SCHOOL LUNCH PROGRAM THURSDAY, AUGUST 31, 1961 HOUSE OF REPRESENTATIVES, GENERAL SUBCOMMITTEE ON EDUCATION OF THE The subcommittee met, pursuant to call, at 9:45 a.m., in room 429, Old House Office Building, Hon. Cleveland M. Bailey (chairman of the subcommittee) presiding. Present: Representatives Bailey, Brademas, O'Hara, Quie, and Garland. Also present: Robert E. McCord, subcommittee staff director. The subcommittee has convened today for the purpose of hearing different proposals contained in H.R. 4688, H.R. 4764, H.R. 6209, and with particular reference to H.R. 8962 introduced by a member of the committee, Mr. O'Hara of Michigan. (The bills referred to follow :) [H.R. 4688, 87th Cong., 1st sess.] A BILL To amend the National School Lunch Act to provide for a more equitable distribution of the fund available under such Act, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4 of the National School Lunch Act (42 U.S.C. 1753) is amended by inserting "(a)" after "SEC. 4." by striking out. Alaska, Territory of Hawaii, Puerto Rico, and the Virgin Islands" and inserting. in lieu thereof "the Commonwealth of Puerto Rico, Guam, and the Virgin Islands" Section 4 of the National School Lunch Act is further amended by striking out the third, fourth, fifth, sixth, and seventh sentences thereof and inserting in lieu of such sentences the following new paragraphs: "(b) Subject to the limitations imposed in subsection (d), apportionment among the States shall be made on the basis of two factors: (1) the participation rate for the State, and (2) the assistance need rate for the State. The amount of the apportionment to any State shall be determined by the following method: First, determine an index for the State by multiplying factors (1) and (2); second, divide this index by the sum of the indices for all the States; and third, apply the figure thus obtained to the total funds to be apportioned: Provided, however, That proportionate adjustments shall be made as necessary to provide that the sum available to any State is not less than 5 cents times the participation rate for such State. "(c) For the purposes of this Act “(1) the participation rate of a State shall be the number of type A lunches served by participating schools in such State in the preceding fiscal year, as determined by the Secretary. "(2) the assistance need rate of each State shall be determined by assigning a value of five to each of the States and by increasing the value of five for each State having an annual per capita income less than the average annual per capita income of all the States by the ratio that the average annual per capita income of each such State bears to the average annual per capita income of all the States, up to a maximum value of nine. "(3) the per capita income figures used in determining the assistance need rates under this section shall be the average of those certified by the Depart1 ment of Commerce for the latest three years for which such figures are available. "(4) 'school' means any public or nonprofit private school of high school grade or under and, with respect to Puerto Rico, shall also include nonprofit child-care centers certified as such by the Governor of Puerto Rico. "(d) In the event that the amount available for apportionment under this section does not exceed an amount equal to 5 cents times the sum of the participation rates for all States, the assistance need rate for each State shall be the rate obtained by dividing the sum of the participation rates for all States into the amount available for apportionment under this section." SEC. 2. Section 5 of the National School Lunch Act (42 U.S.C. 1754) is amended (1) by striking out "Alaska, Territory of Hawaii, Puerto Rico, and the Virgin Islands" and inserting in lieu thereof "the Commonwealth of Puerto Rico, Guam, and the Virgin Islands". SEC. 3. Section 6 of the National School Lunch Act (42 U.S.C. 1755) is amended (1) by inserting "(a)" after "SEC. 6", (2) by striking out "for his administrative expenses" and inserting in lieu thereof "for use as provided in subsection (b)", and (3) by adding at the end thereof the following new subsection: "(b) Two-sevenths of the funds made available for use as provided in this subsection may be granted by the Secretary to State educational agencies which request such funds for use by such agencies in meeting their administrative expenses. The amount which may be granted a State educational agency under this subsection may not exceed an amount which bears the same ratio to the total funds available for distribution under this subsection as that State's apportionment under section 4 for the year bears to the total funds being apportioned. The remainder of such funds may be used by the Secretary for his administrative expenses." SEC. 4. The first sentence of section 9 of the National School Lunch Act (42 U.S.C. 1758) is amended to read as follows: "Lunches served by schools participating in the school lunch program for which reimbursements