equalization of educational opportunities of all children in need of action to that end, especially for children residing in rural areas, children residing on Federal properties and reservations, and the children of migratory workers, insofar as the grants-in-aid to the States herein authorized are sufficient to do so. The provisions of this Act shall be so construed as to maintain local and State initiative and responsibility in the conduct of education and to reserve explicitly to the States and their local subdivisions the organization and administration of schools, the control over the processes of education, the control and determination of curricula of the schools, the methods of instruction to be employed in them, and the selection of personnel employed by the State and its agencies and local school jurisdictions.

APPROPRIATION AUTHORIZED

SEC. 3. For the purpose of providing additional public education facilities in areas affected by defense activities and industries and for effectively equalizing educational opportunities among and within the States, especially for children residing in rural areas, children residing on Federal reservations and properties, and the children of migratory workers, there is hereby authorized to be appropriated the sum of $300,000,000, or so much thereof as may be necessary, for the fiscal year ending June 30, 1942, and for each fiscal year thereafter. The sums herein authorized shall be used for making payments to States which through their legislatures have accepted the provisions of this Act and which have complied therewith: Provided, That in any State in which the legislature has not taken action as herein specified, the chief executive of said State may, until such action has been taken or until six months after the adjournment of the first regular session of the legislature in such State following the date of enactment of this Act, whichever first occurs, take such action for such period as is herein required to be taken by legislative enactment.

APPORTIONMENT

SEC. 4. (a) There is hereby created in the Federal Security Agency a Board of Apportionment (hereinafter called the "Board") to be composed of five members, to be appointed by the President of the United States, not more than two of whom shall be full-time Federal officials. Members of the Board, not full-time Federal officials, shall receive $25 per day for actual time devoted to the work of the Board (not to exceed sixty days in any one fiscal year) and necessary travel expenses and the rate per diem for other expenses allowed to Government employees while absent from official headquarters. Members of the Board who are full-time Federal officials shall receive no additional compensation but shall be reimbursed for any necessary expenses incurred in carrying on the work of the Board.

(b) It shall be the duty of the Board (1) To determine the need for funds to provide for school buildings, equipment, and current expenses for public schools for children in the areas affected by the shifting of population because of the exigencies of national defense. In determining such need the Board shall take into account other Federal appropriations for school building purposes, the ability of the local school jurisdictions to provide for public educational facilities, and the availability of State funds to finance the public school program in the areas affected. (2) To determine the nature and extent of the educational inequalities existing among the States because of the number of children in rural areas, the number of children residing on Federal reservations and properties, and the number of children of migratory workers. In determining such inequalities the Board shall take into consideration such factors, but without limitation, as the availability of free elementary and secondary school advantages, the number of children of school age in average daily attendance, the provision for instructional materials, the adequacy of school buildings and equipment, the adequacy of facilties for pupil transportation, the expenditure per pupil for free public school opportunities, the need for additional or better qualified teachers particularly in schools serving rural areas of low taxable resources, and the need for equalization of educational opportunities for minority races, taking into consideration the financial implication of Federal court decisions interpreting the Fourteenth Amendment to the Constitution of the United States as it relates to equal rights to educational opportunities. (3) To estimate the financial ability of the respective States to support reasonable standards of free public elementary and secondary school facilities according to a uniform procedure applied to all the States in such way as to determine the amount of revenues which could be raised from a uniform tax plan applied to all the States. (4) To determine, on the basis of the data obtained pursuant to clauses (2) and (3) of this subsection, the financial need of the respec

tive States for Federal grants-in-aid for the support of public elementary and secondary schools in such amounts as will most effectively equalize educational opportunities.

(c) On the basis of its findings, the Board shall allot to the respective States before the beginning of each fiscal year, or as soon thereafter as possible, such amount for that year as may have been appropriated by Congress under this Act; except that (1) not to exceed 25 per centum of such amount shall be allotted to the States for use for public-school facilities, including buildings, equipment, and land, in areas in need solely because of the exigencies of national defense, (2) not to exceed 25 per centum of such amount shall be allotted to the States for land, and the construction, improvement, and equipment of school buildings other than buildings specified in clause (1), and (3) not to exceed 2 per centum of such amount shall be used for the expenses of the State departments of education.

CERTIFICATION OF PAYMENT

SEC. 5. The Board shall certify regularly the amounts allotted to each State which has compiled with 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 quarter commencing July 1, 1941. Each such treasurer shall account for the moneys received as a trustee of funds of the United States, and shall pay out such funds only on the requisition of the State educational authority. A copy of each such certification shall be deposited with the United States Commissioner of Education (hereinafter called the "Commissioner.")

