DOCUMENT RESUME

ED 362 987 EA 025 358

AUTHOR Lee, Karen W. F.TITLE Impact Aid and the Establishment of United States

Department of Defense Schools in Hawaii.INSTITUTION Hawaii State Legislative Reference Bureau,

Honolulu.REPORT NO LRB-4PUB DATE 93NOTE 190p.PUB TYPE Reports Evaluative/Feasibility (142)

EDRS PRICE MF01/PC08 Plus Postage.DESCRIPTORS *Educational Quality; Elementary Secondary Education;

*Federal'Aid; Federal Government; Federal StateRelationship; Governance; *Government SchoolRelationship; Public Schools; *Schcll DistrictReOrganization; State Departments of Education;*State Federal Aid

IDENTIFIERS *Dep7dents Schools

ABSTRACTFindings of a study that examined the feasibility of

transferring certain public schools in Hawaii to the U.S. Departmentof Defense (DOW are presented in this document. A state legislativeresolution to transfer was adopted in response to two concerns--thedissatisfaction of some military families with the quality of publicschools on Oahu, and the federal funding (impact aid) that isreceived by the State Department of Education (SDE) to finance theeducation of military family members. Conclusions are that: (1) theED should work closely with state congressional representatives toensure the reauthorization of the program in a manner that will bemost beneficial to Hawaii; (2) the state legislature should not takeany direct action at this time to try to force the transfer of any ofHawaii's public schools from the administrative and managerialcontrol of the SDE to the U.S. Department of Education; (3) apossible action would be to modify the boundaries of the Honoluludepartmental school district; and (4) parental dissatisfaction witheducational quality is an insufficient reason to transfer control ofsome of the schools from the SDE to the DOD. The SDE and militaryauthorities must cooperate to increase parental involvement in thepublic school system. Thirteen tables are included. Appendicescontain relevant state legislation and testimony and information onimpact aid. (LMI)

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Reproductions supplied by EDRS are the best that can be madefrom the original document.

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Impact 'd and the Establishmentof United States Department of

Defense Schools in Hawaii

LEGISLATIVE REFERENCE BUREAU / STATE OF HAWAII / 1993

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TO THE EDUCATIONAL RESOURCESINFORMATION CENTER iERIC

THE OFFICE OF THE LEGISLATIVE REFERE\CE BUREAU

The present Office of the Legislative Reference Bureau resulted from Act 171, Session Laws ofHawaii 1972, which transferred, as of July 1, 1972, the former Legislative Reference Bureau out of thejurisdiction of the executive branch of government to the legislative branch of government. In addition,the Office of the Revisor of Statutes, formerly under the Judiciary, was placed within the Bureau foradministrative purposes only. In 1977, Act 8 of the First Special Session, completed the integrationprocess by making the functions performed by the revisor additional responsibilities of the Bureau. Theend result of this legislation is to centralize under the Legislature the functions of bill drafting and billpublication as well as research and reference services supportive of the Legislature. The new Bureau isone of three legislative support agencies directly under the Legislature.

As a governmental institution, however, the Legislative Reference Bureau has its origins in Act91, Session Laws of Hawaii 1943, when the Territorial Legislature established the organization as anintegral part of the University of Hawaii.

Services performed by the Bureau cover a wide range from major report writing to bill drafting forthe Legislature to answering telephone requests for information. Briefly, these services include:

1. Maintaining a reference library.

2. Preparing stuslies and reports and drafting of legislative measures in response to legislativerequests.

3. Providing service to legislative committees, including interim committees.

4. Publishing standard reports.

5. Compiling and exchanging information with similar legislative service agencies in other statesand with national organizations.

6. Providing information to legislators.

7. Conducting and coordinating pre-session seminars for members of the Legislature and fortheir legislative staffs.

B. Serving as a member of governmental boards and commissions when Bureau representation isspecified.

9. Conducting impartial research, including legal research, as may be necessary for theenactment of legislation upon the request of the Legislature.

10. Controlling and maintaining the operations of any legislative data processing program as maybe established.

11. Assisting, upon request, other legislative service agencies on matters within the Bureau'scompetency.

12. Maintaining a legislative information office serving the general public when the Legislature isin session.

13. Publishing the session laws and supplements to, and replacement volumes of the revisedstatutes.

14. Conducting a systematic and continuing study of the laws of Hawaii for the purpose ofreducing their number and bulk, removing inconsistencies, redundancies, unnecessaryreretitions and otherwise improving their clarity; and for that purpose, preparing andsuLaitting to the Legislature such reports, recommendations and drafts of legislation tocarry out recommendations made.

15. Establishing a format for, and compiling and publishing an index of, rules adopted underthe Administrative Procedure Act.

4.

Impact Aid and the Establishmentof United States Department ofDefense Schools in Hawaii

KAREN W. F. LEEResearcher

Report No. 4, 1993

I.egislative Reference BureauState CapitolHonolulu, Hawaii 96813

4

FOREWORD

This study would not have been possible without the cooperation and assistance of

many people. The Bureau would like to thank the staff of the Department of Education of the

State of Hawaii, especially Art Kaneshiro, Don Kanagawa, and Rosalind Sueyoshi.Appreciation is also extended to the staff of the office of Senator Daniel Inouye, and to the

National Association of Federally Impacted Schools (NAFIS).

January 1993

Samuel B. K. ChangDirector

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TABLE OF CONTENTS

Page

FOREWORD ii

1. INTRODUCTION 1

2. IMPACT AID 2

Introduction 2The Purpose of Impact Aid 2Impact Aid and Hawaii 2The Federally-Connected Student 3The Federally-Impacted School District 4How Impact Aid is Allocated to the States 4Future Funding of Impact Aid 5Reduction of Type "B" Payments 8Reauthorization of the Impact Aid Program 8Summary 9Endnotes 9

3. DEPARTMENT OF DEFENSE SECTION 6 SCHOOLS 11

BackgroundThe Impact Aid StatutesThe Creation of Section 6 SchoolsLocations of Section 6 SchoolsManagement and FundingThe Department of Defense Dependents Schools (DODDS)Section 6 Schools and Local ComparabilitySchools with Section 6 ArrangementsTransferral of Stateside Section 6 SchoolsSummaryEndnotes

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1212131314141515

4. HAWAII'S SITUATION 17

Impact Aid and Hawaii 17Ranking of States by Impact Aid Revenue 17The Average Amount of Impact Aid Received Per Pupil 17Why Did Alaska and Montana Get More Aid than Hawaii? 17Hawaii's Federally-Connected Student 26The Percentage of "A" Students in Each Oahu School District 26Redrawing the Boundaries of Oahu's School Districts 26Federally-Connected Pupils by Schools 31Impact Aid and the Students of Hawaii 32Impact Aid and the DOE 33

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What Does the DOE Do with the Impact Aid Funds? 33Why Does the Impact Aid Go Into the State General Fund? 33How Is the Impact Aid Allocated to the Schools By the DOE? 33

Impact Aid and State Funds 35The Decline of Federal Funding 35The Decline of State Funding 35The Results of the Decline in State Funding 36Options for Maximizing the Existing Impact Aid Funds 36

Remove Impact Aid from the General Fund 36Charge Tuition 36Applying for Extra Impact Aid 37Maximizing the Existing Impact Aid Applications 37

The Issue of School Choice for Military Personnel 37Advantages of DOD Schools 38Options for School Choice 38

Private Schools 38Homeschooling 39School/Community Based Management (SCBM) 39Greater Participation in the Democratic Process 39School District Advisory Councils 39Creation of a Military School Board 40

Summary 40Endnotes 41

5. THE FEASIBiLITY OF SWITCHING SOME OF OAHU'S SCHOOLS FROMTHE STATE DOE TO THE UNITED STATES DOD 44

Introduction 44The Illinois Case 44The Hawaii Case 45Legal Issues for the State of Hawaii 46Ownership and Control of Hawaii's Public Schools 46Creation of a Section 6 Arrangement with the DOD 47Downsizing of the DOD and DOD School System 47Summary 48Endnotes 49

6. FINDINGS AND RECOMMENDATIONS 50

Introduction 50Findings 50Recommendations 51

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TABLES

2-1. Impa:t Aid--Budget Authority by Activity 5

2-2. Impact Aid--Maintenance and Operations - Section 3, Public Law 81-8741 6

4-1. Department of Education Impact Aid Receipt, 1980-92, Summary 18

4-2. Hawaii, Total Impact Aid Received Statewide 19

4-3. State Ranking of FY '90 Impact Aid Revenue 20

4-4. Ranking of State Fiscal Year 1990 Impact Aid Revenue 21

4-5. FY'90 Impact Aid Revenue, by State 22

4-6. Fiscal Year Impact Aid Revenue, by State 23

4-7. Impact Aid Received Average Per Pupil 24

4-8. I. Per Pupil Expenditure, November 12, 1992 27

4-9. II. Data on Impact Aid, December 2, 1992 29

4-10. Department of Education Federally Connected Students, 1991-92 30

4-11. Amount of State Funds Spent to Education Military Family Members in Hawaii 34

APPENDICES

A. House Concurrent Resolution and House Resolution No. 223, H.D. 2,The House of Representatives, Sixteenth Legislature, 1992 RegularSession, State of Hawaii 53

B. Impact Aid Law as Originally Enacted 60

C. Impact Aid Law--Codified 70

D. Impact Aid Payment Formula 93

E. Impact Aid 1993 Budget Proposal 98

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F. Schools Having Military Populations 100

G. Illinois Legislation--Bill Analysis 112

H. Illinois Legislation--Text of Bill 113

I. Illinois Legislation--Floor Debate 117

J. House Bill No. 2617, The House of Representatives, Sixteenth Legislature,1992 Regular Session, State of Hawaii 131

K. Toguchi's Testimony on House Bill No. 2617 138

L. Military Affair Council Testimony on House Bill No. 2617 141

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Chapter I

INTRODUCTION

House Resolution No. 223, H.D. 2, entitled "Requesting the Legislative ReferenceBureau, with the Assistance of the Department of Education, to Study the Feasibility ofTransferring Certain Public Schools to the United States Department of Defense Pursuant toPublic Law 81-874," was adopted by the House of Representatives of the State of Hawaiiduring the 1992 Regular Session. (See Appendix A.)

The Resolution was adopted in response to two major concerns:

(1) The dissatisfaction of some military families with the curriculum, educationalservices, and general quality of the public schools on Oahu that are attended bytheir children; and

(2) The federal funding, known as impact aid, that is received by the stateDepartment of Education to finance the education of military family members.

This report has been prepared in response to the House Resolution.

This chapter introduces the study. Chapter 2 examines the basic premise behindimpact aid and how that premise applies to the State of Hawaii. It describes the distinctionsthat the federal government makes among federally-connected students and how the aid isallocated to the states. The chapter concludes by looking at future funding allocations for1993.

Chapter 3 focuses on the "Section 6" stateside school system that is financed andmanaged by the United States Department of Defense (DOD). It examines the size andlocation of the schools in addition to congressional efforts to eliminate the system.

Chapter 4 focuses on the school funding situation in Hawaii with respect to impact aid.It examines the amounts of impact aid received over the years, how impact aid is utilized bythe state Department of Education (DOE), which of public schools on Oahu have militaryfamily members, and related issues. This chapter also includes some of the military parents'views of the DOD Section 6 schools and the issue of school choice in Hawaii.

Chapter 5 discusses the feasibility of transferring control of some of the public schoolson Oahu from the state DOE to the United States DOD. The Illinois case is discussed inaddition to potential legal issues that could arise from the transfer.

Chapter 6 sets forth findings and recommendations.

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Chapter 2

IMPACT AID

Introduction

During World War II, there was a substantial increase in military activities in manyareas of the United States. The federal government recognized that all of its projects werehaving a negative effect on the revenue bases of the communities where its militaryestablishments were located. Ad hoc appropriations were made by Congress to assist someschool districts. In 1950, the Impact Aid Program was enacted to establish official federalpolicy for such assistance.1 S Je Appendix B for the text of Public Law 81-874 and AppendixC for the amended United States Code.

The Purpose of Impact Aid

The presence of a federal activity in a community will often result in the loss of fundsto that particular community. The community may also incur added expenditures in theconstruction of infrastructure and provision of basic services necessary to the militaryestablishment. Impact aid is an attempt, by the federal government, to pay back thecommunity the funds it has removed by virtue of the fact that it has some activity going onthere.

For example, most American school districts run on three basic sources of revenue:local, state, and federal funds. In most states, property taxes finance public education.When citizens pay their property tax each year, part of the money goes to the localgovernment which, in turn, uses it to finance the local school district under its jurisdiction.2

However, the presence of a large federal activity, such as a military base (in this study,the term "base" will also include Army "posts"), can alter the financial situation quite a bit.The military personnel may reside in base housing--thereby paying no property taxes--and yet,send their children to the local public school system. The children are educated at publicexpense yet their parents pay no property taxes to the local government. Hence, theeducation of these children is being subsidized by the rest of the community--the people whoown their own homes and pay property taxes every year. The federal government attempts toreplace this loss of funds by providing the local government with impact aid.3

trnpact Aid and Hawaii

Hawaii, however, is unique in that it has a single statewide school system. Propertytaxes finance the county governments but the public school system is the responsibility of thestate government. Funds for the state government are obtained through taxes such as the

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IMPACT AID

state income tax and the general excise tax. The existence of several large militaryinstallations in the Leeward, Central, and Windward departmental school districts of the stateDepartment of Education (DOE) have resulted in the presence of approximately 60,000active-duty military personnel in addition to their 61,000 family members.4

Many of these military personnel and their families are residents of other states and,hence, do not pay Hawaii state taxes. A portion of the Soldiers' and Sailors' Civil Relief Act5allows military personnel who are in compliance with military or naval orderS to maintain theirresidence in any state despite their absence from that state. Hence, they do not pay theHawaii state income tax and many do much of their shopping on the bases at the exchanges,commissaries, and other facilities and, to that extent, are also exempt from the state generalexcise and fuel taxes. Retired military personnel living in Hawaii are exempt from payingstate taxes on their military pensions.6

Impact aid is essentially an attempt by the federal government to reimburse the statesfor the loss of some of their tax base through the military presence.

The Federally-Connected Student

There are two types of federally-connected children. A type "A" child is a child whoseparents both work and reside on a federal property. These parents usually pay no local orstate taxes so there is a high degree of impact on the revenues of a school district. Type "B"children are those whose parents either live or work on federal property. For instance, thefather of a "B" child may work on a military installation but the family may reside off the basein thw own home. The family pays property tax resulting in less impact (as compared to atype "A" chiid) on the local funding structure.7 Within the "A" and "B" groups, there areseveral subgroups such as handicapped students, children of military personnel, children ofcivilians, children living on Indian lands, and children who reside in low-rent federal housingprojects.8 The specific types of subgroups present affect the amounts of impact aid that areallocated to the states.

Public Law 81-8749 defines federal property as real property that is owned or leased bythe United States. This includes real property held in trust for individual Native Americans orNative American tribes. However, the term "federai property" does not include "any realproperty used by the United States primarily for the provision of services to the local area inwhich such property is situated."10 Hence, the children of workers in Honolulu's Prince KuhioFederal Building would not be considered federally-connected children.

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TRANSFER OF SCHOOLS TO UNITED STATES DOD

The Federally-Impacted School District

The United States Department of Education identifies a school district by how many"A" and "B" students it has. A "super A" district is a district with at least twenty percent of itsstudent population consisting of "A" students. A "sub-super A" district contains betweenfifteen percent and twenty percent of "A" students while a "regular A" district contains lessthan fifteen percent of "A" students.

There are only two categories of school districts with "B" students: "super B" is adistrict with twenty percent or more of the students in the "B" category and "regular B" is adistrict where "B" students make up less than twenty percent of the school population.11

School districts are identified in this way in order to determine the allocation ofavailable funds. A "super A" district is supposed to have more impact on a revenue basethan a "sub-super A" or "regular A" district because the "super A" district educates morefederally-connected "A" students than the other districts.

How Impact Aid is Allocated to the States

The amount of federal impact aid that a state receives is based on four factors:

(1) The number of children in each group and subgroup.

(2) The local contribution rate of that particular state (the actual per pupil cost paidby the state).

(3) The total amount appropriated for the Impact Aid Program by the Congress.

(4) The distribution formula specified in the Impact Aid Law.12

See Appendix D for a more detailed examination of the formula used to determine payments.

Because federal impact aid is disbursed and administered to the local school districtsby the United States Department of Education on a per child basis, military parents are askedat least once a year to fill out a form for each child in the school system.13 The schooldistricts use this information to apply for impact aid. Nearly every congressional districtreceives some amount of impact aid.

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IMPACT AID

Future Funding of impact Aid

Impact aid has not been funded at full entitlement for several years. Funding for theprogram has diminished significantly due to the demands of other high-profile educationalprograms that have eaten into congressional allocations. Pressures to reduce the annualdeficit and the national debt have also led to reduced appropriations over the past few years.Table 2-1 illustrates the greatly reduced congressional appropriations for the Impact AidProgram for the fiscal year 1992-1993. Table 2-2 shows that most states, not just Hawaii, willbe receiving even less impact aid in 1993 than they have received in the past.

Table 2-1

Impact AidBudget Authority by Activity

19911992

Appropriation1992

Revised 1993

1. Maintenance and operations:(a) Payments for "a"

children(b) Payments for "b"

$578,532,000 $588,540,000 $570,540,000 $489,540,000children 121,624,000 136,626,000 124,626,000 0(c) Payments for Federalproperty 16,590,000 16,590,000 16,590,000 16,590,000

(d) Payments for section3(d) (2)(B) 22,000,000 30,000,000 16,000,000(e) Payments for decreasesin Federal activities 1.952.000 1,952,000 1,952.000 0

Subtotal 740,698,000 743,708,000 743,708,000 522,130,0002. Disaster assistance 13,663,000 0 0 o3. Construction 26.349 000 28 000 000 28 000 000 10 000.000

Total 780,710,000 771,708,000 771,708,000 532,130,000

NOTE--Amounts in the 1992 appropriation column are the actual appropriations to this account. Allother columns are comparable to 1993.

Explanations of 1992 Revisions1. Payments for "a" children and "b" children are reduced to display separately the estimated

amount required for section 3(d)(2)(B). Actual amounts used for 3(d)(2)(B) and consequently for3(a) and 3(b) payments in 1991 and 1992 will differ.

Source: U.S. Department of Education, Justifications of Appropriation Estimates to the Congress; Fiscal Year 1993(Washington, 1992), p. B-12.

