shall be available for reallotment from time to time, on such dates during such year as the Commissioner may fix, to other States in proportion to the original allotments to such States under section 102 for such year, but with such adjustments as may be necessary to prevent reallotment to any State of any sum in excess of the amount which the Commissioner estimates it needs and will be able to use for such year for carrying out the State plan for which the amount reallotted would be available. Any amount reallotted to a State under this paragraph during a year from funds appropriated pursuant to section 101 shall be deemed part of its allotment for such year.

"(d) For the purposes of this section the 'Federal share' for any State shall be 100 per centum less the State percentage and the State percentage shall be that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of all the States (excluding Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone), except that (1) the Federal share shall in no case be more than 66 per centum or less than 33 per centum, and (2) the Federal share for Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone shall be 66 per centum.

"(e)) The Federal share for each State shall be promulgated by the Commissioner between July 1 and August 31 of each even-numbered year, on the basis of the average of the per capita incomes of each of the States and all of the States (excluding Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone) for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the period beginning July 1 next succeeding such promulgation.

"(f) No portion of any money paid to a State under this title shall be applied, directly or indirectly, to the purchase or erection of any building or buildings, or the purchase of any land.

"WITHHOLDING

"SEC. 105. If the Commissioner finds after reasonable notice and opportunity for hearing to the State agency administering or supervising the administration of the State plan approved under this title, that the State plan has been so changed that it no longer complies with the requirements of this title or that in the administration of the plan there is a failure to comply substantially with the provisions required to be included in the plan, he shall notify such State agency that further payments will not be made to the State under this title until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, he shall make no further certification to the Secretary of the Treasury with respect to such State: Provided, That any State or State agency shall be entitled to judicial review in the United States district court for the district in which the State or State agency is located of any such withholding determination in accordance with applicable provisions of the Administrative Procedure Act.

"TITLE II—LIBRARY PROGRAMS IN PUBLIC ELEMENTARY AND SECONDARY SCHOOLS

"APPROPRIATIONS AUTHORIZED

"SEC. 201. There are hereby authorized to be appropriated $30,000,000 for this fiscal year ending June 30, 1963, and for each of the four succeeding fiscal years, for making grants to State educational agencies under this title to assist them in establishing and maintaining programs of library service in public elementary and secondary schools, which will carry out the objectives of this Act as stated in section 2.

"ALLOTMENTS TO STATES

"SEC. 202. (a) From the sums appropriated pursuant to section 201 for any fiscal year the Commissioner shall reserve such amount, but not in excess of 1.6 per centum thereof, as he may determine for allotment as provided in subsection (b). From the remainder of such sums the Commissioner shall allot to each State an amount which bears the same ratio to the amount of such remainder as the school-age population of such State bears to the school-age population of all of the States. The amount allotted to any State under the preceding sentence for any fiscal year which is less than $50,000 shall be increased to

$50,000, the total of increases thereby required being derived by proportionately reducing the amount allotted to each of the remaining States under the preceding sentence, but with such adjustments as may be necessary to prevent the allotment of any such remaining State from being thereby reduced to less than $50,000.

"(b) The amounts reserved by the Commissioner under subsection (a) shall be allotted by the Commissioner among Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone, according to their respective needs for assistance in establishing and maintaining programs of library service in public elementary and secondary schools.

"STATE PLANS

"SEC. 203. (a) Any State which desires to receive payments under this title shall submit to the Commissioner, through its State educational agency, a State plan which

"(1) provides that the State educational agency will be the sole agency for administering the plan;

"(2) sets forth a program of library service in public elementary and secondary schools to meet the library needs of all students and to provide the facilities and resources for challenging education for superior students under which funds paid to the State from its allotment under section 202 will be expended solely for projects approved by the State educational agency for (A) acquisition of library materials (printed and audiovisual) and library equipment which are suitable for use in providing resources for teaching and learning and which will carry out the objectives of this Act as stated in section 2, (B) the establishment or improvement of local school library supervisory services, (C) minor remodeling of existing space used for library quarters, (D) the establishment or improvement of library supervisory services within the State educational agency, and (E) administration of the State plan;

"(3) provides for the establishment of State standards for public elementary and secondary school libraries;

"(4) sets forth principles for determining the priority of such projects in the State for assistance under this title and provides for undertaking such projects, insofar as financial resources available therefor make possible, in the order determined by the application of such principles;

"(5) provides an opporunity for a hearing before the State educational agency to any applicant for a project under this title;

"(6) provides that the State educational agency will make such reports to the Commissioner, in such form and containing such information, as may be reasonably necessary to enable the Commissioner to perform his duties under this title; and

"(7) provides for such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State under this title.

