Deputy Assistant Secretary for Dr. Harry L. Phillips, Deputy Assistant Commissioner for Legislation, OE Disaster Assistance to School Districts Public Laws 81-874 and 81-815 Mr. Chairman and Members of the Subcommittee: Public Laws 81-874 and 81-815 authorize major and pinpoint disaster aid. A major disaster is one sufficiently severe and broad in scope to be so declared by the President. Isolated school disasters may be declared "pinpoint" disasters by the Commissioner under certain circumstances. Assistance for Current Expenditures Under Section 7, P.L. 874, major and pinpoint disaster assistance may be given to a local school district (or a public agency operating a school providing technical, vocational, or other special education to children of elementary and secondary age) to help make minor repairs to damaged facilities; to replace or repair instructional and maintenance supplies, equipment, and materials that were seriously damaged or destroyed; to lease or otherwise obtain temporary school facilities while facilities are being replaced or restored; and to assist in meeting the added operating costs due to the disaster including those incurred when a district accepts children attending a private school where operation was disrupted, or impaired, or terminated by a disaster. Funds from other Federal, State, and local sources including insurance proceeds and interest on such proceeds are considered as available for disaster repair. The applicant is entitled only to the additional amount needed to make the necessary repairs or replacements. The assistance necessary to meet current operating expenses for free public education for any fiscal year is limited to what the Commissioner determines is necessary to enable the district with State, local, and other 94-584 O 77 - 12 Federal funds available to it to provide a level of education equivalent to that maintained in the schools prior to the occurrence of the disaster. This assistance may be provided for a period not exceeding 5 fiscal years beginning with the fiscal year in which it is determined that the area has suffered a disaster. Entitlements for the third, fourth, and fifth fiscal years following the determination may not exceed 75 percent, 50 percent, and 25 percent, respectively, of the amount of entitlement to support the educational program for the second fiscal year of such five-year period. Assistance for School Facilities Under Section 16, P.L. 815, financial assistance may be provided to replace or restore school facilities destroyed or seriously damaged as a result of a declared disaster and to construct additional public school facilities to house children from private schools seriously damaged or destroyed and which are not to be replaced. Assistance may not exceed the construction costs incident to the restoration or replacement of the school facilities destroyed or seriously damaged. In accordance with the Education Amendments of 1974, assistance may include appropriate measures to protect against future personal injuries to pupils who will be housed in school facilities being restored or reconstructed. Thus, such facilities may now include appropriate storm shelters, flood protection and earthquake protection even though the destroyed or seriously damaged facilities being restored or reconstructed did not have those features originally. Grants are the usual form of assistance for major disasters. However, when the Commissioner determines that the district has funds available from other sources to restore or replace the damaged facility and these funds are not immediately available, he may advance Federal money to the district for immediate use, such advance to be repaid upon such terms and conditions as he may determine. Under pinpoint disasters only loans may be provided. Incidently, we are advised that in some 29 States, local school districts may not borrow from the Federal Government. In determining the funds an applicant has available under Section 16 for repairing, replacing, or restoring school facilities (exclusive of equipment) seriously damaged or totally destroyed by a disaster, the Commissioner considers as available all insurance proceeds and all Federal, State, or local funds made available to the applicant specifically for repair or replacement of disaster damage, as well as all unobligated or unencumbered funds set aside as an insurance reserve and funds from the sale of bonds voted specifically for the replacement of the school facilities seriously damaged or destroyed as a result of the major disaster. Priorities for Approval of Aid Whenever the Commissioner determines that funds available for any fiscal year will be inadequate to provide the financial assistance requested under all approvable applications, as provided by Section 16(c) of P.L. 815 and Section 7(d) of P.L. 874, he will establish an order of priority for approval of applications after considering the relative educational and financial needs of all public education agencies which have submitted approvable applications. Under Section 7 the priority index established for an approvable application is the ratio (expressed in percentage) of Federal funds for which the Commissioner estimates the application is eligible to the total estimated current operating costs of the applicant including the increased costs due to the major disaster. Under Section 16, the priority index of |