ALLOTMENT TO STATES

SEC. 102. The amounts appropriated under section 101 shall be allotted to the respective States in the ratio that the number of pupils in average daily attendance at all public elementary and public secondary schools in each such State during the second year next preceding the year for which an appropriation is made under this title bears to the total number of pupils in average daily attendance at all such schools in all the States during such year.

AVAILABILITY OF APPROPRIATIONS

SEC. 103. (a) In order to be eligible to receive funds under section 101 and section 102 of this title, a State through its legislature, shall—

(1) accept the provisions of this title and provide for the administration of funds to be received;

(2) provide that the State treasurer, or corresponding official in the State, shall be the custodian of the funds paid to the State under this title;

(3) designate or create a State educational authority having all necessary powers to determine policies under which, in accordance with the provisions of this title, the funds allotted to the States shall be distributed and expended;

(4) provide for an audit of the expenditure of Federal funds received and expended by local school jurisdictions;

(5) provide for a system of reports from local school jurisdictions to the State educational authority;

(6) provide that the State educational authority shall submit to the Commissioner such reports in such form and containing such information as he may reasonably require.

(b) In order to receive its allotment of funds under section 102 of this title

(1) for any fiscal year, a State shall have spent for current expenses from State and local revenue sources in the second fiscal year next preceding the fiscal year for which the allotment is made an amount per pupil in average daily attendance at public elementary and secondary schools equal to or greater than the amount expended from such sources in the fiscal year ending June 30, 1946, or $100, whichever is the lesser amount;

(2) for the fiscal year ending June 30, 1950, and for any succeeding fiscal year, a State shall have spent for current expenses in each local school administrative unit from all revenue sources (including funds received under this Act) during the second next preceding fiscal year a sum per pupil in average daily attendance at the public elementary and secondary schools in such unit during such second next preceding fiscal year (A) not less than $50 in the case of the fiscal year ending June 30, 1948; (B) not less than $60 in the case of the fiscal year ending June 30, 1949; (C) not less than $70 in the case of the fiscal year ending June 30, 1950; (D) not less than $80 in the case of the fiscal year ending June 30, 1951; (E) not less than $90 in the case of the fiscal year ending June 30, 1952; and (F) not less than $100 in the case of the fiscal year ending June 30, 1953 and in the case of fiscal years ending thereafter;

(3) for the fiscal year ending June 30, 1950, and for each succeeding fiscal year, a State which maintains by law separate schools for separate population groups shall have complied with the requirements of subparagraph (2) with respect to the schools maintained for each such separate population group in each local school administrative unit.

CERTIFICATION AND PAYMENT

SEC. 104. On or before August 1 of each year the Commissioner shall certify to the Secretary of the Treasury the amounts allotted under this title to each State that has accepted its provisions and otherwise qualified under section 103 hereof to receive an allotment. The Secretary shall, through the Fiscal Service of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the treasurer or corresponding official of such State the amount so certified for each fiscal year in two equal installments as soon after the 1st day September and March as may be feasible, beginning with the fiscal year for which appropriations made under the authorization of this title become available. Each such treasurer shall account for the moneys received as trustee and shall pay out such funds only on the requisition of the State educational authority.

ADMINISTRATION

SEC. 105. No department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over the personnel, curriculum, or program of instruction of any school or school system to which funds have been allotted or paid under this Act.

SEC. 106. The United States Commissioner of Education, under the supervision of the Administrator, Federal Security Agency, shall be responsible for the administration of this Act; and there is hereby authorized to be appropriated annually to the Office of Education such sums as may be necessary for its efficient administration. The Commissioner shall cause an annual audit to be made of the expenditure of funds under this title by each State. If the Commissioner, after notice and hearing, finds that any portion of such funds has been used by any State in a manner contrary to the provisions of this title or has been lost or otherwise unlawfully used, he shall notify the Secretary of the Treasury, who shall withhold from the next ensuing payment to any such State an amount equal to that improperly used, lost, or unlawfully used, until such time as the State shall have replaced such amount and expended it for the purpose originally intended. The Commissioner shall include in his annual report to the Congress a full report of the administration of this Act.

