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LEGISLATIVE SESSION

The Senate resumed its legislative session.

PETITION

Mr. LONG of Hawaii presented a resolution of the Board of Supervisors of the County of Maui, Hawaii, favoring the construction of a deep-water harbor off the Kalepolepo area, in Kihei, county of Maui; which was referred to the Committee on Public Works.

REPORT OF COMMITTEE ON PUBLIC WORKS

Mr. CHAVEZ, from the Committee on Public Works, to whom was referred the resolution (S. Res. 247) providing additional funds for the Committee on Public Works and authorizing the employment of additional clerical assistance, reported it without amendment and submitted a report (No. 1075) thereon.

Ordered, That it be referred to the Committee on Rules and Administration.

INTRODUCTION OF BILLS

Bills were introduced, severally read the first and second times by unanimous consent and referred as follows: By Mr. ERVIN:

S. 2970. A bill to require that Federal judgments for the condemnation of land by the United States be registered, recorded, docketed, indexed, and crossindexed in conformity with the law of the State in which such property is situated, and for other purposes; to the Committee on the Judiciary.

By Mr. JOHNSTON of South
Carolina:

S. 2971. A bill to extend the benefits of the Federal Employees' Group Life Insurance Act of 1954, as amended, to employees of the agricultural stabilization and conservation county committee; and

S. 2972. A bill to amend section 505 (i) (3) of the Classification Act of 1949 so as to eliminate the exemption of the Office of Defense Mobilization from the requirement that appointments in grades 16, 17, and 18 be approved by the Civil Service Commission; to the Committee on Post Office and Civil Service.

By Mr. SPARKMAN:

S. 2973. A bill to provide increases in compensation for food service workers and laundry workers under the Veterans' Administration; to the Committee on Labor and Public Welfare.

By Mr. HUMPHREY:

S. 2974. A bill for the relief of Michael Nolan (formerly Michael Pasvanis); to the Committee on the Judiciary.

S. 2975. A bill to establish a National Portrait Gallery, and for other purposes; to the Committee on Rules and Administration.

By Mr. GRUENING (for himself and Mr. LONG of Hawaii):

S. 2976. A bill to amend section 44 of Public Law 86-70, approved June 25, 1959; to the Committee on Public Works. CURTAILMENT OF RESTRAINTS ON WORLD

TRADE

Mr. KEFAUVER submitted the following concurrent resolution (S. Con.

Res. 85); which was referred to the Committee on Foreign Relations:

Whereas the United States has a continuing concern with the existence in international trade of restrictive business practices which have harmful effects on the attainment of higher standards of living, full employment, and conditions of economic and social progress and development;

Whereas the United States recognizes that national action and international cooperation is necessary in order to deal effectively with business practices affecting international trade;

Whereas the elimination of harmful restraints on international trade such as cartels or other forms of world monopoly and the furthering of competition in international trade continues to be a basic objective of this country's economic policy; Now, therefore, be it

Resolved by the Senate (the House of Representatives concurring), That the Congress requests the President of the United States to instruct the United States delegation to the United Nations, and to appropriate agencies of the United Nations, to sponsor and support resolutions that would assist the United Nations in establishing the proper intergovernment machinery, and urging member government participation, to implement a policy of elimination of harmful restraints on international trade resulting from cartels or other forms of world monopoly.

AUTHORIZATION ΤΟ PRINT ADDITIONAL COPIES OF CERTAIN HEARINGS REPORT

AND

Mr. DOUGLAS submitted the following concurrent resolution (S. Con. Res. 86); which was referred to the Committee on Rules and Administration:

Resolved by the Senate (the House of Representatives concurring), That there be printed for the use of the Joint Economic Committee one thousand additional copies of the hearings on employment, growth, and price levels, held by that committee during the first session of the Eighty-sixth Congress.

Mr. DOUGLAS submitted the following concurrent resolution (S. Con. Res. 87); which was referred to the Committee on Rules and Administration:

Resolved by the Senate (the House of Representatives concurring), That there be printed for the use of the Joint Economic Committe one thousand additional copies of the report on employment, growth, and price levels, prepared by that committee during the first session of the Eighty-sixth Congress.

