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EDUCATION REVENUE SHARING ACT OF 1971

WEDNESDAY, OCTOBER 27, 1971

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U.S. SENATE,
SUBCOMMITTEE ON EDUCATION OF THE
COMMITTEE ON LABOR AND PUBLIC WELFARE,

Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room 4200, New Senate Office Building, Senator Claiborne Pell (chairman of the subcommittee) presiding.

Present: Senators Pell, Javits, Schweiker, and Stafford.

Staff members present: Stephen J. Wexler, counsel, and Roy H. Millenson, minority professional staff member.

Senator PELL. The Subcommittee on Education of the Labor and Public Welfare Committee will come to order.

Today, we begin hearings on S. 1669, a bill which encompasses the administration's proposal for special revenue sharing in education.

The bill proposes major changes in the manner in which the Federal Government would distribute Federal tax dollars for elementary and secondary education. It provides that some 30 current categories of aid be consolidated and funds for them be distributed by the States who would receive them from the Federal Government on a formula, block grant, basis.

The Federal Government was motivated to become involved in aid to education largely out of its desire to overcome educational inequalities that existed across the Nation. Legislation was developed that designated certain target areas of need and these needs have been funded. Testimony to be received in these initial hearings may point to the need of some type of general aid to education legislation as a method to meet pressing national problems.

Whatever may develop, we will want to be sure that basic target areas continue to be served and that national priorities will not suffer as a result of the manner in which aid is distributed. (A copy of S. 1669 follows:)

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92D CONGRESS

1st SESSION

S. 1669

IN THE SENATE OF THE UNITED STATES

APRIL 29, 1971 Mr. PROUTY (for himself, Mr. B.AKER, Mr. BENNETT, Mr. Brock, Mr. BUCKLEY,

Mr. DOMINICK, Mr. Fong, Mr. Griffin, Mr. Percy, Mr. SCHWEIKER, Mr. Scott, Mr. Taft, and Mr. TOWER) introduced the following bill; which was read twice and referred to the Committee on Labor and Public Welfare

A BILL To strengthen education by providing a share of the revenues of

the United States to the States and to local educational agencies for the purpose of assisting them in carrying out education programs reflecting areas of national concern.

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Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the “Education Revenue Shar

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6 SEC. 2. (a) The Congress hereby finds that, while public 7 education is primarily the responsibility of the States and

8 local communities of this country, the Federal Government

9 has a responsibility to assist them in meeting the costs of edu

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1 cation in areas of special national concern. The Congress

2 finds, however, that prior programs of Federal financial assist

ance for elementary or secondary education are too narrow in

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scope

to meet the needs of State and local school systems.

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(b) It is therefore the purpose of this Act to replace 6 certain current programs of Federal assistance to elementary 7 or secondary education by a system of Federal revenue shar8 ing for education designed to meet such needs, to encourage 9 innovation and development of new educational programs 10 and practices, to provide for educationally disadvantaged 11 children an education comparable to that available to their

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classmates, to provide the special educational services needed

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by the physically and mentally handicapped, to encourage

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greater attention to the vital field of vocational and career

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education, to assure to children whose parents live or work

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on Federal property an education comparable to that given

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to other children, and to provide State and local educational

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officials with the flexibility and responsibility they need to

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make meaningful decisions in response to the needs of their

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SEC. 3. (a) For the fiscal year ending June 30, 1973,

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and for each fiscal year thereafter, there are authorized to be appropriated, to be available without fiscal year limitation,

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such sums as may be necessary for carrying out this Act.

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(b) There are also authorized to be appropriated such

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sums as may be necessary to enable the Secretary to make, 3 during the period beginning January 1, 1972, and ending 4 with the close of June 30, 1972, payments to States to assist

5 them in planning for the transition from the system of cate

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gorical grants authorized by the statutes and parts thereof

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repealed by section 21 to the system of revenue sharing for

8 education authorized by this Act. Such payments shall be

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made on such terms and conditions as the Secretary specifies

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for the purpose of carrying out this subsection.

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ALLOTMENT AND USE OF SIIARED REVENUES

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SEC. 4. (a) From the sums appropriated pursuant to

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section 3 (a) for any fiscal year and not reserved pursuant to

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section 11, the Secretary shall allot to each State an amount

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equal to 60 per centum of the average per pupil expenditure

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in the United States multiplied by the number of children in

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average daily attendance in the public elementary or secondary schools of such State during such year who resided on

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Federal property, which amount shall be available for any

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(b) From the remainder of such sums, the Secretary

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shall allot to each State an amount which bears the same

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ratio to such remainder as the sum of the products deter

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mined under paragraphs (1) through (3) of this subsection with respect to such State bears to the total of the sums of

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