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TRANSFER OF SCHOOLS TO UNITED STATES DOD

Table 2-2

Impact AidMaintenance and Operations - Section 3, Public Law 8I-874a

State or 1991 1992 1993Outlying Area

Alabama $ 5,118,920 $ 5,082,438 $ 643,209Alaska 54,275,563 53,888,742 42,237,160Arizona 65,074,992 64,611,204 62,600,317Arkansas 2,320,446 2,303,908 1,834,286California 66,157,986 65,686,479 54,672,022

Colorado 8,171,170 8,112,934 4,707,600Connecticut 8,306,967 8,247,763 7,332,348Delaware 63,509 63,056 0Florida 14,540,089 14,436,462 6,902,721Georgia 6,750,942 6,702,828 1,132,917

Hawaii 21,734,926 21,580,022 20,980,939Idaho 4,872,853 4,838,124 3,239,922Illinois 10,231,853 10,158,931 8,786,691Indiana 1,995,735 1,981,511 1,400,895Iowa 290,832 288,759 174,569

Kansas 9,711,162 9,641,951 9,207,346Kentucky 1,225,578 1,216,843 0Louisiana 7,726,628 7,671,560 4,483,183Maine 3,251,430 3,228,257 3,131,421Maryland 10,852,032 10,774,690 5,948,409

Massachusetts 5,390,808 5,352,388 4,487,708Michigan 7,545,739 7,491,961 6,735,090Minnesota 5,525,692 5,486,310 4,799,000Mississippi 4,006,409 3,977,855 2,558,796Missouri 5,996,749 5,954,010 5,472,957

Montana 21,494,002 21,340,815 17,099,219Nebraska 8,374,554 8,314,869 6,470,706Nevada 3,694,604 3,668,273 1,665,970New Hampshire 55,413 55,018 23,734New Jersey 12,149,213 12,062,626 13,883,800

New Mexico 38,550,579 38,275,830 39,049,938New York 19,472,171 19,333,393 13,645,990North Carolina 9,043,004 8,978,555 2,613,927North Dakota 11,795,891 11,711,822 10,139,337Ohio 4,727,420 4,693,728 2,596,712

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IMPACT AID

State orOutlying Area

1991 1992 1993

Oklahoma $ 24,140,799 $ 23,968,748 $ 18,415,104Oregon 3,684,169 3,657,912 3,101,698Pennsylvania 3,500,542 3,475,594 360,681Rhode Island 3,354,449 3,330,542 3,211,529South Carolina 7,193,036 7,141,771 3,235,575

South Dakota 15,004,145 14,897,211 14,504,887Tennessee 3,425,536 3,401,122 406,374Texas 28,176,178 27,975,367 21,159,540Utah 8,260,197 8,201,327 4,993,279Vermont 17,577 17,452 0

Virginia 36,948,558 36,685,226 18,480,270Washington 26,836,305 26,645,043 19,775,161West Virginia 82,139 81,554 0Wisconsin 6,764,671 6,716,459 6,203,604Wyoming 7,937,453 7,880,883 4,049,948

DC 1,465,979 1,455,531 983,511Puerto Rico 1,147,810 1,139,630 0

Guam 0 0 0Virgin Islands 612,512 608,147 0Undistributed 61 108 084 60 672 566 0

TOTAL $700,156,000 $695,166,000 $489,540,000

aExcludes in each year amounts available for section 3(d)(2)(B), which remainundistributed until the year following the year for which they are intended.Amounts distributed for 1991 and 1992 include payments for I-oth "a" and "b"children. The 1993 request is for payments for "a" children only. (The 1991distribution reflects actual payments as of July 30, 1991. Projections for 1992 and1993 are estimates.)

For 1991 and 1992, funds are distributed based on the formula in theauthorizing statute, which considers the numbers of federally connected students inaverage daily attendance in an LEA, the proportion of all students in the LEA thatare federally connected, and the national and State average per pupil expenditurefrom two years preceding. For 1993, funds are distributed based on revisions to thestatutory formula as contained in the proposed appropriations language anddescribed in the budget proposal.

Source: U.S. Department of Education, Justifications of Appropriation Estimates to the Congress;Fiscal Year 1993 (Washington, 1992), pp. 6-32-33.

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TRANSFER OF SCHOOLS TO UNITED STATES DOD

Reduction of Type "B" Payments

While there is widespread agreement that type "A" students--those whose parents liveand work on federal property--represent a substantial burden to school districts therebyjustifying impact aid payments, type "B" students are more problematic. The Bushadministration has proposed reducing or eliminating payments for type "B" students--thosewhose parents either live or work on federal property.

Some argue that continued 3(5) payments provide unnecessarysubsidies to local education agencies for children who are only a"marginal" burden, as opposed to 3(a) children who generate nolocal property tax revenues for school purposes. These opponentsof 3(h) payments point out that the parents of 3(h) children liveor work on private property that generates local property taxrevenues for the school district.

Supporters of 3(h) payments argue that the Federal Government,because !ts property is exempt from State and local taxation, hasa responsibility to pay its share of the costs of educatingfederally connected children. Moreover, they stress that someschool districts, especially those in close proximity to Federalmilitary installations, enroll large numbers of 3(h) students,many of whom live on property generating minimal tax revenues.14

See Appendix E for a more detailed examination of the budget proposal to eliminatefuture "B" payments.

Reauthorization of the Impact Aid Program

In the past, Congress has reauthorized the Impact Aid Program on a five-yearschedule. The current five-year schedule is ending and the law that authorizes the program ,sexpiring in 1993.15 The expiration of the current law provides Congress with four options:(1) the date of the current law may be extended and the program will remain as it is, (2) theprogram can be modified by Congress, (3) the program can be entirely rewritten by Congress,or (4) the program can be eliminated through the refusal of Congress to reauthorize it.16

The current budget crunch means that Congress will be carefully scrutinizing allprograms that are up for reauthorization. The current Impact Aid Program, justified five yearsago, may be harder to justify in its present form to congressional budget cutters in 1993.Hence, modifications to the program may take place. One proposal suggests the eliminationof all type "A" and "B" categories of federally-connected students. Instead, payments wouldbe made to the states according to the number of students in each state who are consideredto be federally-connected.17

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IMPACT AID

Summary

The Impact Aid Program was established in 1950 as a means for the federalgovernment to reimburse communities for the loss of funds and increased expenditures thatresulted from the presence of federal activities in those communities. For instance, themilitary personnel stationed on a large military base may reside in base housing--therebypaying no property taxes--and yet, send their children to the local public schools. The federalgovernment attempts to replace this loss of funds by providing the states with impact aid.

There are two types of federally-connected children. Type "A" children are childrenwhose parents work and reside on federal property. Type "B" children are children whoseparents either live or work on federal property. School districts are classified according tohow many "A" and "B" students the district has.

Impact aid payments are allocated to a state using a formula based on four factors:The number of children in each "A" and "B" group, the local contribution rate of the State, thetotal amount appropriated by the Congress for the Impact Aid Program, and the distributionformula specified in the Impact Aid Law.

Impact aid has not been funded at full entitlement for several years. Congressionalappropriations for the Impact Aid Program have been greatly reduced for the fiscal year1992-1993. The Bush administration has proposed the reduction or elimination of paymentsfor type "B" students who are considered to have less of an impact on a community's taxbase.

The law that authorizes the Impact Aid Program is expiring in 1992. The currentbudget situation means that congressional budget cutters will examine the program closelybefore reauthorizing it. Congress may choose to reauthorize the program in its present form,modify it, or eliminate it altogether.

EN DNOTES

1. U.S., Congressional Research Service, CRS Report for Congress, The Impact Aid Program Under Section 3of Public Law 81-874, The Library of Congress, January 25, 1991, p. 2.

2. The National Association of Federally Impacted Schools, The Impact Aid Blue Book: 1991-1992 Edition(Washington, D.C.: 1991), p. 17.

3. Ibid., pp. 17-18.

4. Hawaii, Department of Education, Focus: Statistical Information, Economic Impact and Military Contributionsto Hawaii, Military Liaison Resource Teacher, June 1990, p. 2.

5. 50 U.S.C.A. 574 (1981).

6. Hawaii Rev. Stat., sec. 235-7(a)(2) and (3).

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TRANSFER OF SCHOOLS TO UNITED STATES DOD

7. Impact Aid Blue Book, pp. 18-19.

8. Hawaii, Department of Education, Federal Impact Aid (Honolulu: 1992). p. 1.

9. Pub. L. No. 874, 81st Cong., 2nd Sess., sec. 9 (Septumber 30, 1950).

10. Ibid.

11. Impact Aid Blue Book, p. 19.

12. Hawaii, DOE, Federal Impact Aid, p. 2.

13. Army Times, April 6, 1992, p. 41.

14. CRS Report for Congress, p. 15.

15. 20 U.S.C.A. 236.

16. Telephone interview with Cathy Schagh, United States Department of Education, Impact Aid Division,Washington, D.C., December 30, 1992.

17. Telephone interview with John Forkenbrok, National Association of Federally Impacted Schools (NAFIS),Washington, D.C., December 2, 1992.

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Chapter 3

DEPARTMENT OF DEFENSE SECTION 6 SCHOOLS

Szckground

In 1950, the United States Congress enacted Public Law 81-874 to consolidateprograms providing federal aid to local public school districts affected by the presence offederal activities. Commonly referred to as impact aid, Public Law 874 authorizes the UnitedStates Department of Education to provide maintenance and operations funds to schooldistricts to supplement local revenues for the cost of providing school services tofederally-connected children.1

The Impact Aid Statutes

There are two major impact aid statutes that relate to the education of military familymembers. The following is a general description of these two provisions as amended in theUnited States Code:

Section 3. Payments to local educatioral agencies to

compensate for the loss in tax revenues due to the presence oftax-exempt Federal property and increased enrollments due to

Federal activities. [U.S. DOE] administers these payments.[Hawaii's schools with federally-connected students fall into thiscategory.]

Section 6. Arrangements as may be necessary to provide for afree public education when: 1) no tax revenues of the State orany political subdivision thereof may be expended for the freepublic education of children residing on Federal property; or2) no local educational agency is able to provide suitable freepublic education for those children. Section 6 arrangements cantake two forms: 1) schools directly operated by DOD [Departmentof Defense], or 2) payments to school districts through DODcontracts for some portion or all of the cost of educating Federaldependents.2

The Creation of Section 6 Schools

Although the United States Department of Defense (DOD) operates dependent schoolsfor the military and civilian family members of personnel stationed in overseas countries,federal laws generally leave the education of military family members stationed in the UnitedStates to the local educational agencies. The United States Code, as described above,creates Section 6 schools only when no local educational agency can provide a suitable free

11

6 0

TRANSFER OF SCHOOLS TO UNITED c--ATES DOD

public education.3 Hence, children residing on federal property would attend schoolscontrolled and operated by local public school systems in accordance with state laws andstandards. If these children could not attend a locally controlled school off the federalproperty and it became necessary to operate a school on federal property, then efforts weremade to have that school operated by local educational agencies. In return, the agencieswould receive federal assistance in the form of impact aid.

Locations of Section 6 Schools

In certain areas of the United States and Puerto Rico, local educational agencies havenot been able to provide a free public education in the past. In reference to Section 6 ofP.L. 81-874, these schools run by the United States DOD are known as "Section 6 schools."There are currently eighteen Section 6 school systems that encompass sixty-eight schoolsand had a total enrollment of 32,478 students in 1991.4

Federal Installations with Section 6 Schools:

Alabama Fort McClellan, Fort Rucker, and Maxwell Air Force Base

Georgia Fort Benning, Fort Stewart, and Robins Air Force Base

Kentucky Fort Campbell and Fort Knox

Louisiana England Air Force Base

New York West Point United States Military Academy

North Carolina Fort Bragg and Lejeune Marine Corps Base

South Carolina Fort Jackson, Laurel Bay Marine Corps Air Station and MyrtleBeach Air Force Base

Virginia

Puerto Rico

Management and Funding

Quantico Marine Corps Base and Dahlgren Naval SurfaceWeapons Command

Consolidated at Roosevelt Roads Naval Station5

"The Section 6 Schools Office is managed by the Superintendent, DOD StatesideDependents Schools established as a separate office under the Director of Education withinthe Office of the Deputy Assistant Secretary of Defense for Personnel Support, Families and

12

21

DEPARTMENT OF DEFENSE SECTION 6 SCHOOLS

Education."6 When the Section 6 schools were first established, funding was provided by theUnited States Department of Education which still currently funds and administers the ImpactAid Program. However, the Omnibus Budget Reconciliation Act of 1981 suspended theUnited States Department of Education's authority to fund Section 6 schools and transferredthat authority to the DOD.7 "The Fiscal Year 1992 Operation and Maintenance budget for theschool systems is $185 million, averages $5,688 per pupil cost, and has an average teachersalary of $34,000. The salaries are locally determined. There are approximately 5,500employees in the Section 6 schools."8

The Department of Defense Dependents Schools (DODDS)

The Section 3 schools created by Public Law 81-874 are completely independent ofthe overseas Department of Defense Dependents Schools (DODDS). The DODDS system islocated overseas in countries with a large United States military population such as Germany.The Section 6 schools are located in the United States and Puerto Rico. Although bothsystems are funded and managed by the DOD, the two school systems have completelyseparate administrative systems. The Section 6 stateside schools are run by Dr. HectorNavarez while the DODDS overseas are managed by Assistant Secretary of Defense MillicentWoods. Educational standards are also determined independently by each system.9 TheDODDS system sets it own educational standards while the Section 6 stateside schools mustadhere to the laws that require local comparability to serve as its educational standards.

Section 6 Schools and Local Comparability

Public Law 81-874 requires that the Section 6 schools provide an educationcomparable to the local school system within the state that it is located. Each Section 6school system must also have a locally elected school board which has control of schoolexpenditures and operations.10 Hence, the curriculum and budget of each Section 6 school isbased on comparability. ". . . the curriculum of each Section 6 School system is based on thecurriculum used by comparable school districts in the State and the budget of each Section 6School system is based on per pupil costs of comparable school districts in the State."11 Thefederal law states that, "For the purpose of providing such comparable education, personnelmay be employed and the compensation, tenure, leave, hours of work, and other incidents ofthe employment relationship may be fixed without regard to the Civil Service Act andrules . ."12

Some military parents, who are dissatisfied with the quality of educational services thattheir children are receiving in Hawaii's public schools, frequently argue that their childrenwould get a better education in a Section 6 school. These parents often cite their children'spositive past experiences in the Section 6 schools located on the mainland. (See the sectionentitled "The Issue of School Choice" in Chapter 4 of this study for more discussion of th's

13

24

TRANSFER OF SCHOOLS TO UNITED STATES DOD

viewpoint.) These parents believe that their children would receive a better education if aSection 6 school were established on Oahu.

However, the laws state clearly that all Section 6 schools are established on the basisof state comparability. In other words, the Section 6 school will provide an education that iscomparable to the local school system of the state in which it is located. So any Section 6school established in Hawaii will be of comparable quality to Hawaii's public schools.Instructional services, teacher's salaries, curriculum, and other factors will be of comparablequality to the public schools where these parents are now educating their children. Hence,providing the children of military personnel with a better education than that which is alreadyprovided by the State of Hawaii does not appear to be a sound motivation for establishing aSection 6 school in Hawaii.

Schools with Sectkm 6 Arrangements

A few states and territories have Section 6 arrangements with the DOD. Thesearrangements are defined by the impact aid laws13 and take the form of some financialarrangement in which the DOD pays for the education of federally-connected students iriparticular schools. A Section 6 arrangement is determined by the discretion of the Secretaryof the DOD and a school is funded so that its students may receive an education that iscomparable to that of surrounding communities. No new Section 6 arrangements have beenmade in the past few years and the trend is toward the return of financial responsibility forthese schools back to the local educational agencies. Since 1991, Fort Greely and FortRichardson in Alaska and Fort Riley in Kansas have been returned to their respective localeducational agencies.14

Transferral of Stateside Section 6 Schools

- In the past twenty years, there have been no additions to the Section 6 schoolsystems. In fact, congressional efforts have focused on the closing or transferral ofoperations of Section 6 schools from the DOD to the local educational agencies.15 "In 1986,congressional budget cutters demanded that the Pentagon transfer school systems operatedby the military on eighteen stateside posts to civilian control by July 1990."18 However, theseefforts by Congress have failed: "In the face of stiff opposition from military parents and localpoliticians, the Department of Defense has abandoned its three-year effort to close on-postschools on eighteen stateside military installations . . . ."17 Local school officials in manyareas refused to accept responsibility for what many foresaw as costly problems maintainingthe facilities: "A 1988 Rand Corporation study of the transfer plan noted the military schoolsneed more than $90 million in repairs and new construction to accommodate their studentpopulations."18 Federal officials were unable to guarantee that the federal government wouldpay for these projects before shifting responsibility for the schools to the local educationalagencies.

14

23

DEPARTMENT OF DEFENSE SECTION 6 SCHOOLS

Summary

Section 6 of Public Law 81-874 authorizes the establishment of a stateside schoolsystem that is managed and funded by the United States Department of Defense (DOD).Known as "Section 6 schools," there are currently eighteen Section 6 school systems whichinclude sixty-eight schools and had a total student enrollment of 32,478 students in 1991.19

The Section 6 schools are located in the United States and Puerto Rico and areadministratively independent from the Department of Defense Dependents Schools (DOD)S)which operate overseas.

The Section 6 stateside schools are required by law to provide military family memberswith an education comparable to the local school system of the state in which the Section 6school is located. Hence, any Section 6 school established in Hawaii would be establishedaccording to the standards set by Hawaii's public school system.

No new schools have been added to the Section 6 school system in the past twentyyears. In fact, congressional budget cutters launched a full-scale effort in 1986 to either closethe present schools or transfer their operations to the local educational agencies. The effortfailed at least in part because local school officials in many areas refused to assume thiscostly responsibility.

ENDNOTES

1. U.S.. Department of Defense, Department of Education, Construction, Repair, and Rehabilitation Needs ofDependent School Facilities Located on Military Installations in the U.S., Final Report, September 1987, p. 1.

2. 20 U.S.C.A. 238 (1990) and 20 U.S.C.A. 241 (1990). See Appendix C.

3. The history and origins of the DOD Section 6 school system have not been documented. It has beensuggested, however, that these schools were established whenever a military installation was placed in anarea where no schooling for military family members was available. Section 6 schools founded in the ruralSouth are an example of this phenomenon. Also, Section 6 schools were established in Puerto Rico becauseof the necessity of providing the child 'en of military personnel with an education taught in english. Telephoneinterview with John Erdman, Headquarters, Pacific Air Force, Director of Personnel Programs, EducationServices Division, Hickam Air Force Base, Hawaii, December 21, 1992.

4. Letter from Hector Nevarez, Superintendent, DOD Stateside Schools, to Representative Patsy Mink, March 2,1992.

5. Ibid.

6. U.S.. Department of Defense. Department of Defense Section 6 Schools, February 22, 1991, p. 1.

7. Ibid.

8. Navarez letter.

15

24

TRANSFER OF SCHOOLS TO UNITED STATES DOD

9. Erdman interview.

10. Department of Defense Section 6 Schools, p. 1.

11. Ibid.

12. 20 U.S.C.A. 241 (1990). See Appendix C.