"(b) The Commissioner shall approve any State plan and any modification thereof which complies with the provisions of subsection (a).

"PAYMENTS TO STATES

"SEC. 204. (a) From the allotments available therefor under section 202, the Secretary of the Treasury shall from time to time pay to each State which has a plan approved under section 203 for the fiscal year ending June 30, 1963, such payments which equal the amount expended in carrying out the State plan, and for the fiscal year ending June 30, 1964, and for each of the three succeeding fiscal years an amount computed as provided in subsection (b) of this section, equal to the Federal share of the total sums expended by the State and its political subdivisions under such plan during the period for which such payment was made, except that no payments shall be made to any State from its allotment for any fiscal year unless and until the Commissioner finds that (1) there will be available for expenditure under the plan from State or local sources during the fiscal year for which the allotment is made (A) sums sufficient to enable the

State to receive under this section payments in an amount not less than that allotted to it by the Commissioner in the case of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone, and $50,000 in the case of any other State, and (B) not less than the total amount actually expended, in the areas covered by the plan for such year, for programs of library service in public elementary and secondary schools from such sources in the fiscal year ending June 30, 1962, and (2) there will be available for expenditure for programs of library service in public elementary and secondary schools from State sources during the fiscal year for which the allotment is made not less than the total amount actually expended for such programs from such sources in the fiscal year ending June 30, 1962.

"(b) The Commissioner shall from time to time, but not less often than semiannually, and prior to the period for which a payment is to be made, estimate the amount, within the balance of the allotments for each State, which may be necessary to pay the Federal share of the total expenditures for carrying out the approved State plan for such period. The Commissioner shall certify to the Secretary of the Treasury the amount so determined, reduced or increased as the case may be by the amount by which he finds that his estimate for any prior period was greater or less than the amount which should have been paid to the State for such period. The Secretary of the Treasury shall thereupon, prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Commissioner, the amount so certified.

"(c) The amount of any State's allotment for any fiscal year which the Commissioner determines will not be required for such fiscal year for carrying out the State plan approved under this title for which such allotment is available shall be available for reallotment from time to time, on such dates during such year as the Commissioner may fix, to other States in proportion to the original allotments to such States under section 202 for such year, but with such adjustments as may be necessary to prevent reallotment to any State of any sum in excess of the amount which the Commissioner estimates it needs and will be able to use for such year for carrying out the State plan for which the amount reallotted would be available. Any amount reallotted to a State under this paragraph during a year from funds appropriated pursuant to section 201 shall be deemed part of its allotment for such year.

"(d) For the purposes of this section the 'Federal share' for any State shall be 100 per centum less the State percentage and the State percentage shall be that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of all the States (excluding Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone), except that (1) the Federal share shall in no case be more than 66 per centum or less than 33 per centum, and (2) the Federal share for Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone shall be 66 per centum. “(e) The Federal share for each State shall be promulgated by the Commissioner as soon as possible after the enactment of this Act, and again between July 1 and August 31 of the year 1963, on the basis of the average of the per capita incomes of each of the States and all of the States (excluding Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone) for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. The first such promulgation shall be conclusive for each of the two fiscal years in the period beginning July 1, 1962, and ending June 30, 1964, and the second shall be conclusive for each of the three fiscal years in the period beginning July 1, 1964, and ending June 30, 1967.

"WITHHOLDING

"SEC. 205. If the Commissioner finds, after reasonable notice and opportunity for hearing to the State educational agency administering a State plan approved under this title, that the State plan has been so changed that it no longer complies with the requirements of this title, or that in the administration of the plan there is a failure to comply substantially with the provisions required to be included in the plan, he shall notify such State educational agency that further payments will not be made to the State for carrying out such plan (or, in his

discretion, further payments to the State will be limited to programs under or portions of the State plan not affected by such failure), until he is satisfied that there will no longer be any failure to comply. Until he is so satisfied, he shall make no further certifications to the Secretary of the Treasury with respect to such State for carrying out such plan (or shall limit payments to programs under or portion of the State plan not affected by such failure): Provided, That any State or State agency shall be entitled to judicial review in the United States district court for the district in which the State or State educational agency is located of any such withholding determination in accordance with applicable provisions of the Administrative Procedure Act.

"TITLE III-LIBRARY GRANTS TO INSTITUTIONS OF HIGHER

EDUCATION

"APPROPRIATIONS AUTHORIZED

"SEC. 301. There are hereby authorized to be appropriated $10,000,000 for the fiscal year ending June 30, 1963, and for each of the four succeeding fiscal years, to enable the Commissioner to make grants to institutions of higher education to assist and encourage such institutions in the acquisition for library purposes of books (not including textbooks), periodicals, documents, and other related materials (including necessary binding).

