You will again recall that the purpose of Impact Aid is to compensate school districts for tax revenues lost by the presence of Federal property. The children who live in Federal Housing projects are often welfare recipients with language difficulties. These are the same children who cost additional money to educate because they possess special educational needs. Many of their parents come from foreign countries and cities outside of New York.

We respectfully urge your support for the following recommendations: 1. Support full funding for all categories of Impact Aid children in FY 78.

2.

3.

Reject President Carter's proposal to eliminate funding of Category "B" children, including Low-Rent Public Housing.

Support full funding through Tier 111 so that public housing children can get the remaining 75% of their entitlement.

4. Raise the entitlement level for funding Low-Rent public housing pupils in Tier II payments.

5.

Include an additional 25% entitlement for Low-Rent public housing pupils in Tier 11 payments.

6. Include payment for children connected with foreign properties under Impact Aid. It is estimated that the New York City public schools have 600 children whose parents are connected with the United Nations or foreign embassies.

7. Count all handicapped pupils as one-and-a-half times a regular child when computing Impact Aid. The higher costs of special education programs are associated with the type of handicapped to be served not with the type of family membership.

8. Include payment for children of employees of tax-exempt postal facilities.

On behalf of the children of the City of New York, I want to urge your serious consideration for the adoption of the above recommendations. During this period of declining tax bases in urban areas, the cities can ill-afford to lose this program which has just begun to recognize the needs of Low-Rent Public Housing children.

Your support in this urgent matter affecting the education of many children in our City is greatly appreciated.

PART 5: IMPACT AID

WEDNESDAY, JUNE 29, 1977

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON ELEMENTARY, SECONDARY

AND VOCATIONAL EDUCATION, COMMITTEE ON EDUCATION AND LABOR. Washington, D. C.

The subcommittee met, pursuant to notice at 9:30 a.m., in Room 2175, Rayburn House Office Building, the Hon. Carl D. Perkins presiding.

Members present: Representatives Perkins, Blouin, Mottl, Kildee, Quie, and Goodling.

Staff present: John F. Jennings, majority counsel; Nancy L. Kober, staff assistant; Christopher T. Cross, Senior Education Consultant.

Chairman PERKINS. The committee will be in order.

This is a continuation of our hearings on the Impact Aid Legislation. In fact, this is our second week of hearings. I am delighted to welcome all of you interested people to the hearings this morning.

I will recognize our colleague from North Carolina, Charlie Rose. I don't think we have had a more ardent supporter in the United States Congress of this legislation and all educational legislation. Congressman Rose from North Carolina has appeared before this committee on this special legislation for the impacted areas of the country on numerous occasions in the past.

The first year he was in the Congress he put in an appearance and continually thereafter.

STATEMENT OF THE HON. CHARLES G. ROSE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NORTH CAROLINA, ACCOMPANIED BY EVERETT L. WATERS, SUPERINTENDENT, ONSLOW COUNTY SCHOOLS; CHARLES DAVIS, SUPERINTENDENT, FAYETTEVILLE CITY SCHOOLS; MARK HENNING, SUPERINTENDENT, WAYNE COUNTY SCHOOLS AND JACK BRITT, SUPERINTENDENT, CUMBERLAND COUNTY SCHOOLS.

Mr. ROSE. Thank you, Mr. Chairman. I appreciate the opportunity to make a few brief comments. You and I have talked many times about this subject privately and in public hearings and I believe you know of my concern about Category B payments of Public Law 874, and our concern if they would be phased out.

I would like to introduce, just for the purpose of introduction, four gentlemen from eastern North Carolina who are accompanying me today and I would like to ask them to stand if they would.

Everett L. Waters, Superintendent of Onslow County Schools; Charles Davis, Superintendent, Fayetteville City Schools; Mark Henning, Superintendent, Wayne County Schools and Jack Britt, Superintendent, Cumberland County Schools.

Chairman PERKINS. Let me welcome all of you distinguished gentlemen here. Your congressman is one of the greatest advocates of this program. I am sure he will see that it survives.

Mr. ROSE. Mr. Chairman, I thank you for letting me insert my testimony in the record at this point.

[The prepared statement of Mr. Rose follows:]

Mr. Chairman and Members of this distinguished Committee, we appreciate this opportunity to appear before you to present testimony supporting Impact Aid with specific emphasis on Category B payments

to local school districts.

According to this Administration request, the appropriations for Category B payments of P. L. 874 would be phased out. I wish today to oppose this drastic, unwarranted, and unwise planned reduction, to share with you my reasons for such opposition, and to urge you to reject the Administration's request.

Concentrations of these federal employees in local communities across the country place additional demands for services upon the communities. However, the ability of the local communities to provide the additional services is reduced due to tax-exempt federal installations which result in a lower local tax base.

School districts receive the bulk of their revenues from

community property taxes. Residential property accounts for about half of the tax receipts; the other 50 per cent comes from commercial property. Thus, families that reside and/or work on federal property deprive the local community, and more important, the schools, of much needed income.

The "impacted area" program of financial assistance to school districts where large numbers of children of federally connected parents attend school was established in the early 1950's with the