13. Ibid.

14. Erdman interview.

15. Army Times, January 23, 1989, p. 17.

16. Ibid.

17. Ibid.

18. Ibid.

19. Nevarez letter.

16 25

Chapter 4

HAWAII'S SITUATION

Impact Aid and Hawaii

In 1992, Hawaii received payment of approximately $22 million of impact aid (seeTable 2-2 in Chapter 2). The amounts that Hawaii has received over the past decade havevaried widely from a low of about $8 million to a high of approximately $28 million. SeeTable 4-1 in this chapter for an overview of the amounts received. It should be noted thatdifferences in the amounts shown in the various tables are often due to revenue"carryover"--part of the previous year's amount is carried over into the next year.

Ranking of States by Impact Aid Re ienue

Tables 4-2 through 4-6 essentially illustrate that in 1990 Hawaii received about $21million in impact aid which ranked Hawaii as the tenth highest in terms of the amount offunding received. The state that received the most was Alaska at $74 million while Vermontgot the smallest amount, about $11,000.

The Average Amount of Inpact Aid Received Per Pupil

Using the 1990 figures, Table 4-7 shows the average amount of dollars in impact aidthat each state received for their federally-connected students. Hawaii got approximately$618 for each military dependent. The highest ranking state, Alaska, got about $2,708 perpupil while Vermont got only $29 per student.

Why Did Alaska and Montana Get More Aidihan Hawaii?

Tables 4-4 and 4-5 show that in 1990 a few states with smaller populations thanHawaii's received more impact aid than Hawaii. Alaska received over $73 million andMontana got slightly more than Hawaii at $21,315,628. Both Alaska and Montana have fewerfederally-connected children than Hawaii. Yet, Alaska with 27,185 federally-connectedstudents (combined totals of "A" and "B" students), received an average of $2,708 for eachfederally-connected student. Montana, with 13,018 federally-connected students, got $1,637for each pupil. Hawaii received about $618 for each student (see Table 4-7). Why are thesestates with fewer federally-connected students able to receive so much in impact aid? Thereare two major reasons.

First, the Impact Aid Program provides greater financial assistance to local educationalagencies impacted by the presence of federally-connected students with special needs.

17

2 6

27

Tab

le /1

-1

DEPARTMENT OF EDUCATION

IMPACT AID RECEIPT

1980-92

SUMMARY

TO

TA

LF

UN

DS

FO

R S

CH

OO

L Y

EA

R (

YE

AR

OF

FE

DE

RA

L A

PP

RO

PR

IAT

ION

)

ST

AT

EF

OR

FY

ST

AT

E F

Y19

80-8

119

81-8

219

82-8

319

83-8

419

84-8

519

85-8

619

86-8

719

87-8

819

88 8

919

89-9

019

90-9

119

91-9

2

S80

-81

11,7

90,4

7511

,790

.475

00

00

00

00

00

0..

S81

-82

7.86

6.09

12.

447.

840

5.41

8.25

60

00

00

00

00

0S

82-8

316

,352

.118

05,

357,

568

10.9

94.5

500

00

00

00

00

583-

849,

576,

144

016

8,56

689

,328

9,31

8,25

10

00

00

00

058

4 85

8,36

0,66

60

013

0,31

2(3

,733

)8,

234.

097

00

00

00

0.....

CO

$85-

868.

809,

427

00

01.

125.

422

871.

633

6,81

2.37

20

00

00

0S

86-8

717

,711

,423

00

00

4.40

0.24

24.

686.

801

8,62

4,38

00

00

00

587-

8828

.047

,434

68,8

1648

,005

34.7

070

00

12,2

94.9

8115

,600

.925

00

00

S11

8-89

23,4

47.8

8751

2,92

96,

976,

212

15,9

58,7

460

00

589-

9027

,010

,774

00

00

023

1,16

00

144.

895

5,76

4,47

420

,870

,244

059

0-91

22,4

99,0

610

00

00

00

041

5,51

434

8,62

121

,734

.926

0

591-

9223

.'. 5

9.18

10

00

00

00

00

1,21

3,25

627

5.02

121

,670

.904

FY

1980

81

1981

82

1982

83

1989

84

1984

85

1985

-86

1906

87

1987

-88

1988

89

1989

9019

90-9

119

91 9

2

14,3

07,1

3110

,992

.395

11.2

48,8

9710

.439

.940

13,5

05,9

6211

.730

,333

21,4

32.2

9022

,722

,032

22.1

38.7

3422

,432

,121

22,0

09,9

4721

,670

.904

Source:

Hawaii, DOE Budget Branch Office.

,

Table 4-2

HawaiiTotal Impact Aid received statewide: $21,218,865.69

United States SenatorsAkaka, Daniel K. (D) 720 Hart Office Building 224-6361Inouye, Daniel K. (D) 722 Hart Office Building 224-3934

$21,500,000$21,000,000$20,500,000$20,000,000$19,500,000$19,000,000$18,500,000$18,000,000$17,500,000$17,000,000$16,500,000$16,000,000

FY '90Impact Aid Receipts(by Congressional District)

District 1

District 2

United States Representatives by District

CD Representative Room & Building Telephone Total Impact Aid

1st Abercrombie, Neil (D) 1440 Longworth 225-2726 $21,218,865.692nd Mink, Patsy T. (D) 2135 Rayburn 225-4906 $17,957,480.99

Source: NAFIS's Impact Aid Blue Book: 1991-1992 Edition.

19

2j

Table 4-3

State Ranking of FY'90 Impact Aid RevenueState Total Received Percentage of National TotalAlaska $73,628,448.53 11.68%California $62,799. i 35.38 9.97%Arizona $62,288,870.34 9.88%New Mexico $36,172,086.40 5.74%Virginia $35,941.961.77 5.70%Washington $26.343,973.49 4.18%Texas $26,266,153.06 4.17%Oklahoma $23,490,583.00 3.73%Montana $21,315,628.67 3.38%Hawaii $21,218,865.69 3.37%South Dakota $14,840,436.25 2.35%New York $14.769.966.27 2.34%Florida $13,725,007.49 2.18%New Jersey $11,798,985.08 1.87%North Dakota $10,960,999.33 1.74%Illinois $10,154,712.15 1.61%Maryland $9,921,973.95 1.57%Utah $9,019,683.76 1.43%North Carolina $8,612,307.95 1.37%Kansas $8,347,750.66 1.32%Nebraska $7,997,418.22 1.27%Colorado $7,561,090.95 1.20%Connecticut $7,382,516.64 1.17%Wyoming $7,322,214.75 1.16%South Carolina $7,148,508.32 1.13%Louisiana $7,056,699.77 1.12%Georgia $6.516,877.24 1.03%Michigan $6,438,853.19 1.02%Wisconsin $6.079,154.79 0.96%Missouri $5,394,081.06 0.86%Minnesota $5,358,313.44 0.85%Massachusetts $5,249.855.34 0.83%Alabama $4.996,391.68 0.79%Idaho $4,775,720.20 0.76%Ohio $4,385,055.72 0.70%Mississippi $3,746,633.62 0.59%Nevada $3,593,085.39 0.57%Pennsylvania $3,478,537.51 0.55%Tennessee $3,372,672.95 0.54%Oregon $3,332,513.21 0.53%Rhode Island $3,149.050.15 0.50%Maine $2,887,092.40 0.46%New Hampshire $2.534,372.47 0.40%Arkansas $2,172,573.30 0.34%Indiana $1,799,759.56 0.29%Territory of Guam $1,708,587.25 0.27%Kentucky $1.149,780.98 0.18%Puerto Rico $799,599.18 0.13%Virgin Islands $772,894.84 0.12%Iowa $287,075.10 0.05%West Virginia $69,970.24 0.01%Delaware $40.659.16 0.01%Vermont $10,640.00 0.00%

Source: NAFIS's Impact Aid Blue Book: 1991-1992 Edition.

20

30

r- $80,

000,

000.

00

$70,

000,

000.

00

$60,

000,

000.

00

$50,

000,

000.

00

$40,

000,

000.

00

$30,

000,

000.

00

$20,

000,

000.

00

$10,

000,

000.

00

$0.0

0

Tab

le 4

-4

Ran

king

of S

tate

Fis

cal Y

ear

1990

Impa

ct A

id R

even

ue

Illlif

lhiii

iiiiii

iii11

1111

111i

s_

_ _

Fi ?

c'I

2-3.

t.

5...

i..ii.

f,,..

>.R

.. F

3,-P

i "11

213.

" In

.:51

E)

"3-C

9

"-g5

-1'3

Z-3

.4"

5§.

Ezk t

gq,

t,2

2E ;.."'

Source:

NAFIS's Impact Aid Blue Book:

1991-1992 Edition.

31

32

Table 4-5

FY'90 Impact Aid Revenue, by StateState Total Received Percentage of National TotalAlabama $4,996.391.68 0.79%Alaska $73,628,448.53 11.68%Arizona 862.288.870.34 9.88%Arkansas $2,172,573.30 0.34%California $62,799,135.38 9.97%Colorado $7,561,090.95 1.20%Connecticut $7,382,516.64 1.17%Delaware $40,659.16 0.01%Florida $13,725,007.49 2.18%Georgia $6,516.877.24 1.03%Hawaii $21,218.865.69 3.37%Idaho $4.775,720.20 0.76%Illinois 810.154.712.15 1.61%Indiana $1,799,759.56 0.29%Iowa $287,075.10 0.05%Kansas $8,347,750.66 1.32%Kentucky $1,149 780.98 0.18%Louisiana $7,056.699.77 1.12%Maine $2,887,092.40 0.46%Maryland $9,921,973.95 1.57%Massachusetts $5.249,855.34 0.83%Michigan $6,438,853.19 1.02%Minnesota $5,358.313.44 0.85%Mississippi $3,746,633.62 0.59%Missouri $5,394.081.06 0.86%Montana $21,315,628.67 3.38%Nebraska $7,997,418.22 1.27%Nevada $3,593,085.39 0.57%New Hampshire $2,534,372.47 0.40%New Jersey $11,798,985.08 1.87%New Mexico $36,172,086.40 5.74%New York $14,769,966.27 2.34%North Carolina $8.612.307.95 1.37%North Dakota $10,960,999.33 1.74%Ohio $4.385.055.72 0.70%Oklahoma $23,490,583.00 3.73%Oregon $3,332,513.21 0.53%Pennsylvani- $3,478,537.51 0.55%Puerto Rico $799,599.18 0.13%Rhode Island $3.149,050.15 0.50%South Carolina $7,148,508.32 1.13%South Dakota $14,840,436.25 2.35%Tennessee $3,372,672.95 0.54%Territory of Guam $1,708,587.25 0.27%Texas $26,266,153.06 4.17%Utah $9,019,683.76 1.43%Vermont $10,640.00 0.00%Virgin Islands $772,894.84 0.12%Virginia $35.941,961.77 5.70%Washington $26.343,973.49 4.18%West Virginia $69.970.24 0.01%Wisconsin $6,079,154.79 0.96%Wyoming $7.322,214.75 1.16%

Source: NAFIS's Impact Aid Blue Book: 1991-1992 Edition.

22

Aidoama Alaska Arizona Arkansas California Colorado

Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky

Louisiana Maine Maryland Massachusetts Michigan Minnesota

Mississippi Missouri

Montana Nebraska Nevada

New Hampshire New Jersey New Mexico

New York

North Carolina

North Dakota

Ohio Oklahoma Oregon Pennsylvania

Rhode Island South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia I

Wisconsin Mil Wyoming

Territory of Guam a Puerto Rico 1

0

C Z

Virgin Islands 1

TRANSFER OF SCHOOLS TO UNITED STATES DOD

Table 4-7

IMPACT AM RECEIVED AVERAGE PER PUPEL

STATE

AMOUNT OFIMPACT AID

RECEIVED IN1990*

NUMBER OFFEDERALLY-CONNECTED

KIDS (a +b) in 1990 "

AVERAGEOF DOLLARS

PER PUPIL

Alabama $4,996,391 55,300 $90Alaska $73,628,448 27,185 $2,708Arizona $62,288,870 48,323 $1,289Arkansas $2,172,573 10,369 $210California $62,799,135 173,63:5 $362Colorado $7,561,090 33,941 $223Connecticut $7,382,516 13,261 $557Delaware $40,659 1,534 $26Florida $13,725,007 78,643 $175Georgia $6,516,877 61,186 $107Hawaii $21,218,865 34,333 $618Idaho $4,775,720 14,737 $324Illinois $10,154,712 46,611 $218Indiana $1,799,759 11,533 $156Iowa $287,075 2,052 $140Kansas $8,347,750 15,999 $522Kentucky $1,149,780 19,016 $60Louisiana $7,056,699 32,277 $219Maine $2,887,092 7,659 $377Maryland $9,921,973 57,445 $173Massachusetts $5,249,855 20,212 $260Michigan $6,438,853 10,875 $592Minnesota $5,358,313 11,035 $486Mississippi $3,746,633 18,041 $208Missouri $5,394,081 21,437 $252Montana $21,315,628 13,018 $1,637Nebraska $7,997,418 12,635 $633Nevada $3,593,085 19,192 $187New Hampshire $2,534,372 2,145 $1,182New Jersey $11,798,985 23,113 $510New Mexico $36,172,086 47,303 $765New York $14,769,966 120,938 $122North Carolina $8,612,307 56,251 $153

24

36

HAWAII'S SITUATION

Table 4-7 (cont'd)

STATE

AMOUNT OFIMPACT AIDRECEIVED IN

1990*

NUMBER OFFEDERALLY-CONNECTED

KIDS (a+b) in 1990*

AVERAGEOF DOLLARS

PER PUPIL

North Dakota $10,960,999 9,977 $1,099Ohio $4,38:5,055 37,060 $118Oklahoma $23,490,583 46,838 $502Oregon $3,332,513 6,559 $508Pennsylvania $3,478,539 47,700 $73Rhode Island $3,149,050 5,269 $598South Carolina $7,148,508 39,745 $180South Dakota $14,840,436 10,618 $1,398Tennessee $3,372,672 44,843 $75Texas $26,266,153 127,863 $205Utah $9,019,683 40,484 $223Vermont $10,640 368 $29Virginia $35,941,961 129,427 $278Washington $26,343,973 61,973 $425West Virginia $69,970 1,875 $37Wisconsin $6,079,154 8,235 $738Wyoming $7,322,214 9,943 $736

*These figures are from the NAFIS's Impact Aid Blue Book; 1991-1992 Edition. Thefigures are for 1990. The average was determined by dividing the amount of aid by thenumber of children.

Hence, the entitlement for handicapped students is one and one-half times the amount fornonhandicapped students. The entitlement for students living on Indian lands is one andone-quarter the amount for students living on non-Indian lands. States such as Alaska,Montana, South Dakota, and North Dakota have a very high percentage of theirfederally-connected students residing on Indian lands. Montana, for instance, has nearlyninety percent of its federally-connected students located on Indian lands. This twenty-fivepercent "add-on" greatly increases the amounts of impact aid that these states receive.1

Secondly, the amount that a state receives is influenced by the local contribution rate(LCR) of that particular state. The LCR is a major factor in the distribution formula of impactaid (see Chapter 2 for a discussion of this formula). A State's LCR is either one-half of theaverage amount spent to educate each pupil in that state or one-half of the national averageamount spent to educate students in the United States--whichever amount is greater (see

25

TRANSFER OF SCHOOLS TO UNITED STATES DOD

Appendix C, 20 U.S.C.A. 238 d). The national average in per pupil expenditure in 1991 was$4,885.2 Alaska has the highest average per pupil expenditure in the nation. In 1991, anaverage of $6,510 was spent on each pupil in the municipalities, and $12,809 was spent on

each student in the rural areas. These combined averages create a total state average of

$9,660.3 This high per pupil expenditure means that Alaska's LCR will also be high andconsequently, the state will receive a large amount of impact aid.

Hawaii's Federally-Connected Student

There were 35,736 federally-connected students throughout the State of Hawaii duringthe school year of 1991-1992. Of these, 16,574 are group "A" students and 19,162 are group"B" students. Table 4-9 illustrates the changes in the numbers of federally-connectedstudents in Hawaii over the past twenty years. The numbers are slowly declining from thehigh of 47,682 federally-connected children in fiscal year 1972-1973, although most of thedecline has occurred among "B" students.

The Percentage of "A" Students in Each Oahu School District

Oahu has four DOE departmental school districts: Honolulu, Central, Leeward, andWindward. Table 4-10 shows the numbers of "A" and "B" students in each district during theyear 1991-1992. Computations of the percentage of "A" students in each district show thatHonolulu has 2.3 percent of its federally-connected students being "A" students placing thedistrict in the "regular A" or "super B" category. The Central District had sixty-seven percentof its federally-connected children in the "A" category. Slightly over one-third, 33.5 percent ofthe federally-connected children in the Leeward District were "A" students and 45.6 percent ofthe students in the Windward District were also "A" students. Because of the highpercentages cf "A" students in the Central, Leeward, and Windward districts, all three ofthese districts are considered to be "super A" districts. "Super A" districts receive thehighest payments that are paid out to federally-connected students with no "add-ons" such asspecial education needs or residence on Indian lands.

Redrawing the Boundaries of Oahu's School Districts

The low percentage of federally-connected "A" students in the Honolulu Districtsuggests the possibility of increasing that percentage by redrawing district lines to decreasethe percentages in surrounding districts to increase the percentage in the Honolulu District.Since a school district is required to have a minimum of twenty percent of its students in the"A" category to be classified as a "super A" district, redrawing district boundaries mayachieve this minimum. However, it is very important to note that the number of "A" and "B"students present in a district is also an important factor in the formula used to determinepayments (see Chapter 2 for more information). Hence, redrawing district boundaries may

26

38

Table 4-8

I. PER PUPIL EXPENDITURENovember 12, 1992

Amount spent per pupil per year

TOTALPUBLIC

EXPENDITURE ENROLLMENTPER PUPIL

EXPENDITURE

% INCREASEOVER PRIOR

YEAR

FY 1966-67 $136,127,098 166,375 $818.19FY 1967-68 $136,412,918 169,673 $803.98 -1.9%FY 1968-69 $151,545,824 173,718 $872.37 +8.5%FY 1969-70 $178,875,530 178,564 $1,001.74 +14.8%FY 1970-71 $213,609,395 180,770 $1,181.66 +18.0%FY 1971-72 $219,100,015 182,463 $1,200.79 +1.6%FY 1972-73 $215,736,933 180,994 $1,191.96 -.7%FY 1973-74 $260,424,976 177,767 $1,464.98 +22.9%FY 1974-75 $261,895,784 176,381 $1,484.83 +1.4%FY 1975-76 $304,685,554 175,795 $1,733.19 +16.7%FY 1976-77 $340,916,355 174,442 $1,954.32 +12.8%FY 1977-78 $348,856,537 172,181 $2,026.10 +3.7%FY 1978-79 $357,258,411 170,096 $2,100.33 +3.7%FY 1979-80 $393,046,694 168,025 $2,339.22 +11.4%FY 1980-81 $435,186,996 164,438 $2,646.51 +13.1%FY 1931-82 $451,041,608 162,120 $2,782.15 +5.1%FY 1982-83 $522,578,959 161,335 $3,239.09 +16.4%FY 1983-84 $522,674,772 161,610 $3,234.17 -.2%FY 1984-85 $541,233,083 163,261 $3,315.14 +2.5%FY 1985-86 $613,943,889 163,624 $3,752.16 +13.2%FY 1986-87 $613,441,416 164,064 $3,739.04 -.4%FY 1987-88 $655,209,085 165,680 $3,954.67 +5.8%FY 1988-89 $699,458,370 167,039 $4,187.40 +5.9%

% INCREASEPUBLIC EDUC. PER PUPIL OVER PRIOREXPENDITURE ENROLLMENT EXPENDITURE YEAR

FY 1989-90 $778,406,934 169,572 $4,590.42 +9.6%FY 1990-91 $910,241,476 171,337 $5,312.58 +15.7%

Average annual percentage growth in per pupil exp. +8.1%

Over the 22 year period, the average increase in the expenditure per pupil was 8.1 percentper year.

