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69-927 O

ASSURANCES

Each State, to receive its allotment, shall submit to the Secretary satisfactory assurances that:

1. Federally connected children will receive public education on a basis comparable to

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that provided other children in the State;

Such fiscal control and accounting procedures will be used so to assure proper disbursement of and accounting for funds received under the Act;

Title to and control of funds received under the Act and other property derived there from shall remain in public agencies;

4.

Except

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where prohibited by State law, equitable participation of children enrolled in nonpublic schools would be provided in the disadvantaged, handicapped, vocational, and support services areas (where State law prevents such participation, the Secretary may permit the State to participate, but he shall arrange for such children to receive similar services on an equitable basis and shall pay the cost thereof out of the State's allotment);

The State will make such reports to the Secretary as he may require to carry out his responsibilities under the Act and will keep such records and afford such access thereto as the Secretary may require to assure their correctness;

The State will make such evaluations of activities carried out under this Act as the Secretary may prescribe;

The State will otherwise comply with the provisions of the Act and with the regulations of the Secretary.

Office of the White House Press Secretary

Hold Harmless Base Line

Definition

THE WHITE HOUSE

EDUCATION REVENUE SHARING

Each State's "Hold Harmless" base line was calculated by adding together the obligations expected to be allocated to the States in 1971 for the programs converted to Education Revenue Sharing.

Sources of Data

U.S. Department of Agriculture

U.S. Department of Health, Education, and Welfare

Education Revenue Sharing Allocation

Formula Used

Of the amounts appropriated for any fiscal year a minimum of ninety percent shall be apportioned by the Secretary of Health, Education, and Welfare.

For each State the number of children qualifying for Federal Impact Aid Type "A" (those who live on Federal property) is multiplied by sixty percent of the national average per pupil expenditure. Each local educational agency within the State is entitled to its relative share so calculated. The total for all States as calculated

is removed from the amount to be apportioned.

Each State shall be entitled to a portion of the remainder of the amount to be apportioned determined as follows:

For each State a sum will be calculated representing:

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b. 0.6 times the number of Federal Impacted "B" type children

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The entitlement for each State shall bear the same ratio to the amount to be appropriated as its sum calculated above bears to the sum for all States so calculated.

The State entitlement so calculated is to be distributed into the five national areas as follows:

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for the disadvantaged the amount shall bear the same ratio to the
State entitlement as part a. above bears to the sum of a., b., and c.

for the Federal Impact "B" type (those v hose parents work on
Federal property) the amount shall bear the same ratio to the
State entitlement as part b. above bears to the sum of a., b., and c.

. an amount bearing the same ratio to the State entitlement as part c. above bears to the sum of a., b., and c. shall be calculated:

one-sixth this amount shall be for handicapped

one-third this amount shall be for vocational education

one-half this amount shall be for support services.

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Discretionary Amounts

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Each State may transfer up to thirty percent of the entitlement in each area with the exception of those funds passed through to local education agencies, to other

areas.

An amount up to ten percent of the fund may be allocated at the discretion of the Secretary of Health, Education, and Welfare.

Notes

The States are required to pass through to local education agencies the funds resulting from Type "A" Federal Impact and disadvantaged children.

All computations and determinations by the Secretary of Health, Education, and Welfare are final and conclusive.

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Senator PELL. Our next witness is Mr. Donald E. Morrison, president of the National Education Association, who will also be testifying on the special revenue-sharing plan for education submitted by the administration.

I am glad to see Stanley McFarland, with whom the committee has worked closely in the past. We consider you unofficial but important partners in this work. We usually agree. Sometimes we don't, but we are always very interested in your views.

STATEMENT OF DONALD E. MORRISON, PRESIDENT, NATIONAL EDUCATION ASSOCIATION; ACCOMPANIED BY STANLEY J. McFARLAND, ASSISTANT EXECUTIVE SECRETARY FOR GOVERNMENT RELATIONS AND CITIZENSHIP, AND MRS. JEAN FLANNIGAN, ASSISTANT DIRECTOR, RESEARCH DIVISION

Mr. MORRISON. Thank you, Mr. Chairman.

I am Donald Morrison, president of the National Education Association. I have with me Stanley McFarland, and I know he doesn't need an introduction. He is head of our office at Government Relations and Citizenship. Also with me is Mrs. Jean Flannigan from our research division, who is an economist specializing in school finance. Preliminary to my written presentation, Mr. Chairman, I should like to say that I think that a great service could be done if all references in this bill to revenue sharing, educational revenue sharing, and special educational revenue sharing could be taken from the bill. I think it became apparent in the questioning of the Secretary and the Commissioner that revenue sharing is not really the issue before us in this bill. The bill basically is a consideration of consolidation of categorical grants.

In addition, I think it is a disservice to education in this country to sell this proposal on the advantages of local determination of educational needs. In my opinion, one of the major problems in education stems from the fact that we have been leaving the determination of educational objectives almost entirely to the local and State entities in this country, assuming that that aggregate equals the Nation's needs, and they do not. I can cite an example to further illustrate what I mean. I am assuming that Mr. Romney and his Department are going to come up with some dramatic new ways of supplying much needed low-cost housing in this country. I also assume that if that happens, the entire vocational and technical education programs in relationship to carpentry, plumbing, electricity, and so on, must also accommodate that program. Unless the programs and the goals of the Nation are done in such a way in education that they are consistent with the objectives, then I think we are going to have trouble, as we have at the present time.

There may be cases where revenue sharing is needed in this country, but it is not in the area of education at the present time.

The NEA is an independent, voluntary organization of educators, open to all professional teachers, supervisors, and administrators. It presently has 1,100,000 members and is the largest professional organization in the Nation, with members from school systems in every State. In all, counting its affiliated State and local organizations, the

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