Further annual increases of Federal assistance for these colleges and universities have been provided through the BankheadJones Act of 1935 as amended in 1952. This act did not make continuing appropriations; it authorized annual appropriations. The act as amended provides that $1 million be appropriated annually for the States and Territories of Alaska and Hawaii to be distributed as flat grants of $20,000 each. In addition, the law provides for the appropriation of $1,501,500 to be allocated to the States and the Territories of Alaska and Hawaii in the proportion which the total population of each is to the total population of the States, Alaska, and Hawaii as determined by the last preceding decennial census. Amounts granted under all acts are presented in column 3 of table 4 for the 1954-55 school year and in table 9 for the 1955-56 school year. These include the following annual grants to all States, Alaska, and Hawaii. Puerto Rico, however, participates only in the Second Morrill Act (1890) and the Nelson Amendment (1907) as listed below: Second Morrill Act (1890). Nelson Amendment (1907) $25,000 Uniform State and Territorial Grant from the Bankhead- 20,000 Total $70,000 State and Territorial grants listed above are in addition to the annual appropriation of $1,501,500 approved under the BankheadJones Act (1935) as amended in 1952, described in the preceding paragraph. This Federal assistance for the development of agriculture and mechanic arts in higher education was started in 1862, but it was not until 55 years later that similar aid for vocational education was approved for secondary schools. The latter program of Federal assistance is described on page 41. SCHOOL SUPPORT IN FEDERALLY AFFECTED AREAS School districts burdened by reductions in taxable valuations due to Federal ownership of property and by increased enrollments arising from Federal activities have continued to receive Federal funds for school construction and operation. In recognition of the school finance problems facing these federally affected school districts, Federal funds have been allocated under the following enactments: Public Law 382 (84th Cong.) amended and extended the two basic laws as follows: 1. Public Law 874 was extended through the fiscal year 1957. 2. The "three percent absorption" requirement was suspended for the fiscal year 1956. 3. Eligibility requirements were modified for certain types of payments under Public Law 874. 4. Title IV of Public Law 815 was extended through the fiscal year 1956. 5. Public Law 815 was amended to provide retroactive authorization for approval of some projects ruled ineligible under the original statute. Basically, the Federal legislation has recognized three categories of children for whom the Federal Government assumes partial responsibility by providing funds for educational services. These groups have been designated "A," "B," and "C." The "A" children are those whose parents live and work on Federal property; "B" children are those whose parents live or work on Federal property; and "C" children are those whose parents have migrated to an area because of Federal activity but who do not work or live on the Federal property. Maintenance and operation.-Public Law 874 approved September 30, 1950, authorizes the Commissioner of Education to make contributions toward current school-operating expenses under certain conditions specified in the law. Section 2 provides for payments in lieu of taxes for real property acquired in a local school district by the Federal Government since 1938 if the acquisition amounts to 10 percent or more of the assessed valuation of all properties in the district, and if the Federal ownership constitutes a continuing financial burden on the local board of education. The law provides for payments to school districts which suffer a financial burden due to sudden and substantial increases in enrollments because of Federal activities. Specific formulas for use in determining the amounts school districts are entitled to receive are included in the Federal legislation. These formulas are based on the number of children in the three categories and the rate per child to be paid from Federal funds. "A" children justify Federal allocations to the extent of the full rate per child and "B" children are included at half this rate. Extra payments are authorized for new "A" and "B" children enrolled in the cur rent year to make up for the lag in the receipt of State aid for such pupils where State aids are based on pupil data for a preceding year. Payments for "C" children are limited to the actual deficit in local operating revenues but may not exceed the pupil rate for each federally connected pupil. Eligibility is limited to school districts which have the required percents of federally connected pupils in attendance. Federal operation of schools is also authorized