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HAWAII'S SITUATION

The percentage increase in each year is dependent on several factors:

1. The revenue growth for that year constrains expenditures. The law specifies that youcannot spend more than you take in. Generally speaking, the larger the revenuegrowth, the larger the percentage increase in expenditure.

2. The percentage increases allowed for pay raises for employees and the percentageincreases allowed for inflation for supplies and equipment also affect the percentageincreases in expenditure from year to year. If pay raises are delayed and then givenretroactively in the following year, the percentage increases would fluctuate more

3. If there is something extraordinary happening such as a teachers strike, this wouldtend to reduce expenditures in certain years.

4. Adjustment in the state employee fringe benefit contributions will also affectexpenditures. Over the years, fringe benefits have fluctuated between 15 and 35percent. At present, it is about 25 perce:.t. For example, when the state changedfrom a contributory to a non-contributory retirement plan, there was a large drop infringe benefit percentage.

5. Fluctuations in the R&M and capital improvements program (CIP) budgets also affectthe annual expenditures. In some years, larger amounts are appropriated for CIPand R&M budgets. This affects the percentage increases from year to year.

Source: DOE Annual Repca by the Office of Business Services.

28

4 9

Table 4-9

II. DATA ON IMPACT AIDDecember 2, 1992

FISCAL YEARTOTAL

RECEIPT

NO. OFFEDERALLY CONNECTED STUDENTS

A B TOTAL

1972-73 10,75:3,181 16,992 30,690 47,682

1973-74 10,319,414 15,990 27,681 43,671

1974-75 11,693,713 15,913 23,918 39,831

1975-76 12,218,320 15,391 22,556 37,947

1976-77 13,577,377 15,884 21,114 36,998

1977-78 16,453,241 15,347 19,545 34,892

1978-79 15,521,12/ 16,608 26,852 43,460

1979-80 16,332,233 16,482 24,263 40,745

1980-81 16,748,525 15,432 22,502 37,934

1981-82 7,866,096 15,391 20,802 36,193

1982-83 16,352,118 15,564 21,540 37,104

1983-84 9,576,144 15,717 22,588 38,305

1984-85 8,360,666 15,568 23,359 38,927

1985-86 8,809,427 15,391 22,655 38,046

1986-87 17,711,423 15,276 22,567 37,843

1987-88 28,047,434 15,757 21,964 37,721

1988-89 23,447,887 15,789 21,176 36,965

1989-90 27,010,774 16,029 20,890 36,919

1990-91 22,499,061 16,166 19,986 36,152

1991-92 23,159,181 16,574 19,162 35,736

1992-93 16,574 19,162 35,736*

*The new regulation authorizes the use of the prior year student survey countfor payment.

Source: Hawaii, DOE, Office of Business Services.

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41

Table 4-10

DEPARTMENT OF EDUCATIONFEDERALLY CONNECTED STUDENTS

1991-92

1991-92 Final Report Sept. 3, 1992

TOTAL HONOLULU CENTRAL LEEWARD WINDWARD HAWAII MAUI KAUAI

3(a)1 24 0 16 8 0 0 0 0

3(a)1 LRH 137 88 26 15 5 3 0 0

3(a)2 15,088 13 11,104 2,312 1,616 13 2 28

3(a)2 LRH 21 10 2 6 0 3 0 0

3(a)2 SPED 1,304 5 987 175 133 1 0 3

ST 16,574 116 12,135 2,516 1,754 20 2 31

3(b)1 49 1 33 10 4 1 0 0

3(b)1 LRH 4,769 3,055 472 408 289 323 109 113

3(b)(2) A 10,852 1,556 3,795 3,530 1,327 228 43 373

3(b)(2)(a) LRH 71 35 7 16 10 2 1 0

3(b)3 3,211 144 1,527 988 432 70 26 24

3(b)3 SPED 210 13 112 as 30 7 1 1

ST 19,162 4,804 5,946 4,998 2,092 631 180 511

TOTAL 35.736 4,920 18.081 7,514 3.846 651 182 542

OTHER DATA% of total Fed

connected Stud't 100.00% 13.77% 50.60% 21.03% 10.76% 1.82% 0.51% 1.52%

ADA (Prior Yr) 160.273 32,141 33,085 27,894 18,503 22.906 16.488 9,257ADM (Prior Yr) 171,337 34,304 34,850 30,162 19,527 24,948 17,710 9,835

Enrollment 174.708 34,084 35,718 31,201 19,620 25.552 18,421 10,112

on count date 10/01/91

No. tuition recd 0 0 0 0 0 0 0 0

No. tuition paid to attendother 13 6 2 2 3 0 0 0

No. provided freeeducation 174.721 34,090 35,720 31,203 19,623 25,552 18,421 10,112

Total FederallyConnected 35,736 4,920 18,081 7,514 3,846 651 182 542

Percent of Enroll FedConnected 20.45% 14.43% 50.62% 24.08% 19.60% 2.55% 0.99% 5.36%

Total Current ExpPreceding Yr 793.080,190

Total Current Exp Percentage of "A" students in each district:Current Yr 848,595.771

Honolulu District - 2.3% (regular "A" district)Total Exp SPED 69,135,290 Central District - 67% (super "A" district)Total State Aid 675,941.348 Leeward District - 33.5% (super "A" district)Tot St Hand Aid 64,991,187 Windward District - 45.6% (super "A" district)Tot Part B Funds 3,844.045Tot Child Ct 94-142 13,516

(Percentages were computed by taking the subtotal of "A" students in each district and dividing by the total of federally-connected students for that district.)

Source: DOE, Budget Branch.30

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HAWAII'S SITUATION

place the Honolulu District in the "super A" category but it will also reduce the number of "A"students in the surrounding districts and place them in the Honolulu District. The final resultmay be payments that are equivalent to what Hawaii receives now.

It is also important to note that the administrative units that compose Hawaii's singlestatewide school system have already been redefined to increase the amounts of impact aidreceived by the DOE. In the early 1980's, United States Senators Daniel Inouye and SparkMatsunaga realized that Hawaii's single statewide school system was placing Hawaii in adisadvantaged position in terms of the amounts of aid that the State was receiving. A singlestatewide system meant that the numbers of federally-connected children in the State wereonly a small percentage of the entire statewide school enrollment. Hence, this smallpercentage generated very little impact aid. In 1983, Inouye and Matsunaga added aprovision to a congressional appropriations bill that allowed Hawaii's seven administrative(departmental) school units to be treated as seven separate school districts, solely for thepurposes of the impact aid formula.4 The Honolulu, Central, Leeward, and Windward districtsare on Oahu while the Hawaii, Maui, and Kauai districts are located on their respectiveneighbor islands. By converting Oahu into four major school districts, the percentage offederally-connected students in each district increased greatly and so did the amounts ofimpact aid received by the DOE. Hawaii's payment of $8.8 million in 1985 jumped to $17.7million in 1986.

Federally-Connected Pupils by Schools

The following table lists the Oahu schools that enroll military family members. The leftcolumn names the school, the middle column describes the percentage of that school'senrollment that is composed of military family members,5 and the right-hand column lists themap number and key so the location of that school may be found in the Bryan's SectionalMaps (1992 Edition) found in Appendix F. The schools that have a total school enrollment offifty percent or more of military family members are indicated on the maps with a sunburstdesign.

SCHOOL

PERCENT OF TOTALSCHOOL ENROLLMENT MAP

ACTIVE-DUTY DEPENDENTS NO. & KEY

Aiea 3 1 E 3

Aiea High 4 1 D 2Aiea Intermediate 7 1 D 3Aliamanu 67 4 B 3Aliamanu Intermediate 68 4 B 3

Hale Kula 98 78 C 1

Haleiwa 2 65 B 1Helemano 14 73 F 2

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SCHOOL

TRANSFER OF SCHOOLS TO UNITED STATES DOD

PERCENT OF TOTALSCHOOL ENROLLMENT MAP

ACTIVE-DUTY DEPENDENTS NO. & KEY

Hickam 99 3 F 1Iliahi 9 80 B 1Kaala 4 78 C 4Kipapa 18 83 B 3Leilehua High 33 79 B 3Makalapa 57 3 A 4Mililani High 16 83 C 3Mokulele 100 3 D 4Nimitz 99 4 D 1Pearl Harbor 60 4 C 1Pearl Harbor Kai 92 3 C 4Pearlridge 6 94 A 3Radford 66 3 A 4Red Hill 50 2 D 3Salt Lake 6 4 A 3Scott 15 1 E 2Shafter 88 7 F 3Solomon 94 77 D 3Wahiawa 8 79 B 2Wahiawa Intermediate 49 79 C 2Waialua 4 64 D 4Waialua High/Intermediate 2 64 E 3Mililani-Uka 21 83 F 3Mililani-Waena 16 83 C 3Moanalua 18 7 F 1Moanalua High 23 5 A 1Moanalua Intermediate 35 7 F 1Waimalu 4 91 F 4Webling 19 1 D 3Wheeler 92 78 D 3Wheeler Intermediate 19 70 D 3

Impact Aid and the Students of Hawaii

During the fiscal year of 1990-1991, the DOE assumed responsibility for the educationof 36,152 federally-connected students (see Table 4-9). The DOE's total student enrollmentfor that year was 171,337 (see Table 4-8). Hawaii received $22,499,061 in impact aid duringthe fiscal year of 1990-1991. Hence, the DOE received about $622 for eachfederally-connected student6 although Hawaii spent an average of $5,312.58 per pupil on astatewide basis.7

Subtraction of $622 (the average amount of impact aid received for eachfederally-connected pupil) from the average per pupil expenditure of $5,312.58 shows that the

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HAWAII'S SITUATION

State spent about $4,691 for each federally-connected student in Hawaii during the fiscal yearof 1990-1991.

Therefore, the amount of impact aid received by the State does not cover the entirecost of educating these military family members. In fact, the presence of 36,152 militaryfamily members in Hawaii's public school system resulted in the DOE spending about $170million in state funds to educate these children in 1990-1991.8 Table 4-11 illustrates thatalthough the amounts of impact aid received by the State have risen over the years, so hasthe total cost of educating these students. The amounts of impact aid received have nevercovered the entire cost of educating Hawaii's federally-connected children. In fact, theState's expenditure (column 6 on the far right of Table 4-11) has risen steadily over the pasttwenty years despite the increases in the amounts of impact aid received. Based on averageper pupil expenditures, in the nineteen years between fiscal year 1972-1973 to 1990-1991,state expenditures on students of military families exceeded impact aid receipts byapproximately $1.8 billion.

Impact Aid and the DOE

What Does the DOE Do with the Impact Aid Funds?

!mpact aid funds are presently deposited into the central salary account along with thegeneral funds 'that are used to pay the salaries of regular and special education teachers.The funding for salaries are not allocated; only the positions are allocated using a statewideformula. Once the number of positions has been allocated to a school, the school is then freeto hire any qualified teacher from the eligible list without worrying about the salary of thatteacher. The teacher's salary will come out of the central salary account.8

Why Does the Impact Aid Go Into the State General Fund?

Military family members are treated on an equal basis with the other students whoattend Hawaii's public school system. All students receive equal educational opportunities.Unlike other federal grants which are earmarked to provide supplemental services for certaintypes of students, impact aid funds are considered to be a reimbursement to the State foreducating federally-connected students. It is the policy of the DOE that these funds be usedfor basic services, not supplemental services.10

How Is the Impact Aid Allocated to the Schools By the DOE?

Hawaii is unique in that it is the only State in the nation with a single statewide schoolsystem. Hence, impact aid funds do not have to be carefully distributed among manyindependent and separate school districts according to entitlement, as is the practice in otherstates. Instead, the funds are deposited into the central salary account and used to pay thesalaries of teachers. It is not allocated to any specific schools.11

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TRANSFER OF SCHOOLS TO UNITED STATES DOD

Table 4-11

AMOUNT OF STATE FUNDS SPENT TO EDUCATEMILITARY FAMILY MEMBERS IN HAWAII

FY

No. ofStudents

(A+B Combined)Per Pupil

Expenditure

TotalStateCost

Amount ofImpact Aid

Received

DifferenceThat State

Spent

72-73 47,682 $1,191.96 $56,835,037 $10,755,181 $46,079,856

73-74 43,671 $1,464.98 $63,977,142 $10,319,414 $53,657,728

74-75 39,831 $1,484.83 $59,142,264 $11,693,713 $47,448,551

75-76 37,947 $1,733.19 $65,769,361 $12,218,320 $53,551,041

76-77 36,998 $1,954.32 $72,305,931 $13,577,377 $58,728,554

77-78 34,892 $2,026.10 $70,694,681 $16,453,241 $54,241,440

78-79 43,460 $2,100.33 $91,280,342 $15,521,127 $75,759,215

79-80 40,745 $2,339.22 $95,311,519 $16,332,233 $78,979,286

80-81 37,934 $2,646.51 $100,392,710 $16,748,525 $83,644,185

81-82 36,193 $2,782.15 $100,694,355 $7,866,096 $92,828,259

82-83 37,104 $3,239.09 $120,183,195 $16,352,118 $103,831,077

83-84 38,305 $3,234.17 $123,884,882 $9,576,144 $114,308,738

84-85 38,927 $3,315.14 $129,048,455 $8,360,666 $120,687,789

85-86 38,046 $3,752.16 $142,754,679 $8,809,427 $133,945,252

86-87 37,843 $3,739.04 $141,496,491 $17,711,423 $123,785,068

87-88 37,721 $3,954.67 $149,174,107 $28,047,434 $121,126,673

88-89 36,965 $4,187.40 $154,787,241 $23,447,887 $131,339,354

89-90 36,919 $4,590.42 $169,473,716 $27,010,774 $142,462,942

90-91 36,152 $5,312.58 $192,060,392 $22,499,061 $169,561,331

The Figures in this table were computed by taking the numbers of students (combined "A" + "B")and multiplying by the per pupil expenditure to determine total state cost. Then the amount ofimpact aid received was subtracted from the total state cost to determine the difference that theDOE spent in state funds.

34 4 0

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HAWAII'S SITUATION

Impact Aid and State Funds

Impact aid funds provide only a small percentage of the fundingnecessary to educate federally-connected students in Hawaii. Most of themoney comes from state funds:

. . in the education of the 36,000 federally-connected students[1988-89 figures], the $20 million impact aid funds represent only12.3 percent of the total $4,522.91 expected to be expended foreducating each of these students this year. The other 87.7 percentcomes from state funds (80.5%), other federal grants (5.2%), andspecial funds (2.0%) .12

During the fiscal year of 1989-1990, Hawaii's public schools had a total budget ofabout $759.8 million. The $20 million of federal impact aid received by the state representedonly 2.6 percent of this total budget.13 If impact aid was lost or reduced in the past, the Statemade up the difference. For example, in the early 1980's, impact aid was cut from a high of$17 million to a low of $7 million. The State increased its funding to make up the federalreductions and maintain its previous level of services.14

The Decline of Federal Funding

Efforts by the federal government to reduce impact aid through various devices suchas the reduction and/or elimination of type "B" payments (see Chapter 2 for more details) mayresult in a reduction of the amount of impact aid received by the states. In fact, Table 2-2 inchapter 2 illustrates the decreasing appropriations that have taken place over the past fewyears in nearly every state in the nation. Hawaii is not exempt from this decline in federalfunding and 1993 figures show less funding than in previous years.

The Decline of State Funding

In the past, the State of Hawaii made up for declines in federal impact aid through theuse of state funds. Educational services were maintained at their previous levels.Unfortunately, the State may not be able to make up for future losses of federal funds. Thecurrently weakened state economy has led to a cut in state revenues and a freezing of theDOE's budget for the next two fiscal years. "But the department's $671 million annual budgetwon't be enough to cover growing student enrollment and new schools and facilities, saidSchools Superintendent Charles Toguchi."15 The limited budget will have to accommodate asystem that is expected to grow by 2,200 new students in each of the next five years.16 "In amemo to members of the state Board of Education, Toguchi said $22.6 million more will beneeded in the 1993-94 fiscal year, and $26.3 million the year after."17

35

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(

TRANSFER OF SCHOOLS TO UNITED STATES DOD

The Results of the Decline in State Funding

In this atmosphere of limited state funding for education, it may be difficult for theState to make up any differences that will result from the decline or loss of federal impact aid.Although the State has always been able to make up the differences in the past,circumstances in the near future may make this impossible. The result of this financialcrunch will probably be a reduction in the services that the public schools provide to theirstudents statewide. Since the public school system cannot limit enrollment, the increasingenrollment combined with declining federal aid and restricted state funds may result in largerclasses, fewer textbooks, and less instructional supplies and other classroom equipment.

Options for Maximizing the Existing Impact Aid Funds

Remove Impact Aid from the General Fund

Some military parents fault the State of Hawaii for placing impact aid funds into thegeneral fund and the central salary account instead of allocating it to the schools with militarydependents. They feel that impact aid should be an additional supplemental fund thatbenefits the schools with military students. However, Hawaii's statewide school system doesnot consider impact aid to be a fund for supplemental services:

Since the funds are not used for supplemental services but areused instead to provide basic services, it does not matter ifimpact aid were earmarked for specific schools. If the funds wereearmarked for specific schools, a comparable amount of stategeneral funds would be reduced from those schools and the overallallocation would still be the same. In short, a school would notreceive more funds if impact aid funds were allocated toindividual schools. On the other hand, earmarking impact aidfunds for specific schools would only result in more paperwork andrecordkeeping. It would not result in additional services. Thisis essentially why the funds are not allocated to specific schoolswith military dependents.18

Charge Tuition

Charging tuition to supplement the federal Impact Aid Program is an idea that hasbeen discussed in Congress in the past.19 This idea usually takes two forms: one is tocharge the military parents tuition for each child in the public school system. The other is tocharge the Department of Defense for each military dependent in the school system.Although the idea of charging military parents tuition has been discussed, the idea has notbeen implemented by any of the states because it would probably violate the United StatesConstitution in addition to the constitutions of many states. In 1981, for instance, the United

36

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HAWAII'S SITUATION

States Supreme Court ruled that Texas could not charge illeaal aliens tuition for the publiceducation of their children.20 A state would be hard pressed to justify making military parentspay a tuition that illegal aliens do not have to. Also, no state has attempted to charge theDOD tuition, which ultimately would require a congressional appropriation.