Mr. DOUGLAS submitted the following concurrent resolution (S. Con. Res. 88); which was referred to the Committee on Rules and Administration:

Resolved by the Senate (The House of Representatives concurring), That there be printed for the use of the Joint Economic Committee one thousand additional copies of the hearings on energy resources and technology, held by that committee during the first session of the Eighty-sixth Congress.

Mr. DOUGLAS submitted the following concurrent resolution (S. Con. Res.

89); which was referred to the Committee on Rules and Administration:

Resolved by the Senate (the House of Representatives concurring), That there be printed for the use of the Joint Economic Committee one thousand additional copies of the studies on comparisons of the United States and Soviet economies, prepared by that committee during the first session of the Eightysixth Congress.

FEDERAL FINANCIAL ASSISTANCE FOR SCHOOL

CONSTRUCTION

On motion by Mr. MANSFIELD, and by unanimous consent,

The Senate resumed the consideration of its unfinished business, viz, the bill (S. 8) to authorize an emergency 2-year program of Federal financial assistance in school construction to the States.

On the question of agreeing to the committee amendment, striking out all after the enacting clause and inserting in lieu thereof other words,

On motion by Mr. CoOPER (for himself and Mr. JAVITS) to amend the said amendment, by inserting in lieu of the part proposed to be inserted other words, Pending debate,

On motion by Mr. COTTON to amend the amendment proposed by Mr. CoOPER (for himself and Mr. JAVITS), by inserting in lieu of the language proposed to be inserted by the said amendment for the part proposed to be inserted by the reported amendment, other words,

MESSAGE FROM THE HOUSE

A message from the House of Representatives by Mr. Bartlett, one of tis clerks:

Mr. President: The House of Representatives has passed without amendment the bill (S. 2231) to amend the joint resolution providing for membership and participation by the United States in the Inter-American Children's Institute, formerly known as the American International Institute for the Protection of Childhood, as amended.

I am directed to inform the Senate that pursuant to the provisions of section 5, Public Law 115, 78th Congress, and House Resolution 165, 86th Congress, the Speaker of the House has appointed Mr. KYL as a member of the Committee on the Disposition of Executive Papers to fill an existing vacancy.

The House has passed the following bills and joint resolution, in which it requests the concurrence of the Senate:

H.R. 1217. An act to suspend for 2 years the import duty on certain amorphous graphite;

H.R. 2849. An act for the relief of Oscar A. LaBranche;

HR. 5054. An act to amend the Tariff Act of 1930 with respect to the marking of imported articles and containers;

H.R. 5301. An act for the relief of Harry E. Nelson;

H.R. 5769. An act for the relief of Earl H. Spero;

H.R. 5789. An act to incorporate the Agricultural Hall of Fame;

H.R. 6027. An act for the relief of Joseph J. O'Loughlin;

H.R. 7079. An act for the relief of Don L. Herring;

H.R.7636. An act for the relief of Mrs. Viola H. Rooks;

H.R. 7933. An act for the relief of Mrs. Virginia Bond;

H.R. 8121. An act to amend the Subversive Activities Control Act of 1950 so as to authorize the Secretary of Defense to provide for a security program with respect to defense contractors and their employees;

H.R. 8318. An act to amend the Internal Revenue Code of 1954 to exempt bicycle tires and tubes used in the manufacture or production of new bicycles from the manufacturers excise tax on tires and tubes;

H.R. 8988. An act for the relief of Warren S. Boggess;

H.R. 9201. An act to validate certain mining claims in California;

H.R. 9443. An act for the relief of Mrs. Ethel B. Morgan;

H.R. 9444. An act for the relief of Hsiao-li Lindsay (nee Li-Hsiao-li);

H.R. 9464. An act to remove the requirement that, of the Chief and Deputy Chief of the Bureau of Ships, one must be specially qualified and experienced in naval engineering and the other must be specially qualified and experienced in naval architecture;

H.R. 9465. An act to authorize the extension of a loan of a naval vessel to the Government of the Republic of China;

and

H.J. Res. 496. Joint resolution author-. izing the President to invite foreign countries to participate in a world's fair, New York, 1964.

The House has agreed to the following concurrent resolutions, in which it requests the concurrence of the Senate:

House Concurrent Resolution 459 Resolved by the House of Representatives (the Senate concurring), That it is the sense of the Congress that any variation in the traditional interpretation of the treaties of 1903, 1936, and 1955 between the United States and the Republic of Panama, with special reference to matters involving the provisions of such treaties concerning territorial sovereignty, shall only be made pursuant to treaty.

