The BIA, in order to meet the educational needs of Indian children, has developed specialized curriculums in such areas as bilingualbicultural education, the social studies, science, music, art, and early childhood education.

In order to develop an identifiable accountability activity, BIA is implementing an education information system which is a management information system.

This system is composed of five subsystems: student enrollment, curriculum, staff, facilities, and community. The subsystem in student enrollment will be fully operational by the end of the school year

1975-76.

The curriculum subsystem will enter a preliminary phase in 1975-76. and will be in operation at the end of 1976-77. The staff subsystem will be completed by the conclusion of 1976-77.

The facilities subsystem will be completed by the end of school year 1976-77 and the community subsystem will be completed by the conclusion of 1977-78. This entire system is being applied at first to Federal school operations and is adaptable with minor modifications to the full range of BIA education programs. Schools which we have contracted for operation by tribes are already included in the system. In time, the BIA will be able to respond with greater efficiency and improved accuracy to education information needs.

Mr. Chairman, and members of the subcommittee, let me speak briefly to the relationship that exists between the USOE and the Bureau of Indian Affairs. I will attempt to be fairly brief here, since my counterpart over at HEW, Dr. Demmert is here, and I am sure that he will amplify on these comments.

The relationship between the USOE and BIA is analogous to one that would exist between USOE and the State department of education.

With the passage of the Elementary and Secondary Education Act of 1965, our Bureau related to USOE in a quasi-State manner so that Indian children could participate fully in this program. The Bureau has continued this relationship and expanded it under the programs provided in Public Law 93-380.

Additionally, the BIA has worked closely with USOE regarding Public Law 81-815 which provides funds for public school construetion for Indian children.

The usual manner of formalizing the relationship between BIA and USOE is not unlike that required of a State or public school district. This is especially the case regarding Public Law 93-380.

In each program, the regulations and guidelines promulgated br USOE are followed by BIA and the aid provided is thereby made available to Federal schools. If guidelines and regulations do not apply to the Bureau, then a memorandum of understanding between the BIA and USOE is developed. Examples of such programs are de scribed in our prepared statement which has been submitted for the record.

As indicated by our annual report for fiscal year 1974, the BIA has 149 USOE-funded projects in 209 schools. In fiscal year 1975 the US. Office of Education allocated $17.567.233 for an estimated 49.513 students in Bureau operated or funded nonpublic schools. These funds

provided supplementary services to students in the basic areas of reading, math, and language arts.

The information for our 1975 annual reports has not been compiled yet, but based on past information and reports, students in Bureau schools receiving supplementary services are gaining 1 month academically for each calendar month's participation in ESEA title I funded projects.

The Bureau of Indian Affairs, Office of Indian Education programs, works closely with the U.S. Office of Education to obtain maximum participation in those programs funded by USOE for which BIA schools are eligible.

Currently, the BIA applies approximately $2.3 million of the approximately $20 million provided the BIA through ESEA, title I, to programs for education of the handicapped. Also applied are 15 percent set-aside moneys that are directed in title III to the same purpose. Recently, BIA was able to secure quasi-statehood status for purposes of part B of the Education of the Handicapped Act.

In addition to the above, the BIA carries on an informal relationship with the USOE Office of Indian Education. The two commissioners have met and established liaison between the agencies and BIA Central Office Education staff have met with USOE Office of Indian Education staff and they have established joint committees for liaison

purposes.

Mr. Chairman, this concludes the highlight of the statement we submitted for the record.

Chairman PERKINS. Mr. Thompson, one question.

You stated that it was important to understand the organizational structure of the Bureau of Indian Affairs in order to understand the programs. Could you explain, therefore, the exact authority of the Bureau of Indian Affairs, area offices and the Washington office.

Please go ahead and answer my first question. I want to know the exact authority of the Bureau of Indian Affairs area offices and the Washington office.

Mг. THOMPSON. Mr. Chairman, I will be pleased to answer that question.

Chairman PERKINS. You want to make sure that the Indians know where to place the responsibility when they feel that they are grieved and not getting service.

