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Florida Department of Education: Letter from.......

373

Flythe, Gertrude E., past president, South Dakota Congress of Parents and
Teachers: Letter from__.

Gallardo Jose M., commissioner of education of Puerto Rico: Telegram

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General Federation of Women's Clubs: Resolution of..

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Hines, J. F., superintendent, South Dakota Department of Public Instruc-
tion: Letter from__.

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Houdlette, Harriett Ahlers, representing the American Association of
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Johnson, Rev. George, director of department of education, National
Catholic Welfare Conference: Letter from...

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Kentucky Education Association, Inc.: Letter from_

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Ketterer, Mrs. Lillian H., representing the General Federation of Women's
Clubs: Resolution submitted..

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Ohio Department of Education: Letter addressed to Willard E. Givens-

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Packard, B. E., commissioner of education of Maine: Letter from.

Pearson, Irving F., executive secretary, Illinois Education Association:
Telegram from..

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Pennsylvania Department of Public Instruction: Letter and estimate
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Putnam, Rex, superintendent, Oregon Department of Education: Letter
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Railway Labor Executives' Association:

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Roberts, C. E., superintendent, Idaho Board of Education: Letter from
Roland, H. M., superintendent of schools, North Carolina: Letter ad-
dressed to United States Office of Education...

Ryan, James C., commissioner of education, Alaska: Telegram from..

Schaefer, Hon. Edwin M., Congressman from the State of Illinois: Letter

from, enclosing letter from Clarence D. Blair..

Schlosser, Georgia D., recording secretary general, Daughters of the
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Schwartz, Hon. H. H., Senator from Wyoming: Letter from, enclosing
letter from J. L. Goins, superintendent, Cheyenne public schools-

Slone, Alice H., director, Lotts Creek Community School, Inc., Cordia,

Ky.: Submitted brief history-

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Wyoming Department of Education: Letter from, enclosing reports and
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EDUCATIONAL FINANCE ACT OF 1941

MONDAY, APRIL 28, 1941

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE
ON EDUCATION AND LABOR,
Washington, D. C.

The subcommittee met, pursuant to call, at 10 a. m. in room 318, Senate Office Building, Senator Elbert D. Thomas (chairman), presiding.

Present: Senators Thomas (chairman), Ellender, Hill, and Bunker. The CHAIRMAN. The hearing will please be in order.

This is a hearing by a subcommittee of the Committee on Education and Labor to consider S. 1313, a bill to strengthen the national defense and promote the general welfare through the appropriation of funds to assist the States and Territories in meeting financial emergencies in education and in reducing inequalities of educational opportunities. The bill may be inserted in the record at this point.

(S. 1313 is as follows:)

[S. 1313, 77th Cong., 1st sess.]

A BILL To strengthen the national defense and promote the general welfare through the appropriation of funds to assist the States and Territories in meeting financial emergencies in education and in reducing inequalities of educational opportunities

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 1941."

FINDING OF FACT

SECTION 1. The Congress hereby finds (1) that public elementary and secondary schools available throughout the nation for all children and maintained in keeping with American standards of life and education are essential to the national program of total defense; (2) that because of shifting of population due to the exigencies of national defense, because of the time required to add new property developments to local tax rolls, and because of the burdens already imposed upon property taxes from which public schools are largely supported, State and local school jurisdictions in many cases are unable to provide adequate educational opportunities in the areas adjacent to defense activities and industries; (3) that millions of children, especially those who reside in rural areas of diminished natural resources, children residing on Federal reservations and properties with inadequate or no public school facilities, and the children of migratory workers most of whom are engaged in agricultural pursuits and for the children of whom no provisions of public school advantages are made, are in areas and school districts in which the public school facilities are wholly inadequate; (4) that the States, because of insurmountable differences in tax-paying ability in relation to the number of children of school age, and notwithstanding greater efforts by the States having the least financial ability, are unable to reduce substantially these inequalities of educational opportunity.

STATEMENT OF POLICY

SEC. 2. It is hereby declared to be the policy of the Congress, without Federal control over the educational policies of States and localities, to assist in providing adequate educational facilities for children in localities affected by the influx of population due to the exigencies of national defense, and to provide for the

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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.

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