House Concurrent Resolution 465 Whereas in recent days there has been a wave of desecration of places of worship and other sacred sites; and

Whereas this desecration has been spreading throughout the nations of Europe and other parts of the world; and Whereas instances of desecration have occurred in this country recently; and Whereas, if left unchecked, this wave can only result in grievous moral deterioration and denial of the true spirit of the brotherhood of man; and

Whereas the conscience of the world has been shocked by these events: Now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That the Congress hereby expresses its profound sense of indignation and shock at this epidemic of desecration and calls upon all persons and governments throughout the world to exert their energies to the

end that these shameful events shall not recur.

HOUSE BILLS AND JOINT RESOLUTION
REFERRED

The bills and joint resolution this day received from the House of Representatives for concurrence were severally read the first and second times by unanimous consent,

Ordered, That the bills H.R. 1217, H.R. 5054, and H.R. 8318 be referred to the Committee on Finance;

That the bills H.R. 2849, H.R. 5301, H.R. 5769, H.R. 5789, H.R. 6027, H.R. 7079, H.R. 7636, H.R. 7933, H.R. 8121, H.R. 8988, H.R. 9443, and H.R. 9444 be referred to the Committee the Judiciary;

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That the bill H.R. 9201 be referred to the Committee on Interior and Insular Affairs;

That the bill H.R. 9464 and H.R. 9465 be referred to the Committee on Armed Services; and

That joint resolution H.J. Res. 496 be referred to the Committee on Foreign Relations.

HOUSE CONCURRENT RESOLUTIONS

REFERRED

The concurrent resolutions H. Con. Res. 459 and H. Con. Res. 465, this day received from the House of Representatives for concurrence, were read and referred to the Committee on Foreign Relations.

FEDERAL FINANCIAL ASSISTANCE FOR SCHOOL CONSTRUCTION

The Senate resumed the consideration of its unfinished business, viz, the bill (S. 8) to authorize an emergency 2-year program of Federal financial assistance in school construction to the States.

The question being on agreeing to the substitute amendment proposed by Mr. COTTON to the substitute for the committee amendment proposed by Mr. COOPER (for himself and Mr. JAVITS); and

It was determined in the negative. The question recurring on agreeing to the substitute amendment proposed by Mr. COOPER (for himself and Mr. JAVITS) for the part proposed to be inserted by the reported amendment,

Mr. DIRKSEN raised a question as to the presence of a quorum; Whereupon

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A quorum being present, The question being taken on agreeing to the amendment proposed by Mr. COOPER (for himself and Mr. JAVITS), viz, in lieu of the language proposed to be inserted by the reported amendment, as follows: "That this Act may be cited as the "School Construction Assistance Act of 1959' ".

"DECLARATION OF PURPOSE

"SEC. 2. It is the purpose of this Act to authorize a two-year program of Federal grants to the States to provide assistance in the construction of urgently needed public elementary and secondary school facilities in local communities.

"ASSURANCE AGAINST FEDERAL INTERFERENCE IN SCHOOLS

"SEC. 3. In the administration of this Act, no department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over the policy determination, personnel, curriculum, program of instruction, or the administration or operation of any school or school system.

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 4. There are hereby authorized to be appropriated for the fiscal year beginning July 1, 1959, and the succeeding fiscal year, such sums, not to exceed $500,000,000 in any fiscal year, as the Congress may determine, for making payments to State education agencies under this Act.

"ALLOTMENTS AND PAYMENTS TO STATES

"SEC. 5. (a) The sums appropriated pursuant to section 4 shall be allotted among the States on the basis of the income per child of school age, the school-age population, and effort for school purposes of the respective States. Subject to the provisions of section 6, such allotments shall be made as follows: The Commissioner shall allot to each State for each fiscal year amount which bears the same ratio to the sums appropriated pursuant to section 4 for such year as the product of

an

"(1) the school-age population of the State, and

"(2) the State's allotment ratio (as determined under subsection (b)). bears to the sum of the corresponding products for all the States.

"(b) For purposes of this Act

"(1) The 'allotment ratio' for any State shall be 1.00 less the product of (A) .50 and (B) the quotient obtained by dividing the income per child of school age for the State by the income per child of school age for all the States (exclusive of Puerto Rico, Guam, and the Virgin Islands), except that (A) the allotment ratio shall in no case be less than .25 or more than .75, and (B) the allotment ratio for Puerto Rico, Guam, and the Virgin Islands shall be .75.