That is one of the complaints, and the reason that we want to understand that, the exact authority in each area. Go ahead.

Mr. THOMPSON. Mr. Chairman, the Central Office of the Bureau of Indian Affairs is primarily involved in policy coordination and formulation. It is charged with representing the Indian Bureau both to Committees of Congress and to other parts of the administration. It is charged with oversight in implementation of BIA's programs.

The BIA has three levels of organizational units. We have the Central Office, the area office, which is considered the midlevel, and the agency office, where we have, the on-the-ground, day-to-day operation activities of our Bureau.

The area office is the mid-level structure in our organization designed to coordinate field activities of the agency offices that are under their jurisdiction. As such they are primarily a coordinating and technical assistance mechanism, giving assistance to the agencies and schools and other programs.

Chairman PERKINS. How do you understand the way that the money is allocated, the budget process by which you allocate the resources to the various local school districts, the Band system.

Mr. THOMPSON. Mr. Chairman, the "Band analysis system" is a program we initiated about 3 years ago, and it is in its third bulet cycle. It is an attempt, primarily, Mr. Chairman, to involve the Indian people in BIA budget formulation.

The Band analysis system provides a mechanism whereby tribal councils can meet with Bureau officials at various stages, and at various levels of the budget process, to provide their views on budget priorities. These priorities are reflected in the development of the budget and in the allocation of the resulting appropriations.

In fact, there is a very unique public law involved here, Mr. Chairman. There is a requirement in 25 U.S.C. 476 that our organization divulge to Indian communities the makeup and content of the budget as it is submitted to OMB and as it is submitted to the Congress.

We are trying to institute a mechanism whereby tribal representatives can be involved and have a direct voice in the budget formulation processes and also whereby they can follow the budget process as it goes through its various stages.

So, basically, Mr. Chairman, the Band analysis system is a mechanism designed to achieve greater tribal involvement in budget formula

tion.

Chairman PERKINS. Mr. Meeds.

Mr. MEEDS. Thank you, Mr. Chairman.

Mr. Commissioner, could you answer this philosophical question first. Could you explain to us for the record what review has been carried forth in the past 4 years with regard to resident schools, Indian resident schools?

I recall, for instance, discussing this matter with the Bureau some 4 years ago when we were reviewing the Indian Education Act. The Bureau was, at that time, undergoing some review of the entire policy toward the resident schools.

Could you just discuss that subject a little bit with us so that we can try to determine where you are headed, and what philosophy lies behind that.

Mr. THOMPSON. I will be pleased to, Mr. Chairman.

One of the goals that the Bureau has is to evaluate from time to time the various programs that we are providing the Indian communities As far as education is concerned, we have done that on an annual

basis.

Primarily, the drift of education in the Indian community appears to be toward more local control, but the local control could be of more centrally located educational facilities within the reservation or area in which the tribe resides.

As we know, the history of education in the Indian community included transporting the student away from his home to an educational facility, many times in a different State.

Then the Government initiated the off-the-reservation boarding school system. Because of the geographic isolation of many Indian communities, it was believed to be more efficient to provide educational services in an off-the-reservation boarding school. The latest wrinkle has been an off-the-reservation BIA boarding dormatory with the children attending a public school.

Now we are moving closer toward providing education facilities in the home communities, which, I think, from an education point of view is very desirable.

Public Law 93-638 may be an enlightened policy allowing Indian communities the option to manage, operate and maintain their own schools within the community. So, I believe, Mr. Chairman, that this is the direction in which we see educational services going.

Mr. MEEDS. I think I read in your testimony, but I cannot find it right now, that you are operating 17 off-reservation boarding schools. Is that correct?

Mr. THOMPSON. Nineteen.

Mr. MEEDS. How many off-the-reservation boarding schools were you operating 4 years ago?

Mr. THOMPSON. About that same number. We may have added one

or two.

