OPERATION OF THE PROGRAM

The chief executive officer of each State desiring to participate in the Education Special Revenue

Sharing Program will designate a State agency as the single State administering agency.

The chief executive officer of each State will also appoint a State advisory council broadly representative
of the education community in the State and of the public. The council shall include representatives
of public and nonpublic elementary and secondary schools; representatives of the populations in the
State affected by the activities authorized by the Act; persons with special competence in planning,
evaluation, and assessment of education programs; and persons with special competence in the education
of the disadvantaged, the handicapped, and vocational education.

Each participating State would receive an allotment based on the number of "a" category Impact Aid
children (those residing with a parent on Federal property) and on its relative share of the total
with respect to the disadvantaged, handicapped, "b" category children, vocational education, and
supporting materials and services.

Funds attributable to "a" category children would be passed through to districts enrolling such children.
Funds attributable to disadvantaged children would be passed through to those districts which, in the
judgment of the State, have achieved comparability of services.

The remainder of a State's allotment would be distributed to local educational agencies and retained
at the State level for operation of State-wide programs, pursuant to a plan developed by the State
administering agency, in consultation with the State advisory council, and after interested persons
have been given an opportunity to comment.

ASSURANCES

Each State, to receive its allotment, shall submit to the Secretary satisfactory assurances that:

1. Federally connected children will receive public education on a basis comparable to

that provided other children in the State;

Such fiscal control and accounting procedures will be used so to assure proper disbursement of and accounting for funds received under the Act;

The State will otherwise comply with the provisions of the Act and with the regulations of the Secretary.

Office of the White House Press Secretary

Hold Harmless Base Line

Definition

THE WHITE HOUSE

EDUCATION REVENUE SHARING

Each State's "Hold Harmless" base line was calculated by adding together the obligations expected to be allocated to the States in 1971 for the programs converted to Education Revenue Sharing.

Sources of Data

U.S. Department of Agriculture

U.S. Department of Health, Education, and Welfare

Education Revenue Sharing Allocation

Formula Used

Of the amounts appropriated for any fiscal year a minimum of ninety percent shall be apportioned by the Secretary of Health, Education, and Welfare.

For each State the number of children qualifying for Federal Impact Aid Type "A" (those who live on Federal property) is multiplied by sixty percent of the national average per pupil expenditure. Each local educational agency within the State is entitled to its relative share so calculated. The total for all States as calculated is removed from the amount to be apportioned.

Each State shall be entitled to a portion of the remainder of the amount to be apportioned determined as follows:

For each State a sum will be calculated representing:

a. 1.0 times the number of disadvantaged children

b.

0.6 times the number of Federal Impacted "B" type children

0.1 times the number of children of school age.

c.

The entitlement for each State shall bear the same ratio to the amount to be appropriated as its sum calculated above bears to the sum for all States so calculated.

The State entitlement so calculated is to be distributed into the five national areas as follows:

for the disadvantaged the amount shall bear the same ratio to the
State entitlement as part a. above bears to the sum of a., b., and c.

for the Federal Impact "B" type (those whose parents work on
Federal property) the amount shall bear the same ratio to the
State entitlement as part b. above bears to the sum of a., b., and c.

an amount bearing the same ratio to the State entitlement as part c.
above bears to the sum of a., b., and c. shall be calculated:

Discretionary Amounts

-2

Each State may transfer up to thirty percent of the entitlement in each area with the exception of those funds passed through to local education agencies, to other

areas.

An amount up to ten percent of the fund may be allocated at the discretion of the Secretary of Health, Education, and Welfare.

Notes

The States are required to pass through to local education agencies the funds resulting from Type "A" Federal Impact and disadvantaged children.

All computations and determinations by the Secretary of Health, Education, and Welfare are final and conclusive.

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