SCHOOL CONSTRUCTION IN FEDERALLY AFFECTED AREAS AND MAJOR DISASTER AREAS

Purpose

1. To provide assistance for construction of urgently needed minimum school facilities in school districts which have had substantial increases in school membership as a result of new or increased Federal activities; namely:

a.

When these increases are experienced in a 2-year period.

b. When the increased number of children for whom the school district provides free public education live on Federal property or live with a parent employed on Federal property or engaged in Federal activities carried on directly or through a contractor.

2. To provide similar assistance in needy school districts unable to qualify on the basis of enrollment increases but accepting for education substantial numbers of pupils--such as Indians--who live on Federal property.

3. To arrange for constructing or otherwise providing minimum school facilities for children who live on Federal property for whom State and local education agencies are unable, under State law or for other reasons, to provide suitable free public education.

4. To provide assistance incident to the restoration or replacement of school facilities destroyed or damaged as a result of major disaster.

Public Law 81-815 responded to such problems as the adverse impact on the ability of local areas to provide suitable public education when, for example, Federal establishment and staffing of large civilian or military installations resulted both in withdrawal of property from local taxation and substantial increase in size of the school-age population. The law defined the term "State" to include any of the major political subdivisions of the Nation other than American Samoa, Guam, and the District of Columbia and stated that "except for the purposes of title I the term includes, in addition, the District of Columbia." The initial terminal date was June 30, 1952. Amendments extended the law, made changes in formulas, and expanded coverage while retaining the basic purposes.

Section 11 of Public Law 84-896 made the legislation applicable to Guam and Public Law 85-161 extended it to Wake Island. Title I of Public Law 85-620 made the program permanent insofar as it relates to children of persons who reside and work on Federal property, extended temporary provisions related to other covered children through June 30, 1961, and provided a fresh text of the legislation as changed through August 12, 1958. Public Law 88-665 included the District of Columbia in the definition of the term "State" and extended the temporary provisions through June 30, 1966. Public Law 89-77 provides for construction of on-base school facilities for children residing with a parent who is a United States employee living off-base in Puerto Rico, Wake Island, Guam, or the Virgin Islands. Public Law 89-313 provides for school construction assistance in areas affected by major disasters.

1/ Funds are in connection with construction because of new or increased Federal activities. "Sums so appropriated, other than sums appropriated for administration," states section 1 of Public Law 81-815 as amended, "shall remain available until expended." No funds related to needs created by major disaster are included.

2/ More than $1 billion were obligated for construction of school facilities by local school districts as of June 30, 1965. To these Federal obligations must be added some 764,000,000 in local funds not counting those for site and off-site improvements.

3/ Estimate and related to needs caused by new or increased Federal activities--with no amounts included for major disaster areas.

Method of Distribution

The Federal payment in Federal impact situations is based on a portion of the per pupil cost of constructing minimum school facilities in the State. If the parent lives and works on Federal property, the per pupil rate is 95 percent of the State average per pupil cost of constructing minimum school facilities. It is 50 percent if the parent either lives on or works on Federal property but not both, and 45 percent if the parent is engaged in Federal activities carried on directly or through a contractor.

To qualify for assistance for children living on or living with a parent employed on Federal property, a district must show in any 2-year period, an estimated increase of at least 5 percent over that in the immediately preceding year in the average daily membership of children covered under the legislation. To qualify at the 45 percent rate, the increase must constitute at least 10 percent, and the U.S. Commissioner of Education must find that provision of minimum school facilities for such children would create an undue financial burden on the taxing and borrowing authority of the district.

Federal payments may total the full cost of school facilities for the number of unhoused children in districts lacking resources to provide essential facilities for the education of substantial numbers of pupils residing on

Federal property. They also may total the full cost of erecting temporary school facilities to accommodate children covered by the legislation when their attendance in an area is expected to be of temporary duration. In addition, supplemental Federal payments may cover the non-Federal share of a project when a local district has no available resource to cover it and when there has been a substantial increase in enrollment because of Federal activities.

Federal payments to local education agencies as a result of disaster may be in advance of expenditures by those agencies or by way of reimbursements. They may be paid in such installments as the Commissioner may determine.

Criteria for Decision:

1. In cases involving substantial increases in school membership as a result of new or increased Federal activities:

need.

a.

Data supporting the substantial increases and related

b. Evidence that projected use of Federal funds is limited to construction of "minimum" school facilities (without gymnasiums, single-purpose auditoriums, or the like).