"(2) The allotment ratios shall be promulgated by the Commissioner as soon as possible after the enactment of this Act on the basis of the average of the incomes per child of school age for the States and for all the States (exclusive of Puerto Rico, Guam, and the Virgin Islands) for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for purposes of this Act.

"(3) The term 'child of school age' means a member of the population between the ages of five and seventeen, both inclusive.

"(4) The term 'school-age population' means that part of the population which is between the ages of five and seventeen, both inclusive, and such school-age population for the several States shall be determined by the Commissioner on the basis of the population between such ages for the most recent year for which satisfactory data are available from the Department of Com

merce.

"(5) The term "income per child of school age' for any State or for all the States means the total personal income for the State and for all the States (exclusive of Puerto Rico, Guam, and the Virgin Islands), respectively, divided by the number of children of school age (in

the State and in all such States, respectively).

"(c) As soon as possible after amounts appropriated under section 4 become available for payment, the Commissioner shall pay to each State which has complied with the provisions of section 7 for the year with respect to which such payment is to be made, the amount allotted to it pursuant to subsection (a) of this section, as adjusted by the application of the provisions of section 6. "MAINTENANCE OF STATE AND LOCAL SUPPORT FOR SCHOOL FINANCING

"SEC. 6. (a) The allotment of any State under section 5 shall be reduced by the percentage (if any) by which its State school effort index for such year is less than the national school effort index for such year, with the exception that during the first year that allotments are made under this Act this provision shall not be applicable. The total of such reductions shall be reallotted among the remaining States by proportionately increasing their allotments under section 5 for such year.

"(b) For purposes of subsection (a)"(1) The 'State school effort index' for any State for a fiscal year is the quotient obtained by dividing (A) the State's school expenditures per public school child by (B) the income per child of school age for the State; except that the State school effort index shall be deemed to be equal to the national school effort index in the case of (i) Puerto Rico, the Virgin Islands, Guam, and the District of Columbia, and (ii) any State for which the school expenditures per public school child are not less than the school expenditures per public school child for all the States;

"(2) The 'national school effort index' for any fiscal year is the quotient obtained by dividing (A) the school expenditures per public school child for all the States (exclusive of Puerto Rico, Guam, the Virgin Islands, and the District of Columbia) by (B) the income per child of school age for all such States.

"(c) (1) The school expenditures per public school child for any State for purposes of determining its State school effort index for any fiscal year means the quotient obtained by dividing (A) the total expenditures by the State and subdivisions thereof for elementary and secondary education made from funds derived from State and local sources in the State, as determined by the Commissioner on the basis of data for the most recent school year for which satisfactory data for the several States are available to him, by (B) the number of children in average daily attendance in public elementary and secondary schools in such State, as determined by the Commissioner for such most recent school year.

"(2) The school expenditures per public school child for all the States for purposes of determining the national school effort index for any fiscal year means the quotient obtained by dividing (A) the total expenditures by all the States (exclusive of Puerto Rico, Guam,

the Virgin Islands, and the District of Columbia) and subdivisions thereof for elementary and secondary education made from funds derived from State and local sources, as determined by the Commissioner for the same school year as is used under paragraph (1), by (B) the number of children in average daily attendance for such year in public elementary and secondary schools in all such States, determined as provided in paragraph (1).

"(3) The income per child of school age for any State and for all the States shall, for purposes of subsection (b), be determined by the Commissioner on the basis of the incomes per child of school age for the most recent years for which satisfactory data are available from the Department of Commerce.

"STATE APPLICATIONS

"SEC. 7. The State education agency of each State which desires to receive an allotment and payment under this Act shall submit an application to the Commissioner which

"(a) provides assurance that the State education agency shall be the sole agency for administering the funds received under this Act;

"(b) sets forth procedures to insure that funds will be allocated among school facilities construction projects within the State so that priority is given to local education agencies which, in the judgment of the State education agency, have the greatest need for additional school facilities and which are least able to finance the cost of needed school facilities;

"(c) provides assurance that every applicant, whose application for funds received under this Act for a construction project is denied, will be given an opportunity for a hearing before the State education agency;

"(d) sets forth procedures for such fiscal control as may be necessary to assure proper disbursement of funds paid to the State under this Act; In the case of any State in which a State agency has exclusive responsibility for the financing of the construction of school facilities, the Commissioner may modify or make inapplicable any of the foregoing provisions of this section to the extent he deems such action appropriate in the light of the special governmental or school organization of such State.

