FEDERAL ASSISTANCE FOR EDUCATIONAL PURPOSES Part I. Digest of Laws Illustrative of Financial Assistance Provided by the Federal Government to (1) the States and Localities, and (2) Institutions of Higher Education These major programs of Federal financial assistance for educational purposes were selected for one or several of the following reasons: (a) Nationwide in scope and importance; (b) demonstrative of the various types of educational facilities which receive Federal funds; or (c) under the jurisdiction of the Committee on Education and Labor of the House. ASSISTANCE TO SCHOOLS IN FEDERALLY IMPACTED AREAS Both Public Law 874 and Public Law 815 provide financial assistance to State or local educational agencies from the Federal Government for areas affected by Federal activities. However, as their purposes and methods are different, and as they operate independently, they are herein analyzed separately. I. Substance of the existing law, keyed to the United NOTE.-Section references are to Title 20 of the 1958 Code, except where an asterisk precedes the citation. Sections marked by an asterisk are found in Title 20 of Supplement III to the 1958 Code. FINANCIAL ASSISTANCE FOR AREAS AFFECTED BY (Public Law 874 (1950); Public Law 170 (1953); Public Law 248 (1953); Public Law 732 (1954); Public Law 204 (1955); Public Law 221 (1955); Public Law 896 (1956); Public Law 949 (1956); Public Law 85-620; Public Law 85-900; Public Law 86-449; Public Law 87-344) A. Purpose Because of the impact which certain Federal activities have on local educational agencies of the areas in which such activities are carried on, it is "to be the policy of Sec. 236 the United States to provide financial assistance * 1. The revenues available to such agencies from local sources have been reduced as a result of the acquisition of real property by the United States. 2. Such agencies provide education for children residing on Federal property, or provide education for children whose parents are employed on Federal property. 3. There has been a sudden and substantial increase in school attendance as the result of Federal activities. 4. Also within the purpose of the law, as indicated by its terms, is the arrangement of free public education for children who reside on Federal property and for whom the local educational agencies cannot supply facilities. B. Financial assistance where Federal acquisition of real property acts as a financial burden on the local educational agency. 1. Eligibility for financial assistance. A local educational agency is eligible for financial assistance, when the Commissioner of Education determines (after consultation with the local and State educational agencies) that all of the following conditions concerning the property and the financial burden are satisfied for the fiscal year concerned. For the purposes of determining eligibility, real property acquired for the Tennessee Valley Authority, and for which payments are made in lieu of taxes is not included in the term "Federal property." (See 16 U.S.C., sec. 831 b (1958). For the definition of "Federal property" generally, see the section below dealing with definitions.) a. The United States must own Federal property in the school district of the local educational agency, and (1) the property must have been acquired since 1938, and must not have been acquired by an exchange for other Federal property in the school district that was owned before 1939, and (2) the assessed value of such property must have been ten per cent or more of the assessed value of all the real property in the school district at the time the property was acquired by the United States. b. The acquisition of the property must have placed a substantial and continuing financial burden on the local educational agency. c. The local educational agency must not be receiving substantial compensation for the burden from "other Federal payments" resulting from the acquisition of such property, or from increases in revenues accruing to the agency that have resulted from the carrying on of Federal activities with respect to the acquired property. "Other Federal payments" means property taxes paid Sec. 2. Authorization of funds; allotments. a. Total and duration of authorization. No specific amount of funds is authorized by the law. The authorization is based on those sums which the Commissioner of Education judges each local educational agency to be entitled to receive as the equivalent of the continuing Federal responsibility. (See allotments below.) Funds may be appropriated according to this authori zation for any fiscal year ending prior to July 1, 1963. 237(a) *237 (a) b. Allotments to the local educational agencies. 237 (a) The amount due each local educational agency is that sum determined by the Commissioner of Education to be "equal to the continuing Federal responsibility for the additional financial burden with respect to current expenditures placed on such agency by such acquisition of property * ***" to the extent that the agency is not compensated for the burden by "other Federal payments." The amount determined, however, is not to exceed the revenues which the agency would have had available for current expenditures from the property acquired by the United States (excluding any improvements or changes made since the acquisition) minus the sums which the agency derived from "other Federal payments" that were available in the year concerned for 287 (b) (1) expenditure." "Other Federal payments" means property taxes paid with respect to Federal property (whether or not paid by the United States), payments made in lieu of taxes, and any other payments made with respect to Federal property pursuant to any law of the United States, except this law; it does not include payments pursuant to [25 U.S.C., sec. 452 (1958)] any arrangement with a State for the education, medical attention, agricultural assistance, or social welfare of Indians. 