SEC. 107. As used in this title

DEFINITIONS

(a) The term "State" includes the several States, the District of Columbia, Alaska, Hawaii, and Puerto Rico.

(b) The term "number of pupils in average daily attendance at public elementary and public secondary schools" means the aggregate days of attendance by pupils regularly enrolled in such schools during the school year divided by one hundred seventy-five.

(c) The term "public elementary and public secondary schools" means taxsupported elementary schools and high schools at least 90 per centum of whose pupils are in full-time attendance, and, in the case of secondary schools, at least 50 per centum of whose graduates are under eighteen years of age at the time of graduation, and which are under the control and direction of the State or a local subdivision thereof.

(d) The terms "current educational expenditures" and "current expenses" mean any and all expenditures for the operation of public elementary and secondary schools and school systems, excluding expenditures for interest, debt service, and capital outlay.

(e) The term "local school administrative unit" means a county, township, independent, or other school district which is under the administrative control and direction of a single board of education or other legally constituted local school authority.

(f) The term "State educational authority" means, as the State legislature may determine, (1) the chief State school officer (such as the State superintendent of public instruction, commissioner of education, or similar officer), or (2) a board of education controlling the State department of education; except that in the District of Columbia it shall mean the Board of Education.

TITLE II-ASSISTANCE TO NONPUBLIC TAX-EXEMPT SCHOOLS OF SECONDARY GRADE OR LESS FOR NECESSARY TRANSPORTATION OF PUPILS, SCHOOL HEALTH EXAMINATIONS AND RELATED SCHOOL HEALTH SERVICES, AND PURCHASE OF NONRELIGIOUS INSTRUCTIONAL SUPPLIES AND EQUIPMENT, INCLUDING BOOKS

APPROPRIATIONS AUTHORIZED

SEC. 201. For the purpose of reimbursing nonpublic tax-exempt schools and school systems of secondary grade or less for not to exceed 60 per centum of their actual expenses incurred in providing (a) necessary transportation of pupils, (b) school health examinations and related school health services, and (c) purchase of nonreligious instructional supplies and equipment, including books, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1948, and annually thereafter, the sum of $60,000,000, to be apportioned to the States in the proportion that the number of pupils attending nonpublic tax-exempt schools of secondary grade or less bears to the total number of such pupils in all the States.

60144-47--2

CERTIFICATION AND PAYMENT

SEC. 202. At the beginning of each fiscal year the Commissioner shall certify to the Secretary of the Treasury the amounts apportioned under this title to each State which has agreed to accept the provisions of this title and to disburse the funds received for the purposes set forth in section 201 to nonpublic tax-exempt schools of secondary grade or less. The Secretary shall, through the Fiscal Service of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the treasurer or corresponding official of such State the amount so certified as soon after the 1st day of September as may be feasible, beginning with the fiscal year for which appropriations made under the authorization of this title become available. Each such treasurer shall account for the moneys received as trustee and shall pay out such funds only on the request of the State educational authority: Provided, however, That if in any State the State educational authority is not permitted by law to disburse the funds paid to it under this title to nonpublic tax-exempt schools in the State, the Secretary shall withhold the funds apportioned to any such State, said funds to be disbursed by the Secretary directly to such nonpublic tax-exempt schools and school systems of secondary grade or less as have been certified by the Commissioner to be entitled to receive the same in such States.

AVAILABILITY OF APPROPRIATIONS

SEC. 203. In order to qualify for receiving funds appropriated under section 201 hereof a nonpublic tax-exempt school or school system shall annually submit to the State educational authority, or in the case of States not permitted by law to administer the provisions of this title, to the Commissioner, (a) an application for funds in reimbursement for not to exceed 60 per centum of the actual expenditures incurred during the next preceding fiscal year for the purposes specified in section 201; (b) a report of the number of pupils in average daily attendance during the fiscal year for which the reimbursement is claimed; (c) an agreement to permit an inspection or audit of its accounts of expenditures made for the purposes specified in section 201 either by the State educational authority or by the Commissioner, as the case may be.

