The assessed valuation of an applicant district is a rather basic index to its ability to provide local funds for school operation and building construction. In 1951 the total assessed valuation of the Midwest City School District was $5,809,778. This was increased to a total of $27,691,719 in 1962-63 or an increase of 377 percent. However, when this total valuation is distributed among all the pupils in average daily attendance for these respective 2 years we find that in 1951 there was a tax base of only $1,407 for each pupil which had been increased to $1,864 or 32 percent in 1962-63. When we consider these same total valuations distributed only among the nonfederally connected pupils we find that there would have been $2,818 per child in 1951 which would be increased to $4,486 or 59 percent in 1962-63. We also note from the fiscal data given that during the current year only 24.6 percent of the total budget of this applicant district will be received from Public Law 874 funds compared to 42 percent in 1951.

During each of the past 13 years this applicant has authorized the maximum tax levy permitted under current school law both for operation and building purposes. In 1956 the State law was changed, increasing the legal limitation on the local effort for both operation and building purposes. And each year since then levies for both of these purposes have been increased to these new limits. As indicated the total school levy was 28.95 mills in 1950-51 and was increased to 47.79 mills during the current school year which was 18.84 mills increase or 65 percent. That's in the levies. During this same time we find the average increase in the levies of the comparable schools used in determining the local contribution rate was increased from 26.24 mills to 40 mills or 17.76 mills, or only a 52 percent increase. Thus, we find the comparable schools currently needing to expend only 40 mills or a levy of only 84 percent of that made by the applicant school in order to support their school programs.

It will be noted that in this heavily impacted school district the total operating expenditures increased from $932,268 to $4,637,101 or 397 percent during this 13-year period. However, it is interesting to note that even though the percentage of section 3 pupils increased 6,068 or 260 percent during this period the Federal funds increased only 192 percent while the local and State funds were increased from $540,595 to $3,494,409 or 546 percent increase. We believe this fiscal information proves beyond a doubt that this applicant school district which is representative of other heavily impacted school districts has not relaxed its effort nor has it reduced its contribution toward financing its total educational responsibility.

Another interesting comparison might be made between this applicant and what was perhaps the district in the State of Oklahoma most nearly comparable in 1951 as to its size and other general characteristics. This comparable district was a very highly industrialized community with a very large percentage of its population employed in oil refineries and other related but all privately owned taxable industries, located within the school district. The applicant district (Midwest City) was also a highly industrialized community but 50 percent of its population was employed on federally owned and operated tax-exempted property. While the data for these two school districts showed the comparable school that's the nonapplicant school held a considerable financial advantage in providing an educational program in 1951, this advantage has been further 98-466-63-vol. 4-28

increased during the following 10-year period. The following tabulation will serve to indicate a number of interesting comparisons between these two school districts.

Comparison of comparable school and applicant school (Midwest City)

Ad valorem funds produced by applicant on per pupil assessment as comparable school and current applicant levy for 1960-61:

In 1951 the average daily attendance in these two schools was very similar and the principal difference then was that the industrial property located in the comparable school district was taxable while that in the applicant district was tax exempt. During the past 10 years the applicant school has experienced an increase of 212 percent or 8,758 pupils compared to only 49 percent or 2,001 pupils in the comparable school district. In 1961 even though the applicant school district had increased its total assessed valuation by 283 percent the assessed valuation per pupil was only $1,721 compared to $6,240 per pupil in the comparable district.

Your attention is particularly called to the comparative local effort as indicated by the tax levies for school purposes in these two districts for both fiscal years. The total tax levy for school purposes was 26.6 mills in the comparable school district compared to 29 mills in the applicant district in 1951. During the 10-year period the tabulation shows both schools increased their local effort; however, in 1961 the applicant district levied 46.4 mills compared to 42.4 mills levied in the comparable school. Thus, we find the applicant school district unquestionably made a greater effort at the local level to maintain a school program throughout this 10-year period than the comparable school district. Another pertinent point to be considered is just what is the financial ability of these two school districts to produce funds from all sources available to each school with which to provide an educational program. The most accurate measurement is perhaps the funds available per pupil for the total educational

able to provide $242.42 per child compared to only $225.79 including Federal funds available within the applicant school district. This disparity was further increased during the 10-year period and in 1961 we find $327.46 available per pupil in the comparable school district compared to $302.49 available per pupil including Federal funds in the applicant school district.

