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the level of local districts. Because this is a program of aid for districts which are in a period of change, and because the amount of funds allocated under Public Law 874 constitute only part of those necessary, I feel that this program can actually provide a stimulus for increased efficiency. This is especially true if the Commissioner of Education fulfills the discretionary role accorded to him under both Public Law 815 and Public Law 874. It will be recalled that the existing law gives him the authority to waive certain requirements in extraordinary situations, determine the local contribution rate, and deduct from entitlement funds accruing to the local agency pertaining to the education of Federal children.

In summation, it seems to me to be proper to describe the 3 percent absorption clause as a device for partially divesting the Federal Government of a responsibility it undertook in the passage of Public Law 874. Although the responsibility of the Government to aid in the education of a Federal child can hardly be deemed contingent upon the size of the school district in question, this assumption apparently underlies the inequity of the clause in instances such as that described above.

Finally, it appears that the defenders of this provision are willing to risk inadequate education and deteriorating facilities tomorrow for rock-ribbed economy today. I am a stanch advocate of economy myself, but it seems to me a great tragedy that so many who pursue statistical economy can never see beyond the bindings of their ledgers. If they could, perhaps then it might be realized that the budget is only a means to an end, and that when we are educating human beings, economy is determined by the value of the end, not the frugality of the

means.

The Federal Government should not now in my view reduce its assistance in meeting this emergency which it has created. I hope both S. 3628 and S. 3629 will be favorably reported by the committee.

TABLE 1.-Illinois applicants under Public Law 815, as amended by Public Law 246

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DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

TABLE 2.-Public Law 874, as amended-List of applicant school districts and estimated entitlements, fiscal year 1954 and fiscal year 1955 (showing effects of 3 percent absorption on entitlement and total expenditures of districts)

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LOCAL DISTRICT RESPONSIBILITY

Five percent of the section 305 (a) (1) increase in membership; Fifty percent of the section 305 (a) (2) increase in membership; Fifty-five percent of the section 305 (a) (3) increase in membership; One hundred percent of the non-Federal increase in membership. In other words, the district must provide first 5 percent for 1 type of children, 50 for another, 55 for another, and 100 percent for nonFederal children. That added together in terms of pupil cost will determine what the district's responsibility is, and then a judgment can be made whether it can meet it or whether it can't. Certainly a straight percentage, such as 20 percent on all children, has no relationship, in my judgment, at all to whether a district should qualify for this additional non-Federal share or not.

No change in the legislation is needed to correct this procedure but language in the report of this committee should point out a better plan than that presently proposed by the Commissioner of Education if this section is to meet the need for which it was intended.

I might say I have discussed this with the United States Office of Education in the administration of its laws, but I haven't prevailed at the present time. I wanted to get it on record so it may be looked at by those interested in it.

A serious inequity in the operation of Public Law 246 has resulted from the disposition of Federal public housing. There, again, I have no interest in this particular point, but there are many schools throughout the Nation which do have.

Public Law 246 provides that a school district shall be eligible for payment only on the increased pupils eligible under the different sections since July 1, 1952, which would seem to be equitable, but in actual practice does not prove to be. For instance-I might mention here again I am talking in schoolman's language this morning and not administrator's language-a school district may have had 500 children from families living in Federal public housing as of June 30, 1952, and for which it qualified for payment under section 202 of Public Law 815. Since that time this housing has been disposed of to a local housing authority or private owners which disqualifies these children from this category.

I believe the Congress has instructed those people in charge of all federally owned housing to dispose of it in a certain length of time.

During this same period of time the district has had Wherry housing constructed within its boundaries housing 500 new children, which represents an increase for which it should be eligible for payment under the corresponding section 305 (a) (1) of Public Law 246.

I went with a superintendent in Dayton, Ohio, to talk to the housing people, because they have a number of Federal housing units in the district for which they have been qualifying the children under this law. It is going to be sold. They have also had 1,500 Wherry housing units built in the district. Children will move out of one into the other. Other people will move into the housing projects. Some will stay there, but the loss of the 500 children in the total now and keeping them in the total completely wipes out the 500 increase.

This inequity should be corrected by providing that the children in any category who become ineligible after July 1, 1952, should also be considered ineligible on that date in determining the difference or

increase. In other words, if you are going to take minuend of a subtraction problem, take them out and you will get an exact answer of this increase This can also be corrected by direction to the f committee report.