"GRANT CONDITIONS

"SEC. 302. From the sums appropriated pursuant to section 301 for any fiscal year, the Commissioner may, upon application therefor, make a grant for the purposes set forth in such section to any institution of higher education—

“(1) in an amount not exceeding 25 per centum of the amount expended by such institution during the fiscal year ending June 30, 1962, for books, periodicals, audio-visual material, documents, and other related materials (including necessary binding) for library purposes, or not less than

"(A) $1,000 if it provides a two-year educational program which is acceptable for full credit toward a bachelor's degree;

"(B) $2,500 if it provides an educational program for which it awards a bachelor's degree or a more advanced degree; or

"(C) $5,000 if it provides an educational program for which it awards both bachelors' and advanced degrees; and

• “(2) if such institution furnishes proof satisfactory to the Commissioner— "(i) that it will expend, during the fiscal year for which the grant is requested, for all library purposes an amount not less than the amount it expended for such purposes during the fiscal year ending June 30, 1962,

“(ii) that it will expend, during the fiscal year for which the grant is requested, for library purposes for books, periodicals, documents, and other related materials (including necessary binding) an amount not less than the amount it expended for such materials during the fiscal year ending June 30, 1962, and

"(iii) that it will expend for library purposes during the fiscal year for which the grant is requested, in addition to the amount reqquired under clauses (i) and (ii) above, an amount not less than the amount of such grant, and that at least 50 per centum of such expenditure will be for library purposes for books, periodicals, documents, and other related materials (including necessary binding).

"LIMITATION

"SEO. 303. No grant shall be made under this title for books, periodicals, documents, or other related materials to be used primarily in connection with any part of the program of a divinity school, theological seminary, or other institution, or a department or branch of an institution, whose program is for the education of students to prepare them to become ministers of religion or to enter upon some other religious vocation.

"TITLE IV-LIBRARY TRAINING INSTITUTES

"APPROPRIATIONS AUTHORIZED

"SEC. 401. There are hereby authorized to be appropriated $7,500,000 for the fiscal year ending June 30, 1963, and $10,000,000 for each of the four succeeding fiscal years, to enable the Commissioner to arrange, by contracts with institutions of higher education, for the operation by them of short-term or regular session institutes for the provision of training to improve the qualifications of librarians, or individuals preparing to engage in library work. Each individual, engaged, or preparing to engage in library work, who attends an institute operated under the provisions of this title shall be eligible (after application therefor) to receive a stipend at the rate of $75 per week for the period of his attendance at such institute, and each such individual with one or more dependents shall receive an additional stipend at the rate of $15 per week for each such dependent for the period of such attendance."

Mr. BAILEY. And now we welcome as our first witness the Honorable Wilbur Cohen, Assistant Secretary of Health, Education, and Welfare, and the Honorable Sterling M. McMurrin, Commissioner of Education.

Mr. Cohen, you may further identify yourself to the reporter and proceed with your testimony.

STATEMENT OF HON. WILBUR J. COHEN, ASSISTANT SECRETARY FOR LEGISLATION, DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE; ACCOMPANIED BY PHILIP H. DES MARAIS, DEPUTY ASSISTANT SECRETARY, HEW; RALPH C. M. FLYNT, ASSOCIATE COMMISSIONER OF EDUCATION FOR RESEARCH AND DEVELOPMENT; PETER M. MUIRHEAD, ASSISTANT COMMISSIONER OF EDUCATION FOR PROGRAM AND LEGISLATIVE PLANNING; JOHN G. LORENZ, DIRECTOR, LIBRARY SERVICES BRANCH; CHARLES W. RADCLIFFE, CHIEF, LEGISLATIVE SERVICES BRANCH; SAMUEL HALPERIN, LEGISLATIVE SPECIALIST

Mr. COHEN. I am Wilbur J. Cohen, Assistant Secretary for Legislation, Department of Health, Education, and Welfare.

Mr. Chairman and members of the committee, we in the Department of Health, Education, and Welfare are gratified that you are conducting hearings on H.R. 11823, introduced by your chairman, Mr. Bailey, and a large number of companion bills which would amend and expand the Library Services Act. We are pleased, first of all, because this act, as you have said, has been highly successful in operation and we view it with pride. Moreover, the bills you are now considering relate to an important concern of our Department in the field of education-the improvement of educational quality and opportunity for all Americans.

This concern springs from the firm conviction that our national strength, as well as the vitality of our free institutions in these times of challenge, depends upon the capacity of individual citizens to contribute in full measure the highest degree of understanding, thought, and skill of which they are capable. President Kennedy voiced this