Statement of-Continued Joynes, Mrs. Edith B., Federal legislative chairman, Virginia Educa- Kennan, Dr. Richard B., Maine Teachers' Association.......... Leeper, Miss Mary E., executive secretary, Association for Childhood Long, Dr. Howard H., legislative committee, American Teachers Page 218 McDonald, Dr. Ralph, president, North Carolina Education Associa 290 McClellan, Mrs. Malcolm, chairman, legislation, National Congress 198 384 Manning, C. G., superintendent of schools, Lewiston, Mont.. Marston, R. B., director, legislative and Federal relations division, National Education Association. Statements presented by 25 people.- Minear, Craig P., executive secretary, Colorado Education Associa- Moe, M. P., executive secretary, Montana Education Association_ Norton, E. B., State superintendent of schools of Alabama, represent- ing the National Council of Chief State School Officers.. Norton, Dr. John K., professor of education, Teachers College, Colum- Nissen, S. B., secretary, South Dakota Education Association... Ogg, W. R., director of Washington office, American Farm Bureau Parratt, J. Easton, member of the board of trustees of the Utah Edu- Perry, Leslie S., administrative assistant, Washington Bureau, Na- Rackliffe, John, representing the National Teachers Division of the State, County and Municipal Workers of America, CIO.... Rawlins, R. E., superintendent of schools, Pierre, S. Dak...... Robnett, George W., representing the Church League of America, 147 270 Rogers, Charles M., superintendent of schools, Amarillo, Tex... Rogers, Elmer E., assistant to Col. John H. Cowles, supreme council, thirty-third degree, Ancient and Accepted Scottish Rite, southern Saxon, J. Harold, executive secretary, Georgia Education Association, Sharpe, M. Q., Governor, South Dakota__ 220 144 Slonecker, Lyle N., superintendent of schools, Leadville, Colo---- Smart, Miss Elizabeth A., legislative director, National Woman's Christian Temperance Union, Washington, D. C....... Stone, Mrs. James A., national legislative chairman, National Women's 145 194-209 197 Upchurch, Miss Wilma, Pershing Rural School, Douglas County, 118 Weagly, Mrs. Roy C. F., president, Associated Women of American 216 Wells, Jere A., superintendent of Fulton County Schools, Atlanta, Ga. 247, 356 Wyckoff, Miss Gladys, field secretary, American Home Economics 201 FEDERAL AID FOR EDUCATION MONDAY, JANUARY 29, 1945 UNITED STATES SENATE, COMMITTEE ON EDUCATION AND LABOR, Washington, D. V. The committee met, pursuant to call, at 10 a. m., in room 357, Senate Office Building, Senator James E. Murray (chairman) presiding. Present: Senators Murray (chairman), Walsh, Thomas, Ellender, Hill, Tunnell, Guffey, Johnston, Aiken, Fulbright, Smith, Donnell, and Morse. The CHAIRMAN. The committee will come to order. This hearing this morning is on S. 181, a bill to authorize the appropriation of funds to assist the States and Territories in more adequately financing their systems of public education during emergency, and in reducing the inequalities of educational opportunities through public elementary and secondary schools. (S. 181 is as follows:) [S. 181, 79th Cong., 1st sess.] A BILL To authorize the appropriation of funds to assist the States and Territories in more adequately financing their systems of public education during emergency, and in reducing the inequalities of educational opportunities through public elementary and secondary schools 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 1945." 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. APPROPRIATION AUTHORIZED SEC. 2. (a) For the purpose of enabling States and their local public-school Jurisdiction to meet emergencies in financing their public elementary and public secondary schools by providing funds for the payment of the salaries of teachers and other school employees to keep schools open, to employ additional teachers to relieve overcrowded classes, to raise substandard salaries of teachers and other school employees, and to adjust the salaries of teachers and other school employees to meet the increased cost of living, there is hereby authorized to be appropriated for each fiscal year in which the Congress shall find a need therefor, beginning 1 with the year ending June 30, 1946, $200,000,000, to be apportioned to the States as hereinafter provided. This authorization shall terminate one year after the President shall have declared the emergency due to the war to have ceased, or one year after the Congress by concurrent resolution shall have so declared. (b) For the purpose of more nearly equalizing public elementary and public secondary school opportunities among and within the States, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1946, and for each fiscal year thereafter, $100,000,000, to be apportioned to the States as hereinafter provided. APPORTION MENT SEC. 3. The funds appropriated under section 2 of this Act shall be apportioned to the respective States by the United States Commissioner of Education (hereinafter called the "Commissioner"), in the following manner: (A) The amount apportioned to each State from the funds appropriated under the authorization of section 2 (A) shall be an amount which bears the same ratio to the total amount made available as the average daily attendance (for the latest year for which data are available in the office of the Commissioner) of pupils attending all types of public elementary schools (including kindergartens and nursery schools) and public secondary schools (including through the fourteenth grade) in that State bears to the total of such average daily attendance for all the States. (B) From not less than 98 per centum of the funds appropriated under section 2 (B) the amount apportioned to each State shall be an amount which bears the same ratio to the total amount made available as the index of financial need of such State bears to the sum of the indexes of financial need of all the States. The index of financial need of the respective States shall be computed as follows: (1) For each State the Commissioner shall compute the percentage that the number of inhabitants five to seventeen years of age, inclusive, in that State is of the number of such inhabitants in the United States, excluding Alaska, Hawaii, Puerto Rico, American Samoa, the Virgin Islands, and Guam. (2) For each State the Commissioner shall compute the percentage that the total estimated income payments in that State is of the total estimated income payments in the United States, excluding Alaska, Hawaii, Puerto Rico, American Samoa, the Virgin Islands, and Guam, (3) For each State the Commissioner shall compute the excess, if any, of the first-mentioned percentage over 65 per centum of the second-mentioned percentage. This excess, if any, for each of the respective States shall be the index of financial need: Provided, That as soon as feasible after the enactment of this Act, and annually therafter at such time as shall be agreed upon, the Director of the Bureau of the Census shall certify to the Commissioner the estimated number of inhabitants five to seventeen years of age in each State, and the Secretary of Commerce or his designated agent shall certify to the Commissioner the total estimated income payments in each State in the latest year for which estimates have been made: Provided further, That the first three annual apportionments shall be based on the indexes of financial need first determined and thereafter the apportionment for each year shall be based on the indexes of financial need determined the third preceding fiscal year. From not to exceed 2 per centum of the funds appropriated under section 2 (B) such sums as may be necessary shall be apportioned by the Commissioner to Alaska, Hawaii, 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. 