SEC. 204. As used in this title

DEFINITIONS

(a) The term "State" means the several States, the District of Columbia, Alaska, Hawaii, and Puerto Rico.

(b) The term "number of pupils in average daily attendance" means the aggregate days of attendance by pupils regularly enrolled in such schools during the school year divided by one hundred and seventy-five.

(c) The term "schools of secondary grade or less" means elementary schools and high schools at least 90 per centum of whose pupils are in full-time attendance and, in the case of high schools, at least 50 per centum of whose graduates are under eighteen years of age at the time of graduation.

(d) The term "nonpublic tax-exempt schools" means any private school exempt from taxation under section 101 (6) of the Internal Revenue Code, as amended.

(e) The term "State educational authority" means, as the State legislature may determine, (1) the chief State school officer (such as the State superintendent of public instruction, commissioner of education, or similar officer), or (2) a board of education controlling the State department of education; except that in the District of Columbia it shall mean the Board of Education.

(f) The term "related school health services" means services of physicians, dental hygienists, nurses, nutritionists, and similar health-service personnel emfloyed by the school authorities to provide preventative and diagnostic health services, other than actual medical, surgical, or reparative dental treatment.

[S. 472, 80th Cong., 1st sess.]

A BILL To authorize the appropriation of funds to assist the States and Territories in financing a minimum foundation education program of public elementary and secondary schools, and in reducing the inequalities of educational opportunities through public elementary and secondary schools, for the general welfare, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Educational Finance Act of 1947".

SEC. 2. No department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over, or prescribe any requirements with respect to any school, or any State educational institution or agency, with respect to which any funds have been or may be made available or expended pursuant to this Act, nor shall any term or condition of any agreement or any other action taken under this Act, whether by agreement or otherwise, relating to any contribution made under this Act to or on behalf of any school, or any State educational institution or agency, or any limitation or provision in any appropriation made pursuant to this Act, seek to control in any manner, or prescribe requirements with respect to, or authorize any department, agency, officer, or employee of the United States to direct, supervise, or control in any manner, or prescribe any requirements with respect to, the administration, the personnel, the curriculum, the instruction, the methods of instruction, or the materials of instruction, nor shall any provision of this Act be interpreted or construed to imply or require any change in any State constitution prerequisite to any State sharing the

benefits of this Act.

APPROPRIATION AUTHORIZED

SEC. 3. For the purpose of more nearly equalizing public elementary-school and public secondary-school opportunities among and within the States, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1948, the sum of $150,000,000; for the fiscal year ending June 30, 1949, the sum of $200,000,000; for the fiscal year ending June 30, 1950, and for each fiscal year thereafter, the sum of $250,000,000 to be apportioned to the States as hereinafter provided.

APPORTIONMENT

SEC. 4. Ninety-eight per centum of the funds appropriated under section 3 of this Act shall be apportioned to the respective States, excluding those enumerated in subsection (G) of this section, in the following manner:

(A) Multiply (a) the number of children from five to seventeen years of age, inclusive, in each State, as determined by the Department of Commerce, for the third year next preceding the year for which the computation is made by (b) $40. (B) Multiply (a) the average of the annual income payments for each State, as determined by the Department of Commerce, for five years including the third, fourth, fifth, sixth, and seventh years next preceding the year for which the computation is made by (b) 1.1 per centum.

(C) If, for any State, the amount calculated under (A) exceeds the amount cal-. culated under (B), the difference shall be the amount of Federal aid due each such State.

(D) Determine the percentage ratio of (a) the amount spent in each State from local and State revenues for current expenditures (excluding interest, debt service, and capital outlay) for public elementary-school and public secondary-school education for the third year next preceding the year for which the computation is made, to (b) the average of the annual income payments for each State, as determined by the Department of Commerce, for five years including the third, fourth, fifth, sixth, and seventh years next preceding the year for which the computation is made.

When the percentage ratio thus determined in (D) for any State is less than 2.5, the amount of Federal aid due each such State, as computed under (C), shall be proportionately reduced.

