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Kurzman, Hon. Stephen, Assistant Secretary for Legislation, HEW,
accompanied by Christopher T. Cross, Deputy Assistant Secretary
for Legislation (Education) –.
Marland, Hon. Sidney P., Jr., Commissioner of Education, accom-
Marland, Hon. Sidney P., Jr., Commissioner of Education, Existing
Education Programs Repealed by Education Revenue Sharing_
Scott, Hon. Robert W., Governor, State of North Carolina, letter to
Congressman Pucinski, dated December 22, 1971, enclosing
OVERSIGHT HEARING ON ELEMENTARY
AND SECONDARY EDUCATION
THURSDAY, DECEMBER 9, 1971
HOUSE OF REPRESENTATIVES,
COMMITTEE ON EDUCATION AND LABOR,
The committee met, pursuant to notice, at 10 a.m., in room 2175 of the Rayburn Office Building, Hon. Carl D. Perkins (chairman of the committee) presiding.
Members present: Perkins, Green, Pucinski, Brademas, Hawkins, Hicks, Quie, Bell, Reid, Landgrebe, Hansen, Ruth and Peyser.
Staff members present: H. D. Reed, Jr., general counsel; and Charles W. Radcliffe, minority counsel for education. (Text of H.R. 7796 follows:)
A BILL to strengthen education by providing a share of the revenues of the United States to the States and to local educational agencies for the purpose of assisting them in carrying out education programs reflecting areas of national concern
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Education Revenue Sharing Act of 1971".
FINDINGS AND PURPOSE
SEC. 2. (a) The Congress hereby finds that, while public education is primarily the responsibility of the States and local communities of this country, the Federal Government has a responsibility to assist them in meeting the costs of education in areas of special national concern. The Congress finds, however, that prior programs of Federal financial assistance for elementary or secondary education are too narrow in scope to meet the needs of State and local school systems.
(b) It is therefore the purpose of this Act to replace certain current programs of Federal assistance to elementary or secondary education by a system of Federal revenue sharing for education designed to meet such needs, to encourage innovation and development of new educational programs and practices, to provide for educationally disadvantaged children an education comparable to that available to their classmates, to provide the special educational services needed by the physically and mentally handicapped, to encourage greater attention to the vital field of vocational and career education, to assure to children whose parents live or work on Federal property an education comparable to that given to other children, and to provide State and local educational officials with the flexibility and responsibility they need to make meaningful decisions in response to the needs of their students.
AUTHORIZATION OF APPROPRIATIONS AND PLANNING PAYMENTS
SEC. 3. (a) For the fiscal year ending June 30, 1973, and for each fiscal year thereafter, there are authorized to be appropriated, to be available without fiscal year limitation, such sums as may be necessary for carrying out this Act.
(b) There are also authorized to be appropriated such sums as may be necessary to enable the Secretary to make, during the period beginning January 1, 1972, and ending with the close of June 3, 1972, payments to States to assist them in planning for the transition from the system of categorical grants authorized by the statutes and parts thereof repealed by section 21 to the system of revenue sharing for education authorized by this Act. Such payments shall be made on such terms and conditions as the Secretary specifies for the purpose of carrying out this subsection.
ALLOTMENT AND USE OF SHARED REVENUES
SEC. 4. (a) From the sums appropriated pursuant to section 3(a) for any fiscal year and not reserved pursuant to section 11, the Secretary shall allot to each State an amount equal to 60 per centum of the average per pupil expenditure in the United States multiplied by the number of children in average daily attendance in the public elementary or secondary schools of such State during such year who resided on Federal property, which amount shall be available for any educational purpose.
(b) From the remainder of such sums, the Secretary shall allot to each State an amount which bears the same ratio to such remainder as the sum of the products determined under paragraphs (1) through (3) of this subsection with respect to such State bears to the total of the sums of such products with respect to all States. Such products for any State shall be—
(1) 1.0 multiplied by the number of children aged 5 to 17, inclusive, in such State who are in low-income families;
(2) 0.6 multiplied by the number of children in average daily attendance in the public elementary or secondary schools of such State during such fiscal year who (A) resided on other than Federal property with a parent employed on Federal property, or (B) had a parent on active duty in the uniformed services (as defined in section 101 of title 37, United States Code); and
(3) 0.1 multiplied by the number of children aged five to seventeen, inclusive, in the State.
(c) (1) That portion of each State's allotment derived from application of the provisions of paragraph (1) of subsection (b) shall be available only for programs and projects designed to meet the special educational needs, at the preschool or any other educational level, of educationally disadvantaged children(A) who reside in school attendance areas having high concentrations of low-income families;
(B) who are migratory children of migratory agricultural workers; or (C) who are neglected or delinquent children for whose education the State, rather than a local educational agency, is directly responsible. (2) That portion of each State's allotment derived from application of the provisions of paragraph (2) of subsection (b) shall be available for any educational activity.
