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Total State Funds
Total State - Local Funds
*Does not include State aid for adult education or school lunchroom reimbursement
**Final Budget for 1975-76
See Table W-l
PART 5: IMPACT AID
THURSDAY, JUNE 30, 1977
HOUSE OF REPRESENTATIVES,
AND VOCATIONAL EDUCATION,
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 (Chairman of the Subcommittee) presiding.
Members present: Representatives Perkins, Mottl, Corrada, Kildee, and Quie.
Staff present: John F. Jennings, majority counsel, Nancy L. Kober, staff assistant, and Christopher T. Cross, minority senior education consultant.
Chairman PERKINS. The meeting will come to order. I want to introduce one of our outstanding Members of Congress, Mr. McClory. You take the chair, Mr. McClory, and introduce your witnesses.
STATEMENT OF HON. ROBERT McCLORY, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF ILLINOIS; ACCOMPANIED BY CHARLES THOMAS, SUPERINTENDENT OF SCHOOLS, AND DON SCHERWAT, BUSINESS MANAGER, ELEMENTARY SCHOOL DISTRICT 64, NORTH CHICAGO, ILLINOIS
Mr. McClory. I have asked Dr. Charles Thomas, and Mr. Don Scherwat to accompany me this morning.
Chairman PERKINS. Mr. McClory has been one of the most outstanding supporters of impact aid, and also a supporter of all other aspects of education all through the years. His work has meant victory for us in many instances.
I am delighted to welcome our colleague, Mr. McClory, to the Committee and you gentlemen.
[The prepared statement was read by Mr. McClory:]
STATEMENT OF THE HONORABLE ROBERT MCCLORY
MEMBER OF CONGRESS
AND VOCATIONAL EDUCATION
COMMITTEE ON EDUCATION AND LABOR
U.S. HOUSE OF REPRESENTATIVES
June 30, 1977
Mr. Chairman: I appreciate this opportunity to come before
you today and to testify on the important topic of Impact Aid.
the adoption of Public Law 81-874 in 1950, the federal government
has recognized its responsibility to provide financial assistance to
local school districts which are significantly and adversely affected
by certain federal activities, such as military Installations and
federal agencies. This sound policy which has been in effect for
the past 27 years 18 now threatened by the drastic cuts proposed by:
I urge you to reject any attempts to adversely
alter this beneficial and well-proven program.
According to the Office of Education, school assistance for
federally impacted areas lä the State of Illinois amounted to
$9,073,000 in FY '76. Approxdmately 30 percent of this figure was
the Category A and Category B Entitlement for school districts located
within the Congressional District which I represent. Without the
$2,515,225 Entitlement these local school districts received, there
would be no choice but to raise local taxes astronomically while
at the same time decreasing the quality of education offered pupils
in these districts,
One of the major justifications the Carter Administration
advances for decreasing Impact Aid funding is a fallacious one.
is the Administration's argument that Impact Aid should be reduced
and Title I expanded. The President does not want to compensate
school districts where children live on private property in the
community and therefore their parents pay local property taxes to
support the local school district. However, fellow Colleagues, it
18 important for all concerned to realize that approximately half of
the tax base in this country is from non-residential property.
Therefore, it is not only reasonable, but equitable, that non-tax
assessed federal operations such as military installations should
make an "in lieu of taxes" payment to local school districts.
expect local school districts to provide a decent education for
children whose parents live on or who work at federal jobs on property
which is exempt from local taxation without a contribution from the
federal government is unconscionable.
In my Congressional District, the 13th of Illinois, and in
the adjacent two Congressional Districts, we have several military
and governmental installations which impact on local school districts.
The Great Lakes Naval Training Center, Port Sheridan, and the
Veteran's Administration Hospital in North Chicago all would create
detrimental financial burdens without the Impact Aid Program.
In the case of the North Chicago School District #64, for
example, the Great Lakes Naval Training Center lies within the district boundaries. The Base uses one-half of the geographical area and it
has been estimated that if assessed for tax purposes, it would be
more than twice the assessed district value of $66-million. Thus,
this federal Installation is the largest non-taxpaying employer in the
North Chicago School District. The 597 military and civilian, children
who attend local schools are entitled to $201,000.00 in Impact Aid
payments. If cut, this means that local taxpayers would have to
borrow approximately $336.00 for each of the 597 children whose parents
work on the federal Base.
In addition to the example of the North Chicago district, ali
of the surrounding school districts are also affected by the Naval
Training Center, Fort Sheridan or the VA Hospital. And it stands to
reason that most of these children would not be there if it were not
for federal activity.
Assume for a moment, Colleagues, that we do reduce the Impact
Ald Program in accordance with the President's recommendations.
There is absolutely no way in which the local school districts within
my Congressional District could maintain the existing level
quality education without some type of "in lieu of taxes" payments
from the federal government.
In the Waukegan School District #60;
for example, it is anticipated that without Impact Aid it would be
necessary to cut 27 teachers and support staff. And, who is it that
ultimately loses? The children of parents serving the federal govern
ment are the ones who are deprived the quality education they deserve.
both to the school children and
This is discriminatory and unfair the local taxpayers.