"MATCHING BY STATES AND LOCAL COMMUNITIES

"SEC. 8. The State education agency may allocate funds received under this Act to a project for the construction of school facilities cnly if the amount to be allocated under this Act does not exceed the Federal share for such State of the sum of (1) the cost of constructing the project in question and (2) the total cost of constructing the projects for which such other allocations have been made, and if the State education agency determines that the remainder of the cost of constructing the project in question will be paid out of funds other than funds paid by the Commissioner under Fublic Law 815, Eighty-first

Congress, as amended. For the purposes of this Act the 'Federal share' for any State is the allotment ratio for such State, except that in no case shall it be less than 0.333 or more than 0.663. "PERIOD FOR USE OF FUNDS AND CERTIFICATION BY STATES

"SEC. 9. (a) Upon receipt by the State, funds paid under this Act for any fiscal year shall thereafter be deemed to be State funds to be distributed and expended in accordance with the provisions of this Act not later than the end of the fiscal year following such fiscal year for which such funds were distributed.

"(b) The State education agency of each State receiving funds under this Act shall, prior to the termination of such following fiscal year, (1) certify the amount of such funds received by such State which have been so distributed and expended, and (2) pay to the Commissioner any amount of such funds which have not been so expended.

"(c) Any funds paid to the Commissioner under the provisions of this section shall be reallotted and paid to the States under the provisions of this Act during the fiscal year following that in which such funds were so paid to the Commissioner.

"LABOR STANDARDS

"SEC. 10. (a) The State education agency of each State which receives funds under this Act shall give adequate assurance to the Commissioner that all laborers and mechanics employed by contractors or subcontractors in the performance of work on school construction financed in whole or in part under this Act will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5).

"(b) With respect to the labor standards specified in subsection (a) of this section the Secretary of Labor shall act in accordance with Reorganization Plan Numbered 14 of 1950 (15 F. R. 3176; 64 Stat. 1267) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

"DEFINITIONS

"SEC. 11. For purposes of this Act"(a) The term 'Commissioner' means the (United States) Commissioner of Education.

"(b) The term 'State' includes Puerto Rico, Guam, the Virgin Islands, and the District of Columbia.

"(c) The term 'State education agency' means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if different, the officer or agency primarily responsible for State construction or supervision of construction of such schools, whichever may be designated by the Governor or by State law.

"(d) The term 'local education agency' means a board of education or other legally constituted local school authority having administrative control and direction of free public education in a

city, county, township, school district, or political subdivision in a State; except that, in any State in which a State agency has exclusive responsibility for the financing of the construction of school facilities, it means such State agency. If a separate public authority has responsibility for the provision or maintenance of school facilities for any local educational agency or the financing of the construction thereof, such term includes such other authority.

"(e) The term 'school facilities' means classrooms and related facilities (including furniture, instructional materials other than textbooks, equipment, machinery, and utilities necessary or appropriate for school purposes) for education which is provided by a school district for elementary or secondary education, in the applicable State, at public expense and under public supervision and direction; and interests in land (including site, grading, and improvement) which such facilities are constructed. Such term does not include athletic stadiums, or structures, or facilities intended primarily for events, such as athletic exhibitions, contests, or games, for which admission is to be charged to the general public.

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"(f) The terms 'construct,' 'constructing', and 'construction' include the preparation of drawings and specifications for school facilities; erecting, building, acquiring, altering, remodeling, improving, or extending school facilities; and the inspection and supervision of the construction of school facilities."

insert the following:

That this Act may be cited as the "School Construction Assistance Act of 1960."

Assurance Against Federal Interference in Schools

Sec. 2. In the administration of this Act, no department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over the personnel, curriculum, or program of instruction of any school or school system.

Authorization of Appropriations

Sec. 3. For the purpose of making Federal grants to assist school districts in financing the construction of urgently needed school facilities, there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1961, such sums as may be necessary to pay, as provided in this Act, the Federal share of the principal and interest annually becoming due on school construction bonds or other obligations in an aggregate principal amount of not to exceed $4,000,000,000.

