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Since we all realize that our Senators and Representatives in Congress want to express the wishes of their people at home, every effort will be made in Tennessee to notify our delegation that we favor passage of Senate bill 1313, known as the Educational Finance Act of 1941. This will be done by having the leaders in political, labor, business, professional, and civic organizations in Tennessee contact our Senators and Representatives at once.

The time has come when public education must have Federal aid or fail to function properly in the defense of democracy.

The CHAIRMAN. Mr. Frank L. Groves, executive secretary, Alabama Education Association.

Dr. DAWSON. He had to leave, too, Senator.

The CHAIRMAN. If he has a statement it will be inserted in the record.

(The statement submitted by Mr. Frank L. Groves, executive secretary, Alabama Education Association, is as follows:)

AN ANALYSIS OF THE FUNDS SUBMITTED BY THE STATE OF ALABAMA UNDER THE PROVISIONS OF SENATE BILL 1313, BY A. H. COLLINS, STATE SUPERINTENDENT OF EDUCATION

I am setting forth below the Federal aid needed by the State of Alabama for the following purposes covered by Senate bill 1313:

(a) Reduction of educational inequalities in elementary and secondary schools; (b) increase of salaries for Negro teachers made necessary through recent Federal court decisions; (c) educational facilities and additional teachers in defense areas, both military and industrial; (d) educational facilities for children of migratory workers; (e) educational facilities for children of Federal employees residing on Government property and reservations.

I. REDUCTION OF EDUCATIONAL INEQUALITIES IN ELEMENTARY AND SECONDARY SCHOOLS

Numerous studies have shown conclusively that Alabama ranks near the bottom of taxpaying ability and near the top in educational load in proportion to adult population. There are several different methods by which it is possible to calculate the funds needed by the State of Alabama in order to equalize educational opportunities in Alabama with those provided in the Nation at large. I am calculating the additional funds needed on five bases as follows: (a) Additional funds needed in order to raise the current expense expenditures for public education in Alabama for both the white and Negro races up to the national average, (b) the additional funds needed in order to increase the present school term of Alabama to 9 months on the present expenditure level without equalizing educational facilities between the two races, (c) the additional capital outlay funds needed in order to provide as good school buildings and equipment as the national average for both the white and Negro races, (d) additional school buildings needed on the basis of present expenditure practices without equalizing building facilities between the two races. The estimates set forth below are based upon the number of children at present enrolled in the public schools of Alabama. Nothing is included for potential increases in enrollment, which are certain to come, especially in the secondary schools.

A. Additional funds needed annually in order to raise the current expenditures for public education in Alabama for both the white and Negro races up to the national average.

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B. Additional funds needed annually in order to increase the current expenditures for both the white and Negro races up to $60 per pupil.

Paul R. Mort1 suggests Federal aid to the States on the basis of $60 per pupil foundation program.

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C. Additional current expense funds needed in order to increase the present school term of Alabama to 9 months on the present expenditure level without equalizing educational facilities between the two races.

The average school term of Alabama is only 154 days and the average expenditure per pupil per day in average daily attendance is 22 cents. If the school term

for the 580,000 school children in average daily attendance were increased from 154 to 180 days, current expenditures would be increased $3,317,600 annually. Attention is called to the fact that this procedure will not equalize facilities between the two races.

D. Additional capital outlay funds needed in order to provide as good school buildings and equipment as the national average for both the white and Negro

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Assuming that this investment for buildings would be spread over a period of 25 years by means of the issuance of long-term securities, it would require an annual debt service of approximately $6,600,000 in order to pay principal and interest.

E. Additional school buildings needed on the basis of present expenditure practices without equalizing building facilities between the two races.

The present practice in Alabama is to construct school buildings as cheaply as possible. In the rural areas, most of the buildings are of frame or brick veneer construction without central heat. Assuming that the cheapest type of construction possible is employed, it would require the following amount of additional expenditures in order to provide housing badly needed at the present time. 1. White 2. Negro

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$14, 500, 000

12, 000, 000 26, 500, 000

Assuming that these buildings are financed by the issuance of long-term securities maturing over a period of 25 years, it would require an annual debt service of approximately $1,400,000.

