carried out, over $181 million will be cut from the aid for federally impacted school districts in fiscal 1973. This would be a severe blow to every school district in Wyoming and other low population States. To be sure, this signals a new emphasis on the educational problems of the big urban centers; and to this extent it is a culmination of long years of labor by many liberal-minded men and women who have seen the need for attending to the special educational hardships as are found in the ghetto areas. I must nonetheless object to this tendency if, as is the case now, it has grown to the point that education of youngsters in federally impacted areas in smaller populated States is now jeopardized.

Mr. Chairman, this is one Nation. Our urban problems stem from our rural problems. The ghettos of the large metropolitan centers of this country are overcrowded with those people who could not make a go of it in our rural areas. No amount of special attention will cure the educational problems of the inner cities if, by our neglect of rural problems, we continue to flood our inner cities with rural people. That, I take it, was the primary lesson to be learned from the urban rioting of the 1960's, and it is a pity that we have apparently forgotten it so quickly.

The so-called cooling of America for which this administration has so lauded itself is not to become a reality through boiling her in one place and freezing her in another. America deserves a more national and balanced approach. We should not cut funds from programs that are needed by children in the rural areas in order to raise funds for programs that are needed by children in the inner city. We must find the wherewithal, pure and simple, to do both.

The President's form of educational revenue sharing hardly promises to attain this goal. Rather, the present, uncut funds being received by rural school districts for the education of federally impacted youngsters do not meet half the per student expenditure that is required to maintain them in those school systems; and no provision is made for capital outlay expenditures, such as school buildings.

Also, I resent the fact that funding is to be allotted for only those children whose parents both live and work on Federal property. Is it right to exclude those children whose parents live off Federal property? If it is really this administration's intent that Federal funding be matched by local funding, I should think such a distinction would be not only wrong but self-defeating, at best. For a great deal of taxable valuation used for such local funding comes from business property. If a child's parents live off Federal property but work on it, it is obvious that their place of business will be nontaxable-and will not furnish school funding. Who, then, will take up the slack-unless it is the Government itself?

In Cheyenne, Wyo., several hundred civilian employees work at Warren Air Force Base, Federal property, but own homes within the corporate limits of Cheyenne and pay taxes on those homes. The above ruling would compound the unfairness to them and to the Cheyenne School District.

We can do better, Mr. Chairman, and I hope that these basic funds will be restored.

Along the lines of this need to provide the necessary aid to rural America, we must also continue our support of America's land-grant colleges and universities. It is thus appalling to note the cuts that have been made in Bankhead-Jones funds allotted to these institutions.

In the name of battling inflation, these funds have been cut from $12.6 million to $2.6 million for fiscal year 1973. As a consequence, the University of Wyoming's allotment will be lowered by some $155,000 to about $50,000. Such a drop will certainly curtail both the scope and quality of the university's current and future programs of higher education.

Mr. Chairman, it is not wise to make a drastic cut in these funds. America's best hope-its young people—is at stake. In my view, such a policy is to forsake the long-run goal of a healthy society for the short-run goal of misguided stabs at inflation.

I most respectfully request that this committee restore the Bankhead-Jones funds to their former level.

I also note that the proposed administration budget for fiscal year 1973 library services and construction reduces Wyoming's funds from $405,699 in 1972 to $231,343 allotted to books and materials, and nothing for construction. This drastic cut eliminates money for construction of libraries in Sheridan and Big Piney, Wyo., and leaves the future of six additional projected Wyoming libraries uncertain.

Federal aid has been an important factor in the growth and development of libraries since the passage of the Library Services Act in 1956. This drastic cut in funds could be a disastrous trend for Wyoming libraries and citizens. I strongly urge the restoration of funds for the construction of new Wyoming libraries.

I also urge full funding of the Hill-Burton grant funds for fiscal year 1973. These funds, enacted by Congress, are now being trimmed by the executive department to make room for an outpatient care program that is not yet in existence.

This will be but one more blow to a Congress which is fast relinquishing its powers and responsibilities. Furthermore, if Hill-Burton grants are cut, I know that Wyoming's allotment will fall drastically from $1,200,000 to $300,000. This will have severe effects upon the construction of hospital facilities that are already underway in such places as Cody, Wyo., and will pretty well eliminate any new construction projects.

Mr. Chairman, the fact is that in my State of Wyoming we do not have adequate hospitals. The buildings we do have are faced with the difficulties of personnel shortages, outdated facilities, and overcrowded conditions.

I do not deny the benefits of outpatient care centers, but I am hopeful that they will not be established at the expense of urgently needed hospital facilities.

I think we have come to a point in our Government where we have to call quickly some type of a halt between the competing spirit of administration hospitals located in communities with other hospitals, some private, some public, some Catholic, some Episcopalian, others of other denominations, all competing with basic facilities for treating the sick.

I think it is silly with a county of 30,000 in Cheyenne and we have two intensive care units in two hospitals, three emergency admission systems together with the expensive X-ray equipment, prenatal care and delivery facilities in four hospitals for a community of 30,000 people. The cost and expense of these medical facilities are getting such in all candor, there is pressing need for the health care program. We know we all need more hospitals but we don't need more hospitals where all they do is duplicate facilities so the VA hospitals can make sure nobody goes in the hospital except a veteran, even though he may be dying and they have a facility for taking care of his problem. But they won't take you if not a veteran. I think that line has to be broken. Because the AMA Board of Admissions controls two or three hospitals in this town you can't get in unless that AMA board approves your doctor. That has to end some way, somehow. I don't know the

answer.

This is all I have, gentlemen.

Mr. FLOOD. Thank you very much.

Mr. MICHEL. No questions.

THURSDAY, APRIL 20, 1972.