C. Certification by the State agency that data in applications from local school districts are correct and that proposed projects are in conformity with the overall State plan and requirements for construction of school facilities.

d. Information provided by the State agency (or appropriate Federal agency) for calculating average per pupil cost for construction of minimum school facilities in the particular State.

2. In cases of major disaster:

a. Determination that public elementary or secondary school facilities have been destroyed or seriously damaged.

b. Evidence that the local education agency is making a reasonable tax effort, is availing itself of State and other financial assistance available, and does not have sufficient funds to provide minimum school facilities.

Evidence that financial assistance is limited to an amount deemed to be necessary as additional assistance in order for the local education agency to provide for the replacement or restoration of minimum facilities.

Source of Data:

Basic Regulations: 23 F.R. 7291, September 19, 1958, as amended by 24 F.R. 7694, September 24, 1959, and 26 F.R. 9777, October 18, 1961--45 C.F.R. 114 (with temporary provisions of the legislation extending through June 30, 1966).

Regulations applicable to hearings: 18 F.R. 6707, October22, 1953

as amended by 24 F.R. 3880, May 14, 1959--45 C.F.R. 106.

Regulations applicable to major disaster areas: 31 F.R. 4403, Iarch 15, 1966--45 C.F.R. 112.

Matching Requirements

None.

Tho May Receive Federal Aid

Local education agencies and Federal agencies qualifying under one or more of the statutory eligibility requirements.

Application Procedure

Local school districts apply to the Office of Education through the appropriate State education agency. When the Commissioner of Education is required by law to arrange for construction of schools on Federal property, the military commander or other Federal officer requests the construction of local facilities and supplies the required information. The appropriate State education agency is consulted concerning need and other aspects of the application and a report from the Department of Housing and Urban Development then forms a basis for the Commissioner of Education to approve, alter, or adjust the proposed project.

Developments During the Past Year

Section 1103 of Public Law 88-665 directed the Commissioner of Education to submit not later than the close of fiscal year 1965, a "full report" of the operation of the laws relating to education in impacted areas and "his recommendations as to what amendments to such laws should be made if they are further extended." The study was made by the Stanford Research Institute under contract OE-5-99-046.

This 2-volume report ("Entitlements for Federally Affected School Districts Under Public Laws 874 and 815" and "Entitlements for Federally Affected School Districts Under Public Laws 874 and 815: Case Studies"), the Commissioner's comments, and preliminary recommendations were forwarded to the Congress on June 30, 1965. These data then were published as Impacted Areas Legislation Report and Recommendations. Prepared for the Subcommittee on Education of the Committee on Labor and Public welfare, United States Senate by the Office of Education, U.S. Department of Health,

Education, and Welfare. Committee Print. 89th Congress, 1st session. Washington: U.S. Government Printing Office, August 1965. 550 p.

Legal Basis

Public Law 81-815, September 23, 1950 (64 Stat. 967) as amended or affected by Public Laws: 83-246, August 8, 1953 (67 Stat 522); 83-357, May 11, 1954, chapter V (68 Stat. 87); 83-731, August 31, 1954 (68 Stat. 1005); 84-332, August 12, 1955, sections 4-7 (69 Stat. 713); 84-896, August 1, 1956, section 11 (70 Stat 909; 84-949, August 3, 1956, title I (70 Stat 968); 35-161, August 21, 1957 (71 Stat. 403); 85-267, September 2, 1957 (71 Stat. 593); 85-620, August 12, 1958, title I (72 Stat.548); 86-70 (Alaska Omnibus Act), June 25, 1959, section 18.(c) (73 Stat. 144); 86-449 (Civil Rights Act of 1960), May 6, 1960, sec tion 502 (74 Stat. 89); 86-624 (Hawaii Omnibus Act), July 12, 1960, section 14.(c) (74 Stat. 414); 87-344, October 3, 1961, title I, sections 101 and 103 (75 Stat. 759); 88-210, December 18, 1963, part C, sections 31 and 33 (77 Stat. 419); 88-665, October 16, 1964, title XI, section 1101 (79 Stat. 1109); 89-77, July 21, 1965, section 1 (79 Stat. 243); and 89-313, November 1, 1965, sections 1, 3, and 5 (79 Stat. 1158)--20 U.S.C. 631.

Additional information may be obtained from: Division of School Assistance in Federally Affected Areas, Bureau of Elementary and Secondary ducation, Office of Education, Department of Health, Education, and Welfare, Jashin ton, D. C. 20202.