in this law for Federal bases in the United States, Alaska, and Puerto Rico where local boards of education are either not able or lack jurisdiction to provide the required educational services. The local contribution rate is calculated on the basis of current school expenditures in similar communities in the State. A minimum rate for Federal payment is provided in the law. This minimum is half the State average current expenditure per pupil in average daily attendance. Average local contribution rates for participating school districts are presented in table 10 along with comparable national average expenditures from local revenues. It will be noted that the local contribution rate was below the national average until 1953-54 when the minimum rate was introduced into the Public Law 874 payments. Since then it has about equaled the national average. Financial assistance for maintenance and operation in the federally affected school districts, since the enactment of Public Law 874, is summarized in table 11. Table 10-PER PUPIL AMOUNTS FOR CURRENT OPERATING EXPENSES CONTRIBUTED FROM LOCAL TAXES FOR SCHOOLS: 1950-51 TO 1954-55 Since the total amount of assistance due federally affected school districts is recalculated on the basis of a final report submitted after the close of the year and the final Federal payment is adjusted to this recalculation, a part of the entitlement for any year is actually paid in the following school year. Hence, the Table 11.-FEDERAL ASSISTANCE FOR THE MAINTENANCE AND OPERATION OF SCHOOLS IN FEDERALLY AFFECTED SCHOOL DISTRICTS: 1950-51 TO DECEMBER 30, 1955 Table 12.-FEDERAL FUNDS DISBURSED TO THE STATES AND TERRITORIES FOR ASSISTANCE IN THE MAINTENANCE AND OPERATION OF SCHOOLS IN FEDERALLY AFFECTED SCHOOL DISTRICTS: 1953-54 Includes the following paid to other Federal agencies for educating children on Federal properties: Air Force, $192,707; Army, $1,792,463; Navy $669, 120; Veterans, $5,974; and Interior, $12, 135. cash disbursements for 1950-51, 1951-52, and 1953-54 are less than the entitlements for these years, while the disbursements for 1952-53 and 1954-55 are greater than the entitlements for these years. Details on the entitlements, State by State, and for individual districts may be obtained from tables included in the fifth annual report of the Commissioner on the "Administration of Public Laws 874 and 815" dated June 30, 1955. Amounts disbursed to the various States and Territories for the 6 years summarized in table 11 are reported in detail in table 12 for the 1953-54 school year. Detailed figures for the 1954-55 school year are listed in column 4 of table 4 except for $3,391,168 paid to other Federal agencies for educating children on Federal properties. School construction.-Federal aid for schoolhouse construction in federally affected school districts was provided in title II of Public Law 815 approved by the Eighty-first Congress on September 30, 1950. This act was designed to assist local school districts in erecting necessary school facilities to house enrollment increases brought about by the enrollment of children whose parents were employed in federally related enterprises. Continued increases in school enrollments in these federally affected districts have required the continuation of these provisions through public laws enacted by the Eighty-third and Eighty-fourth Congresses. The same general pattern of requirements for eligibility and criteria for determining Federal allocations as is contained in Public Law 874 has been followed in the administration of Public Law 815. Eligibility under title III of the amended act is based upon the increase in membership of federally connected children during the period from June 1954 to June 1956 and the rate per pupil is computed in terms of the average per pupil cost of constructing the minimum school facilities. Amounts authorized are computed in accordance with a formula based upon varying percentage payments for "A", "B", and "C" children. Funds approved for projects cannot exceed the amount needed to provide minimum school facilities for pupils who otherwise would have no school housing. The law requires the Commissioner of Education to rank construction projects in the order of relative urgency of need when appropriated funds are insufficient to pay the Federal share of the cost of approvable projects. This is accomplished through a priority index that is based upon the percent of federally connected pupils and the percent of unhoused children, not to exceed the former percent, in each district. A new title IV contained in Public Law 246 of the Eighty-third Congress, approved by the President on August 8, 1953, authorizes the construction of school facilities in needy school districts which have been unable to qualify for funds under Public Law 815 because school enrollments have not increased since 1939, but |