Applying for Extra Impact Aid

The continual reduction in congressional appropriations for the Impact Aid Program inaddition to the possible elimination of payments for type "B" students does not make this apromising option.

Maximizing the Existing Impact Aid Applications

The DOE should ascertain whether Hawaii is receiving its full share of aid from all ofthe Impact Aid Programs. Greiner and Jones21 conducted a study in seven districts insoutheastern Virginia in an area that is heavily impacted by military installations. Theystudied the data concerning special education students and discovered that many of theareas were receiving much less in impact aid funds than they were entitled to:

These data revealed wide variances reported by comparable LEAs[Local Education Agencies]. The pereentage of military-connectedchildren in special education classes in contiguous LEAs rangedfrom 10.8 percent to 1.3 percent of the total military enrollment.Further investigation indicated that the discrepancies werepartially attributable to incomplete record keeping and inaccuratereporting. In some cases, LEAs were not aware that allhandicapping conditions were eligible for Impact Aid payments andtherefore did not include speech impaired and other categoriesreceiving special education in regular classrooms. Not all LEAsunderstood that handicapped students were entitled to larger (150percent) Impact Aid payments than nonhandicapped studentsreceived, and that underreporting of handicapped students resultedin a substantial loss of revenue to the LEA. Jones and Salmonestimated that one LEA lost over $400,000 in the 1985-87 perioddue to underreporting of handicapped students.22

The Issue of School Choice for Military Personnel

The military personnel who are stationed in Hawaii do not have the option of sendingtheir children to a DOD school since there are no Section 6 schools in the State. Some ofthese military parents claim that Hawaii's public schools have a poor reputation on themainland and that they would prefer to have their children attend Section 6 schools.

37

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1

TRANSFER OF SCHOOLS TO UNITED STATES DOD

Advantages of DOD Schools

DOD schools are believed to be of better quality by some military parents and thisquality is believed to be standardized among all of the stateside DOD schools.23 Thisstandardization of quality enables children of military families to maintain continuity in theireducation despite frequent moves.

Military dependents are highly mobile students. The

frequency, suddeness, and unpredictability of militaryreassignment procedures cause serious social and psychologicalstress on those students. Education programs which are notconsistent from area to area can cause children to arrive farbehind or ahead of new classmates, generating a traumatic dislikefor school which impedes their adjustment to schools. This stressfrom the constant movement of military children contributes to theinstability of the family .24

Section 6 schools also have special programs that address the specific educationalneeds of rrdtary family members. Special programs provide counselling when the child'sparents are deployed overseas; and orientation programs exist for new students who muststart at a new school in the middle of the school year.25 Some parents also report that theSection 6 schools provide more after-school enrichment programs in music, corr ,uter-usage,and so forth.26

As discussed in Chapter 3, however, these military parents may be unaware that theSection 6 DOD schools are required to be comparable to local schools. Consequently, aSection 6 school established in Hawaii would be designed to replicate the very schools ofwhich they complain.

Options for School Choice

There are some options available to military parents stationed in Hawaii who are notsatisfied with the Hawaii public school system.

Private Schools

Many parents in Hawaii, not just military parents, have chosen to send their children toprivate schools. The result is that Hawaii has one of the highest percentages of privateschool enrollment of any state in the United States: 17.2 percent.27 Unfortunately, the highcost of private education in Hawaii may make it prohibitive to the families in the lower ranks ofthe military. Some of the higher ranking military personnel are exercising this option althoughthe private schools in Hawaii do not have the special programs that the Section 6 schoolshave to fulfill the specific needs of the military children.

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HAWAII'S SITUATION

Homeschooling

Homeschooling is an alternative that some military parents find satisfying.28 The DOEallows homeschooling as an alternative education program in which any parent is considereda qualified instructor who assumes the responsibility of educating their own child.29 Theparent must supply a notice of intent to the principal of the child's district school in addition tosubmitting an annual report describing the child's progress. The child may voluntarilyparticipate in testing that takes place at certain grade levels in the public school system.

School/Community Based Management (SCBM)

The SCBM program was mandated by the Legislature in 1989 in an effort to placemore control of the public schools in the hands of teachers and parents with children in theschools. In participating schools, parents and teachers work with the principal of the schoolto determine how the school should be run. This DOE program attempts to decentralizedecision-making by placing it in the hands of parents and teachers. Military parents shouldconsider extensive participation in the program and/or the SCBM council. Anyone is allowedto participate--state residency is not required.30 This participation would enable them toinfluence the priorities, goals, curriculum, and learning climate at their childrens' schools.

Greater Participation in the Democratic Process

Military personnel who are eligible to vote in Hawaii can also become involved in thepublic school system through the elected Board of Education (BOE). Greater participation inthe community and on significant policy-making boards may result in improvements in thequality of education. Also, the special needs of the children of military families would bemade known to the BOE and the DOE. However, participation on this level has beenhindered by the fact that many military members and their families are not residents of theState of Hawaii. To the extent they are ineligible to vote, they have no voice in localgovernment: "The notion of paying state tax is a major deterrent to getting military people toregister and vote in their local community."31 Without state residency they are not eligible torun for elective office. Currently, there is only one member of the BOE, with an extensivebackground in the military.32

School District Advisory Councils

Each departmental school district has an advisory council that serves in an advisorycapacity to the BOE. Council members are appointed by the Governor and military personnelhave been appointed in the past to the advisory councils of districts with large militarypopulations. Military parents should work toward the continuation of this practice. Theadvisory councils work with the BOE and the district superintendent of each school district toadvise the BOE in the development of policies, disseminate information to the community,and insure cooperation between the community and the _educators on educational matters ofmutual concern.33

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TRANSFER OF SCHOOLS TO UNITED STATES DOD

Creation of a Military School Board

It has been suggested that the State could create a separate Military School Boardthat would allow military parents to assume control of policy at the schools located on themilitary installations. The military parents would elect the representatives and the board mayhave its own funds provided by the DOE. This is an idea that is problematic:

First, a Military School Board that represents only the military could only control thepolicies of schools that are composed entirely of military family members. Most of thestudents in the schools located on the military bases are military family members. (SeeChapter 4 for the percentage of military family members attending various schools.)However, it should be noted that many military children, espec:ially older children, attendschools that are not located on the bases and that they (military family members) do notcomprise the majority of those schools' populations. The Military School Board would not beeffective at those schools.

Secondly, since a person is required to be a registered voter to run for the Board ofEducation, the State would have to eliminate the residency requirement for persons runningfor the Military School Board. Since most active military personnel are not Hawaii residents,they are currently not eligible to run for office in the State of Hawaii.

Thirdly, it may be considered discriminatory to hold an election in which only militarypersonnel are allowed to run for office. Also, the definition of "military" personnel remainsproblematic. The term could be viewed narrowly as applying only to military parents withchildren in one of the base schools. Interpreted broadly, it could include retired militarypersonnel and to people who are in the military reserves.

Summary

Hawaii received approximately $22 million for impact aid in 1992. In 1990, Hawaiireceived about $21 million which ranked it as the tenth highest state in terms of the amount offunding received. A few states, like Alaska and Montana, with smaller populations and fewerfederally-connected students than Hawaii, received more impact aid than Hawaii. This wasdue to the high percentage of federally-connected students who reside on Indian lands inthese states. Students who reside on Indian lands get a larger entitlement (twenty-fivepercent more) than students who reside on non-Indian lands. Alaska's public school systemalso spent more per pupil than any other state in the nation giving it a very high LocalContribution Rate (LCR). A State's LCR is an important factor in the formula used todetermine a State's impact aid payments.

During the fiscal year of 1990-1991, Hawaii received about $22.5 million in impact aid.There were 36,152 federally-connected students in Hawaii's public schools that year. Hence,

40

5 6

HAWAII'S SITUATION

the DOE received approximately $622 for each of these military family members. Since theDOE's per pupil expenditure for that year was $5,312.58, approximately $170 million in statefunds was spent to make up the cost differential in educating these federally-connectedstudents. During the past twenty years, the federal government has never given the State thefull amount that was spent to educate these students; instead, the cost differential that theState must pay is increasing with each fiscal year. Based on average per pupil expenditures,state expenditures on students from military families exceeded impact aid receipts by a totalof over $1.8 billion between the 1972-1973 and 1990-1991 fiscal years.

Impact aid funds go into the state general fund where it becomes part of the centralsalary account used to pay the salaries of the public school teachers. These funds are usedfor basic services, not supplemental services.

Declining congressional appropriations will probably result in smaller impact aidpayments to many of the states. Unfortunately, Hawaii's economy is weak at the momentresulting in a reduction of state revenues. Limited state funding combined with reducedfederal impact aid payments will most likely result in a statewide reduction in the services thatthe public schools provide to their students. Removing impact aid from the state generalfund, attempting to charge military parents tuition, and applying for extra impact aidpayments, will probably not solve the DOE's funding shortage. Redrawing Oahu's schooldistrict boundaries will most likely not increase impact aid payments since three of the fourschool districts are already classified as "surer A" districts. However, the DOE shouldascertain whether Hawaii is receiving its full pal ent for special education students.

Some of the military personnel stationed in Hawaii are dissatisfied with the quality ofHawaii's public schools. They believe that their children would receive a better education in aSectior 6 school that is managed by the Department of Defense (DOD). Options presentlyavailable to military parents stationed in Hawaii include sending their children to privateschools, engaging in homeschooling, or participating in SCBM, BOE elections, and the SchoolDistrict Advisory Councils.

ENDNOTES

1. Telephone interview with John Forkenbrock of the National Association of Federally Impacted Schools(NAFIS), Washington D.C., December 2, 1992.

2. Ibid.

3. Ibid.

4. Pub. L. 98-139, 98th Cong., 1st Sess., Ill, U.S. Department of Education, October 31, 1983.

5. Hawaii, Department of Education, Focus: Statistical Information, Economic Impact and Military Contributionsto Hawaii, Military Liaison Resource Teacher, June 1990, pp. 2-3.

6. $22,499,061 divided by 36,152 equals $622.34.

41

53

4%.

TRANSFER OF SCHOOLS TO UNITED STATES DOD

7. Financial Report, July 1, 1990-June 30, 1991, Department of Education, State of Hawaii (Honolulu: 1991),

pp. 4-8. Figures for the fiscal year of 1990-1991 are used because the DOE had not issued its final anr.ualreport for 1991-1992 at the time that this study was being written.

8. 36,152 multiplied by $4,691 equals $169,589,032.

9. Hawaii, Department of Education, Budget Branch, Funding and Impact Aid, Honolulu, 1990, p. 2.

10. Ibid., p. 1.

11. Ibid., pp. 6-7.

12. Ibid., p. 7.

13. Ibid., p. 2.

14. Ibid.

15. Honolulu Star-Bulletin, September 1, 1992, p. A-1.

16. Ibid.

17. Ibid.

16. Hawaii, Department of Education, Funding, p. 6.

19. See U.S., Congress, Senate, Committee on Armed Services, Hearing on Effects of Reduction of Impact Aidon Military, 97th Cong., 1st sess., June 24, 1981.

20. Plyler v. Doe, 457 U.S. 202 (1981).

21. Charlene E. Greiner and Philip R. Jones, "Federal Impact Aid for Handicapped Military Dependents: AreSchool Districts Collecting Their Full Share?," Journal of Education Finance. Winter, 1989.

22. Ibid., pp. 410-411.

23. Interview with an anonymous military parent stationed at Schofield Barracks, August, 1992.

24. U.S., Congress, Senate, Committee on Armed Services, Hearing on Effects of Reduction of Impact Aid onMilitary, 97th Cong., 1st Sess., June 24, 1981, p. 48.

25. Interview with the wife of a captain stationed at Schofield Barracks, August, 1992.

26. Ibid.

27. John Bickel, "Abandoned Schools," Honolulu Magazine, September 1992, p. 30.

28. Interview with anonymous military parent, August 1992.

29. Hawaii Administrative Rules, DOE, Title 8, Chapter 12, Sections 18 and 19, 1991.

30 Telephone interview with Arthur Kaneshiro, School Community-Based Management office, Department ofEducation, September 3, 1992.

42

5 4

HAWAII'S SITUATION

31. Army Times, April 6, 1992, p. 40.

32. Telephone interview with Francis McMillen at Board of Education office, December 4, 1992.

33. Ibid.

43

Chapter 5

THE FEASIBILITY OF SWITCHING SOME OF OAHU'SSCHOOLS FROM THE STATE DOE TO THE UNITED STATES DOD

Introduction

The earlier chapters of this study have illustrated the failure of the federal governmentto accept full responsibility for the costs of educatino federally-connected students in theState of Hawaii. The United States Department of Education provides impact aid which doesnot cover the entire cost of educating these students. Future appropriations of impact aid areexpected to be even lower. However, Hawaii is not the only state facing this situation.

The Illinois Case

In 1990, the state of Illinois received a little more than $10 million to educate 46,611federally-connected children (see Table 4-7 in Chapter 4.) They received approximately $218for each federally-connected student. in an effort to get the Pentagon to take fullresponsibility for the cost of educating the children of military personnel, both houses of theIllinois legislature voted in the spring of 1992 to allow the school districts to petition for thedetachment of military installations from the school systems. (See Appendices G, H, and I.)The bill passed by the Illinois legislature would allow the school districts to redraw theirboundaries and exclude the military bases. The Illinois House action is a drastic step onbehalf of three northern districts that are losing millions of dollars each year educating militarydependents.

One district, North Chicago Unit School District 187, is onthe brink of a possible state financial takeover because of theeffects of its small tax base and the large number of students itserves from the Great Lakes Naval Training Center. The districthas estimated it loses $3 million a year because of lowreimbursements from the Pentagon for the 2,000 military dependentsin its classrooms.

Highwood-Highland Park School District 111 has estimated aloss of $1.5 million a year on the 400 children it serves fromFt. Sheridan.

Glenview Community Consolidated School District 34 says itloses about $1.1 million a year on the 260 youngsters it educatesfrom the Glenview Naval Air Station.

The bill passed Wednesday would allow the three districts andDownstate districts that serve Chanute Air Force Base near Rantouland Scott Air Force Base near Belleville to redraw theirboundaries and exclude the military installations.1

44

C C.!L., 0

THE FEASIBILITY OF SWITCHING SOME OF OAHU'S SCHOOLS

To become law, the bill must also be signed by Governor Jim Edgar. If the governorsigns the measure, Illinois officials hope that the Pentagon will be forced to develop on-baseschools (such as those in the existing Section 6 stateside school system) or contract with thedistricts to pay tuition that would include the full cost of educating the military familymembers. The Pentagon has made no response to the Illinois measure, "A DefenseDepartment spokesman, Lt. Col. Doug Hart, said the Pentagon knows of the bill but wouldhave no comment unless the measure becomes law. Hart said no other state has taken theaction being carried out in Illinois."2 Illinois officials feel that the federal government will takethe legislation to court if the bill becomes law.3

The Hawaii Case

In 1992, the Hawaii Legislature reviewed H.B. No. 2617 entitled "Relating to theTransfer of Certain Public Schools to the United States Department of Defense Pursuant toPublic Law 81-874" (see Appendix J). Due to the unhappiness of some military parents withthe quality of education that their children were receiving in Hawaii's public schools, this billsought to transfer the managerial, administrative, and organizational responsibility of all publicschools located on Hawaii's military installations and attended mostly by military familymembers from the state Board of Education to the United States Department of Defense. Thebill also sought to establish two new school complexes in the proximity of existing militaryinstallations. The first was to be established around Wheeler Intermediate School and thesecond was to be located around Radford High School.

This bill resulted in intense discussion of many of the issues surrounding the presenceof military family members in Hawaii's public schools:

Hearing debate was enthusiastic and at times testy. Manylegislators asked questions, wondering aloud why the military"brass" weren't there in person to say yeah or nay, and airedtheir frustration with the vocal criticism of military parents.Some legislators were quick to note the minimal $22.5 millionfederal impact aid money, designed to offset state costs ineducating military children whose parents offer a limited localtax base.

The committee was about half in favor of passing the bill outand half against. Some said it amounts to a form ofdiscrimination. Others said passing it out will generate badlyneeded dialogue. In the end, the chair chose to hold the bill incommittee.4

Charles Toguchi, state Superintendent of Education, said in his testimony to thecommittee that the bill "tried to deal creatively 'with some military parents' dissatisfaction with

45

57

TRANSFER OF SCHOOLS TO UNITED STATES DOD

public education in Hawaii' but 'similar departmental attempts in the past' wereunsuccessful."5 (See Appendix K for the text of Toguchi's testimony.) The military viewpointwas represented by the Military Affairs Council of the Chamber of Commerce of Hawaii (seeAppendix L).

The bill was eventually killed in committee which decided instead to draft a resolutionexploring the issues surrounding a transfer of responsibility from the DOE to the DOD. (SeeAppendix A for the text of this Resolution.) "Too many questions can't be resolved at thistime,' [House Education Chairman Rod Tam] said, such as whether the Department ofDefense could afford to run the schools and whether the state could 'discriminate' againstmilitary children oy not educating them."6

Legal Issues for the State of Hawaii

Transferring some of Hawaii's public schools to the control of the Department ofDefense (DOD) could be problematic. There are various legal issues and questions that needto be taken into consideration.

First, the State is required by existing laws to provide educational services to allchildren. The State Constitution, Article X, section 1, provides for the statewide creation of asystem of public schools. A public school education is also compulsory for all childrenbetween ages six and eighteen, with the exception of children enrolled in a private school oran alternative educational program such as home schooling.7 Any measures that are taken totransfer a school could be considered an attempt to differentiate military students from therest of the student population. Hence, it may appear to be discriminatory. Ultimate resolutionof these issues may require litigation.

Secondly, federal !aws generally leave the education of military dependents stationedin the United States and the territories to the local educational agencies.8 Hence, childrenliving on military bases are to be educated in schools operated and controlled by the localpublic school systems in accordance with state laws.

Ownership and Control of Hawaii's Public Schools

The transfer of the responsibility of some of Hawaii's public schools to the DOD isfurther complicated by the issue of determining ownership of the schools with a highenrollment of military dependents. Prior to 1965, the City and County of Honolulu financed,built, and managed the public schools on Oahu. Then in 1965, the legislature authorized theState to take over the planning, construction, and management of the public school system.9The counties retained the obligation of paying the interest and principal on the bonds that hadbeen issued to finance the construction of the schools. Hence, the ownership of any school

46

58

4

THE FEASIBILI TY OF SWITCHING SOME OF OAHU'S SCHOOLS

facility built after 1965 usually resides with the State. However, any facility built before 1965is usually owned by the County although it is now managed and maintained by the State.

A school structure can be owned by the county if constructed before 1965, by theState, or the federal government if federal funds were used for the construction. It is

important to note that each structure on a school campus may have been added to thecampus at a different time and under differing financial circumstances. Hence, one schoolmay have an administration building built by the State after 1965, several portable classroomsowned by the County, and a cafeteria owned by the federal government.10

This type of diffuse ownership of school structures could complicate the transferral ofpublic schools to the DOD if ownership of the structures becomes part of the transferralprocess.