AID TO FEDERALLY IMPACTED SCHOOL DISTRICTS

WITNESS

HON. HAROLD RUNNELS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW MEXICO

Mr. FLOOD. Now we have Hon. Harold Runnels from the Second District of New Mexico.

Mr. RUNNELS. Thank you, Mr. Chairman and members of the committee.

Mr. Chairman, I want to thank this subcommittee for allowing me to testify concerning educational funding for federally impacted

areas.

I'm sure this subcommittee is quite familiar with the new policy the administration has proposed relating to the distribution of funds under Public Law 874, and with the administration's budget request for funding in fiscal year 1973.

I am strongly opposed to this new policy and to the decrease in Public Law 874 funding proposed in the fiscal year 1973 budget.

The New Mexico Department of Education has applied New Mexico's portion of the administration's funding request to its school districts and has come up with some startling results. In total, the State of New Mexico would receive $3,250,465 less than it received under the Public Law 874 program for the current fiscal year. This is a 23percent decrease in funding for our State.

Most school districts will lose impacted area funds under the administration's proposals. Ten districts which received funds last year will not receive any funds at all under the new distribution policy pro

posed by the administration when taken in conjunction with its budget proposal. These districts are Capitan, Hagerman, Hatch, Jal, Lake Arthur, Loving, Mora, Moriarty, Ojo Caliente, and Wagon Mound. Those school districts which would receive a decrease in impacted area funds of 90 percent or more are Artesia, Azesia, Aztec, Belen, Carlsbad, Los Alamos, and Pecos. The Albuquerque school district would lose $1.508,605, Los Alamos would lose $530,372, Las Cruces would lose $308.088. Alamogordo would lose $243,362, Carlsbad would lose $227,153, and Farmington would lose $210,480. In short, the administration's budget proposal represents a major setback to New Mexico's efforts to provide a good education to each and every one of its children. The Alamogordo school district exemplifies the funding problems the administration's proposals present to New Mexico. This school district includes Holloman Air Force Base and the White Sands Missile Range. As a matter of fact, 75 percent of the land in the district is owned by the Federal Government. The Holloman Junior High School has a current enrollment of 383 children. The school consists of old World War II hospital buildings. On March 20, 1972 the State fire marshal condemned the junior high school and ordered its immediate closing. The buildings are scheduled to be demolished this summer. Applications for Public Law 815 funds for the construction of a new facility are still awaiting approval. They were first submitted in 1967. Needless to say, the Alamogordo school district is not in any position to absorb a decrease in impacted-area funding amounting to over onequarter of a million dollars when it is about to begin sending some children to schools in shifts.

In summation, Mr. Chairman, I strongly urge this subcommittee to reject the administration's Public Law 874 funding proposal and to fund this vital program at a level at least comparable to the current fiscal year. Finally, I hope you will reject the proposed new policy of distribution which excludes funding for the children of Federal employees who work but do not live on Federal property.

Mr. FLOOD. Thank you very much.

Mr. RUNNELS. Thank you, Mr. Chairman.

AID TO FEDERALLY IMPACTED SCHOOL DISTRICTS

WITNESS

HON. THOMAS S. FOLEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON

Mr. FLOOD. Next we have our distinguished colleague, Congressman Thomas S. Foley from the Fifth District of Washington.

Mr. FOLEY. Mr. Chairman and members of the subcommittee: I am delighted to be here and appreciate the subcommittee's giving me the time to discuss the administration's proposed change in Public Law 874 funding.

The State of Washington, and in particular my present district, is one of the main sources of power for the Northwest and California. It contains not only Grand Coulee Dam, which when the third powerhouse is completed will have the greatest hydroelectric generating

78-021 0-72-pt. 7—2

capacity in the world, but also Chief Joseph Dam and the irrigated projects related to both dams. These Federal projects command the presence of many Federal employees. So does Fairchild Air Force Base in Spokane.

If the administration's proposal to revise the method of distributing Public Law 874 funds is not changed, 34 school districts in my present district will be severely affected and a great burden will be placed on local school facilities. The effect will be to drastically reduce payments for "category B students."

I believe that payment under Public Law 874 for these pupils, those whose parents either work or live on Federal property, is as necessary as payment for "category A" children, those whose parents reside on, and are employed on, Federal property-especially in view of the fact that the rate of payment for "B" children is one-half that for "A" children. The parents of "B" children often pay residential property taxes but their employer, the Federal Government, pays no taxes. In the financing of non-federally affected schools, taxes on business and industrial activities are of approximately equal importance with residential property taxes. Our State has no income tax, consequently, areas in which the Federal Government is a major employer must operate their schools on a definitely impaired tax basis.

Table I was compiled by the Office of Education to illustrate how the proposed budget will affect each school district. The figures are based on 1971 data supplied from the school districts, and that data base will change as new information comes in. Nevertheless, these are good general estimates regarding the effect of the proposed cuts.

Fifty-six percent of our 34 school districts which now receive "B" pupil funds will receive no money at all under this category. Two of the 56 percent are eligible under the hardship clause but will receive no more than 25 percent of their previous "B" funding. The 15 remaining schools which do receive "B" aid under the administration's proposal will be experiencing losses of 33 to 98 percent of their Public Law 874 money.

District totals indicate a $400,819 reduction in "B" payments which represents a 64-percent reduction in this form of aid while payments for "A" pupils will increase only 5.5 percent or $52,945.

In the past 20 years, there have been numerous attempts at retrenchment in this program of assistance to schools. These attempts have been met by the nonpartisan and overwhelming opposition of both Houses of Congress and by the opposition of the vast majority of educators across the Nation.

I hope that the subcommittee will consider my request and the welfare of the students involved favorably.

(The tables follow :)