eral school population to meet the required 107 percent, (3) the fact that an applicant might have been paid under a previous application for more federally connected children than it now has in terminal membership, or (4) other causes.

Of the 114 applications which did not meet the 5 percent requirement for eligibility, 48 had a percentage increase which ranged from 3 to 4.9 percent. The probable effect of reducing the percentage increase requirement to 3 percent would be to increase the number of successful applicants by about 15 percent.

Nor would the number of school districts affected by the change from 10 to 5 percent (5) (A) (3) be large, but a few more districts might qualify. The justification for the proposed percentage reduction from 10 to 5 percent under this section of the law is consistent with the original purpose of Public Law 815.

The criteria for eligibility under this law attempted to measure the point at which increases in school enrollment of federally connected children as defined in the law caused a serious financial burden on the school district. The entitlement formula attempted to relate the amount of the Federal payment to the extent of the financial burden imposed on the local educational agencies by Federal activities. Details of these formula provisions have been altered by amendments to the original act, but the basic concept has remained the same since the law was originally passed.

The type of federally caused impact recognized under subsection 5(A) (3) of this law is a sudden and substantial increase of children resulting directly from activities of the United States carried on either directly or through a contractor. These are mostly defense contracts with privately owned plants. For the sake of consistency it appears that a school district should not be prevented on a much more severe basis from participation in Federal assistance for a federally caused burden ascribed to Federal contract activity than for a burden ascribed to employment of a parent on a military installation.

RECOMMENDATION

In summary, Mr. Chairman, what I am proposing here today is that we use the tried and proven method employed in Public Law 874 and Public Law 815 of limiting Federal assistance to individual applicant school districts which meet general criteria of eligibility and need, but that we expand the program slightly in order to give help to more districts and more children. I propose to undertake this modest expansion through the adjustment of formulas which govern the assistance-by making these formulas less demanding, and more equitable. I think this is practical, and I think it is realistic.

I would not suggest these adjustments if I felt they would in any way endanger the extension of Public Law 815 and Public Law 874 to those districts already qualified for assistance. These districts depend on impacted area money to meet their responsibilities—and in some cases those responsibilities have greatly increased since the program was first inaugurated. We must extend the temporary provisions of these laws as soon as possible so school districts throughout the country, which are already eligible, can plan their budgets for the

school year 1963-64 with assurance that the Federal entitlements on which they have been depending will continue.

As I indicated earlier, a full dozen Utah school districts have been receiving help under either or both Public Laws 874 and 815, and another, Granite, has just been added. This assistance must be continued. But I am confident that its continuance would in no way be jeopardized by amending again the much-amended impacted area laws in the interest of justice and equity.

An excellent statement of the case for Utah schools already receiving impacted area aid is made in a statement prepared by Mr. G. H. Holt, superintendent of Davis County schools, and I ask that it be made a part of the record of these hearings.

Senator YARBOROUGH. So ordered, made a part of the record. (The prepared statement of Mr. Holt follows:)

PREPARED STATEMENT OF SUPERINTENDENT G. HAROLD HOLT OF THE DAVIS COUNTY SCHOOLS IN UTAH

In representing Davis County School District and referring to Utah school districts I should like all to know that our districts are consolidated districts in Utah. They are city or county districts.

The original act providing financial assistance to school districts under Public Law 874 contained a declaration of policy. I should like to call your attention to sections 1 and 3 of the act which set forth that policy. In section 1 the Federal Government accepts responsibility to provide assistance to local educational agencies upon which the United States has placed financial burdens by reason of the fact that

(1) The revenues available to such agencies from local sources have been reduced as the result of the acquisition of real property by the United States; or

(2) Such agencies provide education for children residing on Federal property; or

(3) Such agencies provide education for children whose parents are employed on Federal property; or

(4) There has been a sudden and substantial increase in school attendince as the result of Federal activities.

Section 3 of the bill seeks to compensate school districts in reasonable amounts for the cost of educating children who, because they reside on tax-exempt Federal property or because their parents ar employed on such property, do act in effect pay their own way.

I do not know what the situation is throughout the United States. I do know that there has been no significant change since 1950 in the Davis County ol District or most of the other school districts in Utah to justify a change In policy. The impact is greater today in our school district than it was in 10 The enrollment increase from 1950-51 to 1951-52 was 726 or 8.77 percent. Last year the growth was 1943 or 9.2 percent. The ratio of the 1951-52 federally nected pupils to the total membership was 37 percent. On October 19, 1962, it was 41 percent. A comparison of this ratio in other Utah school districts is as follows:

The membership in Davis County School District was 4,220 in 1933-34. It * 4.210 in 1940-41. Beginning with World War II it gradually rose to 7,658 1960) and to 19,002 in 1960 and as of January 1963, it was 22,652. Since 1949

the district has spent $17 million and encumbered another $3 million. Of this amount $4,932,821.54 will have been provided by the Federal Government under Public Law 815. At the present time the district is using 59 makeshift rooms. In addition we have no winter kindergarten which would require an additional 45 classrooms. Considering the need to eliminate makeshift rooms and to reduce overloads in regular classrooms, the Department of Health, Education, and Welfare in Washington, D.C., officially approved our district as having 3,184 unhoused students as of March 9, 1962. Since that time the number of federally connected students in the district is considerably greater than the number approved for the spring of 1963 in our last application under Public Law 815. Five hundred housing units are now being constructed at Hill Field under armed services housing project, fiscal year 1962.

Davis District is now bonded to the legal limit of 13% percent of the assessed valuation. However, since our district has one of the lowest assessed valuations per child in the State of Utah our sources of local building funds are greatly limited. Therefore, Federal funds under Public Law 815 are vitally needed at one of the most critical times since the end of World War II.