are paid under this Act shall meet minimum nutritional requirements prescribed by the Secretary for type A lunches on the basis of tested nutritional research." SEC. 5. Section 10 of the National School Lunch Act (42 U.S.C. 1759) is amended by striking out "number of children between the ages of five and seventeen, inclusive, attending nonprofit private schools within the State is of the total number of persons of those ages within the State attending school" and inserting in lieu thereof the following: "participation rate for all nonprofit private schools within the State is of the participation rate for the State". SEC. 6. Section 11(d) (1) of the National School Lunch Act (42 U.S.C. 1760) is amended by striking out "State' includes any of the forty-eight States and the District of Columbia, Territory of Hawaii, Puerto Rico, Alaska, and the Virgin Islands", and inserting in lieu thereof the following: ""State' includes any of the fifty States and the Commonwealth of Puerto Rico, the District of Columbia, Guam, and the Virgin Islands". SEC. 7. Section 11(c) of the National School Lunch Act (42 U.S.C. 1760) is amended by inserting after the words "materials of instruction" the words "on any State educational agency or". SEC. 8. The amendments made by this Act shall take effect July 1, 1961. [H.R. 4764, 87th Cong., 1st sess.] A BILL To amend the National School Lunch Act to provide for a more equitable distribution of the funds available under such Act, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4 of the National School Lunch Act (42 U.S.C. 1753) is amended by inserting "(a)" after "(SEC. 4." by striking out "Alaska, Territory of Hawaii, Puerto Rico, and the Virgin Islands" and inserting in lieu thereof "the Commonwealth of Puerto Rico, Guam, and the Virgin Islands". Section 4 of the National School Lunch Act is further amended by striking out the third, fourth, fifth, sixth, and seventh sentences thereof and inserting in lieu of such sentences the following new paragraphs: (b) Subject to the limitations imposed in subsection (d), apportionment among the States shall be made on the basis of two factors: (1) the participation rate for the State, and (2) the assistance need rate for the State. The amount of the apportionment to any State shall be determined by the following method: First, determine an index for the State by multiplying factors (1) and (2); second, divide this index by the sum of the indices for all the States; and third, apply the figure thus obtained to the total funds to be apportioned: Provided, however, That proportionate adjustments shall be made as necessary to provide that the sum available to any State is not less than 5 cents times the participation rate for such State. "(c) For the purposes of this Act "(1) the participation rate of a State shall be the number of type A lunches served by participating schools in such State in the preceding fiscal year, as determined by the Secretary. "(2) the assistance need rate of each State shall be determined by assigning a value of five to each of the States and by increasing the value of five for each State having an annual per capita income less than the average annual per capita income of all the States by the ratio that the average annual per capita income of each such State bears to the average annual per capita income of all the States, up to a maximum value of nine. "(3) the per capita income figures used in determining the assistance need rates under this section shall be the average of those certified by the Department of Commerce for the latest three years for which such figures are available. "(4) 'school' means any public or nonprofit private school of high school grade or under and, with respect to Puerto Rico, shall also include nonprofit child-care centers certified as such by the Governor of Puerto Rico. "(d) In the event that the amount available for apportionment under this section does not exceed an amount equal to 5 cents times the sum of the participation rates for all States, the assistance need rate for each State shall be the rate obtained by dividing the sum of the participation rates for all States into the amount available for apportionment under this section." SEC. 2. Section 5 of the National School Lunch Act (42 U.S.C. 1754) is amended (1) by striking out "Alaska, Territory of Hawaii, Puerto Rico, and the Virgin Islands" and inserting in lieu thereof "the Commonwealth of Puerto Rico, Guam, and the Virgin Islands". SEC. 3. Section 6 of the National School Lunch Act (42 U.S.C. 1755) is amended (1) by inserting "(a)" after "SEC. 6", (2) by striking out "for his administrative expenses" and inserting in lieu thereof "for use as provided in subsection (b)", and (3) by adding at the end thereof the following new subsection: "(b) Two-sevenths of the funds made available for use as provided in this subsection may be granted by the Secretary to State educational agencies which request such funds for use by such agencies in meeting their