II. INCREASE OF SALARIES FOR NEGRO TEACHERS MADE NECESSARY THROUGH RECENT FEDERAL COURT DECISIONS

If Negro teachers were paid salaries comparable to those for white teachers with the same training and experience in Alabama on the basis of the State salary schedule, the average Negro teacher's salary would be 87 percent of the average white teacher's salary because Negro teachers have somewhat lower training than the white teachers. It would require $1,832,056 additional current expense funds annually in order to pay the Negro teachers now employed salaries comparable with the salaries now being paid white teachers with the same training and experience. Furthermore, the Negro teachers carry considerably heavier teaching loads than the white teachers. It would require 1,600 additional Negro teachers in order to equalize class load, and this would cost an additional $1,136,000 annually, assuming that these additional teachers were paid the same salaries as white teachers with similar training. Therefore, it would require a total of $2,968,056 annually of additional current expense funds in order to pay Negro teachers salaries comparable with the salaries now being paid white teachers in Alabama with the same training and experience and in order to operate Negro schools for the same average term as white schools.

1 Mort, Paul R., Federal Support for Public Education.

III. EDUCATIONAL FACILITIES AND ADDITIONAL TEACHERS IN DEFENSE AREAS, BOTH MILITARY AND INDUSTRIAL

Following is a list of additional educational facilities and teachers needed for pupils in certain defense areas in Alabama not on Government reservations. This does not include estimates for the Birmingham City area, the Childersburg area, and the proposed air training field at Dothan, because of lack of available data at the present time.

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IV. EDUCATIONAL FACILITIES FOR CHILDREN OF MIGRATORY WORKERS

Data are not available for making estimates but a considerable sum is needed.

V. EDUCATIONAL FACILITIES FOR CHILDREN OF FEDERAL EMPLOYEES RESIDING ON GOVERNMENT PROPERTY AND RESERVATIONS

Below is a statement of additional educational facilities and teachers needed by pupils living on Government reservations in certain areas in Alabama.

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The CHAIRMAN. Mr. Jule B. Warren, executive secretary, North Carolina Education Association.

Mr. WARREN. Mr. Phillips, the president of the association, will make that statement.

The CHAIRMAN. Mr. Phillips, please.

STATEMENT OF K. G. PHILLIPS, PRESIDENT, NORTH CAROLINA EDUCATION ASSOCIATION

The CHAIRMAN. State your name and position for the record, please. Mr. PHILLIPS. K. G. Phillips, president, North Carolina Education Association, Winston-Salem.

We in North Carolina, as you people probably know, really believe in giving everybody an equal chance. I think our State is one of the two States in the Union that has gone down the line with the Statesupported 8 months' school. In 1933 the State took over the support of all the public schools for 8 months, and since that time we have increased our appropriation from about $16,000,000 to $30,000,000 per year.

The statement that we have to make is for the need for Federal aid for our schools in North Carolina, as we see it.

North Carolina has reorganized its school system by reducing to less than 1,000 the number of school districts, the consolidation of schools, and the transportation of about 350,000 rural-school children daily to these large consolidated schools. The State has assumed the obligation of operating the schools in every city and county in the State for a minimum term of 8 months, and the payment of salaries, instructional supplies, operation of the plant, and the transportation of children out of State-tax resources.

The local units of government, cities and counties, provide the buildings, pay debt service, and maintain these plants and, in many cases, supplement the State-provided moneys out of local revenues, which consist largely of property levies.

North Carolina is in the upper bracket of the States in effort as compared with its ability, for despite the fact that the State has a larger industrial development than some States in the South, we are the fifth State in the Union in the number of children in proportion to adults. With a population of about 3,500,000 we have over 900,000 children enrolled in the schools. Our educational load, therefore is very heavy.