The Davis County School District has qualified for a grant of $891,480 ander Public Law 874 for the school year 1962-63. Without this money it would be impossible to carry on an educational program comparable to other areas of the State.

It seems urgent Public Laws 874 and 815 be immediately extended so that our 1963-64 budget can be adopted with the assurance that the usual Federal funds will be forthcoming. An immediate 1-year extension would be most de sirable if there are complications to be ironed out before an agreement can be reached on a longer extension period.

Since most of these districts are making the maximum financial effort to meet the demands to provide satisfactory facilities, good teachers, and a good curriculum, we shall appreciate your support for an immediate extension of the program.

Senator Moss. Mr. Holt presents his case eloquently and well.

Mr. Chairman, an excellent case for adjusting Public Law 815, as I have suggested, is made in a letter from the Granite School District to the Senate Education Subcommittee of the Senate Labor Committee, a copy of which I ask to have made a part of the record of the hearings at the conclusion of my testimony. The report graphically presents the growth of the Granite District, the tremendous efforts the district has made itself to meet its school responsibilities, and the obvious need of educational assistance if Granite School District chil. dren are to be adequately housed in school buildings appropriate to their needs.

Senator YARBOROUGH. Without objection this statement of the Granite School District will be printed at this point in the hearings record. (The statement referred to follows:)

STATEMENT CONCERNING FEDERALLY IMPACTED CHILDREN IN GRANITE SCHOOL DISTRICT

The people of Granite School District have made heroic efforts in providing school buildings, yet over 8,000 of the pupils are on double or part-day sessions. In view of the rapid increase in school population and the use by the board of education to its full taxing authority, the district has been unable to keep abreast of building needs and has had to resort to some double session elementary schools and half-day first grade programs in all schools. Kindergartens are confined to 6-week summer sessions. Granite has the highest school tax rate in the State, and has gone to the legal maximum bonding limit for buildings.

Granite School District, the largest in Utah, covers an area of 300 square miles. It surrounds Salt Lake City on three sides. It is the "bedroom" of Salt Lake City and the area of several types of Federal activity.

Granite School District will double the school facilities during the next decade. A school population of 70,000 by 1968 has been forecast. Our census figures for

October. 1962, show the total number of children from ages 0-17 to be 76,763 compared to 71,025 for 1961. This is an increase of 5,738 over that of a year ago. The number of children on the census for 1959 was 62,116 and in 1960 was 67,004. The board of education is now planning a building program of $17.000.000, which will not house all of the growth.

The increase in average daily membership as noted (see p. 7) indicates a constant growth increase of 3,000 or more students each year from 1963-64 through 1967-68. The influx of population has been gradual and consistent. The growth requires an average of more than 100 new classrooms per year, which has built up a backlog of needs. It should be recorded that, for the next 5 years, Granite School District will need more than 100 new classrooms each year. Many of the schools are now seriously overcrowded. Granite has additional building needs of two junior high schools and six elementary schools in order to house the present enrollment. The district has had a substantial increase in the number of children whose parents are employed on Federal property, and whose membership directly results from activities of the United States carried on either directly or through a contractor. Presently, surveys indicate that there are 2,160 5(a)(2) and 2,516 5(a) (3) federally connected children in the school system. This fact in and of itself is conclusive evidence that federally connected children have imposed additional financial obligations on Granite School District.

The real educational burden to Granite School District is an insufficient tax hase to educate and house the increasing large number of children. This situation has been complicated and magnified by industries which have Federal contracts both in and out of Granite's taxing area. In fact, there are approximately 954 children whose parents have come into Granite District and who work at two installations, Sperry and Litton, that are actually located in Salt Lake City School District. Thus the present laws, 815 and 874, do not assist Granite School District for the education of these children. Furthermore, at Hercules Powder Plant, located in Granite School District, a situation exists where the parents of 217 children work on Federal properties and the parents of 152 children work on company-owned properties. In fact, most of the workers of the company-owned properties are doing the same type of work as is being done at the Air Force Plant No. 81, a Federal property.

The Salt Lake area has been and continues to be an important military, governmental, and defense center. Approximately 15 percent of the total labor force ne Salt Lake area, of which Granite is a part, are Government workers. But be inmigrant Government worker families in Granite School District are young families with a larger number of school-age children than in a typical population

During the current year, 1962-63, approximately 5 percent of Granite School District's total children are federally connected, as defined by law. The children's parents are connected to approximately 24 Federal properties. This is an additional burden on an already narrow tax base which cannot meet the present needs of the district.

Local citizens do not object to carrying their fair share of the load and thereby Natributing substantially to national defense. However, the local taxpayers, already supporting the highest school tax rate in the State, face an increasing problem because of a narrow tax base. In Granite School District, for example, the school tax dollar of 1962-63 came from the following sources, approximately:

Loval property taxes.

Wite sources---
Federal sources.

Percent

36. 3

63.4

.3

The underlying philosophy of Public Law 815 and 874 is that the Federal Gvernment, as a property owner, should pay to each local educational agency tich furnishes education to children residing on or whose parents are employed 5 Federal property, or by a company with a Federal contract, an amount per ↑d roughly equivalent to the amount per child which other property owners 1mparable communities pay toward the cost of educating children. Under principle, Federal payments to school districts should be more closely related The "burden imposed" than to the value of the Federal property. Granite subentes to this approach which would be more equitable both to the Federal Govrent and to the local school districts involved.

The real prolem in Granite School District is the burden of educating children whose parents work for private industries having Federal contracts and located outside the Granite School District taxing area. These children come to our schools and complicate an already overcrowded situation in a district which has an insufficient tax base to educate its children.

The Nation's strength in the crises ahead will be determined measurably by the quantity, quality, and the effectiveness of the education districts like Granite are able to provide their youth.