Allocations

Sec. 4. (a) (1) For each fiscal year during the four-year period beginning July 1, 1960, and ending June 30, 1964, such amounts, not to exceed $1,000,000,000, as may be specified for such year by appropiration or other law shall be allocated by the Commissioner among the States on the basis of the income per child of school age, the school-age population,

and the effort for school purposes of the respective States. Subject to the provisions of section 5, such allocations shall be made as follows: The Commissioner shall allocate to each State for each fiscal year an amount which bears the same ratio to the total to be allocated among all States as the product of—

(A) the school-age population of the States, and

(B) the State's allocation ratio (as determined under subsection (b)), bears to the sum of the corresponding products for all the States.

(2) A State's allocation pursuant to paragraph (1) shall remain available until the end of the fiscal year following the year for which the allocation is made for Federal grant commitments pursuant to section 8 with respect to obligations, to finance the construction of school facilities projects in such State, totaling the amount of such allocation. Such a commitment with respect to any obligation shall commit the Commissioner to pay the Federal share (as determined under section 6 for each year during which such obligations are outstanding) of the principal and interest annually becoming due on such obligations. Such obligations may be for the purpose of financing all or a portion of the construction of school facilities projects. The latest maturity date of obligations (in any issue) with respect to which a Federal grant commitment is made under this Act may not be less than twenty years and not more than thirty years from the earliest date of any such obligations and the first payment of principal thereon shall be due not later than the end of the third year following such earliest date.

(b) For purposes of this Act

(1) The "allocation ratio" for any State shall be 1.00 less the product of (A) 0.50 and (B) the quotient obtained by dividing the income per child of school age for the State by the income per child of school age for the several States, except that (A) the allocation ratio shall in no case be less than 0.25 or more than 0.75, and (B) the allocation ratio for Puerto Rico, Guam, and the Virgin Islands shall be 0.75.

(2) The allocation ratios shall be promulgated by the Commissioner as soon as possible after the enactment of this Act and again between July 1 and September 30 of the year 1962, on the basis of the average of the incomes per child of school age for the States and for the several States, for the 3 most recent consecutive years for which satisfactory data are available from the Department of Commerce. The first such promulgation shall be conclusive for purposes of this Act for each of the fiscal years in the period beginning July 1, 1960, and ending June 30, 1962, and the second for each of the fiscal years in the period beginning July 1, 1962, and ending June 30, 1964.

(3) The term "child of school age" means a member of the population between the ages of 5 and 17, both inclusive.

(4) The term "school-age population" means that part of the population which is between the ages of 5 and 17, both inclusive, and such school-age population for the several States shall be determined by the Commissioner on the basis of the population between such ages for the most recent years for which satisfactory data are available from the Department of Commerce.

(5) The term "income per child of school age" for any State or for the several States means that total personal income for the State and the several States, respectively, divided by the number of children of school age (in the State and the several States, respectively). Maintenance of State and Local Support for School Financing

Sec. 5. (a) The allocation of any State under section 4 for any year shall be reduced by the percentage (if any) by which its State school effort index for such year is less than the national school effort index for such year, except that for the first year that allocations are made under this Act this provision shall not apply. The total of such reductions shall be reallocated among the remaining States by proportionately increasing their allocations under section 4 for such year.

(b) For purposes of subsection (a) —

(1) The "State school effort index" for any State for a fiscal year is the quotient obtained by dividing (A) the State's school expenditures per pupil school child by (B) the income per child of school age for the State; except that the State school effort index shall be deemed to be equal to the national school effort index in the case of (i) the District of Columbia, Puerto Rico, Guam, and the Virgin Islands, and (ii) and State for which the school expenditures per public school child are not less than the school expenditures per public school child for the several States.

(2) The "national school effort index" for any fiscal year is the quotient obtained by dividing (A) the school expenditures per public school child for the several States by (B) the income per child of school age for the several States.

(c) (1) The school expenditures per public school child for any State for purposes of determining its State school effort index for any fiscal year means the quotient obtained by dividing (A) the total expenditures by the State and subdivisions thereof for elementary and secondary education made from funds derived from State and local sources in the State, as determined by the Commissioner on the basis of data for the most recent school year for which satisfactory data for the several States are available to him, by (B) the number of children in average daily attendance in public elementary and secondary schools in such State, as determined by the Commissioner for such most recent school year.