Your attention is further called to the increase in local ad valorem funds produced within these two school districts during this 10-year period. In the comparable school district the ad valorem tax collected was increased from $732,370 to $1,636,962 or 124 percent increase. During the same time the ad valorem funds in the applicant school district were increased from $168,484 to $1,028,996 or 511 percent.

In order that the members of this committee may fully realize the financial impact experienced by a heavily federally affected school district I would suggest consideration of the two following factual statements derived from the tabulation shown on page 2262-that's the one I referred to.

1. The comparable data given for these two school districts will show that if in 1961 the applicant school district would have had the same assessed valuation per child in average daily attendance as that found in the comparable school, its levy would have produced $2,702,167 more than it did. During this year this school district received $592,250 under Public Law 815 and $937,129 under Public Law 874 for a total of $1,529,379 in funds under these two laws. Thus, we find that with a normal assessed valuation this district would have had $1,172.788 more funds than it did have including Federal funds to provide for its educational need without any additional effort by the local citizens.

2. The applicant school district is now using approximately 80 strictly temporary classrooms constructed from surplus buildings obtained from the Federal Government because it has been unable to provide permanent classrooms within the 10-percent legal State bonding limit and the use of all available Federal funds. However, in considering the comparable data for these two school districts we again find that in 1961 if the assessed valuation of the applicant school district would have been the same as that of the comparable school, on the basis of per pupil, its bonding capacity would have been increased $5,823,825 without the necessity of increasing the taxload on its local citizens, we would have had that much additional taxing authority. This amount would have furnished sufficient funds to replace all temporary classrooms and provide facilities far in excess of the minimum facilities to which the school district has been limited during all this time and growth due to lack of funds available from both local and Federal sources, because Public Law 815 provides only minimum facilities.

In recapping the points justifying a 2-year extension of Public Laws 815 and 874 I have attempted to estabilsh the following facts about schools in federally impacted areas:

1. A greater increase in pupil load has been experienced each year than has been generally experienced in other schools.

2. Less taxable wealth per pupil is available to produce an educational program than in comparable schools.

3. A greater local tax effort is being made than in comparable schools.

4. State funds are less per child because they are generally distributed on the previous year's pupil load and the increase during the current year creates a disadvantage.

5. These four conditions result in less total funds per child, including Federal funds, with which to purchase an educational program than are available in comparable schools.

6. In view of these facts the schools in heavily federally affected areas have been unable to increase their expenditures to the degree comparable schools have that are not federally impacted.

In conclusion there can be but one result if these two public laws are not extended with substantially the same provisions as now prevail, namely a further reduced educational program for over 25 percent of the children of America; I sincerely trust this will not happen, and I think you for the opportunity to appear before you.

Senator PELL. Senator Mundt, I know you are presiding at a committee, perhaps Mr. Rose will yield so that you might present your statement now.

Mr. ROSE. I might say I am happy to do that, because we are happy to have Senator Mundt in our corner.

Senator PELL. Senator, sit here, if you would.

STATEMENT OF HON. KARL E. MUNDT, A U.S. SENATOR FROM THE STATE OF SOUTH DAKOTA

Senator MUNDT. Thank you, Mr. Chairman, for your courtesy and thoughtfulness.

I appreciate the opportunity to present my views in support of the extension of the temporary provisions of Public Laws 815 and 874 as considered in title IV-D of S. 580, the bill under consideration today.

