Basically, it is agreed that a school district is entitled to a tax revenue from two sources for each schoolchild. The first source is from the residence of the family and secondly from the place of employment of the parent. In general, such children break into two categories. A category A child is one whose parent lives and works on tax-free Government property. Under the present functioning of Public Law 815 such a child allows a full claim for school construction under minimum standards.

The B child has a parent that is either employed on or lives on taxfree property thus denying the school district one-half of the recognized source of tax revenue. For such a child a school district may claim one-half the cost of minimum standard construction on a per pupil base.

În my testimony I have tried to show why Public Law 815 is needed, how it has operated in my community, and why it should be extended. The experience of a community such as mine might be of value to approximate the problems in such areas as are now or are about to receive big new installations. Some of these areas are as follows: School districts in the vicinity of Newington Airbase in southeastern New Hampshire, the expansion of North American Aviation, United States Government Depot and Lackbourne Airbase that will affect the Truro Local School District, Columbus, Ohio, or the big new airbase under construction in Arkansas. My colleague, Oscar V. Rose, has much solid statistical evidence with regard to the needs of these or similar installations.

Public Law 874, has for a number of years provided maintenance and operation costs of schools for federally impacted children. This law was amended recently by Public Law 248, 83d Congress, or to quote directly from the act, "To amend Public Law 874 of the 81st Congress so as to make improvements in its provisions and extend its duration for a 2-year period, and for other purposes.'

As far as I am concerned, this act mutilated rather than amended Public Law 874 and as to the part indicated "and for other purposes" this means to me only one thing; an attempt to unload the cost of Federal responsibilities on local taxpayers.

The worst of the provisions of the amended act is the so-called 3 percent absorption feature. Three percent sounds innocuous until the law is examined to find that each district is expected to absorb a number of federally connected pupils equal to 3 percent of its nonFederal pupils. Thus a community with 3,000 non-Federal pupils would need to absorb 90 pupils before receiving any payment under the new law. At $200 per pupil this would amount to $18,000 less each year than was paid during the current school year. The effect of this absorption feature is drastic as later testimony will show.

For the advocates of "absorption," I wish to point out that absorption already exists as part of the law. Payments from Public Law 874 are made on "local contribution rate." In Rhode Island, on the basis of 1952-53 ADA figures, the amount of absorption was $36.51 per pupil. I understand in other States the absorption from State funds is higher, but when the factor of absorption is being considered, please remember that all State funds are absorbed before any payment is made to local communities. I would also like to point out that under Public Law 874, to qualify for funds, 3 percent of the school population must be from Federal impact to qualify. With that 3 percent

comes along attendant personnel of a military nature for whom claims cannot be made. There is absorption in this connection. For example, we have a family named Weaver with two children, whose father is an inspector of aviation gasoline. We cannot claim payments for his children because he is inspecting gasoline in an installation on which taxes are paid in a nearby community.

This new absorption feature was incorporated by way of Public Law 248, contrary to the testimony of any superintendent that appeared before the House Subcommittee on Education in 1953. In fact, as the effect of the amended act becomes known, it is increasingly apparent that this amendment, hastily conceived by an inexperienced administration, is a mistake. I say this coming from a district that has never voted anything but Republican.

At present relatively few of the 2,660 federally impacted communities are aware of what this act means in the way of lost revenue as compared to what they received from Public Law 874 funds for the present school year. This realization on local levels will be manifest early during the coming school year, for the most part in September or October.

A number of Senators and several Congressmen have indicated appreciation for being informed ahead of time in this regard.

Senator Upton (in concurrence with Senator Bridges) has introduced a bill to stay the effect of the 3 percent absorption for next year. This is a move in the right direction and I am sure that I am extending the thanks of many school administrators that are attempting to make provision to educate the children of Federal employees when I express my appreciation to Senators Upton and Bridges for making this move. A study that has much solid and significant data with regard to the effects of absorption will be presented by Mr. Rose.