Our per capita expenditure is low. Our teacher's salary will average, white and colored, about $850 per year; our average term is shorter than it should be for the most efficient work. The differential between white and Negro salaries is not as great as in some States because of the uniform term and the efforts of the State during the past 3 years to bring these schedules together. We have already put half a million into the Negro schedule, and will put another quarter million in this coming year. But it will take another million dollars to bring the two schedules together.

It is difficult for us to see where this additional money will come from for the property tax is high in those communities which need help most, and there are no additional sources of State revenue that will yield large returns.

We levy, on a State-wide basis, the following taxes:

1. One of the highest personal and corporate income taxes in the country--much higher than neighboring States.

2. A business franchise tax of $1.75 per $1,000 capitalization as compared with $1 in neighboring States.

3. A license tax on business and professions that covers everything from the peanut vendor to the manufacturers, the barber to the lawyer and doctor.

4. An inheritance tax.

5. A 3-percent general sales tax.

6. A tax on beer.

7. A tax on intangibles.

8. A property tax which is levied by the local units of government. 9. A 6-cent tax on gasoline---the proceeds of which go to roads. There is little chance for North Carolina to tap new sources of revenue, in the opinion of its legislature, and increases in the rate of taxes already levied are stopped because we have about reached the point of diminishing returns.

We are straining every resource to provide the less-than-average opportunity. We spend 67 cents of every tax dollar that goes to the

general fund of the State treasury for schools. We have made what seems all possible economies in organization and administration. About 87 cents of every school dollar goes to instructional service.

Our only possible hope to reach the national average is through Federal aid.

We have caused to be filed with the committee a statement of the needs due to defense emergencies in Onslow, New Hanover, and Cumberland Counties.

There is one additional thing I should like to say. Being on the State N. Y. A. Council in our State, I hope it possible for N. Y. A. work and our school work to draw nearer together. We are making a step toward that. I will have to say this, in fairness to our N. Y. A. officials, that they are doing an excellent job in working with the schools. We have one common aim, that is the N. Y. A. and the schools, and we hope that this can be done.

The CHAIRMAN. You found no interference with the schools on the part of N. Y. A?

Mr. PHILLIPS. We found full cooperation, and are drawing nearer together.

The CHAIRMAN. Thank you. Mr. Trent.

STATEMENT OF W. W. TRENT, STATE SUPERINTENDENT OF FREE SCHOOLS OF WEST VIRGINIA

The CHAIRMAN. State your name and position, please.

Mr. TRENT. W. W. Trent, State superintendent of free schools of West Virginia. Note the word "free." I believe that West Virginia is the only State that uses that term in describing its chief State school officer.

I sent you a statement, Senator, that I shall be pleased to have appear in the record.

(Statement referred to follows:)

Hon. ELBERT D. THOMAS,

STATE OF WEST VIRGINIA,
DEPARTMENT OF EDUCATION,
Charleston, April 22, 1941.

Chairman, Committee on Education and Labor,

United States Senate, Washington, D. C.

MY DEAR MR. THOMAS: From the year 1932, when the tax-limitation amendment was voted by the citizens of West Virginia to avoid losing their personal property and real estate due to exorbitant taxes growing out of the depression and inability to pay these taxes, the schools of West Virginia have operated on restricted and circumscribed budgets. In fact, with 62,000 additional pupils, the State spent last year approximately the same on elementary and high schools as was spent for the year 1929-30. A few of the wealtheir counties have been able to construct buildings and equip them, but practically all of the rural counties have the same buildings and equipment that they had 10 years ago. With the enlargement of national parks in rural counties and with the congestion in defense areas, the continuation of these schools on the present restricted bases seems almost impossible without help. I am, therefore, submitting some statements to you and your Committee on Education and Labor concerning West Virginia and expressing the hope that Senate bill 1313 may be enacted into law and that Congress may appropriate sufficient funds to carry out the purposes of the bill.

This State needs aid for the following purposes:

(a) To provide school buildings in the poorer counties of the State and to prevent a reduction in the present meager school facilities because of the transfer of great acreages to the national parks. Because of this transfer of land, one district within the State cannot for a 5-year period collect enough local revenue to pay off its bonded and contracted indebtedness. The value of buildings and

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