(E) Determine the percentage ratio of (a) the estimated current expenditures (excluding interest, debt service, and capital outlay) in each State from local and State revenues for public elementary-school and public secondary-school education for the year for which the computation is made, to (b) the average of the annual income payments for each State, as determined by the Department of Commerce, for the most recent three years, for which annual income data are available in the year next preceding the year for which the computation is made. When for any year the percentage ratio thus determined for any State, after the fourth year of the operation of this Act, is less than 2.2, such State shall be ineligible to receive any part of the funds authorized in section 3 of this Act for the year for which the computation is made, and shall remain ineligible for that year until such time as revised estimates of expenditures, as determined in the preceding paragraph of this subsection, produce a percentage ratio equal to or greater than 2.2.

(F) In the event 98 per centum of the funds authorized for any fiscal year in section 3 of this Act are insufficient to pay to all eligible States the full amount

of Federal aid due each such State, as computed in subsections (A), (B), (C), and (D) of this section, the amount of Federal aid paid to each eligible State shall bear the same ratio to the amount of Federal aid due each such State as the total amount of Federal aid paid to all eligible States bears to the total amount of Federal aid due all eligible States.

(G) From not to exceed 2 per centum of the funds appropriated under section 3 such sums as may be necessary shall be apportioned by the Commissioner to Alaska, Hawaii, the Canal Zone, Puerto Rico, American Samoa, the Virgin Islands, and Guam according to their respective needs for additional funds for public elementary and public secondary schools upon the basis of joint agreements made with their respective State educational authorities.

CERTIFICATION AND PAYMENT

SEC. 5. The United States Commissioner of Education shall certify regularly the amounts allotted under this Act to each State that has accepted the provisions of this Act to the Secretary of the Treasury, who shall, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the treasurer or corresponding official of such State the amount certified for each fiscal year in four equal installments, as soon after the first day of each quarter as may be feasible, beginning with the first quarter of the fiscal year for which appropriations made under the authorization of this Act are available. Each such treasurer shall account for the moneys received, and shall pay out such funds only on the requisition of the State educational authority.

AVAILABILITY OF APPROPRIATIONS

SEC. 6. (A) In order more nearly to equalize educational opportunities, the funds paid to a State from the funds appropriated under section 3 of this Act shall be available for disbursement by that State to local public school jurisdictions, or other State public education agencies, for all types of current expenditures (excluding interest, debt service, and capital outlay) for public elementary-school and public secondary-school education.

(B) No provision of this Act shall be construed to delimit a State in its definition of its program of public education: Provided, That the funds paid to a State under this Act shall be expended only by public agencies and under public control, except that in any State in which funds derived from State or local revenues are disbursed to nonpublic educational institutions for expenditure for any of the purposes for which funds paid to such State under this Act may be expended, funds so paid to such State may be disbursed to and expended by such institutions for such purposes; but the amounts disbursed during any fiscal year to any such institution from funds paid to a State under this Act shall not exceed an amount which bears the same ratio to the amount disbursed to such institution during such fiscal year from funds derived from State or local revenues as the aggregate of amounts disbursed by such State during such fiscal year from funds paid to such State under this Act bears to the aggregate of amounts expended during such fiscal year for current expenditures (excluding interest, debt service, and capital outlay) for public elementary-school and public secondary-school education in such State from funds derived from State and local revenues.

STATE ACCEPTANCE PROVISIONS

SEC. 7. (A) In order to qualify for receiving funds appropriated under this Act a State

(1) through its legislature, shall (a) accept the provisions of this Act and provide for the administration of funds to be received; (b) provide that the State treasurer, or corresponding official in the State, shall receive the funds paid to that State under this Act and shall be required to report to Congress, through the United States Commissioner of Education, on or before the 1st day of November of each year, a detailed statement of the amount so received and of its disbursement; (c) provide that its State educational authority shall represent the State in the administration of funds received; (d) provide for an audit by the State educational authority of the expenditure of funds received and apportioned to local school jurisdictions, or other State public educational agencies, and for a system of reports from local school jurisdictions and other public educational agencies of the State to such authority; (e) provide that the State educational authority shall make reports to the Commissioner with respect to the progress of education on forms to be