The second part of the bill as drafted would create a legal fiction or a "phantom kid" to enable school districts to adjust to the sudden loss of a large part of its annual budget. This would add a new section 4(g) to cover base closings.

The mechanics of this section are simple. They would permit a school district to count federally connected children for 3 years after a base is closed regardless of whether the children still are present. The amounts would decrease in three steps, 75 percent of full entitlement the first year, 50 percent the second, and 25 percent the third. The intent of my bill is to have both these sections run concurrently rather than consecutively. The combination of these sections would provide equitable phaseout for both the school districts which lose only a part of their federally connected students and those which lose almost all of their federally connected students. The second section of the bill is not intended to credit a school district with the "phantom kids" for purposes of satisfying the 3-percent requirement, but merely for purposes of phasing out the Federal impact aid.

Both Mr. McDaniels and Mr. Berge will testify as to how this bill would affect their respective school districts.

It should also be noted in the Public Law 874 area that the closings of the VA hospitals can be expected to have a similar effect, particularly where the hospital is the only Federal activity in a community. It is interesting to note that in my areas a large part of the students are expected to remain in the schools. Even the new school buildings being constructed are expected to be full.

But the tax base will not immediately increase to make up for the lost Federal impact funds. For example, in Madison, Truax Field will not immediately be developed and added to the tax base. In Sun Prairie, the 280 Capehart units will not be restored to private ownership and added to the tax base immediately either since General Services Administration says the $4 million mortgage on this property will make disposition difficult.

Even though the communities have advance notice-and this planning time, the resources will not immediately be available to work with.

Finally, I want to emphasize that the Public Law 815 fund problem is of most immediate concern to Sun Prairie. It cannot await the outcome of broad policy studies. It calls for us to make a judgment on the equities now.

Gentlemen of this subcommittee, if we are to continue to seek the cooperation of local communities and local school districts in providing support for our military personnel-in providing housing for their families, education for their children and, shopping and recreational activities we must adhere to the highest equitable standards as bases are closed and Federal requirements withdrawn. I am uncertain whether Sun Prairie or Madison would open their arms to another military base. I would hope they would, but how we treat them will determine in no small way how other communities respond to the Government's request for assistance.

The Defense Department claim that over $13 million will be saved, is not the whole truth if we allow these communities and others like them across the country to absorb the losses imposed by decisions of the Federal Government. The creation of Public Laws 815 and 874

within this very committee is testimony that Congress has recognized the obligations of the Federal Government to communities affected by Federal projects. By asking your support for these two bills, I am only asking that Congress recognize that the Government has a responsibility beyond the date of the base closing-for the direct costs. of Federal involvement in these communities.

In what I consider our mutual interest in providing fair treatment to communities suffering the consequences of the base closings, I ask your support of H.R. 7930 and H.R. 7931.

Thank you.

Mr. PERKINS. You have come before the committee, Congressman Kastenmeier, with a very enlightening statement that will be most helpful to the committee. Did I understand you to tell me a few moments ago that you preferred not to be interrogated at this time? Mr. KASTENMEIER. Yes, Mr. Chairman. I am obligated to the Senate to testify in behalf of a Federal judge nominee.

Mr. PERKINS. As far as I am concerned your statement is as clear as a crystal. I don't think I need to ask you any questions. Do you have any questions, Mr. Ford?

Mr. FORD. No, Mr. Chairman. No questions.

Mr. PERKINS. Mr. Scott?

Mr. SCOTT. No questions, Mr. Chairman.
Mr. PERKINS. Mr. Bell?

Mr. BELL. No questions, Mr. Chairman.

Mr. PERKINS. Our next witness is Mr. McDaniels from Madison, Wis.

Mr. KASTENMEIER. He is not only the secretary of the Board of Education of Madison, Wis., but happens to be an old teacher of mine. I am proud to introduce him to the committee this morning.

Mr. PERKINS. I think the secretary of the board of education has not only a very able but a very intelligent Congressman to represent him here.

STATEMENT OF WILBUR N. McDANIELS, SECRETARY, BOARD OF EDUCATION, MADISON, WIS.

Mr. MCDANIELS. My name is Wilbur N. McDaniels. I am secretary of the board of education of Madison, Wis. I have a prepared statement here but will refer to it only in part.

Mr. PERKINS. Without objection, the statement will appear in the record as though read.

Mr. MCDANIELS. Thank you, Mr. Chairman.

It is a pleasure to appear before this committee and indicate that the Board of Education of Joint District No. 8, City of Madison et al., is vitally concerned in your consideration of H.R. 7931 as an amendment to Public Law 874. The action proposed in this bill which provides for a more gradual reduction in payments to local educational agencies as a result of the termination of Federal activities is most commendable.

Truax Field is by far the most extensive Federal installation in our school district. Community and school relations between Truax, the city, and the school district have been excellent with mutual cooperation in handling the problems we have experienced. Truax Field, by virtue of its size, furnishes approximately three-fourths of

the federally connected pupils attending the Madison public schools. It is this group which provides the base for eligibility of our district for financial assistance under Public Law 874. The closing of Truax Air Force Base as announced for June 30, 1968, will inevitable mean that our district would no longer qualify under the requirement that federally connected pupils must equal 3 percent or more of total average daily attendance. Should the Air Force decide on a policy of gradual uncertainties even sooner, this could bring us into the present law's schedule of reductions even before 1968. Excluding the possibility of gradual reductions, the impact of the change will be felt immediately following June 1968.

Data concerning the last 5 years which highlights the local effort to support public education in Madison, and the totals of federally connected and nonfederally connected pupils are shown in the following tables:

Educational costs during the last 5 years have risen markedly, due first to rapid influx of additional pupils, and second, to rising costs of services and commodities that school districts require.