STATE ACCEPTANCE PROVISIONS

SEC. 6. (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 that State, serve as trustee for funds paid to the State under this Act; (C) provide that its State educational authority shall represent the State in the administration of funds received; (D) provide for an adequate system of auditing by the State educational authority of the expenditure of funds received and apportioned to local school jurisdictions, or other State educational agencies, and for an adequate system of reports from local school jurisdictions and other educational agencies of the State to such authority; (E) provide that the State educational authority shall make such reports to the Commissioner with respect to the expenditure of funds received and the progress of education generally in such form and containing such information as the Commissioner may require; (F) in States where separate public schools are maintained for separate races, provide for a just and equitable apportionment of such funds for the benefit of public schools maintained for minority races, without reduction of the proportion of State and local moneys expended for current expenses (not counting moneys expended for the construction or equipment of school buildings or the purchase of land) during the fiscal year ended in 1940 for public schools for minority races; and

(2) either through its legislature or through its State educational authority, if the legislature so directs, provide a State plan of apportioning the funds received under this Act in such manner as to assist effectively in carrying out the purposes for which funds are appropriated under this Act, and so as to reduce substantially inequalities of public clementary and secondary schools especially among school jurisdictions serving rural children and children of minority races for whom separate schools are maintained by law, taking into account the educational load, the total tax load, and the financial ability of the respective local jurisdictions to support public education, and the State funds available to such jurisdictions: Provided, That each such plan may be revised or amended by giving notice to the Commissioner; and

(3) with respect to acceptance of funds under this Act, shall transmit through its State educational authority to the Commissioner official notice of acceptance and certified copies of the enactments and apportionment plans required herein in connection with such funds. Any amendments of such enactments and revisions of such apportionment plans shall in like manner be promptly transmitted to the Commissioner.

(b) The funds appropriated under the authorization of this Act shall be allotted only to those States which, during the fiscal year preceding the fiscal year for which the apportionment is made, have provided from State revenues for all public elementary and secondary school purposes a total not less than the total amount spent for such purposes in the fiscal year ended in 1940: Provided, That if any State fails during any year to comply with the conditions specified in this section due to acts of God or other circumstances over which such State has no control, the provisions of this section shall not apply.

AVAILABILITY OF APPROPRIATIONS

SEC. 7. The funds paid to the States under section 5 shall be available for disbursement by each State for any or all of the following purposes: (a) To local school jurisdictions or other State educational agencies, in order effectively to reduce inequalities of educational opportunities, for all types of expenses of public elementary and secondary schools (which may include through the fourteenth grade) and their auxiliary services; (b) to local school jurisdictions for the purchase of land and for the construction, improvement, and equipment of school buildings as the State educational authority finds to be in the interest of greater efficiency and economy; and (c) for expenses of the State department of education necessary for the efficient administration of the funds received under this Act, if the appointment and tenure of the personnel of such department (other than members of boards within the State, elected officials therein, and the chief State school officer) is upon the basis of merit and efficiency and without regard to political considerations.

AUDITING

SEC. 8. The Commissioner shall cause an audit to be made of the expenditure of funds under this Act by each State educational authority and to review audits made by such authority with respect to its local jurisdictions. If the Commissioner finds that any portion of such funds is expended by any State in a manner contrary to any provision of this Act, or shall otherwise be lost or unlawfully used, an equal amount shall, after reasonable notice, be withheld from the next ensuing payment to any such State unless such amount is replaced by such State and expended for the purposes originally intended. All funds expended under the provisions of this Act shall be expended only for public purposes through public agencies and under public control.

SEC. 9. In auditing the expenditure of funds allotted under this Act to the Virgin Islands, American Samoa, and Guam, as provided in this Act, the Commissioner is authorized to utilize the services of employees of any Federal department or agency by agreement with the head of such department or agency.

SEC. 10. The Secretary of the Treasury shall suspend payments under this Act to any State whenever the Commissioner certifies, after notice and hearing, that any such State has failed to replace funds received under this Act which are lost, or unlawfully used, or expended in a manner contrary to the provisions of this Act or has failed to make required reports with reasonable promptness. Upon certification of the Commissioner that any such State has rectified such failure, the Secretary of the Treasury shall transmit to such State the amounts so suspended. The sums authorized to be allotted to any State under this Act shall, when certified for payment, remain available for not to exceed one fiscal year after the fiscal year for which such certification was made.

AUTHORIZATION FOR ADMINISTRATION AND RESEARCH

SEC. 11. (a) For services and other expenses necessary to the administration of this Act, and for the making of necessary surveys and other studies in connection with the best utilization of the grarts to States authorized in this Act, there is hereby authorized to be appropriated for each fiscal year an amount equal to 1 per centum of the total amount authorized to be appropriated for each fiscal year under the provisions of section 3 of this Act. Any of the funds authorized under this section may be allocated by the Commissioner to State departments of education for surveys or other studies pertinent to the best uses of the funds received under this Act. Such allocations shall be made by joint agreement between the Commissioner and the chief State educational authority. The amounts thus allocated shall be certified to the Secretary of the Treasury by the Commissioner, and shall thereupon be paid to the cooperating State departments of education. Suitable provision for audits, reports, and repayment to the United States of

amounts unexpended, lost, or misapplied shall be incorporated into the joint agreement.

(b) The Commissioner shall, so far as feasible, lend such advice and counsel as the States may request in working out legislative or administrative plans for expenditure of funds received through this Act so as most effectively to lessen inequalities of educational opportunity within the States.