Creation of a Section 6 Arrangement with the DOD

Some of these legal issues may be avoided through the creation of a Section 6financial arrangement instead of the direct transferral of some of Oahu's schools to the DOD.The impact aid laws generally state that if there are no tax revenues available for theexpenditure of free public education for federally-connected students, the Secretary ofDefense may make arrangements to provide a free public education for these students that iscomparable to the communities in which the students reside.11 The State would file anapplication with the Secretary and if an arrangement were approved, the amount of fundingprovided by the DOD would be removed from other payments made to the DOE (in otherwords, loss of impact aid would result). Whether a school may enter a Section 6 arrangementis determined by the discretion of the Secretary of Defense. However, as discussed earlier inChapter 3 of this study, the responsibility for stateside schools with past Section 6arrangements are being returned to the local educational agencies.

Downsizing of the DOD and DOL School System

The collapse of the Soviet Union and the dissolution of the Eastern Bloc has led to theprocess of restructuring the United States defense apparatus. The end of the Cold War hasresulted in the downsizing of the DOD and the DOD school systems both abroad andstateside. Congressional efforts to close the stateside school system are discussed inChapter 3 of this study. However, the DOD is also closing schools abroad with Germanytaking the largest reductions at the moment. By the end of 1992, there will be twenty fewerschools and 31,000 fewer students by 1994.12

The downsizing of the DOD in response to the end of the Cold War was begun byPresident Bush's administration. President-elect Clinton has also promised deep cuts in theUnited States defense budget. Therefore, Congress at this time may be unwilling to

547

TRANSFER OF SCHOOLS TO UMTED STATES DOD

appropriate the necessary additional funds required to establish the Section 6 schools onHawaii's military bases.

Summary

Hawaii is not the only state that has received impact aid payments that do not coverthe cost of educating federally-connected pupils. The federal government has not acceptedfull financial responsibility for federally-connected students in other states also. Both housesof the Illinois legislature responded last spring by passing a bill that allows certain schooldistricts to petition the regional board of school trustees for the formation of new schooldistricts. These new districts would be detached from the military bases. The petition cannotbe denied by the regional board of school trustees. This bill has not been signed into law bythe Governor of Illinois.

In the spring of 1992, the Hawaii legislature focused its attention on H.B. No. 2617.This bill sought to satisfy some military parents who were dissatisfied with the quality ofeducational services provided by Hawaii's public school system. The bill would havetransferred administrative, organizational, managerial, and financial responsibility for certainschools located on military installations to the control of the DOD. The bill was killed by theHouse Committee on Education which decided instead to adopt a reolution exploring variousissues surrounding a transfer.

The transfer of some of Oahu's schools to the control of the DOD involves variouslegal issues which could require constitutional amendments and which may ultimately beresolved only through litigation.

Unfortunately, historical circumstances do not favor either the transfer of any ofOahu's schools to the DOD or the creation of a Section 6 arrangement. The end of the ColdWar has begun a period of deep financial cutbacks by Congress. These cutbacks, begun byPresident Bush, will probably continue under President-elect Clinton who has vowed to reducemilitary spending. The DOD is reducing its overseas school system, has attempted to shutdown its stateside school system, and has begun transferring schools with Section 6arrangements back to their local educational agencies. Hence, Congress will probably notview the creation of Section 6 schools in Hawaii in a positive light. And any creation of aSection 6 financial arrangement is dependent upon the discretion of the United StatesSecretary of Defense.

48E3()

THE FEASIBILITY OF SWITCHING SOME OF OAHU'S SCHOOLS

ENDNOTES

1. Chicago Tribune, May 14, 1992, p.11-1.

2. Ibid.

3. Ibid.

4. Voice of Business. February 24, 1992, p. 3.

5. Honolulu Advertiser, February 13, 1992, p. A-8.

6. Ibid.

7. Hawaii Rev. Stat.. sec. 298-9 (1985).

8. 20 U.S.C.A. 241 (1990).

9. 1965, Hawaii Sess. Laws, Act 97.

10. Telephone interview with Rosalind Sueyoshi, Hawaii, Department of Education, Facilities Branch, August 19,1992.

11. 20 U.S.C.A. 241 (1990).

12. Army Times, March 16, 1992, p. 43.

49 6 1

Chapter 6

FINDINGS AND RECOMMENDATIONS

Introduction

The primary focus of this chapter is to summarize the findings of this study andprovide recommendations relating to the feasibility of transferring some of Hawaii's publicschools from the state Department of Education (DOE) to the United States Department ofDefense (DOD).

Findings

1. In 1992, Hawaii received approximately $22 million in impact aid. Impact aidpayments are made to the State of Hawaii by the federal government in an effort to offsetstate costs in educating military family members whose parents offer a limited local tax base.

2. In fiscal year 1990-1991, Hawaii spent about $170 million in state funds toeducate federally-connected children attending Hawaii's public schools. Despite increases inimpact aid payments to the State, the cost of educating federally-connected students hasincreased steadily over the years resulting in the expenditure of state funds that has alsorisen steadily over the years. From fiscal years 1972-1973 to 1990-1991, based on averageper pupil expenditures, state expenditures on students from military families exceeded impactaid receipts by a total of more than $1.8 billion.

3. Congress has appropriated less funding for the Impact Aid Program in 1993 thanit did in 1992. This decreased appropriation will probably result in decreased payments to thestates in 1993. Future funding may be further reduced through the possible elimination ofpayments for type "B" students.

4. The Impact Aid Program is due for reauthorization by Congress in 1993.Congress may choose to extend the program in its present form, modify the program, entirelyrewrite the program, or eliminate it altogether by refusing to reauthorize it. Congressionalefforts to reduce the federal deficit will undoubtedly lead congressional budget-cutters toexamine closely all programs that are due for reauthorization.

5. The downsizing of the Department of Defense and the DOD school systems bothon the mainland and abroad is taking plac..e. Congressional budget-cutters have made astrong effort over the past few years to either close Section 6 mainland schools or return theschools to the control of their local educational agencies. This effort will probably continueunder President-elect Clinton. Hence, Congress may not look favorably upon appropriatingmoney for the transferral of some of Hawaii's schools from the control of the state DOE to theUnited States DOD.

50

6 2

FINDINGS AND RECOMMENDATIONS

6. The State of Hawaii cannot unilaterally require the United States to establishSection 6 schools or otherwise assume the responsibility for and the cost of educating thechildren of military families in Hawaii. It would appear that the only way in which the Statecould unilaterally attempt to "force" the issue would be to refuse to educate the children ofcertain military families and see whether the United States would "cave in" and eitherincrease payments or establish its own facilities--or alternatively take some kind of retaliatoryaction against the State. However, before taking any action of this kind, it would appearnecessary for the State to modify some of its basic educational policies, such as the provisionin Article 10, Section 1 of the State Constitution providing for "the establishment, support, andcontrol of a statewide system of public schools . . .", and the compulsory education laws.

7. The Leeward, Central, and Windward departmental school districts on the islandof Oahu are now all classified as "Super A" districts for purposes of impact aid, therebyqualifying the State for the highest rate of reimbursement for students in those districts.

8. Assuming the federal government agreed to take over certain schools andoperate them under the Section 6 program, the federal laws authorizing the program requirethat standards for Section 6 schools and Section 6 school arrangements ke based on localcomparability. Therefore, any Section 6 schools established for military family members inHawaii would presumably be operated in a manner that would make them reasonablycomparable to the state-run public schools of which certain parents have complained.

Recommendations

1. The reauthorization of the impact aid program by Congress is of crucialimportance to the state DOE and the public school system. Impact aid payments areessential to the DOE budget, particularly in light of the State's present revenue situation. TheLegislature should direct the DOE to work closely with Hawaii's congressional delegation toassure the reauthorization of the program in a manner that will be most beneficial to Hawaii.The department should make every effort to keep the congressional delegation apprised of itsneeds, and the implications of relevant proposals, particularly where Hawaii might bedisadvantaged by virtue of its statewide school system throughout the reauthorizationprocess. Assuming the system for calculating impact aid is reauthorized in a form similar tothe present, then it will be important to have Hawaii's departmental (administrative) schooldistricts continue to be treated as being comparable to local school districts in other states.

2. The Legislature should not take any direct action at this time to try to force thetransfer of any of Hawaii's public schools from the administrative and managerial control ofthe state DOE to the United States DOD. If the Legislature feels strongly that at least someof Hawaii's public schools should be transferred to the United States DOD, then theLegislature should direct the DOE to actively explore whether and under what circumstancesthe United States would consent to such an assumption of responsibility. The Legislatureshould also request the assistance of Pawaii's congressional delegation in this endeavor.

51

6 :3

TRANSFER OF SCHOOLS TO UNITED STATES DOD

The Legislature should realize, however, that even if such a transfer wereaccomplished, it may not provide any permanent solution. Congress has attempted totransfer the Section 6 schools to the local school districts, and some schools with Section 6arrangements have been returned to the control of their local educational agencies.Transferring some of Hawaii's public schools to the control of the DOD will result in at least acertain amount of upheaval in the DOE's administrative and educational operations. Thisupheaval will be repeated if the Section 6 program is subsequently terminated and theschools must later be transferred back to the control of the DOE.

3. One way in which the State might be able to increase its allotment of impact aid(if only slightly) would be to modify the boundaries of the Honolulu departmental schooldistrict to place a greater number of the children of military families within the boundaries ofthe Central district. Because the Central district is classified as a "Super A" district whileHonolulu is not, the rate of reimbursement for children in that district would be higher than forthose in Honolulu.

The State should not, however, undertake any reorganization solely for the purpose ofattempting to increase its share of impact aid payments. The reauthorization process that theImpact Aid Program faces this year may result in the criteria for making payments to thestates being modified or completely changed--or the program could be terminated altogether.Any action taken now by the State would be premature.

The Legislature should direct the DOE to monitor the reauthorization process, and,upon its completion, report to the Legislature on any changes to the program, strategies thatcan be used by the State to maximize impact aid payments, and the costs, if any, to the Stateof implementing those strategies.

4. The dissatisfaction of some military parents with the quality of educationalservices provided by Hawaii's public school system is an insufficient reason for theLegislature to transfer control of some schools from the DOE to the DOD. The establishmentof a Section 6 school in Hawaii is not likely to satisfy these parents because the law requiresSection 6 schools to be based on standards that are comparable to the local public schoolsystem. Therefore, any Section 6 school established in Hawaii will provide educationalservices that are comparable to those provided by the Hawaii public school system.

The DOE should be directed to work with military authorities to ensure that militaryparents have ready access to information on the ways in which they can become involved inthe public school system. While emphasis should be placed on the School/Community BasedManagement program, the information available should include the entire range of options,including service on the District School Advisory Councils to running for seats on the Board ofEducation.

52

Appendix A

STAND. COM. REP. NO.

Honolulu, Hawaii

RE: H.R. No. 223H.D. 2

Honorable Daniel J. KihanoSpeaker, House of RepresentativesSixteenth State LegislatureRegular Session of 1992State of Hawaii

Sir:

, 1992

Your Committee on Legislative Management, to which wasreferred H.R. No. 223, H.D. 1, entitled:

"HOUSE RESOLUTION REQUESTING THE LEGISLATIVE REFERENCEBUREAU, WITH THE ASSISTANCE OF THE DEPARTMENT OF EDUCATION,TO STUDY THE FEASIBILITY OF TRANSFERRING CERTAIN PUBLICSCHOOLS TO THE UNITED STATES DEPARTMENT OF DEFENSE PURSUANTTO PUBLIC LAW 81-874,"

begs leave to report as follows:

The purpose of this resolution is to request that theLegislative Reference Bureau (LRB) with the assistance of theDepartment of Education (DOE), to study the feasibility oftransferring certain public schools to the United StatesDepartment of Defense (U.S. DOD), pursuant to Public Law 81-874.

Testimony in support of the intent of this resolution wasreceived from the DOE, however, the DOE has requested that theLRB be given the sole responsibility and latitude to conduct thisstudy. Testimony was also received from the Military AffairsCouncil, a body within the Chamber of Commerce of Hawaii, whichneither supported nor opposed this measure but voiced caution.Other individuals submitted testimony in support of theresolution.

Your Committee on Legislative Management believes that theamendment for a survey of the public's views on the proper use ofimpact aid funds is not germane, and has therefore deleted theamendment.

HSCR LMG HR223 HD253

65

STAND. COM. REP. NO. itifica'41Page 2

Your Committee on Legislative Management concurs with theintent and purpose of H.R. No. 223, H.D. 1, as amended herein,and recommends its adoption in the form attached hereto as H.R.No. 223, H.D. 2.

-14'east.dPETER K. APO, Member

.e/fr-citc_4,"DANIE A KIHANO, Member

WH ANDERSON, Member

HSCR LMG HR223 HD2 54

Respectfully submitted,

CAROL A..F AGA, C ir

CALVIN K.Y. SAY, Vice Ciair

DENNIS ARAKAKI, Member

BRIAN T. TANIGUCHI, Member

MIKE O'KIEFFE, Member

6 6

HOUSE OF REPRESENTATIVESSIXTEENTH LEGISLATURE, 1992STATE OF HAWAII

HeR. NO. 2H23, 2

HOUSE RESOLUTION

REQUESTING THE LEGISLATIVE REFERENCE BUREAU, WITH THE ASSISTANCEOF THE DEPARTMENT OF EDUCATION, TO STUDY THE FEASIBILITY OFTRANSFERRING CERTAIN PUBLIC SCHOOLS TO THE UNITED STATESDEPARTMENT OF DEFENSE PURSUANT TO PUBLIC LAW 81-874.

WHEREAS, during fiscal year 1990-1991, the State providedfor the establishment, support, and control of a statewide systemof public schools at a cost of approximately $5,313 per student,based on an average daily enrollment of 171,337; and

WHEREAS, during this period, the State provided for theeducation of 36,145 military and federal students at a cost ofapproximately $192,000,000, based on a per student cost of$5,313; and

WHEREAS, during this period, the federal government providedapproximately $22,500,000 in impact aid to the State, whichaveraged approximately $622 per student, based on an averagedaily enrollment of 36,145; and

WHEREAS, in Hawaii, approximately 15,000 children live andattend public schools located on military installations; and

WHEREAS, approximately twelve of these schools are attendedexclusively by children living on military installations, whileanother six or so schools are attended predominantly by childrenliving on military installations and, to a lesser degree,civilian children living near these installations; and

WHEREAS, Section 6 of Public Law 81-874, relating to impactaid, requires the United States Department of Defense (USDOD) toprovide a free public education to all children residing onmilitary installations in those instances where there are no taxrevenues available from a state or community to pay for theeducation of these children; and

WHEREAS, pursuant to Public Law 81-874 and with an annualbudget of $185,000,000, the USDOD operates sixty-eight schools oneighteen military installations, which serve 32,478 students andemploy approximately 5,500 persons, at an average per pupil costof $5,688, and an average teacher salary of $34,000, per year;and

HR223 HD255

6"

Page2 H.R. NO 2H2.D3 . 2

WHEREAS, in Hawaii, the State provides for theestablishment, support, and control of public schools, includingthose located on military installations, by constructing andmaintaining school facilities, hiring teachers and staff andpaying their salaries, and establishing curriculum requirementsapplicable to all students, including the mandatory study ofHawaiian culture and history; and

WHEREAS, Hawaii's public schools have a poor image amongsome military parents even before they arrive in the islands, anddissatisfied military parents have complained that (1) the Stateis using impact aid for purposes other than education, (2) thecurriculum in Hawaii's public schools is not responsive to theneeds of their children, and (3) public school facilities arepoorly maintained; and

WHEREAS, on the other hand, some military parents have hadsatisfactory experiences with Hawaii's public schools andexpressed their confidence in the teachers and administrators ofthe schools attended by their children; and

WHEREAS, military family members attending public schoolslocated outside of military installations have participated fullyin student activities in their schools, including studentgovernment, athletics, and other extracurricular activities; and

WHEREAS, public testimony on House Bill No. 2617, introducedduring the Regular Session of 1992, attests to the existence of asociety that accepts individuals without regard to their militaryaffiliation and stresses the integration of civilian and militarychildren in Hawaii's public schools; and

WHEREAS, despite these accepting and accommodatingattitudes, some military and civilian children have haddisappointing and unsatisfactory experiences in public schoolswith substantial civilian and military student bodies; and

WHFREAS, the Department of Education has introduced a nuMberof programs to meet the special needs of military family memberswho experience cultural conflicts and personal stress whentransferring to Hawaii's public school system from another stateor country; and

HR223 HD256

6

a.

Page3 H.R. NO.

WHEREAS, the Department of Education is currently grapplingwith the problem of meeting not only the special needs of publicschools located on military installations but also the demands ofother public schools at a time of diminishing fiscal resources;and

WHEREAS, the Task Force on School Governance has beenholding public hearings and formulating recommendations to reformthe State's centralized school system, including initiativesdirected toward decentralization and the establishment of localcontrol through the empowerment of individual schools and thecreation of county school boards; now, therefore,

BE IT RESOLVED by the House of Representatives of theSixteenth Legislature of the State of Hawaii, Regular Session of1992, that the Legislative Reference Bureau, with the assistanceof the Department of Education, is requested to study thefeasibility of transferring certain public schools to the UnitedStates Department of Defense pursuant to Public Law 81-874, aspart of the Department of Education's current attempts to reformand restructure the State's public school system; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureauis requested to examine the operation and funding of schoolsoperated by the United States Department of Defense on mainlandmilitary installations, as well as other United States Departmentof Defense schools on the mainland with substantial civilian andmilitary student bodies; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureauis requested to:

(1) Examine the different options for financing andgoverning public schools in Hawaii:

(A) Located on military installations and attendedexclusively by military family members;

(B) Located on military installations and attended bychildren of both civilian and military families;and

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and

H.R. NO 2

i2C3), 2

(C) Located outside of military installations butattended predominantly by military family members;

and

(2) Examine ways to:

(A) Maximize the acquisition and use of state andfederal funds, including impact aid, to operatethese schools; and

(B) Organize these schools in keeping with the intentof school/community-based management, therecommendations of the Task Force on SchoolGovernance, and Public Law 81-874, with respect tothe election of school boards to govern UnitedStates Department of Defense schools;

BE IT FURTHER RESOLVED that the Legislative Reference Bureauis requested to:

(1) Examine the issue of school choicc,, as it relatesspecifically to military family members who wish toattend schools operated by the Department of Educationrather than schools operated by the United StatesDepartment of Defense; and

(2) Examine options for providing military family memberswith the choice of attending either a school operatedby the Department of Education or a school operated bythe United States Department of Defense;

and

BE IT FURTHER RESOLVED that the Department of Education, asthe agency in the State having control over education-relatedinfoimation, is requested to provide the following factual datain narrative form to the Legislative Reference Bureau forinclusion as a discrete chapter or portion thereof in this study,not later than September 15, 1992:

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and

H.R, NO, 2

(1) The total cost of public schools in Hawaii located onmilitary installations, from their initial constructionto their present operation and maintenance, analyzedaccording to their respective operating expenses andcapital costs, and interest, if financed by generalobligation bonds;

(2) The identity of all public schools in Hawaii attendedpredominantly by children living on militaryinstallations, including the number of those childrenattending each school, regardless of whether or notthese schools are located on military installations;and

(3) The annual operating cost of:

(A.) Each public school in Hawaii located on militaryinstallations and attended exclusively by militaryfamily members;

(B) Each public school in Hawaii located on militaryinstallations and attended by children of bothcivilian and military families; and

(C) Each public school in Hawaii located outside ofmilitary installations but attended predominantlyby military family members;

BE IT FURTHER RESOLVED that the Department of Education, theUnited States Department of Defense, the various militarycommands in Hawaii, The Chamber of Commerce of Hawaii, the HawaiiState Teachers Association, the Hawaii Government EmployeesAssociation, the parents and teachers at affected public schoolt..;,and all other interested groups and citizens, are requested tocooperate fully and unconditionally with the LegislativeReference Bureau in the conduct of this study; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureauis requested to submit findings and recommendations to theLegislature not less than twenty days before the convening of theRegular Session of 1993; and

BE IT FURTHER RESOLVED that certified copies of thisResolution be transmitted to the Chairperson of the Board ofEducation, the Superintendent of Education, and the Director ofthe Legislative Reference Bureau.