Section 202 (c) of Public Law 815 served meeting the Federal responsibility in federal was rendered virtually inoperative in the corresp (a) (3) of Public Law 246. This resulted in changu quoting from each of the laws, "whose attendine. ties of the United States," to "whose membersing:~ activities of the United States."

Now the change in the word attendance important, but when they inserted the wor tremendously important, because there is school districts.

And the further requirement that the Puni (A) that a new defense plant or installation has or an existing defense plant or installation therein a or its operation substantially expanded, and defense workers or military personnel is requi plant or installation.

Unless those things are defined a little intent, I feel that a great many schools that were intended.

In those districts which are most activity, there is a problem created not as direct as either living on Federa property. Nevertheless, it results from following examples indicate: d

1. The normal attrition at Tinke School District is approximately said, in using Tinker Field as an mained rather stationary for the las about 425 employees change ev attrition, and in that sense you w of people to take care of this attri nized by the United States Office under this section.quil

People leaving the employmen times do not move from the com and seek employment elsewhere the responsibility. They would to work for the Federal Govern the parent quits work on the potential employees required to to Midwest City months befor ability is a distinct advantage at the Federal installation. 2. Traffic trol, police pr 30 policer are inc the F

he last 5, 6 nstallations e that they sidered as a vas the only t. was thrown changed. It e school gets section in the

ing up because

ants during the ination of those application was ated the entitlenent application i Public Law 815 $55 million or 70 time it repudiated

titlement, and my so I am talking now it the country. re not filed against the which were no fault of was the applicant, but who was at fault then is that have been harmed. ayment of entitlements ery discouraging to any

plicants and the United policies in the adminissm but a statement of confusing and new and on had heard nothing onto what it was nent on them (0) or 11 years, hool superin

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entitlements applications. lieve, over 275 adable, here is a that hadn't gone application in. Stages of the adminisith low priorities were their entitlements. This

tion program of many of

held of receiving Federal

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3. Military families move to an area near a military establishment when the father is transferred overseas or to some outpost without family facilities even though the father was not stationed at the particular installation at the time of being transferred. Sometimes the families are there and the parent goes off, or the parent wasn't stationed there, but the family finally ends up there. We have illustrations of that kind in 75 pupils in that category that have been disallowed. Now, who do they do this? This condition results from a number of reasons such as hospital care for the family, commissary and PX facilities, military social environment, and family contacts and other services rendered by the military. It is just as natural as night following day, and yet we can't count the children.

Evidence of this type of an impact is substantiated by the actual increase of pupils at the Midwest City schools since the establishment of the Federal installation here early in 1942. At that time there was an average daily attendance of 225 pupils in the strictly rural area which now comprises the Midwest City School District. At the present time, 11 years later, there is an average daily attendance of 7,801 pupils, while only 4,139 of them have parents employed on Federal property. This leaves an increase over the original attendance of 3,436 pupils or 1,527 percent resulting from other causes either directly or indirectly connected with the installation.

I would like to point out in Oklahoma the schools have increased about 3 percent in average daily attendance, statewise, and here is a school that has had, unless you consider the point I am talking about. right now, has had a 1,500 percent increase in non-Federal children It just wouldn't have happened.

The criteria for a Presidential finding in this section is not a true indication that an increase in pupils results from the Federal activity within the community as shown by the attendance figures of the Midwest City school system since June 30, 1952. There has been no new installation established in the district nor have the employment rolls for the existing installation increased materially since that time. Yet the pupils from parents employed on this installation have increased from 2,992 to 4,139, or 38 percent in 2 years. All other pupils increased from 2,119 to 3,661 or 73 percent increase. Surely we would not have expected such an increase from any other reason than that the Federal installation is located in the school district.

Now, I frankly admit that doesn't often happen only in the schools where the installation is located. When a commuter moves from another district to the Midwest City School District, he takes his children out from the other school district. Unless the law is extended that school district has the building for him and we don't have one. We are the one school in which the installation is located.

The two changes referred to result in the elimination of the payment of any Federal funds for any of the 73 percent increase in pupil load. School districts simply cannot adjust their local finances to meet this unusual need. In considering the justification of assistance to these pupils, it must be remembered that under the other restrictions of both Public Law 815 and 246 no applicant is eligible for Federal funds until it has made the maximum local effort and yet is unable to meet the facility need for these children. This restriction is ample protection to the Federal Government without the two objectionable changes referred to.

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