administrative expenses. The amount which may be granted a State educational agency under this subsection may not exceed an amount which bears the same ratio to the total funds available for distribution under this subsection as that State's apportionment under section 4 for the year bears to the total funds being apportioned. The remainder of such funds may be used by the Secretary for his administrative expenses.' SEC. 4. The first sentence of section 9 of the National School Lunch Act (42 U.S.C. 1758) is amended to read as follows: "Lunches served by schools participating in the school lunch program for which reimbursements are paid under this Act shall meet minimum nutritional requirements prescribed by the Secretary for type A lunches on the basis of tested nutritional research." SEC. 5. Section 10 of the National School Lunch Act (42 U.S.C. 1759) is amended by striking out "number of children between the ages of five and seventeen, inclusive, attending nonprofit private schools within the State is of the total number of persons of those ages within the State attending school" and inserting in lieu thereof the following: "participation rate for all nonprofit private schools within the State is of the participation rate for the State". SEC. 6. Section 11(d)(1) of the National School Lunch Act (42 U.S.C. 1760) is amended by striking out" 'State' includes any of the forty-eight States and the District of Columbia, Territory of Hawaii, Puerto Rico, Alaska, and the Virgin Islands", and inserting in lieu thereof the following: "State' includes any of the fifty States and the Commonwealth of Puerto Rico, the District of Columbia, Guam, and the Virgin Islands". SEC. 7. Section 11(c) of the National School Lunch Act (42 U.S.C. 1760) is amended by inserting after the words "materials of instruction" the words "on any State educational agency or". SEC. 8. The amendments made by this Act shall take effect July 1, 1961. [H.R. 6209, 87th Cong., 1st sess.] A BILL To provide additional funds for carrying out the National School Lunch Act in the fiscal year 1961 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of Agriculture is authorized to utilize from funds of the Commodity Credit Corporation an amount not to exceed $10,000,000 for the purpose of carrying out the provisions of the National School Lunch Act (42 U.S.C. 1751-1760) during the remainder of the fiscal year 1961. Such sums shall be in addition to any funds heretofore appropriated for carrying out such Act in the fiscal year 1961. SEC. 2. There is hereby authorized to be appropriated to the Commodity Credit Corporation an amount equal to the amount utilized by the Secretary of Agriculture pursuant to the provisions of the first section of this Act. [H.R. 8962, 87th Cong., 1st sess.] A BILL To revise the formula for apportioning cash assistance funds among the States under the National School Lunch Act, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the National School Lunch Act of 1946, as amended, is amended by revising section 3 to read as follows: "(a) For each fiscal year there is hereby authorized to be appropriated, out of money in the Treasury not otherwise appropriated, such sums as may be necessary to enable the Secretary of Agriculture (hereinafter referred to as 'the Secretary') to carry out the provisions of this Act other than section 11. "(b) For each fiscal year there is hereby authorized to be appropriated in addition to the sums authorized in subsection (a) above, out of money in the Treasury not otherwise appropriated, such sums as may be necessary to enable the Secretary to carry out the provisions of section 11 of this Act." SEC. 2. Section 4 of the Act is revised to read as follows: "The sums appropriated for any fiscal year pursuant to the authorization contained in section 3(a) of this Act, excluding the sum specified in section 5, shall be available to the Secretary for supplying agricultural commodities and other foods for the program in accordance with the provisions of this Act. The Secretary shall apportion among the States during each fiscal year not less than 75 per centum of the funds made available for such year for supplying agricultural commodities and other foods under the provisions of section 3(a) of this Act. Apportionment among the States shall be made on the basis of two factors: (1) the participation rate for the State, and (2) the assistance need rate for the State. The amount of apportionment to any State shall be determined by the following method: First, determine an index for the State by multiplying factors (1) and (2); second, divide this index by the sum of the indices for all the States; and third, apply the figure thus obtained to the total funds to be apportioned. If any State cannot utilize all funds so apportioned to it, or if additional funds are made available under section 3(a) for apportionment among the States, the Secretary shall make further apportionments to the remaining States in the same manner. Notwithstanding