237 (b) (2) For the purposes of determining allotments, real property acquired for the Tennessee Valley Authority, and for which payments are made in lieu of taxes is not included in the term, "Federal property" (See 16 U.S.C. Sec. 831 1 (1958). For the definition of "Federal property" generally, see the section below dealing with definitions.) 3. Effect of school district consolidation after 1938 237 (c) on eligibility and allotment. Where there has been a consolidation of two or more school districts, after 1938, to form the single school district of any local educa Sec. 238 (a) 238(b) 238 (c) (5) 238 (c) (2) tional agency, that agency is allowed to have its eligibility and its allotment determined on the basis only of those school districts or district which it chooses. This choice is allowed the agency each fiscal year. C. Financial assistance where children reside, or parents are employed on Federal property. 1. Classification of children for whom free public education is provided. Local educational agencies are entitled to financial assistance for providing free public education for children in average daily attendance at the agency's schools and who are defined in either of the categories set out below. For purposes of this analysis they are entitled "Category A" or "Category B." a. "Category A." Children who while in attendance at school, resided on Federal property (1) with a parent who was employed on Federal property that is located either entirely or partially within the same State as the school district of the local educational agency, or within reasonable commuting distance from such school district, or (2) had a parent who was on active duty in the uniformed services of the United States. (Uniformed services defined in 37 U.S.C. sec. 23 (1958).) b. "Category B." Children (others than those of "Category A"), who while in attendance at school, either (1) resided on Federal property, (2) resided with a parent who was employed on Federal property situated either entirely or partially within the same State as the school district of the local educational agency, or within reasonable commuting distance from such school district, or (3) resided with a parent who had commenced to reside on Federal property in or near the school district as a member of the Armed Forces on active duty, but who was later assigned elsewhere on active duty. 2. Eligibility for financial assistance. The Commissioner of Education is required to estimate prior to the close of each fiscal year whether a local educational agency has met the percentage requirements for eligibility. This estimate is subject to later correction so as not to deprive the agency of its proper entitlement due to an inaccurate estimate. The eligibility requirements are set out below. a. The number of "Category A and B" children in average daily attendance at the agency's schools must exceed ten, and must amount to more than three percent of the total number of children in attendance. For the purpose of meeting this percentage requirement only children qualifying under the definition of "Category B" may be counted even though they also are counted under "Category A." The Commissioner may waive the three percent requirement whenever, in his judgment such exceptional conditions exist that the application of the requirement would be inequitable and would defeat the purposes of the law. b. Where the average daily attendance of an Sec. agency's schools exceeds 35,000, different requirements 238 (c) (3) are to be applied (unless such an agency-or consolidated agencies had qualified for payments before August 12, 1958, by virtue of having less than 35,000 average daily attendance during the fiscal year ending June 30, 1939). In this instance, the number of "Category A and B❞ children in attendance must exceed six percent of the total 238 (c) (2) attendance. For the purpose of meeting this percentage requirement only, children qualifying under the definition of "Category B" may be counted even though they are also counted under "Category A." c. When the agency does not meet its percentage requirement (either three or six percent), it remains eligible for financial assistance for the two fiscal years following a fiscal year for which it was eligible. However, in the second year its payment will be reduced by fifty percent. 3. Authorization of funds; allotments; the local contribution rate; deductions for certain Federal contributions. a. Total and duration of authorization. (1) There is no specified total amount authorized; such total is authorized as is necessary to pay the allotments to the local education agency. (See "Allotments," below.) 238 (c) (2) (B) 238 (c) (3) 238 (2) Funds for payment to the agencies due them 238 (a) for their education of "Category A" children are authorized "for any fiscal year:" those for "Category B❞ chil- *238 (b) dren, are authorized for any fiscal year ending prior to July 1, 1963. b. Allotments to the local educational agency. (1) Computation of the "local contribution rate." 238 (c) The "local contribution rate" is one of the factors to be used in determining the amount that each local educational agency is due. This rate is computed by the Com- 238 (d) missioner of Education, after consulting with the State and local educational agency by using as a basis for his computation school districts within the State which are generally comparable to that for which the computation is being made. Using figures of such comparable school districts for the second fiscal year preceding the fiscal year for which the rate is being computed, the rate is obtained by dividing (a) the aggregated expenditures which the agencies of the comparable districts made from revenues derived from local sources by (b) the aggregate number of children in average daily attendance to whom free public education was provided. When the expenditures in such districts as are chosen by the Commissioner are not reasonably comparable due to the unusual geographical factors in the district of the agency for which the computation is being made, the Commissioner may compensate for such factors by increasing the rate for that agency. |