(3) Except as provided in section 6—
(A) one-sixth of that portion of each State's allotment derived from application of the provisions of paragraph (3) of subsection (b) shall be available only for programs and projects at the preschool or any other educational level designed to meet the special educational needs of handicapped children, including handicapped children for whose education the State, rather than a local educational agency, is directly responsible;
(B) one-third of that portion of each State's allotment derived from application of the provisions of paragraph (3) of subsection (b) shall be available only for vocational education activities; and
(C) one-half of that portion of each State's allotment derived from application of the provisions of paragraph (3) of subsection (b) shall be available only for supporting materials and services.
(d) Programs, projects, or activities assisted under this Act may include construction.
(e) In the event that any State is not eligible to receive funds under this Act for any fiscal year, or notifies the Secretary that it does not desire to receive such funds, the allotment of such State for such fiscal year derived from any provision of subsection (b) shall be available for reallotment from time to time, on such date or dates during such year as the Secretary may fix, to other States in proportion to the original amount of the allotment to such other States which
was derived from any such provision for that year. Any amount for a fiscal year so reallotted to a State under this subsection shall be deemed part of its allotment derived from the same provision of subsection (b) for such year.
(f) The amounts appropriated and allocated pursuant to this Act shall be paid to the States at such intervals and in such installments as the Secretary may determine, taking account of the objective that the time elapsing between the transfer of funds from the United States Treasury and the disbursement thereof by States shall be minimized.
(g) For purposes of this Act, the Secretary shall determine average daily attendance, average per pupil expenditure, and numbers of children, and in doing so he shall use the most recent satisfactory data available to him, referrable with respect to data used for each purpose to the same time period for all jurisdictions. All determinations and computations by the Secretary under this section shall be final and conclusive.
DISTRIBUTION OF SHARED REVENUES WITHIN EACH STATE
SEC. 5. (a) Each State shall pay to each of its local educational agencies for a fiscal year an amount equal to the sum allotted to such State pursuant to section 4 (a) for such year on account of the number of children in average daily attendance who resided on Federal property in the school district of such agency. (b) (1) Except for any sums retained, from the amount allotted to it for any fiscal year by application of the provisions of section 4(b)(1), by a State for meeting, in accordance with the provisions of section (4c) (1), the special educational needs of neglected or delinquent children described in section 4(c) (1) (C), such State shall also pay to each of its local educational agencies for a fiscal year an amount equal to the sum allotted to it pursuant to section 4(b) for such year on account of the number of children in the school district of such agency who are in low-income families, but only if (A) such amount is at least $10,000, and (B) the services provided in each of the schools of such agency with funds other than funds received under this Act have been determined, by the State agency (designated pursuant to section 8(a)) in accordance with such criteria as the Secretary may prescribe, to be comparable with the services so provided in all of the other schools of such local educational agency.
(2) Any portion of an allotment which is not, but would be except for clause (A) or (B) of paragraph (1), paid to a local educational agency shall be paid by such State, in accordance with its plan developed under section 8(b), to other local educational agencies within such State to which funds are required to be paid under paragraph (1) for use in accordance with the provisions of section 4(c) (1), except that no such other agency shall be paid more for any fiscal year pursuant to this subsection than 200 per centum of the amount required to be paid to it under paragraph (1) for such year.
(3) If no local educational agency within such State which would otherwise be paid funds under this subsection has been so determined, by such State agency, to provide such comparable services, the amount allotted to such State by application of the provisions of section 4(b)(1) shall be reallotted to other States in proportion to the amounts originally alloted to such other States by application of such provision. Any portion of an allotment which is not, but would be except for paragraph (2), paid to local educational agencies within a State, shall be reallotted to other States in proportion to the amounts originally allotted to such other States by application of the provisions of section 4(b) (1). No State shall be reallotted for any fiscal year pursuant to this subsection more than 200 per centum of the amount originally allotted to such State for such year by application of the provisions of section 4 (b). Any amount reallotted to a State pursuant to this subsection for any fiscal year shall be deemed to be part of its allotment for such fiscal year derived from application of the provisions of section 4 (b) (1).
(c) The remainder of each State's allotment shall be available
(1) for use, in accordance with the provisions of sections 4 and 6 and the plan developed pursuant to section 8(b), by the State agency designated pursuant to section 8(a), including use by such agency for meeting the special educational needs of handicapped children for whose education such agency, or any other State agency within such State, rather than a local educational agency, is directly responsible; and
(2) for distribution, for use by them in accordance with the provisions of sections 4 and 6 and such plan, among the local educational agencie