4. The Commissioner 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 as a trustee of funds of the United States, and shall pay out such funds only on the requisition of the State educational authority. AVAILABILITY OF APPROPRIATIONS SEC. 5. (A) The funds paid to a State from the funds appropriated under section 2 (A) of this Act shall be available for disbursement by that State to local public-school jurisdictions, or other State public-education agencies, for the payment of salaries of teachers and other school employees in public elementary schools (which may include kindergartens and nursery schools) and public secondary schools (which may include through the fourteenth grade) for any or all of the following purposes: (1) To keep public schools open for a term of not less than one hundred and sixty days or to make suitable provisions for the education of the pupils affected by closed schools, (2) to raise substandard salaries, (3) to reduce overcrowded classes by the employment of additional teachers, (4) to adjust the salaries of teachers and other school employees to meet the increased cost of living during the emergency. (B) In order more nearly to equalize educational opportunities, the funds paid to a State from the funds appropriated under section 2 (B) 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 expenditures for public elementary schools (which may include kindergartens and nursery schools) and public secondary schools (which may include through the fourteenth grade). (C) A State may use not to exceed 1 per centum of the funds received by it under this Act to pay the expenses of the State department of education necessary for the efficient administration of the funds received under this Act. (D) 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. 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 the State, shall serve as trustee for the funds paid to that 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 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 expenditure of funds received and the progress of education on forms to be provided by the Commissioner; (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 educational purposes during the fiscal year ended in 1944 for public schools for minority races: Provided, That in any State in which the legislature has not taken the action specified in this section, the chief executive of such 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 the enactment of this Act, whichever first occurs, take such action for such period as is required by this Act to be taken by legislative enactment; (2) either through its legislature, or through its State educational authority, if the legislature so directs, provide for apportioning the funds received under this Act in such manner as to comply with the provisions of section 5 of this Act; and (3) shall transmit through its State educational authority to the Commissioner official notice of acceptance and certified copies of the legislative enactments and the official regulations that may be issued by the State educational authority in connection with such funds. Any amendments of such enactments and revisions of official regulations shall in like manner be 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 public secondary-school purposes not less than either the total amount, or the amount per pupil in average daily attendance, actually spent for such purposes in the fiscal year ended in 1944: Provided, That if the State fails during any year to comply with the conditions specified in this paragraph due to acts of God, or other circumstances over which the State has no control, and if such failure is not due to action or failure to act by the legislative or executive authorities of that State, the provisions of this paragraph shall not apply. (C) The funds allotted to any State from the funds appropriated under section 2 (A) of this Act shall be paid by the State educational authority only to those local school jurisdictions that from State and local funds (which shall not be interpreted to include funds made available under this Act) pay average annual salaries to their teachers not less than the average annual salaries paid as of February 1, 1945, or the nearest prior date when school was in session: Provided, That for any local school jurisdiction that fails to comply with the provisions specified in this paragraph due to acts of God, or other circumstances over which such local school jurisdiction has no control, and if such failure is not due to actions of State or local tax assessing, levying, or appropriating bodies or officials, the State may provide the funds necessary to overcome such failure from funds received under section 2 (B) of this Act. The State educational authority shall not make payment to any local school jurisdiction that fails to comply with the requirements of this paragraph until after investigation he has determined that there are extenuating circumstances as set forth above. AUDITING SEO. 7. The Commissioner shall cause an audit to be made of the expenditure of funds under this Act by each State educational authority. If the Commissioner, after notice and hearing, finds that any portion of such funds is expended by any State in a manner contrary to the provisions 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: Provided, That the State educational authority shall have the right to appeal, within thirty days, from the decision of the Commissioner to withhold funds to a United States district court and such court shall have jurisdiction as to both fact and law. SEC. 8. 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. PENALTIES SEC. 9. The Secretary of the Treasury shall suspend payments under this Act to any State whenever the Commissioner, after notice and hearing, certifies 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: Provided, That after the Commissioner has so certified to the Secretary of the Treasury the State educational authority shall have the right to appeal, within thirty days, from such certification to a United States district court and such court shall have jurisdiction as to both fact and law. 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. 10. 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 grants to States authorized in this Act, there is hereby authorized to be appropriated for each fiscal year an amount not to exceed one-half of 1 per centum of the total amount authorized to be appropriated for each fiscal year under the provisions of section 2 of this Act. Any of the |