The property tax base in our community has not increased proportionately with numbers of children and the rising costs of services and commodities. The property tax rates have, therefore, had to continually increase to meet these growing demands for educational support. Aids from outside sources have been unable to keep up the pace. Note in table 1 the increasing percent of local support to the total cost.

In the case of Madison our school district has been supported by local effort on the average between 87 to 89 percent of the total costs for all school purposes. This local support level is one which deserves recognition as being well above the average for the State of Wisconsin, which is 73 percent. It is also considerably above the average for the United States, which is 57 percent.

High local effort in support of Madison schools is the first reason for urging enactment of H.R. 7931 for a more gradual reduction in payments to Madison under Public Law No. 874. The earlier replacement of Federal aids by local tax funds is hardly deserving where such high percent of local support is given.

Understandably, the announcement of Truax Field closing came as a shock to our entire area. However, the decision has been accepted and our city with the other area communities are making plans to fill the void caused by the closing. Attempts will no doubt be made to convert part of the base to public purposes, but much of it will be offered for private commercial development. If private investors can obtain desirable sites and be assured of long-term possession, they could, over a period of years, make this site a good tax-yielding area. It is, however, a matter of extensive community effort and salesmanship to make all this possible.

The years it will take to make a former base site into a tax-yielding area for Madison is the second reason for asking that Public Law No. 874 be additionally extended as provided in H.R. 7931.

School operation will be affected in a number of ways by the impending closing on June 30, 1968. It is well that school officials have been given an advance warning on this action. However, there will be many uncertainties which will continue up to and after the 1968 closing. Will many of the federally connected parents stay in the service or will they as they as their enlistment ends, choose to stay in Madison? Will technicians working for private contractors in the Sage unit be sent elsewhere or will they be used in the Madison area? Will civilian employees at the base go to other communities for work or will they stay in Madison? The answers to these questions will come gradually during and after 1968 and may cause serious dislocation in the utilization of our school facilities and assignments of our teachers and staff. It is entirely possible that the departure of Truax parents of the present total of 1,170 pupils could cause the Madison public schools most serious problems.

The 1,170 pupils represent the total attendance in one of our larger combination elementary-junior high school buildings.

The 1,170 pupils represent on the average a need for about 42 teachers, 2 or 3 school secretaries, 4 custodians with supporting help from a number of specialists.

The 1,170 pupils represent a real complication. If they leave quickly, our system could be overstaffed until our normal growth catches up. If many of these pupils with their parents remain in Madison, they will keep up our costs with rapidly reducing Federal aids.

Complication caused by uncertainties of 1,170 pupils which will tend to keep costs up for facilities and staff is a third reason for requesting that H.R. 7931 be enacted as an amendment for Public Law No. 874.

An attempt to evaluate the existing phaseout provisions of Public Law No. 874 as we understand these provisions might work out as follows:

1. It is assumed that our federally connected pupil total remains constant through June 30, 1968, and the rate of reimbursement does not change.

2. This means that approximately $250,000 would be paid for the last eligible year 1967-68.

3. It is assumed in the following year 1968-69 the 1,170 Truaxconnected pupils leave, but the 476 other federally connected pupils remain. At this point the Commissioner of Education must approve the termination aid before it can be authorized. It is further assumed that the current work-on, live-off rate of $165, per pupil in average daily attendance for Wisconsin would apply in 1968-69 and 1969-70. 1968-69: 476 pupils times $165, at 100 percent_1969-70: 476 pupils times $165, at 50 percent..

$78, 540

39, 270

4. The phaseout under the existing law is abrupt and would cause undue hardship as our property tax must fill the gap left by the withdrawn Federal aid.

The proposal contained in H.R. 7931 would have the following effect as we understand this bill:

1. It is assumed again that the 1,170 pupils remain at Truax through June 30, 1968, along with 476 other federally connected pupils. Using current rates of reimbursement this would earn a total aid of approximately $250,000 for 1967-68.

2. It is assumed in the following year 1968-69 that 1,170 Truaxconnected pupils leave, but the 476 other federally connected pupils remain. As the effect of H.R. 7931 is understood the following aids would be provided using the current Wisconsin work-on, live-off rate of $165 per pupil in average daily attendance:

1968-69:

1,170 Truax pupils times $165, at 75 percent_-476 other pupils times $165, at 100 percent. 1969-70:

1,170 Truax pupils times $165, at 50 percent.. 476 other pupils times $165, at 50 percent_-1971-72: 476 other pupils times $165, at 25 percent..

$144, 787

78, 540

96, 525

39, 270

19, 635

In conclusion, Mr. Chairman and members of the committee, we urge your favorable consideration of H.R. 7931. Current Federal aids under Public Law No. 874 amounting to approximately $250,000 annually play an important part in our school district budget. To lose all or a major part of this aid will add to the already heavy property tax load.

The more gradual reduction in aids as proposed in H.R. 7931 will give credit to our high level of local support by our school district taxpayers. It will for 4 additional years instead of 2 years provide for payments in lieu of tax payments as originally intended in Public Law No. 874 and bridge the gap until the Air Force area becomes a tax-yielding unit.

It will provide the funds to better handle the dislocation of school facilities and school staff and make more certain that the educational opportunities of Wisconsin's boys and girls will not suffer.

It is a real privilege to follow Bob Kastenmeier whose presentation was very excellent.

It is one of the problems that we have had in Madison because Truax Field is one of the largest federally administered schools in our district. The closing of Truax as announced for June 30, 1968, would inevitably mean the school would no longer qualify under the requirement that federally connected pupils must equal 3 percent or more of total average daily attendance. One of our concerns prior