EFFECT ON LOCAL RESOURCES It is an established principle of municipal finance that taxes on homes alone will not pay the normal costs of operating government and providing the necessary facilities and services. And when the major installations in the area are nontaxable, the community simply cannot-without sufficient Federal help-provide adequate school facilities and services for the children of the Federal workers whom Uncle Sam has found necessary to locate in the area. Public Laws 815 and 874 have given us a practical and effective solution to a difficult and complex problem. I'd like at this point to reiterate the expressed purpose of the legislation: In recognition of the responsibility of the United States for the impact which certain Federal activities have on the local educational agencies in the areas in which such activities are carried on, the Congress hereby declares it to be the policy of the United States to provide financial assistance for those local educational agencies upon which the United States has placed financial burdens by reason of the fact that * ** such agencies provide education for children residing on Federal property; or such agencies provide education for children whose parents are employed on Federal property. I am convinced that the need for Public Laws 874 and 815 has long ago been established. And I am convinced also that the need for making the provisions of these laws permanent has also been established. Ever since these laws were enacted in 1950 we have had to return every 2 years to get them extended. This has had a most unhealthy effect on California's education programs since it has discouraged any long-term planning. I urge the committee to underscore the good sense of Public Laws 874 and 815 by putting them on a permanent basis. With annual or biannual renewal uncertainties out of the way, school officials can then plan ahead with efficiency and confidence. Senator PELL. Senator Brewster, I believe you have a statement to make. STATEMENT OF HON. DANIEL B. BREWSTER, A U.S. SENATOR FROM THE STATE OF MARYLAND Senator BREWSTER. Mr. Chairman, I respect fully request permission to testify briefly on title IV of the National Education Improvement Act of 1963, and also ask unanimous consent that my brief remarks will be included in that portion of the record that pertains to title IV of the act. Senator PELL. That will be done. Senator BREWSTER. I apologize for the fact that I was out of town several weeks ago on the occasion when this distinguished committee was taking testimony on title IV of the National Educational Improvement Act of 1963. PUBLIC LAWS 815 AND 874 IN MARYLAND As the junior Senator from Maryland, I am deeply concerned that the portion of this title which provides for a 4-year extension of Public Laws 815, and 874, Federal assistance to school districts in areas. Leavily affected by Federal employment, receive the careful considerate tion of this committee. Baltimore City and the 23 counties of Maryland comprise the 24 school systems of our State. Fourteen of the county school systems, enrolling 431.000 pupils, or approximately two-thirds of the pupils in Maryland, qualify for assistance for current expenses under Public Law 874. They vary in size from our smallest county, Kent, with an enrollment of 3,400 pupils, to our largest county. Baltimore, with an enrollment of 96.000 pupils. These 14 counties are the ones that have experienced the most rapid growth since the initial passage of Public Laws 874 and 815 in 1951. In the last 12 years since that date the 14 counties participating in this program have increased in enrollment from 203.000 pupils to 430,000 pupils, an average increase of 112 percent. During this same 12-year period, the school systems of Baltimore City and the other nine counties have only increased from 168,000 pupils to 237,000 pupils, or an average of about 41 percent. From this you can see that the 14 school systems involved in this program have increased almost three times as fast as the other 10 school systems of the State. This rapid increase has, in no small part, been due to the growth and activity of the many large Federal installations in the State of Maryland. The Federal installations in and adjacent to Maryland employ the parents of 100,088 pupils who attend the public schools in 14 counties of Maryland. A subdivision of government, such as a county, enjoys a balanced taxable basis when it can levy a property tax both on the place where a person lives and the place where he works. Since these 14 counties cannot tax the places where the parents of these 100,088 pupils work, they do not have a balanced taxable basis, and property owners in these counties must bear a disproportionate part of the cost of educating these children. This fact was taken into consideration by the original framers of Public Law 874, and this financial assistance for education in these counties is just as necessary