Public Law 874 as originally passed and wisely amended from time to time served well the purposes for which it was intended. Amendments needed were (1) to include children who lived across a State line (Public Law II) (2) an amendment as included in 248 to include children whose parents were employed in the District of Columbia. Attention is needed to provide for Indian education; also relief for districts left with problems because of diminishing impacts.

Since it appears necessary to operate from Public Law 248 amendments for the coming year, I respectfully urge approval of Senator Upton's bill to stay the effects of "absorption." Possibly by another year the law can be straightened out in order that the Federal Government will meet its responsibilities to federally impacted communities.

I will be glad to answer any questions.

Senator UPTON. Thank you, Mr. Maine, for your comprehensive

statement.

Senator Monroney, I am pleased to have you with us.
Senator MONRONEY. Thank you very much, Mr. Chairman.

STATEMENT OF HON. A. S. MIKE MONRONEY, A UNITED STATES SENATOR FROM THE STATE OF OKLAHOMA

Senator MONRONEY. Mr. Chairman, I merely wanted to introduce the superintendent of the Midwest City Schools, which is one of the largest federally impacted districts in Oklahoma. He is com

pletely aware of the problem, is familiar with it, and I am sure that the testimony that he will present here today will adequately spell out the need for elimination of the detrimental features of this 3 percent absorption as provided in your bill.

Senator UPTON. Thank you, Senator Monroney, We are pleased to have you, Mr. Rose.

Mr. ROSE. Thank you, Mr. Monroney and Mr. Upton.

STATEMENT OF OSCAR V. ROSE, SUPERINTENDENT OF SCHOOLS, MIDWEST CITY, OKLA.

Mr. ROSE. I know the hour is getting late here, but if I may, I have put a lot of work on the preparation of this statement, and I think it is tremendously important, not because I wrote it, but because the details, the whole program, and I believe I will go over the whole thing if we may have that much time. I have a sufficient number of copies of my testimony for all of the committee members, as well as anyone else who cares to read this story.

Senator UPTON. You may read your statement or proceed in any way you choose.

Mr. Rose. As superintendent of schools at Midwest City, Okla., for the past 11 years, I have been responsible for housing a school program which has grown in average daily attendance from 225 to 7,801 pupils during this period of time.

I would like to say here for the benefit of those who testified here this morning, if they think their problem is temporary, I have news for them. It is not as temporary as they think.

Midwest City is located approximately 9 miles from downtown Oklahoma City and 4 miles from the eastern boundary of that city. The growth in population and school enrollment has resulted directly and indirectly-there again I want to emphasize the word "indirectly" from a location of one of the largest air installations, Tinker Field and Oklahoma City Air Materiel Area, wholly within the boundaries of the school district. In view of this unusual growth, I have of necessity been closely associated with other school superintendents throughout the Nation with a similar problem, and we have tried to honestly present our problem to the United States Congress either through personal contact or through offering testimony before any committee which might be considering legislation to help solve our problem.

I want to thank Senator Upton, and I might add there, as well as Senator Burke and Senator Clements, who introduced their bill, who joined in the introduction of S. 3628 and the members of this com mittee for their decision to take time during the closing days of this 2d session of the 83d Congress to give it consideration here today. In my testimony I wish to present the school superintendents' viewpoint in solving the problem due to unusual increases of school population in federally impacted areas.

While S. 3628 does not propose a termination date, I would like to suggest that this committee consider extending this legislation for only 2 years or until June 30, 1956. I make this recommendation not because I believe the problem will not continue beyond that date but because I understand that the United States Office of Education is giving consideration to permanent legislation to meet what we believe

to be a permanent problem. In connection with extending Public Law 815 as amended by Public Law 246 I would point out the inequity of rigid extension periods in connection with the qualifying requirements for each period.

Now, in this connection it hasn't affected my school individually, because we have always had much more than the qualifying require

ments.

Under such a procedure many schools will fail to meet the qualifying requirements for each 2-year period and yet have a very substantial Federal impact accumulated for the overall 6-year period. I think that is extremely important as we are proceeding on a 2-year-at-a-time basis with rigid qualifying requirements for each of the 2 periods.

