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FIRST ANNUAL REPORT, 1951
PUBLIC LAWS 874 AND 815

INTRODUCTION

This is the first annual report of the United States Commissioner of Education dealing with the programs for providing financial assistance under Public Laws 874 and 815 to schools in Federally affected areas. There will be set forth briefly the background of the legislation, some of the problems which arose and how they were handled, a complete summary of receipts and disbursements, and statistical tables reflecting the allotments to the various school districts.

PASSAGE OF LEGISLATION: PUBLIC LAWS 874 AND 815

The many and varied activities of the United States Government, including the efforts to provide armaments for the defense of the country, have involved millions of Americans and have caused the uprooting of their homes. Men in the armed services have been obliged to leave their customary localities to receive training on air fields, at Army posts, and at naval stations. Others have gone to work in plants which are producing goods under contracts with the Federal Government. In many thousands of instances, these men have taken their families to the sites of their work, and this has given rise to the necessity of providing education for their children in the districts to which they have moved. With rare exceptions, the local school districts have not had the financial resources to provide the educational facilities necessary to cope with this increased school attendance. Because the influx of the school population was so great, not only were school agencies unable to provide adequate space for the children, but they were unable to meet the operating expenses of the schools.

The United States Government recognized its responsibility for the impact caused by Federal activities upon local educational agencies and, during the 81st Congress, 2nd Session, there were enacted two laws to provide financial assistance to schools in Federally affected areas. Public Law 874, approved September 30, 1950, authorized the Commissioner to make contributions toward operating costs of the schools overburdened with increased attendance as the result of Federal activities and deprived of local revenues because of the tax-exempt status of Federal properties. Public Law 815, approved September 23, 1950, provided for two programs: In Title I, the Commissioner was authorized to make grants to States to assist them to inventory existing school facilities and to survey the need to construct additional facilities; and, in Title II, the Commissioner was authorized to provide financial assistance for the construction of schools in Federally affected areas.

Providing Financial Assistance for Operation and Maintenance of Schools

The policy of the United States Government, as stated in Public Law 874, is to provide financial assistance to local educational agencies upon which the United States has placed financial burdens where the revenues available from local sources are reduced because the Federal Government acquired real property in the district; the school districts provide education for children living on Federal property or whose parents are working on Federal property; or, there has been a sudden and substantial increase in school attendance as the result of Federal activities.

The Act requires that a financial burden shall have been imposed by Federal activities, sets forth eligibility requirements for assistance, and defines the categories in which Federally connected children shall be grouped. The minimum number and the percentage of children which must exist in any of the above categories to constitute eligibility for entitlements also are stipulated. For example, a school district may qualify under Section 3(a) of the Act provided it is furnishing free public education to at least 10 children in average daily attendance living on Federal property with a parent employed on Federal property and the average daily attendance of these children constitutes at least 3 percent of all school children in attendance during the year. Eligibility requirements for school districts with more than 35,000 children in average daily attendance in 1939 are substantially higher.

School districts cannot receive financial assistance unless they make application therefor. These applications are submitted through the respective State departments of education in order that the advice and comments of the States may be obtained and, also, in order that the administration of the Federal program will be coordinated insofar as possible with State school programs.

Appropriations

There was appropriated the sum of $28,700,000 to carry out the purposes of Public Law 874 for the fiscal year ending June 30, 1951. In addition, prior to the passage of P. L. 874, there had been appropriated funds totaling $5,285,687.29 for the use by other Federal departments and agencies for the same purposes as P. L. 874. Of this latter amount, the other Federal departments and agencies had committed $4,904,899.29 to fulfill their obligations. The sum of $353,588 remained uncommitted in the possession of the Department of Defense and $27,200 in the possession of the Atomic Energy Commission. These latter two sums, aggregating $380,788, were transferred to the Office of Education in accordance with the terms of the Act. Thus, there was available for payment to applicants under Public Law 874 the total amount of $29,080,788. These amounts are shown in Table 3 of the Appendix.

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