11R223 HD2 59

71

Appendix B

"Sec. 701. Each officer or employee compensated on a per annum basis,and occupying a permanent position within the scope of the compensationschedules fixed by this Act, who has not attained the maximum scheduledrate of compensation for the grade in which his position is placed, shallbe advanced in compensation successively to the next higher rate withinthe grade at the beginning of the next pay period following the comple-tion of (1) each fifty-two calendar weeks of service if his position is in agrade in which the step-increases are less than $200, or (2) each seventy-eight calendar weeks of service if his position is in a grade in which thestep-increases are $200 or more, subject to the following conditions:

"(A) That no equivalent increase in compensation from any causewas received during such period, except increase made pursuant tosection 702 or 1002;

"(B) That he has a current performance rating of 'Satisfactory'ar better; and"(C) That the benefit of successive atep-increases shall be pre-

served, under regulations issued by the Commission for officers andemployees whose continuous service is interrupted in the public in-terest by service with the arn:Ltd forces or by service in essential non-Government civilian employment during a period of war or nationalemergency."

(b) Section 702 (a) of such Act 47 is amended by striking out "section701 (a)" and inserting in lieu thereof "section 701".Sec. 10. Section 73 (b) (2) of title VII of the Classification Act of

1949 (Public Law 429, Eighty-first Congress, approved October 28,1949) 48 is hereby amended to read:

"(2) No officer or employee shall receive a longevity step-increase un-less his current performance rating is 'satisfactory' or better."

Sec. 11. The following Acts or parts of Acts are hereby repealed:(1) Section 4 of the Act of August 23, 1912 (37 Stat. 413); 49(2) The Act of July 31, 1946 (60 Stat. 751; 5 U.S.C. 669a); 60(3) Title IX of the Classification Act of 1949 (Public Law 429, Eighty-first Congress),51Sec. 12. This Act shall take effect ninety days after the date of its en-actment.Sec. 13. There are hereby authorized to be appropriated such sums

as may be necessary to carry out the provisions of this Act.Sec. 14. All laws or parts of laws inconsistent herewith are hereby re-Ina led to the extent of such inconsistency.Approved September 30, 1950.

EDUCATIONAL AGENCIESAREAS AFFECTED BY FEDERALACTIVITIESFINANCIAL AID

See Legislative History, p. 4014

CHAPTER 1124PUBLIC LAW 874[H. R. 7940]

An Act to provide financial assistance for local educational agencies Inareas affected by Federal activities, and for other purposes.Be it enacted by the Senate and Rouse of Representatives of ths United States of

America in Congress assembled, That:

DECLARATION OF POLICYSection 1. In recognition of the responsibility of the United Statesfor the impact which certain Federal activities have on the local educa-

47. 6 U.S.C.A. 9 1122. 50. 6 U.S.C.A. 9 669a.48. 6 U.S.C.A. 9 1123. 51, 6 U.S.C.A. H 1141, 1142.49. 6 U.S.C.A.. 9 648.

60

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Sept. SO EDUCATIONAL AGENCIESAID Ch. 1124Pub. 874

tional agendes in the areas in which such activities are carried on, theCongress hereby declares it to be the policy of the United States to pro-vide financial assistance (as set forth in the following sections of thisAct) for those local educational agencies upon which the United Stateshas placed financial burdens by reason of the fact that

(1) the revenues available to such agencies from local sources havebeen reduced as the result of the acquisition of real property by theUnited States; or

(2) such agencies provide education for children residing on Fed-eral property; or(3) such agencies provide education Zor children whose parents are

employed on Federal property; or(4) there has been a sudden and substantial increase in school at-

tendance as the result of Federal activities.

FEDERAL ACQUISITION OF REAL PROPERTYSec. 2. (a) Where the Commissioner, after consultation with any lo-

cal educational agency and with the appropriate State educational agency,determines for the fiscal year beginning July 1, 1950, or for any of thethree succeeding fiscal years

(1) that the United States owns Federal property in the schooldistrict of such local educational agency, and that such property(A) has been acquired by the United States since 1938, (B) was notacquired by exchange for other Federal property in the school dis-trict which the United States owned before 1939, and (C) had an as-sessed value (determined as of the time or times when so acquired)aggregating 10 per eentum or more of the assessed value of all realproperty in the school district (similarly determined as of the timeor times when such Federal property was so acquired); and

(2) that such acquisition has placed a substantial and continuingfinancial burden on such agency; and

(3) that such agency is not being substantially compensated forthe loss in revenue resulting from such acquisition by (A) other Fed-eral payments, or (B) increases in revenue accruing to the agencyfrom the carrying on of Federal activities with respect to the prop-erty so acquired,

then the local educational agency shall be entitled to receive for suchfiscal year such amount as, in the judgment of the Commissioner, is equalto the continuing Federal responsibility for the additional financial burdenwith respect to current expenditures placed on such agency by such ac-quisition of property, to the extent such agency is not compensated torsuch burden by other Federal payments. Such amount shall not exceedthe amount which, in the judgment of the Commissioner, such agencywould have derived in such year, and would have had available for cur-rent expenditures, from the property acquired by the United States (suchamount to be d !termined without regard to any improvements or otherchanges made 11, or on such property since such acquisition), minus theamount which i his judgment the local educational agency derived fromother Federal Lyments and had available in such year for current ex-penditures.

(b) For the purposes of this section(1) The term "other Federal payments" means payments in lieu

of taxes, and any other payments, made with respect to Federal prop-erty pursuant to any law of the United States other than this Act.

(2) Any real property with respect to which payments are beingmade under section 13 of the Tennessee Valley Authority Act of 1933.as amended,52 shall not be regarded as Federal property.

(o) Where the school district of any local educational agency shallhave been formed at any time after 1938 by the consolidation of two ormore former school districts, such agency may elect (at the time it files

52. 16 V.S.C.A. I 8311.

61

7

Ch. 1124 LAWS OF 81ST CONGRESS-2ND SESSION Sept. 80Pub. V4

application under section 6) for any fiscal year to have (1) the eligibilityof such local educational agency, and (2) the amount which such agencyshall be entitled to receive, determined under this section only with re-spect to such of the former school districts comprising such consolidatedschool district as the agency shall designate in such election.

CHILDREN RESIDING ON, OR WHOSE PARENTS ARE EMPLOYEDON, FEDERAL PROPERTY

Sec. 3. (a) For the fiscal year beginning July 1, 1950, and for eachof the three succeeding fiscal years, each local educational agency whichprovides free public education during such year for children who resideon Federal property with a parem. employed on Federal property shallbe entitled to an amount equal to the number of such children in averagedaily attendance during such year at the schools of such agency, multi-plied by the local contribution rate (determined under subsection (c)).

(b) For the fiscal year beginning July 1, 1950, and for each of thethree succeeding fiscal years, each local educational agency of a Statewhich provides free public education during such year for children whoreside on Federal property, or who reside with a parent employed on Fed-eral property part or all of which is situated in such State, shall be en-titled to an amount equal to the number of such children in averagedaily attendance during such year at the schools of such agency, multi-plied by one-half the local contribution rate (determined under subsection (c)). If both subsection (a) and this subsection apply to a child,the local educational agency shall elect which of such subsections shallapply to such child.

LOCAL CONTRIBUTION RATE(c) The local contribution rate for a local educational agency for any

fiscal year shall be computed by the Commissioner of Education, afterconsultation with the State educational agency and the local educationalagency, in the following manner:

(1) he shall determine which school districts within the State arein his judgment most nearly comparable to the school district of theagency for which the computation is being made; and

(2) he shall then divide (A) the aggregate current expenditures,during the second fiscal year preceding the fiscal year for which he ismaking the computation, which the local educational agencies of suchcomparable school districts made from revenues derived from localsources, by (B) the aggregate number of children in average dailyattendance to whom such agencies provided free public educationduring such second preceding fiscal year.

The local contribution rate shall be an amount equal to the quotienttained under clause (2) of this subsection. If, in the judgment of thsCommissioner, the current expenditures in those school districts whichhe has selected under clause (1) are not reasonably comparable becauseof unusual geographical factors which affect the current expenditures nec-essary to maintain, in the school district of the local educational agencyfor which the computation is being made, a level of education equivalentto that maintained in such other districts, the Commissioner may increasethe local contribution rate for such agency by such amount as he deter-mines will compensate such agency for the increase in current expsmii-tures necessitated by such unusual geographical factors.

LIMITATIONS ON ELIGIBILITY; LIMITATIONS ON PAYMENT(d) (1) No local educational agency shall be entitled to receive any

payment tor a fiscal year under subsection (a) or subsection (b), as thecase may be, unless the number of children who are in average daily at-tendance during such year and to whom such subsection applies

(A) is ten or more; and(B) amounts to 3 per centum or more of the total number of chil-

dren who are in average daily attendance during sue.a year and forwhom such agency provides free public education.

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Sept. 80 EDUCATIONAL AGENCIESAID Ch. 1124Pub. 174

Notwithstanding the provisions of clause (B) of this paragraph, the Com-missioner may waive the 3 per centum condition of entitlement containedin such clause whenever, in his judgment, exceptional circumstances ex-ist which would make the application of such condition inequitable andwould defeat the purposes of this Act.

(2) Notwithstanding the preceding provisions of this section, wherethe average daily attendance at the schools of any local educational agencyduring the fiscal year ending June 30, 1939, exceeded 35,000

(A) such agency's percentage requirement for eligibility (as setforth in paragraph (1) of this subsection) shall be 6 per centurn in-stead of 3 per centum (and those provisions of such paragraph (1)which relate to the lowering of the percentage requirement shall notapply); and

(. 'n determining the amount which such agency is entitled to re-ceive) under subsection (a) or (b), the agency shall be entitled to re-ceive payment with respect to only so many of the number of chil-dren whose attendance serves as the basis for eligibility under suchsubsection, as exceeds 3 per centum of the number of all children inaverage daily attendance at the schools of such agency during the fis-cal year for which payment is to be made.

ADDITIONAL PAYKENTS DURING PERIOD DEMZIDIATELTFOLLOWING IMPACT

(e) Where(1) a local educational agency is entitled under subsection (a)

or (b) to receive a payment for any fiscal year with respect to theeducation of a child; and

(2) under State law, the eligibility of such agency for State aidwith respect to the free public education of such child is determinedon a basis no less favorable to such agency than the basis used indetermining the eligibility of local educationrl agencies for State aidwith respect to the free public education o:. other children in theState; and

(3) such agency is not yet eligible to receive for such child partor all of such State aid,

the payment under subsection (a) or (b), as the case may be. shall beincreased by an amount equal to the amount of State aid for which suchagency is not yet eligible.

ADJUSTMENT FOR CERTAIN DECREASES IN FEDERAL ACTIVITIES(f) Whenever the Commissioner determines that

(1) a local educational agency has made preparations to provideduring a fiscal year free public education to a certain number ofchildren to whom subsection (a) or (b) applies; and

(2) such number has been substantially reduced by reason of a de-crease in or cessation of Federal activities,

the amount to which such agency is otherwise entitled under this sec-tion for such year shall be increased to the amount to which, in the judg-ment of the Commissioner, such agency would have been entitled but forsuch decrease in or cessation of Federal activities, minus any reduction incurrent expenditures for such year which the Commissioner determinesthat such agency has effected, or reasonably should have effected, by rea-son of such decrease in or cessation of Federal activities.

CERTAIN FEDERAL CONTRIBUTIONS TO BE DEDUCTED(g) In determining the total amount which a local educational agency

is entitled to receive under this section for a fiscal year, the Commission-er shall deduct (I) such amount as he determines such agency derivedfrom other Federal payments (as detini..d in section 2 (b) (I)) and hadavailable in such year for current expenditures (but only to the extentsuch payments are not deducted under the last sentence of section 2 (a)),and (2) such amount as he determines to be the value of transportation

63

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Ch. 1124 LAWS OF 81ST CONGRESS-2ND SESSION Sept. SOPub. 874

and of custodial and other maintenance services furnished such agency bythe Federal Government during such year.

SUDDEN AND suBSTANTIAL INCREASES IN ATTENDANCE

INCREASES HEREAFTER OCCURRINGSec. 4. (a) If the Commissioner determines for the fiscal year be-ginning July 1, 1950, or for any of the three succeeding fiscal years

(1) that, as the result of activities of the United States (carriedon either directly or through a contractor), an increase in the num-ber of children in average daily attendance at the schools of anylocal educational agency has occurred in such fiscal year, which in-crease so resulting from activities of the United States is equal to atleast 10 per centum of the number of all children in average dailyattendance at the schools of such agency during the preceding three-year period; and

(2) that such activities of the United States have placed on suchagency a substantial and continuing financial burden; and

(3) that such agency is making a reasonable tax effort and is ex-ercising due diligence in availing itself of State and other financialassistance but is unable to secure sufficient funds to meet the in-creased educational costs involved,

then such agency shall be entitled to receive for the fiscal year for whichthe determination is made, and for each of the two succeeding fiscal years(but in no event for any fiscal year ending after June 30, 1954), anamount equal to the product of

(A) the number of children which the Commissioner determinesto be the increase in average daily attendance, so resulting from ac-tivities of the United States, in the fiscal year for which payment isto be made; and

(B) the amount which the Commissioner determines to be thecurrent expenditures per child necessary to provide free public edu-cation to such additional children during such year, minus the amountwhich the Commissioner determines to be available from Federal,State, and local sources for such purpose (not counting as availablefor such purpose either payments under this Act, or funds from localsources required to meet current expenditures necessary to providefree public education to other children).

The number of children which the Commissioner determines underclause (A) to be the increase in average daily attendance for any fiscalyear shall not exceed the number of all children in average daily attend-ance at the schools of such agency during such year, minus the numberof all children in average daily attendance at the schools of such agencyduring the preceding three-year period. The detern.ination under clause(B) shall be made by the Commissioner after considering the currentexpenditures per child in providing free public education in those schooldistricts within the State which, in the judgment of the Commissioner,are most aearly comparable to the school district of the local educationalagency for which the computation is being made.

INCREASES HERETOFORE OCCURRING(b) (1) If the Commissioner determines in any fiscal year ending be-fore July 1, 1954,

(A) that, as the result of activities of the United States (carried oneither directly or through a contractor), an increase in the number ofchildren in average daily attendance at the schools of any local edu-cational agency has occurred after June 30, 1939, and before July1, 1950; and

(B) that the portion of such increase so resulting from activities ofthe United States which still exists in such fiscal year amounts to notless than 25 per centum (or to not less than 15 per centum where, inthe judgment of the Commissioner, exceptional circumstances exist

64 76

Sept. 30 EDUCATIONAL AGENCIESA1D Ch. 1124Pub. 874

which would make the application of the 25 per centum condition ofentitlement inequitable and would defeat the purposes of this Act) ofthe number of all children in average daily attendance at the schoolsof such agency during the fiscal year ending June 30, 1939; and

(C) that such activities of the United States have placed on suchagency a substantial and continuing financial burden; and

(D) that such agency is making a reasonable tax effort and is exer-cising due diligence in availing itself of State and other financial as-sistance but is unable to secure sufficient funds to meet the increasededucational costs involved,

then such agency shall be entitled to receive for the fiscal year in whichthe determination is made, and for each succeeding fiscal year ending be-fore July 1, 1954, an amount determined as follows: For the fiscal yearending June 30, 1951, 100 per centum of the product determined as pro-vided in paragraph (2); for the fiscal year ending June 30, 1952, 75 percentum of such product; for the fiscal year eading June 30, 1953, 50 percentum of such product; and for the fiscal year ending June 30, 1954, 25per centum of su.g.fh product.

(2) The product referred to in paragraph (1) for a fiscal year shallbe an amount equal to

(A) the number of children which the Commissioner determines tobe the increase in average daily attendance at the schools of suchagency, so resulting from activities of the United States, which stillexists in such fiscal year (determined as provided in clauses (A) and(13) of paragraph (1)); multiplied by

(B) the amount which the Commissioner determines to be thecurrent expenditures per child necessary to provide free public edu-cation to such additional children during such year, minus the amountwhich the Commissioner determines to be available from Federal,State, and local sources for such purpose (not counting as availablefor such purpose either payments under this Act, or funds from localsources required to meet current expenditures necessary to providefree public education to other children).

The number of children which the Commissioner determines under clause(A) to be the increase in average daily attendance which still exists in anyfiscal year shall not exceed the number of all children in average daily at-tendance at the schools of such agency during such year, minus the num-ber of all children in average daily attendance at the schools of suchagency during the fiscal year ending June 30, 1939. The determinationunder clause (B) shall be made by the Commissioner after consideringthe current expenditures per child in providing free public education inthose school districts within the State which, in the judgment of theCommissioner, are most nearly comparable to the school district of thelocal educational agency for which the computation is being made.

CERTAIN CHILDREN NOT TO BE COUNTED

(c) In determining under this section (1) whether there has been anincrease in attendance in any fiscal year and whether any increase in at-tendance still exists in any fiscal year, and (2) the number of childrenwith respect to whom payment is to be made for any fiscal year, the Com-missioner shall not count

(A) children with respect to whom a local educational agency is,or upon application would be, entitled to receive any Payment undersubsection (a) or (b) of section 3 for such fiscal year, and

(B) children whose attendance is attributable to activities of theUnited States carried on in connection with real property which haebeen excluded from the definition of Federal property by the last sen.-tence of paragraph (1) of section 9.