REPORTING

SEC. 12. The Commissioner shall publish annually a full and complete report showing accurately the status of education in the United States. Each such report shall include an analysis and summary of the legislative and administrative provisions adopted by each State for the expenditure of funds received through this Act, and also statistical information showing the degree to which each of the States has accomplished the improvement and equalization of educational opportunity in comparison with previous years, especially as measured for the various local school jurisdictions by availability of elementary and secondary education, length of minimum school term, the proportion of children of school age in average daily attendance, provision for reading and other instructional materials, provision for pupil transportation, and average expenditures per pupil, and, in States maintaining separate schools for separate races, the degree of equalization obtained, and other information pertinent to the status and progress of education. In all such reports relating to the status of education in States where separate educational facilities are maintained by law for any minority racial group, data relating to such separate educational facilities shall be separately reported. The Commissioner shall also make an annual report in writing to the Congress, giving an account of all money received and allocated by him under this Act.

MISCELLANEOUS

SEC. 13. (a) The Commissioner, subject to the approval of the Federal Security Administrator, is authorized to make such rules and regulations, not in conflict with the provisions of this Act, as may be necessary to carry out the provisions of this Act.

(b) No political or civil rights or activities of any teacher or school administrator shall be restricted or affected in any way because of any financial benefit accruing to such teacher or administrator from funds appropriated pursuant to this Act.

(c) Title to school buildings and equipment constructed or bought with funds appropriated pursuant to this Act shall remain in the United States, unless purchased by the State or local school jurisdiction, if the construction or acquisition of such buildings or equipment was made necessary by the establishment or enlargement of an industry performing work in connection with national defense contracts.

SEC. 14. As used in this Act

DEFINITIONS

(a) The term "State" shall include the several States, the District of Columbia, Alaska, Hawaii, Puerto Rico, the Virgin Islands, American Samoa, and Guam. (b) The term "legislature" means the State or Territorial legislature or other comparable body, except that in the District of Columbia it shall mean the Board of Education, and in American Samoa, Guam, and the Virgin Islands it shall mean the Governor.

(c) The term "minority race", or "minority racial group", shall mean any race or racial group that constitutes a minority of the population of the continental United States.

(d) A just and equitable allotment or distribution of the funds provided under this Act for the benefit of a minority racial group in a State which maintains by law separate educational facilities for such minority racial group, means any plan of apportionment or distribution which results in the expenditure, for the benefit of such minority racial group, of a proportion of said funds not less than the proportion that each such minority racial group in such State bears to the total population of that State.

(e) The term "State educational authority" means, as the 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, and in American Samoa, Guam, and the Virgin Islands, it shall mean the Governor.

317387-41-2

SEPARABILITY

SEC. 15. If any provision of this Act or application thereof to any State, person, or circumstance, is held invalid, the remainder of the Act, and the application of such provisions to other States, persons, or circumstances, shall not be affected thereby.

The CHAIRMAN. Our first witness is Dr. Dawson.

STATEMENT OF DR. HOWARD A. DAWSON, DIRECTOR OF RURAL SERVICE, NATIONAL EDUCATION ASSOCIATION

The CHAIRMAN. Dr. Dawson, for the record, will you state what biographical matter you want to appear with your name, please?

Dr. DAWSON. Mr. Chairman, I am Howard A. Dawson, director of rural service, National Education Association, and executive secretary of the legislative committee of the National Education Association.

The National Education Association is a professional organization of teachers, principals, and superintendents of schools, with a direct membership of more than 200,000 and an affiliated membership of about 900,000.

I desire to say that the National Education Association for a long period of years has been very much in favor of Federal financial assistance to the States for public education. In the early days the association was one of the leading forces advocating the land grants to the States. Later it supported money grants for the land-grant colleges and for vocational education in high schools.

I would like to recite, briefly, some of the events that have happened, especially since 1934, with respect to this problem of Federal aid for education.

In 1933-34 schools in which there were about one-eighth of all the school children in the United States closed short of a normal term because of lack of money to pay teachers' salaries. The Federal Government relieved the situation by an expenditure of some $21,000,000, placing the teachers technically on relief in order to pay their salaries.

Out of that situation the National Education Association, in cooperation with a number of other organizations such as labor and agriculture, as well as in education, began a movement for a permanent policy on the part of the Federal Government with respect to the financial aid for education. The bill which came out of that was known as the Harrison-Black-Fletcher bill. Hearings were held in 1937 and this committee, by unanimous vote, reported the bill favorably to the Senate. The matter was heard before the House Committee, and while pending there the President appointed the Advisory Committee on Education, which at that time was a committee investigating Federal relations to the States in the field of vocational education. The scope of this committee was widened and it was instructed by the President to investigate Federal and State relations in the field of education and to report "in time for action early next winter." The committee made its study, one of the most exhaustive investigations on the subject that has been made at any time in our national history.

By that time the present chairman of this committee had become a chairman, and he and Senator Harrison introduced a bill which was based on the report of the President's Advisory Committee on Educa