This inequity should be given careful consideration and may be cared for through the addition of an overall qualifying requirement covering the 6-year period during which Federal assistance is available. Another problem might be accumulative impact. Again I want to emphasize the fact that a school district can finally have 10 percent of Federal impact over a 6-year period and not qualify on any one of them or almost a 10 percent, if you add up the various qualifying percentages.

While I am not in a position to know the general need for the extension of Public Law 246, I feel certain that the various defense establishments and the United States Office of Education can detail this need rather accurately. This morning the Commissioner of Education pointed to some of the work that they had already done in this connection.

During the school year which has just closed the United States Office of Education collected data from the various applicants under Public Law 874 which was designed to determine the anticipated growth during the 1954-55 and 1955-56 school years and that part of the growth directly resulting from Federal activity. From a tabulation of this data the continued need for this legislation can be determined. Certainly the need will not be as great as it has been in the past this has been brought out because much relief has been provided through previously enacted legislation. Some general facts, however, which justify an extension of this legislation are as follows: 1. New and reactivated installations in connection with the defense program: Certainly the one in New Hampshire has been a primary example of that. There are others.

2. The construction of additional Wherry housing units on bases through the United States: That hasn't been emphasized much this morning. I don't think we have had any testimony on the continuation of Wherry housing units on bases throughout the United States. 3. The change from commuter status to local resident status by Federal employees near large permanent installations: In a school population in the district where the installation is located, you don't have to have increased employment rolls as an individual may live 20 or 30 or 40 miles. We have them in our State 100 miles from an installation, and if he feels his job becomes permanent then he moves from that area into the area immediately adjacent to the installation, and that will cause continued growth, as data later shown in my statement will support.

Now, specific need for extension. In my testimony I shall use the Midwest City School District which I believe illustrates a specific

need for the extension of Public Law 815 as amended by Public Law 246, and I am certain that many other school districts throughout the United States are faced with a similar situation. In 1942 the 36square-mile area which now comprises the Midwest City School District was strictly rural, being located some 5 miles east of Oklahoma City. In connection with our defense effort at that time the Federal Government purchased four sections of land and established Tinker Field and the Oklahoma City Air Materiel Area thereon. This installation has become a permanent one and the employment rolls have grown to approximately 20,000 civilians and 5,000 military personnel.

I was told only yesterday morning, and I had already mimeographed the material, that there are over 23,000 civilian personnel employed there at the present time.

To provide housing for these Federal employees four municipalities have been developed within the boundaries of the school district. There has been no Federal public housing or Wherry housing constructed within the district, and thus, all housing is privately owned and financed by insured Federal Housing Authority loans. There have been no industries other than the Federal industry in the district, and the only revenue-producing property has been homes and a minimum number of business buildings which might be justified when the hazard of continuing the Federal installation as the only supporting industry is considered.

For instance, you are not going to have as large a business section in an area such as this. Someone will say well, maybe this installation will continue 20,000 for 50 years and maybe it will be closed in the next session of Congress. So you are not going to ever have business property in proportion to what you would expect in a normal situation. The actual increase in taxable wealth through this new property and the increased assessment on old property has been from $886,524 to $10,229,045, or 10 times the original value. However, due to the unusual increase in the number of pupils the taxable wealth per childand that is what the school administrator must consider has decreased from $3,940 to $1,311, whereas it would have been increased if the federally owned industry within the school district were taxable the same as other property.

I am not goint in complete detail for the growth that I have shown here, but I think maybe the committee might give it a little attention.

The problem created in a local school district is in direct proportion to the degree of impact in both federally connected and non-federally connected pupils. To show this impact on the Midwest City School District data is given prior to the Federal impact and at four periods following that time:

1942-1943 FISCAL YEAR

Prior to the establishment of the Federal industry in this area there were 225 pupils and all were housed in adequate school facilities.

JULY 1, 1950 (EFFECTIVE DATE OF PUBLIC LAW 815)

At this time the total average daily attendance has reached 3,114 pupils or an increase of 2,889 pupils or 1,284 percent for the 7-year period. This was an average of 194 percent increase each year and