THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE JUL 23 1977 Honorable Albert H. Quie Dear Al: Thank you for your letter of June 30 concerning the Department's Fiscal Year 1979 request for funds to assure that schools located on Federal land can comply with the Section 504 regulations. As your letter indicates, we are still in the process of preparing our FY 1979 budget requests. In doing so, we are making every effort to meet all our obligations, although I'm sure you are aware that we must also operate within rather strict fiscal constraints. I have asked the Education Division to work with our Office for Civil Rights to supply me with additional information on the specific points your letter raises. I expect to be able to respond further to your concerns in two or three weeks. sincerely, Joseph A. Califano, Jr. Department of Health, Education, and Welfare 330 Independence Avenue, S. W. Washington, D. C. 20201 Dear Joe: Thank you for your letter of July 23 in response to my letter I appreciate the fact that the Department is currently engaged in the budget cycle for FY 1979; however, I do not feel that your letter is responsive to my specific request with respect to how HEW's responsibilities to those schools eligible for assistance under Section 10 of P.L. 815 will be carried out. I am also unable to determine from your response whether or not the Department would move to cut off all Federal funding to those schools if Federal construction assistance is not made available and whether the failure to do so, if that is your decision, would not create a double standard when compared with actions which may be taken against schools responsible for raising construction funds from State and local sources. Because of the seriousness of this problem and the fact that we will soon be considering amendments to the Impact Aid Act, I would appreciate your specific reply to these questions as well as other issues raised in my original letter. With kind regards, I remain AHQ: cma Sincerely yours, ALBERT H. QUIE Member of Congress APPENDICES Appendix 1 PUBLIC LAW 874, 81ST CONGRESS TITLE I-FINANCIAL ASSISTANCE FOR LOCAL EDUCATION AGENCIES IN AREAS AFFECTED BY FEDERAL ACTIVITY DECLARATION OF POLICY SECTION 1. In recognition of the responsibility of the United States for the impact which certain Federal activities have on the local educational agencies in the areas in which such activities are carried on, the Congress hereby declares it to be the policy of the United States to provide financial assistance (as set forth in the following sections of this title) for those local educational agencies upon which the United States has placed financial burdens by reason of the fact that (1) the revenues available to such agencies from local sources have been reduced as the result of the acquisition of real property by the United States; or (2) such agencies provide education for children residing on Federal property; or (3) such agencies provide education for children whose parents are employed on Federal property; or (4) there has been a sudden and substantial increase in school attendance as the result of Federal activities.1 (20 U.S.C. 236) Enacted Sept. 30, 1950, C. 1124, P.L. 874, 81st Cong. sec. 1, 64 Stat. 1100; amended April 11, 1965, P.L. 89-10, Title I, sec. 2, 79 Stat. 27. FEDERAL ACQUISITION OF REAL PROPERTY SEC. 2. (a) Where the Commissioner, after consultation with any local educational agency and with the appropriate State educational agency, determines for any fiscal year ending prior to July 1, 1978 (1) that the United States owns Federal property in the school district of such local educational agency, and that such property (A) has been acquired by the United States since 1938, (B) was 1 Sec. 2 of P.L. 92-277, enacted April 24, 1972. provides as follows: "SEC. 2. All real property of the United States which was transferred to the United States Postal Service and was, prior to such transfer, treated as Federal property for purposes of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress), shall continue to be treated as Federal property for such purpose for two years beyond the end of the fiscal year in which such transfer occurred." not acquired by exchange for other Federal property in the school district which the United States owned before 1939, and (C) had an assessed value (determined as of the time or times when so acquired) aggregating 10 per centum or more of the assessed value of all real property in the school district (similarly determined as of the time or times when such Federal property was so acquired); and (2) that such acquisition has placed a substantial and continuing financial burden on such agency; and (3) that such agency is not being substantially compensated for the loss in revenue resulting from such acquisition by increases in revenue accruing to the agency from the carrying on of Federal activities with respect to the property so acquired, then the local educational agency shall be entitled to receive for such fiscal year such amount as, in the judgment of the Commissioner, is equal to the continuing Federal responsibility for the additional financial burden with respect to current expenditures placed on such agency by such acquisition of property. Such amount shall not exceed the amount which, in the judgment of the Commissioner, such agency would have derived in such year, and would have had available for current expenditures, from the property acquired