now, as it was when the original act was passed in 1951. INCREASE IN LOCAL TAX RATES These 14 school systems have increased their tax rates for current expenses for operating their schools from 33 to 104 percent in the last 12 years, with an average increase of 64 percent. This increase is more significant when you consider that during this same period, these counties have increased the percentage of their assessments from 40 to 55 percent of true value. Taking this into consideration, these counties have practically doubled taxes for school purposes in the last 12 years in order to meet their educational obligations. This increased local effort has been necessary, even though at the same time they have been receiving funds under Public Law 874 to assist them in operating their schools. If this bill is not extended this year, and eventually made permanent, the people in these 14 counties of Maryland will be put under undue stress to keep their schools operating at an efficient level, in view of the continued Federal impact upon them. vide increased local funds to operate their schools, but they have also had to construct school buildings for the 227,000 additional children that they have been adding to their enrollment. In 1950-51, when Public Law 815 came into being, these 14 Maryland school systems had a total bonded indebtedness of $80 million. In the last 12 years this has increased 328 percent and their total bonded indebtedness today is $344 million. The average bonded indebtedness per pupil enrolled was $396 in 1950-51, and today is $799, an average increase of € 102 percent. And this has all taken place while these school systems have been receiving assistance for constructing schools under Public Law 815. Discontinuing this assistance would greatly magnify the problems facing our school officials and citizens in providing schools for their children. The extension of Public Laws 874 and 815 is a matter of great urgency to the majority of the people in the State of Maryland. I am submitting with this report five tables that show the situation facing the Maryland schools systems which are eligible under this act. Table I shows increased enrollment in the Maryland school system eligible for Public Law 874 funds from the time this law was passed up to the present. Table II shows increased enrollments in the Maryland school systems that are not eligible under this act. Table III shows the number and percentage of federally connected pupils in the 14 Maryland school systems eligible for Public Law 874 funds. Table IV shows the increase in tax rates for current expenses for the impacted area counties of the State. Table V shows increases in bonded indebtedness for these same systems. Again, may I emphasize the importance of these laws to the State of Maryland and thank the committee for its time. Mr. Chairman, I ask your unanimous consent that these tables be included in the record at this particular point. Senator PELL. Without objection, they will be. TABLE I.-Increased enrollments in Maryland school systems eligible for Public TABLE II.-Increased enrollments in Maryland school systems not eligible for TAUER III-Number and percentage of federally connected pupils in the 14 TAHLE IV. --Tax rates for current expenses for Maryland school systems eligible for Public Law 874 funds (1950-51 and 1961-62) 1 TABLE V.-Increase in bonded indebtedness of impacted area school systems in Maryland (1950–51 and 1961–62) Senator BREWSTER. Mr. Chairman, I thank the chairman and the subcommittee for allowing me to testify on this issue, which is of great importance to Maryland. Senator PELL. Thank you, the Senator from Maryland, and we share your concern in this particular, because my own State, too, is much affected by the problem caused by children in areas of Federal employment. Thank you very much indeed, sir. Senator PELL. I wonder if Mr. Fitzpatrick and Mr. Cowan would care-please feel at liberty if you care to, to put your statement in the record. It will be reproduced as if read if you would like to summarize your remarks. STATEMENT OF JOHN J. FITZPATRICK, SUPERINTENDENT OF SCHOOLS, CHICOPEE, MASS., REPRESENTING MASSACHUSETTS SUPERINTENDENTS' ASSOCIATION AND CITY OF CHICOPEE, MASS.-Resumed Mr. FITZPATRICK. I have such a short statement, it will only take 3 minutes. Senator PELL. Fine. Mr. FITZPATRICK. I am honored to have been accorded the privilege to present our thoughts in requesting your honorable committee to continue intact Public Laws 874 and 815 for the next 2 years. We have 172 impacted areas in the Commonwealth of Massachusetts. I have been requested to present data with regard to impacted entitlements received and the effort of Massachusetts and other New England States in endeavoring to meet the educational needs of all children. Every impacted community in New England is striving to do its utmost to finance the education of children as evidenced by the following statistics: |