My principal purpose in appearing before your committee today is to call your attention to the fact and to emphasize the emergency that is developing in school districts over this entire Nation, as exemplified by our problems in South Dakota and as they face the termination of the provisions of this impacted areas legislation, less than 3 weeks from now.

I believe this emergency is of such importance that I urge extension of this program by excluding it from the overall consideration of S. 580, and giving immediate consideration and favorable action on the section of the bill dealing with the impacted areas. The dimensions of this emergency become apparent when it is realized that over 4,000 school districts are now recipients of impacted area aid under Public Law 874.

In fiscal year 1962, these districts received payments for current operating expenses totaling over $233 million, to be helpful to 1,750,000 students.

The total attendance in these affected districts was about 11 million students, or about one-third of all public elementary and secondary school attendance. Payments to these schools averaged about 5 percent of their operating expense budget. In some 664 districts, the Federal payments were 10 percent or more. They range in general from 10 to 88 percent and average 20 percent for those more heavily impacted areas.

In fiscal year 1962, some 246 districts qualified for assistance for construction of additional school facilities under Public Law 815 in the amount of $64 million. In my home State of South Dakota, during fiscal year 1962, there were 68 school districts receiving a total of $2,425,471 in entitlement under Public Law 874, which constituted about 11 percent of the current expenditures of those districts.

Under Public Law 815, 15 projects were approved, for a total expenditure of $2,219,965.

Impacted area legislation has been on the law books, Mr. Chairman, since 1950. Since that time, a total of $1.426 billion has been appropriated under Public Law 874 and $1.087 billion appropriated for construction of school facilities under Public Law 815 during these 12 years. I cite these figures to show how extensive these programs have become, how vital they are for our educational system, and how important it is, with the termination date just 3 weeks ahead of us, that prompt action be taken to create what could become a very

that every State is confronted with problems of the same dimension, as we are out in South Dakota.

I have always considered Federal assistance given by this legislation to be a rightful responsibility of the Federal Government to those communities which experience a significant increase in school enrollments because of Federal activity, or which lose substantial funds because of land purchased by the Government.

In my own State of South Dakota, as I said earlier, we received a sizable amount of funds under this act and I may say these funds have been vital to the communities as they have helped to maintain high educational standards and quality programs, even with the increased demands upon the school districts involved because of certain Federal installations and activity. Because we are a small State, with many sparsely settled areas, the impact of a large Federal installation, whether it is to establish a missile base or to build a tremendous dam across the Missouri River, places upon the local school authorities problems of a magnitude which, if it did not have these funds, would simply cause them to throw up their hands and surrender. It would mean not only a loss of education to the children of the families who go there to do the work, but it would mean a problem to the families who live there indigenously, because, of course, the schools are open to all who live in the district.

Consequently, it is imperative that these programs under the impacted area legislation should be extended now so that the school ditsricts depending on this aid would have the opportunity to provide the necessary school services to children in these impacted areas. You are of school age only once in your life and if we fail them now there is no way in which we can pass compensatory legislation 3 or 4 years from now to take care of children whose school years have been interrupted and injured because of our failure to act. We must give these school authorities the assurance of continued assistance in their difficult task. We must give them this assurance at a time that it will be of value to them.

I am a former smalltown school superintendent myself. I can testify from personal experience the extreme necessity of knowing by July 1 what funds will be available for operating our impacted school systems. It is difficult enough to recruit the faculty members you require for the opening of the school year if you start on July 1. But if you wait until the latter part of August, you may wind up with the money but no available talent to employ.

So you do an injury to the schoolchildren just as surely as though the money were not available.

I am very seriously concerned that some of the provisions of S. 580 as well as the companion measure in the House, H.R. 3000, are sufficiently controversial that the language in these bills dealing with impacted areas will be tied up and allowed to expire while people are arguing about other matters.

Therefore, I am proposing to your committee today the simple extension of the present provisions for 2 years. I would further suggest that authorization for funds be provided for a full-scale study during this period concerning the numerous amendments that are included in S. 580. Each of us recalls the very unfortunate experience