by the United States (such amount to be determined without regard to any improvements or other changes made in or on such property since such acquisition). (b) For the purposes of this section any real property with respect to which payments are being made under section 13 of the Tennessee Valley Authority Act of 1933, as amended, shall not be regarded as Federal property. (c) Where the school district of any local educational agency shall have been formed at any time after 1938 by the consolidation of two or more former school districts, such agency may elect (at the time it files application under section 5) for any fiscal year to have (1) the eligibility of such local educational agency, and (2) the amount which such agency shall be entitled to receive, determined under this section only with respect to such of the former school districts comprising such consolidated school district as the agency shall designate in such election. (20 U.S.C. 237) Enacted Sept. 30, 1950, C. 1124, P.L. 874, 81st Cong., Title I, sec. 2, 64 Stat. 1101; amended Aug. 8, 1953, C. 402, P.L. 248, 83d Cong., sec. 1, 67 Stat. 530; amended Aug. 12, 1955, C. 868, P.L. 382, 84th Cong., sec. 1, 69 Stat. 713; amended Aug. 3, 1956, C. 915, P.L. 949, 84th Cong., Title II, sec. 201, 70 Stat. 970; amended Aug. 12, 1958, P.L. 85-620, Title II, sec. 201, 72 Stat. 559; amended Oct. 3, 1961, P.L. 87-344, Title I, sec. 102(a), 75 Stat. 759; amended Dec. 18, 1963, P.L. 88-210, Title III, sec. 302, formerly sec. 32, 77 Stat. 419; amended Oct. 16, 1964, P.L. 88-665, Title XI, sec. 1102(a), 78 Stat. 1109; amended April 11, 1965, P.L. 89-10, Title I, secs. 2, 5, 79 Stat. 27, 36; amended Jan. 2, 1968, P.L. 90-247, Title II, III, secs. 204(a)-(c) 301(e), 81 Stat. 808, 813; redesignated Oct. 16, 1968, P.L. 90-576, Title I, sec. 101 (a) (1), 82 Stat. 1064; amended Apr. 13, 1970, P.L. 91-230, Title II, sec. 201 (b), 84 Stat. 154; amended August 21, 1974, P.L. 93-380, sec. 303 (a) (1), 88 Stat. 522. CHILDREN RESIDING ON, OR WHOSE PARENTS ARE EMPLOYED ON FEDERAL PROPERTY CHILDREN OF PERSONS WHO RESIDE AND WORK ON FEDERAL PROPERTY SEC. 3. (a) For the purpose of computing the amount to which a local educational agency is entitled under this section for any fiscal year, the Commissioner shall determine the number of children who were in average daily attendance at the schools of such agency, and for whom such agency provided free public education, during such fiscal year, and who, while in attendance at such schools, resided on Federal property and (1) did so with a parent employed on Federal property situated in whole or in part in the same State as the school district of such agency or situated within reasonable commuting distance from the school district of such agency, or (2) had a parent who was on active duty in the uniformed services (as defined in section 102 of the Career Compensation Act of 1949). CHILDREN OF PERSONS WHO RESIDE OR WORK ON FEDERAL PROPERTY (b) For the purpose of computing the amount to which a local educational agency is entitled under this section for any fiscal year ending prior to July 1, 1975, the Commissioner shall also determine the number of children (other than children to whom subsection (a) applies) who were in average daily attendance at the schools of a local educational agency, and for whom such agency provided free public education, during such fiscal year and who, while in attendance at such schools, either (1) resided on Federal property, or (2) resided. with a parent employed on Federal property situated in whole or in part in the same State as such agency or situated within reasonable commuting distance from the school district of such agency, or (3) had a parent who was on 'active duty in the uniformed services (as defined in section 102 of the Career Compensation Act of 1949). In the case of fiscal years ending prior to July 1, 1975, the Commissioner shall also determine the number of children (other than children to whom subsection (a) or any other provision of this subsection applies) who were in average daily attendance at the schools of a local educational agency and for whom such agency provided free public education, during such fiscal year, and who, while in attendance at such schools resided with a parent who was, at any time during the threeyear period immediately preceding the fiscal year for which the determination is made, a refugee who meets the requirements of section 2(b) (3) (A) and (B) of the Migration and Refugee Assistance Act of 1962. (c) (1) The amount to which a local educational agency is entitled under this section for any fiscal year shall be an amount equal to (A) the local contribution rate (determined under subsection (d)) multiplied by (B) the sum of the number of children determined under subsection (a) and one-half of the number determined under subsection (b). (2) No local educational agency shall be entitled to receive any payment for a fiscal year with respect to a number of children determined under subsection (a) or the first sentence of subsection (b), as the case may be, unless the number of children who were in average daily attendance during such year to whom such subsection or such sentence applies (A) is ten or more; and (B) amount to, whichever is the lesser, four hundred such children, or a number of such children equal to 3 per centum or more of the total number of children who were in average daily attendance during such year and for whom such agency pro |