- Section 16 authorizes assistance to local educational agencies in areas suffering major and pinpoint disasters. (See preceding Disaster Assistance activity narrative.)

Until 1967, appropriations were sufficient to meet all demands under Public Law 81-815. In recent years, Sections 10, 14(a) and 14(b), and 5 and 14(c) have been funded at levels specified by the Administration and the Congress. If the funds appropriated are not earmarked for specific activities and appropriations are insufficient to fund all eligible projects, the basic law establishes the following funding order: disaster assistance under Section 16 is provided first; then funds are provided for Sections 9, 10, 14(a), and 14(b) in proportion to the total estimated requirements in each section; then Sections 5, 8, and 14(c) are funded.

Within each section, priority rankings intended to reflect relative urgency of need have been established to ensure a systematic distribution of funds among applicants when appropriations are insufficient to fund all applications. Highest priority applicants are funded first and priority rankings are reordered periodically as new applications are filed. Thus, a particular project's ranking may change several times before it is funded.

Funds appropriated for this program remain available until expended.

Accomplishments

A total of $1.8 billion has been appropriated by the Congress for constructing school facilities under Public Law 81-815 from the time of its enactment in 1950 through September 1987, excluding funds transferred to the Department of Education from U.S. Army and Navy construction programs, the Atomic Energy Commission, the Army Safeguard program, and the Economic Development program for construction in special areas. In addition, since 1984, the Department of Defense has provided over $85 million for school construction under Section 10.

From 1951 through 1987, Federal assistance has been provided to local educational agencies and to other Federal agencies for the construction of approximately 7,000 projects.

In 1987, the Department continued an effort to coordinate with the Bureau of Indian Affairs (BIA) of the Department of the Interior the funding of construction projects for facilities to serve Indian children. In the case of Fort Yates, North Dakota, the enrollment for the Standing Rock High School, constructed with BIA funds, is way below capacity, yet the nearby school district is eligible for Section 14 funds to construct a new building. The Department is currently working on the final steps of an agreement with the BIA and the local school district for the funding of modifications to the BIA school rather than the construction of a new

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3. Construction

Impact Aid

Accomplishments

Continued

building. This will lead to the merger of the populations of the BIA and local schools, allowing for a more efficient operation of both school systems and an enhanced educational program for all the children involved.

The Department also completed a joint study with the Department of
Defense (DoD) in 1987. This study was mandated by the Congress in the
DoD authorization bill for 1987 and required the agencies to review the
condition of school buildings serving military dependents in the U.S. and
report on the need for repairs or modifications, as well as additional
capacity. A report containing the study findings and policy recommendations
was submitted to the Congress in November.

A survey of military installations was conducted to obtain data for this
report. The installations reported that they have 124 schools with repair,
rehabilitation, or construction needs; the Departments estimated the costs
for this work at approximately $183 million. The two agencies recommended
that these needs be met through a shared effort by local, State, and Federal
governments based on analyses of fiscal impact and fiscal ability. Staff
of DoD will initiate shortly the first of several impact analyses that
will be conducted during 1988.

1989 Budget Proposal

Construction funds of $25 million are requested for 1989 for awards under
Sections 5, 10, and 14. This is $2.022 million more than the 1988 appropri-
ation. The request consists of $3 million for grants under Sections 5 and
14(c), $10 million for Section 10 projects, and $12 million for Sections
14(a) and (b) grants.

Since 1984, funds for school construction under Section 10 have been made available through DoD as well as through the Department of Education. DOD has used these funds for construction activities at Section 6 sites, while the Department of Education has used Section 10 funds for non-Section 6 sites. In 1989, these funds will be used by both agencies to begin implementation of the recommendations in the report to the Congress on school facilities on military installations.

1/ Impact data are only for Department of Education funds.

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1/ Funds are distributed to LEAS based on numbers and percentages of federally connected children, national and State average per pupil expenditure data from two years preceding, and the formula contained in the annual appropriations law.

2/ The appropriations for 1987 and 1988 include payments for both "a" and "b" children. The 1989 request is for payments for "a" children only.

3/ All figures are estimates based on projections of prior year data.

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