the foregoing provisions of this section, for the fiscal year ending June 30, 1962, one-half of the funds available for apportionment among the States shall be apportioned on the basis of the factors used prior to such fiscal year, and one-half of such funds, and any funds available for further apportionments, shall be apportioned in accordance with the foregoing provisions.' SEC. 3. Section 5 of the Act is amended by striking out the last sentence thereof. SEC. 4. Section 10 of the Act is amended by striking out "number of children between the ages of five and seventeen, inclusive, attending nonprofit private schools within the State is of the total number of persons of those ages within the State attending school" and inserting in lieu thereof the following: "participation rate for all nonprofit private schools within the State is of the participation rate for the State". SEC. 5. Section 11 of the Act is redesignated as section 12 and subsection (d) thereof is amended to read as follows: "For the purposes of this Act "(1) State' means any of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam. "(2) 'State educational agency' means, as the State legislature may determine, (a) the chief State school officer (such as the State superintendent of public instruction, commissioner of education, or similar officer), or (b) a board of education controlling the State department of education. "(3) 'Nonprofit private school' means any private school exempt from income tax under section 101(6) of the Internal Revenue Code, as amended. "(4) 'Nonfood assistance' means equipment used by schools in storing, preparing, or serving food for school children. "(5) Participation rate' means the number of lunches, meeting the minimum requirements of the type of lunch for which the maximum rate of reimbursement is authorized by the Secretary, served by participating schools in each State in the preceding fiscal year, as determined by the Secretary. "(6) 'Assistance need rate' means that rate determined by assigning a value of five for each State having an annual per capita income less than the average annual per capita income of all the States by the ratio that the average annual per capita income of all the States bears to the per capita income of said State, up to a maximum value of nine. The per capita income figures shall be the average of those certified by the Department of Commerce for the latest three years for which such figures are available. "(7) 'School' means any public or nonprofit private school of high school grade or under and, with respect to Puerto Rico, shall also include nonprofit child-care centers certified as such by the Governor of Puerto Rico." SEC. 6. The following language is inserted after section 10 of the Act: "SPECIAL ASSISTANCE "SEC. 11. The sums appropriated pursuant to section 3(b) of this Act shall be used by the Secretary, under such terms and conditions as he deems to be in the public interest, to provide special assistance to needy schools for the purpose of helping them to meet the requirements established in this Act concerning the service of lunches to children unable to pay the full cost of the lunch." SEC. 7. These amendments shall become effective July 1, 1961. Mr. BAILEY. The general chairman having called a caucus in this room at 11 o'clock, we shall be hard put for time to conclude the hearing, so I trust all witnesses will understand that there is a time limit. Without any further delay we shall hear from the first witness, Mr. Howard P. Davis, Deputy Director, Food Distribution Division, Agricultural Marketing Service, Department of Agriculture. Mr. Davis. Mr. McCORD. Before Mr. Davis takes the stand, Mr. Chairman, might we have the permission of the committee to submit for the record, preceding Mr. Davis' testimony, a letter from Secretary of Agriculture Orville L. Freeman, addressed to you, transmitting a draft copy of the bill which Mr. O'Hara has introduced, together with the Department's section-by-section explanation of the bill. Mr. BAILEY. If there is no objection, it will be accepted for inclusion in the record. (The documents referred to follow:) Hon. CLEVELAND M. BAILEY, DEPARTMENT OF AGRICULTURE, Chairman, General Subcommittee on Education, Committee on Education and Labor, House of Representatives. DEAR CONGRESSMAN BAILEY: The attached bill incorporates the principles outlined in the school lunch recommendations which were included in the President's farm message to the Congress (H. Doc. No. 109). We believe it will also meet the objectives outlined in your letter of February 17, 1961. The bill incorporates the factor of participation into the formula for apportioning cash assistance funds among the States and provides for a transition period of 1 year before the new formula would become fully effective. A new section would be added to the National School Lunch Act which would provide for an additional appropriation of funds to provide special help to especially needy 75213-61-2 |