(2) The school expenditures per public school child for the several States for purposes of determining the national school efort index for any fiscal year

means the quotient obtained by dividing (A) the total expenditures by the several States and subdivisions thereof for elementary and secondary education made from funds derived from State and local sources, as determined by the Commissioner for the same school year as is used under paragraph (1), by (B) the number of children in average daily attendance for such year in public elementary and secondary schools in the several States, determined as provided in paragraph (1).

(3) The income per child of school age for any State and for the several States shall, for purposes of subsection (b), be determined by the Commissioner on the basis of the incomes per child of school age for the most recent year for which satisfactory data are available from the Department of Commerce.

(4) For purposes of determinations made under this section and section 6, the term "the several States" shall not include Puerto Rico, Guam, the Virgin Islands, and the District of Columbia; for purposes of determinations made under section 4, the term "the several States" shall not include Puerto Rico, Guam and the Virgin Islands.

Federal Share of Cost of Financing
School Construction

Sec. 6. (a) Subject to the provisions of subsection (b) the Federal share of the cost of school construction on financing under this Act for any State for any year shall be 50 per centum.

(b) In order to ease the burden of school construction costs for States which have below average per capita income and which have nevertheless made a better than average effort to support teachers' salaries, and in order to recognize and facilitate the continuation and improvement of support of teachers' salaries by such States, the Federal share for such States of the principal and interest on obligations (other than obligations to which section 9(b) applies) becoming due in a fiscal year shall be increased as follows: the Federal share for any State for any year for which its State teacher salary support index exceeds the national teacher salary support index and for which its per capita income (as determined by the Commissioner at the beginning of such year on the basis of personal incomes and population for the most recent calendar year for which satisfactory data are available from the Department of Commerce) is less than the per capita income for the several States (as so determined) shall be-

(1) 55 per centum if the State index exceeds the national index by less than 10 per centum;

(2) 60 per centum if the State index exceeds the national index by at least 10 but less than 20 per centum;

(3) 65 per centum if the State index exceeds the national index by 20 or more per centum.

(c) For purposes of subsection (b).

(1) The "State teacher salary support index" for any State for a fiscal year is the quotient obtained by dividing (A) the State's average teacher salary by (B)

the per capita income for the State; except that the State teacher salary support index shall be deemed to be equal to the national teacher salary support index in the case of the District of Columbia, Puerto Rico, Guam, and the Virgin Islands.

(2) The "national teacher salary support index" for any fiscal year is the quotient obtained by dividing (A) the average teacher salary for the several States by (B) the per capita income for the several States.

(d) (1) The average teacher salary for any State for purposes of determining its State teacher salary support index for any fiscal year means the quotient obtained by dividing (A) the total expenditures by the State and subdivisions thereof for instructional staff in elementary and secondary education, as determined by the Commissioner on the basis of data for the most recent school year for which satisfactory data for the several States are available to him, by (B) the number of instructional staff members in public elementary and secondary schools in such State, as determined by the Commissioner for such most recent school year.

(2) The average teacher salary for the several States for purposes of determining the national teacher salary support index for any fiscal year means the quotient obtained by dividing (A) the total expenditures by the several States and subdivisions thereof for instructional staff in elementary and secondary education, as determined by the Commissioner for the same school year as is used under paragraph (1), by (B) the number of instructional staff members for such year in public elementary and secondary schools in the several States, determined as provided in paragraph (1).

(3) The per capita income for any State and for the several States means the total personal income for the State and the several States, respectively, divided by the population (in the State and the several States, respectively), and shall, for purposes of subsection (c), be determined by the Commissioner on the basis of incomes and population for the calendar year beginning in the same school year as is used under paragraph (1).

State plans

Sec. 7. Federal grant commitments may be made under this Act with respect to obligations to finance the construction of school facilities in any State only if such State has submitted, and has had approved under this section, a State plan. The Commissioner shall approve a State plan for purposes of this Act if such plan

(a) provides that the State educational agency shall be the sole agency for administering the plan;

(b) provides that a local educational agency will be eligible for a Federal grant commitment under this Act with respect to any obligations only of such obligations are for financing, in whole or in part, the construction of school facilities needed to relieve or prevent

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