Mr. MEEDS. So you are telling me that you are decentralizing and you are getting more young people into facilities in their own communities, which I would assume would be day schools and not boarding schools than you did 4 years ago. Does that add up, or is there something that I am missing there.

Mr. THOMPSON. It does and it does not.

Mr. MEEDS. Tell me where it does and it doesn't.

Mr. THOMPSON. Prior to the trend of the education off the reservation, in the planning process we had several facilities. We have found in the last 10 years the enrollment in the off-the-reservation boarding schools has been declining each year except for last year when there was an increase.

The decline, as you very ably point out, is caused by educational facilities being constructed nearer to the home community. What is happening in many instances is that we have under enrollment in many our off-the-reservation boarding schools. There is a suflicient number of Indian children, however, to keep them operating.

In several instances there have been management recommendations calling for phasing out several of these facilities, however, we have run into some opposition to the closing of the school facilities involved. I believe that as we get more and better educational facilities closer to home, there will be less desire and need for continuing off-thereservation boarding schools.

Mr. MEEDS. I will ask another question, then I will yield to the gentleman from Pennsylvania, Mr. Goodling.

Mr. GOODLING. Normally I would say that the Government does not fail, people fail. But in the case of Indians in America, I think perhaps the Government is guilty of failing. I have thoughts that part of the whole problem in the reservation idea, which I do not agree with. I do not believe that it gives them an opportunity to get in the

mainstream.

However, some quick questions to you before I leave for the school lunch conference committee meeting.

On

page 4 of your testimony you say that the BIA has been working diligently developing regulations to implement Public Law 93–638, the Indian Self-Determination Act, which as a sizable component for involvement of Indian parents, for using the Johnson-O'Malley funding to public schools on or off the reservations. I have a couple of questions on that.

At this time there are already strong regulations concerning funding and parental involvement in JOM, ever since August of 197 Are you telling me that you are rewriting these regulations.

If you are, can you give assurance that they will be as strong as the 1974 regulations, or stronger as far as parental involvement, and signoff on plans?

Mr. THOMPSON. Public Law 93-638 dictates an even stronger rol for the parental committees and we will be following the mandate of

the act.

Mr. GOODLING. You are not rewriting them. You are going to follo the strong regulations that are already available and have been sin August of 1974?

Mr. THOMPSON. Yes. What we are doing is revising the current reg lations that were recently issued to ensure that they conform to Put lic Law 93-638, which was passed after we had issued those regulations. However, I can assure the committee that this will be done with a lot of diligence, as there is a lot of Indian involvement and consultation going into revising those regulations.

Mr. GOODLING. What monitoring function does BIA exercise over the moneys that have been allocated for basic operating expenses. a little for supplemental services?

Mr. THOMPSON. We have several abilities. One, we do program audits on the various State JOM contracts to review the activities

that are carried on.

Second, we had instituted through regulation, and by Public Law 93-638, a very positive role for parental committees, that is, the rig of prior approval or disapproval of the State and local JOM programs and plans.

We are now requiring the school districts and States to come up with an educational plan prior to our execution of JOM contracts with them to assure that the JOM funds are properly expended. Mr. GOODLING. When you say that you are moving in the direction of local schools, are you telling me that these will be strictly Indian schools, or will it be a total involvement of the community. Are you saying that it is going to be strictly an Indian school when it is a

local school?

Mr. THOMPSON. I think that it is a rather difficult as a general ques

tion without going into specific situations, but let me try.

The current policy of the administration is that Indian youngsters should attend public schools where a public school is available. We

are reviewing that policy now. However, in school construction,

should be located. If there are sufficient students within a reservatio are saying that the number of students really dictates where a school for an on-reservation school, we think that we ought to have one there. Mr. GOODLING. Then there would be no opportunity for these young

sters to be involved with youngsters who are not Indian.

or through going to colleges and being involved in the surroundi Mr. THOMPSON. Other than through athletics or through field trips

instances it is not physically practical, because of the distance of some

of the rural isolated Indian communities.

change that, because I think that this is part of the problem.

Mr. GOODLING. I understand that. I wish there were some way to