657"

Ch. 1124 LAWS OF 81ST OONGRESS-2ND SESSION Sept. 30Pub. 574

LIMITATIONS ON ELIGIBILITY AND PAYMENT(d) Notwithstanding the preceding provisions of this section, where

the average daily attendance at the schools of any local educatIonal agen-cy during the fiscal year ending June 30, 1939, exceeded 35,000

(1) such agency's percentage requirement for eligibility under sub-section (a) shall be 15 per centum instead of 10 per centum, and itspercentage requirement for eligibility under subsection (b) shall be30 per centum instead of 25 per centum (and those provisions of sub-section (b) (1) (B) which relate to the lowering of the percentagerequirement shall not apply) ; and

(2) in determining the amount which such agency is entitled toreceive under subsection (a) or (b), the agency shall be entitled toreceive payment with respect to only so many of the number of chil-dren for whom the agency would otherwise be entitled to receive pay-ment under such subsection, as exceeds (A) in the case of subsection(a), 10 per centum of the number of all children in average dailyattendance at the schools of such agency during the fiscal year forwhich payment is to be made, or (B) in tlY, case of subsection (b),25 per centum of all children so in average daily attendance.

CONSULTATION WITH STATE AND LOCAL AUTHORITIES(e) All determinations of the Commitsioner under this section shall

be made only after consultation with the State educational agency andthe local educational agency.

METHOD OF MAKING PAYMENTS

APPLICATION'Sec. 5. (a) No local educational agency shall be entitled tn any pay-

ment u1.4.r section 2, 3, or 4 of this Act for any fiscal year except uponapplication therefor, submitted through the State educational agencyand filed in accordance with regulations of the Commissioner, which ap-plication gives adequate assurance that the local educational agency willsubmit such reports as the Commissioner may reasonably require to de%er-mine the amount to which such agency is entitled under this Act.

CERTIFICATION AND PAYMENT(h) The Commissioner shall, for each calendar quarter, certify to the

Secretary of the Treasury for payment to each local educational agency,either in advance or by way of reimbursement, the amount which the Com-missioner estimates such agency is entitled to receive under this Act forsuch quarter. The amount so cnrtified for any quarter shall be reducedor increased, as the case may be, by any sum by which he finds that theamount paid to the agency under this Act for any prior quarter was great-er or less than the amount which should have been paid to it for suchprior quarter. Upon receipt of such certification, the Secretary of theTreasury shall, prior to audit or settlement by the General Accounting Of-fice, pay to the local educational agency in accordance with such certifica-tion.

ADJUSTMENTS WHERE NECESSITATED) BY APPROPRIATIONS(c) If the funds appropriated for a fiscal year for making the pay-

ments provided in this Act are not sufficient to pay in full the totalamounts to which all local educational agencies are entitled, the Commis-sioner shall reduce the amounts which he certifies under subsection (b)for such year for payment to each local educational agency by the per-centage by which the funds so appropriated are less than the total neces-sary to pay to such agencies the full amount to which they are entitled un-der this Act.

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Sept. 30 EDUCATIONAL AGENCIESAID Ch. 1124Pub. 874

CHILDREN FOR WHOM LOCAL AGENCIES ARE UNABLE TOPROVIDE EDUCATION

Sec. 6. In the case of children who reside on Federal property(1) if no tax revenues of the State or any political subdivision

thereof may be expended for the free public education of such chil-dren; or

(2) if it is the Judgment of the Commissioner, after he has consult-ed with the appropriate State educational agency, that no local educa-tional agency is able to provide suitable free public education for suchchildren,

the Commissioner shall make such arrangements (other than arrange-ments with respect to the acquisition of land, the erection of facilities, in-terest, or debt service) as may be necessary to provide free public educa-tion for such children. To the maximum extent practicable, such educa-tion shall be comparable to free public education provided for childrenin comparable communities in the State.

ADMINISTRATIONSec. 7. (a) In the administration of this Act, no department, agency,

ofilcei-, or employee of the United States shall exercise any direction, su-pervision, oi control over the personnel, curriculum, or program of in-struction of any school, or school system of any local or State educationalagency.

(b) The Commissioner shall administer this Act, and he may makesuch regulations and perform such other functions as he Ands necessaryto carry out the provisions of this Act.

(c) The Commissioner shall include in his annual report to the Con-gress a full report of the administration of his functions under this Act,including a detailed statement of receipts and disbursements.

USE OF OTHER FEDERAL AGENCIES; TRANSFER ANDAVAILABILITY OF APPROPRIATIONS

Sec. 8. (a) In carrying out his functions under this Act, the Commis-sioner is authorized, pursuant to proper agreement with any other Fed-eral department or agency, to utilize the services and facilities of such de-partment or agency, and, when he deems it necessary or appropriate, todelegate to any officer or employee thereof the function under section 6of making arrangements for providing free public education. Payment tocover the cost of such utilization or of carrying out such delegated func-tion shall be made either in advance or by way of reimbursement, as maybe provided in such agreement.

(b) All Federal departments or agencies administering Federal proper-ty on which children reside, and all such departments or agencies princi-pally responsible for Federal activities which may occasion assistance un-der this Act, shall to the maximum extent practicable comply with re-quests of the Commissioner for information he may requke in carryingout the purposes of this Act.

(c) Such portion of the appropriations of any other department oragency for the fiscal year ending June 30, 1951, as the Director of theBureau of the Budget determines to be available for the same purposesas this Act, shall, except to the extent necessary to carry out during suchyear contracts made prior to the enactment of this Act, be transferredto the Commissioner for use by him in carrying out such purposes.

(d) No appropriation to any department or agency of the United States,other than an appropriation to carry out this Act, shall be availible dur-ing the period beginning July 1, 1951, and ending June 30, 1954, for thesame purposes as this Act, except that nothing in this subsection or in sub-section (c) of this section shall affect the availability of appropriationsfor the maintenance and operation of school facilities on Federal propertyunder the control of the Atomic Energy Commission.

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Ch. 1124 LAWS OF 81ST OONGRESS-2ND SESSION Sept. 30Pub. 574

DEFINITIONSSec. 9. For the purposes of this Act(1) The term "Federal property" means real property which is owned

by the United States or is leased by the United States, and which is notsubject to taxation by any State or any political subdivision of a State orby the District of Columbia. Such term includes real property leasedfrom the Secretary of the Army, Navy, or Air Force under section 805 ofthe National Housing Act, as amended,53 for the purpose of title VIII ofsuch Act.64 Such term also includes real property held in trust by theUnited States for individual Indians or Indian tribes, and real propertyheld by individual Indians or Indian tribes which is subject to restrictionson alienation imposed by the United States. Such term does not include(A) any real property used by the United States primarily for the provi-sion of services to the local area in which such property is situated, (B)any real property used for a labor supply center, labor home, or laborcamp for migratory farm workers, or (C) any low-rent housing projectheld under title II of the National Industrial Recovery Act,56 the Emer-gency Relief Appropriation Act of 1935, the United States Housing Act of1937,55 the Act of June 28, 1940 (Public Law 671 of the Seventy-sixthCongress),57 or any law amendatory of or supplementary to any of suchActs.

(2) The term "child" means any child who is within the age limits forwhich the appliP,able State provides free public -education. Such termdoes not include any child who is a member, or the dependent of a mem-ber, of any Indian tribal organization, recognized as such under the lawsof the United States relating to Indian affairs, and who is eligible for ed-ucational services provided pursuant to a capital grant by the UnitedStates, or under the supervision of, or pursuant to a contract or other ar-rangement with, the Bureau of Indian Affairs.

(3) The term "parent" includes a legal guardian or other personstanding in loco parentis.

(4) The term "free public education" means education which is pro-vided at public expense, under public supervision and direction, and with-out tuition charge, and which is provided as elementary or secondaryschool education in the applicable State.

(5) The term "current expenditures" means expenditures for free pub-lic education to the extent that such expenditures are made from currentrevenues, except that such term does not include any such expenditurefor the acquisition of land, the erection of facilities, interest, or debtservice.

(6) The term "local educational agency" means a board of education orother legally constituted local school authority having administrative con-trol and d:rection of free public education in a county, township, inde-pendent, or other school district located within a State. Such term in-cludes any State agency which directly operates and maintains facilitiesfor providing free public education.

(7) The term "State educational agency" means the officer or agencyprimarily responsible for the State supervision of public elementary andsecondary schools.

(8) The term "State" means a State, Alaska, Hawaii, Puerto Rico, orthe Virgin Islands.

(9) The terms "Commissioner of Education" and "Commissioner"means the United States Commissioner of Education.

(10) Average daily attendance shall be determined in accordance withState law; except that, notwithstanding any other provision of this Act,where the local educational agency of the school district in which anychild resides makes or contracts to make a tuition payment for the freepublic education of such child in a school situated in another school dis-

53. 12 USA:A. 1748d.54. 12 U.S.C.A. 44 1748-1748g.55. 40 U.S.C.A. I 401 et seg.

68

58. 42 U.S..C.A. f 1401 et Seg.57. 60 U.S.C.A.APpendis. 1151 et seg.

60

Sept. 30 DISASTERS--P MERAL AID Ch. 112.5Pub. 875

trict, for purposes of this Act the attendance of such child at such schoolshall be held and considered (A) to be attendance at a school of the localeducational agency sr making or contracting to make such tuition pay-ment, and (B) not to be attendance at a school of the local educationalagency receiving such tuition payment or entitled to receive such tuitionpayment under the bontract.

Approved September 30, 1950.

DISASTERSSTATES AND LOCAL GOVERNMENTSFEDERAL AID

See Legislative History, p. 4023

CHAPTER 1125PUBLIC LAW 875[H. R._ 8396]

An Act to authorize Federal assistance to States and local governments Inmajor disasters, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled, That:

It is the intent of Congress to provide an orderly and continuing meansof assistance by the Federal Government to States and local governmentsin carrying out their responsibilitiles to alleviate suffering and damageresulting from major disasters, to repair essential public facilities in ma-jor disasters, and to foster the development of such State and local or-ganizations and plans to cope with major disasters as may be necessary.

Sec. 2. As used in this Act, the following terms shall be construed anfollows unless a contrary intent appears from the context:

(a) "Major disaster" means any flood, drought, lire, hurricane, earth-quake, storm, or other catastrophe in any part of the United States which,it, the determination of the President, is or threatens to be of sufficientseverity and magnitude to warrant disaster assistance by the Federal Gov-ernment to supplement the efforts and available resources of States andlocal governments in alleviating the damage, hardship, or suffering causedthereby, and respecting which the governor of any State (or the Boardof Commissioners of the District of Columbia) in which such catastrophemay occur or threaten certifies the need for disaster assistance underthis Act, and shall give assurance of expenditure of a reasonable amountof the funds of the government of such State, local governments therein,or other agencies, for the same or similar purposes with respect to suchcatastrophe;

(b) "United States" includes the District of Columbia, Alaska, Hawaii,Puerto Rico, and the Virgin Islands;

(c) "State" means any State in the United States, Alaska, Hawaii,Puerto Rico, and the Virgin Islands;

(d) "Governor" means the chief executive of any State;(e) "Local government" means any county, city, village, town, district.

or other political subdivision of any State, or the District of Columbia;(f) "Federal agency" means any department, independent establish-

ment, Government corporation, or other agency of the executive branchof the Federal Government, excepting, however, the American NationalRed Cross.

Sec. 3. In any major disaster, Federal agencies are hereby author-ized when directed by the President to provide assistance (a) by utilizingor lending, with or without compensation therefor, to States and local gov-ernments their equipment, supplies, facilities, personnel, and other re-sources, other than the extension of credit under the authority of anyAct; (b) by distributing, through the American National Red Cross orotherwise, medicine, fool and other consumahls--s.upplies; (c) br donat-ing to States and local governments equipment and supplies determined

Source Pub L No. 874. 81st Cong . 2nd Sess (September 30. 1950)

69

J

Appendix C

TABLE OF CLASSIFICATIONS

64 Stat._ at Large

U.S.Codeand

U.S.C.A.

Chap. Pub.Law Sec. Title Sec.1093 - _ 856 _ _ 4(a) - _ 46 _ - 1274(a) (2)1093 - _ 856 _ _ 4(b) _ - _ 46 _ _ 1274(a) (7)1093 - _ 856 _ _ 4(c) _ _ - 46 _ _ 1274(a) (8)1094 _ 857 _ _ _ _ _ _ 50 App. 401107 _ _ 858 _ _ ... _ .. _ 49 _ _ 4601108 - 859 _ - 1 - - _ _ 50 App. 32(a) (2) (D)1108 _ _ 859 _ _ 2 _ _ _ _ 50 App. 6 note1109 _ _ 860 _ _ _ _ _ _ 46 _ _ 599(b)1111 - _ 862 _ _ _ _ _ _ 50 _ _ 329(a)1112 _ 863 _ _ 1 _ _ - 50 _ _ 324(d)1112 _ 863 _ 2 _ - _ 50 _ _ 252_1115 _ 865 _ - 1 - _ _ _ 18 _ _ 42011115 - _ 865 _ _ _ 18 _ _ prec. § 5005, 5005-50241115 _ 865 _ _ 3(a) _ _ 18 _ _ 4201 note1115 - - 865 _ 3(b) _ - _ 18 _ _ 5005 note1115 _ 865 - _ 4 _ _ _ _ 1S _ _ 50021115 _ 865 _ 5 _ _ - 18 _ _ prec. § 50011116 _ _ 866 _ _ _ _ _ 50 App. 2005(c) (4)1117 _ 867 _ 1 _ _ _ 49 _ _ 11811117 _ 867 _ _ 2 ---- 49 _ _ 11821117 _ 867 3 _ _ _ _ 49 _ _ 1183_1117 _ _ 867 _ _ 4 _ _ _ _ 49 _ _ 11841117 _ 867 _ 5 _ _ _ _ 49 _ _ 11851117 _ _ 867 _ _ 6, 7 _ _ _ 49 _ _ 1.131 note1119 _ _ 869 _ _ 1 _ _ - _ 19 _ _ 1001, par. 301 note1119 _ _ 869 _ _ 1 _ _ _ _ 26 _ _ 3425 note1119 _ 809 _ ,) _ 19 _ _ 1001, par. 301 note1119 _ 869 _ _ 9 26 _ _ 3425 note1123 _ _ 873 _ _ 1 _ - _ _ 5 _ _ 2001 note1123 _ _ 873 _ _ 2 _ _ _ _ 5 _ _ 20011123 _ _ 873 - 3 _ _ _ _ 5 _ _ 20021123 _ _ 873 _ 4 _ _ _ _ 5 _ _ 20031123 _ _ 873 _ 5 _ _ _ _ 5 _ _ 2004_1123 _ _ 873 _ _ 6 _ _ _ _ 5 _ _ 20051123 _ _ 873 _ 7 _ _ _ _ 5 _ _ 2,0061123 _ _ 873 _ 8 _ _ _ _ 5 _ _ 20071123 _ _ 873 _ ...9((ba) ...) _ 5 _ _ 11211123 _ _ 873 - - 5 _ _ 1122(a)1123 _ 873 10 _ _ _ _ 5 _ _ 1123(b) (2)1123 _ _ 873 _ _ 12-14 _ _ _ 5 - - 2001 note1124 _ _ 874 _ 1 _ _ _ _ 20 _ _1124 _ 874 _ 2 _ _ _ _ 20 _ _ 2371124 _ _ 874 _ _ 3 _ _ _ - 20 - _ 2381124 _ _ 874 _ _ 4 _ _ _ _ 20 _ _ 2391124 _ 874 _1124 _ _ 874 _ 6 _ _ _ _ 20 _ _ 2411124 _ S74 _ _ 7 _ _ _ _ 20 _ _ 2421124 _ _ 874 _ 8 _ _ - _ 20 _ _ 2431124 _ _ 874 _ 0 _ _ _ _ 20 _ _ 2441125 _ _ 875 _ 1 - - - - 42 _ _ 18551125 _ _ 875 _ 2 ___ - 42 _ _ 1835a1125 _ _ 875 _ _ 3 ___ _ 40 _ _ 1S55b1125 _ - 875 4 _ _ _ _ 42 _ _ 1S55e3125 _ _ 875 - 5 ____ 42__1855c11125 _ _ 875 - 6 ___ _ 42 _ _ 1S35e1125 _ _ 875 _ 7 _ _ - _ 42 _ - 1855f1125 - _ 875 _ 8 - - - _ 42 _ _ 1855g

70rue CI

1/4.3

r,

20 §

§231

to 2

35A

SSIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3O

mitt

ed

SUB

CH

APT

ER

IA

SS!S

TA

NC

E F

OR

LO

CA

L E

DU

CA

TIO

NA

LA

GE

NC

IES

IN A

RE

AS

AFF

EC

TE

D B

Y F

ED

ER

AL

AC

TIV

ITY

§§ 2

31 to

235

. om

itted

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

SC

odifi

catio

nsS

ectio

ns. A

ct S

ept.

10, 1

949,

c. 5

82. 6

3S

tat.

697,

rel

ated

to F

eder

al a

id to

loca

lsc

hool

age

ncie

s to

pro

vide

edu

catio

nal

oppo

rtun

ities

to c

hild

ren

in fe

dera

lly a

f-

fect

ed a

reas

, rec

eive

d ap

prop

riatio

ns o

f17

,500

.000

onl

y fo

r th

e fis

cal y

ear

1950

.S

cc s

cctio

n 23

6 ct

seq

. of t

his

title

, and

,al

so, s

ectio

n 63

1 et

seq

. of t

his

title

.

§ 23

6.C

ongr

essi

onal

dec

lara

tion

of p

olic

y; a

utho

riza

tion

ofap

prop

riat

ions

(a)

In r

ecog

nitio

n of

the

resp

onsi

bilit

y of

the

Uni

ted

Stat

es f

orth

e im

pact

whi

ch c

erta

in F

eder

al a

ctiv

ities

hav

eon

the

loca

l edu

-ca

tiona

l age

ncie

s in

the

area

s in

whi

ch s

uch

activ

ities

are

carr

ied

on, t

he C

ongr

ess

decl

ares

it to

be

the

polic

y of

the

Uni

ted

Stat

esto

prov

ide

fina

ncia

l ass

ista

nce

(as

set f

orth

in th

is s

ubch

apte

r)fo

rth

ose

loca

l edu

catio

nal a

genc

ies

upon

whi

ch th

, Uni

ted

Stat

es h

aspl

aced

fin

anci

al b

urde

ns b

y re

ason

of

the

fact

that

(1)

the

reve

nues

ava

ilabl

e to

suc

h ag

enci

es f

rom

loca

l sou

rces

have

bee

n rc

duce

d as

the

resu

lt of

the

acqu

isiti

onof

rea

lpr

oper

ty b

y th

e U

nite

d St

ates

; or

(2)

such

age

ncie

s pr

ovid

e ed

ucat

ion

for

child

ren

resi

ding

on

Fede

ral p

rope

rty;

or

(3)

such

age

ncie

s pr

ovid

e ed

ucat

ion

for

child

ren

who

sepa

r-en

ts a

re e

mpl

oyed

on

Fede

ral p

rope

rty;

or

(4)

ther

e ha

s be

en a

sud

den

and

subs

tant

ial

incr

ease

insc

hool

atte

ndan

ce a

s th

e re

sult

of F

eder

alac

tiviti

es.

(b)

The

re a

re a

utho

rize

d to

be

appr

opri

ated

$735

,000

,000

for

fisc

al y

ear

1989

, $78

5,00

0,00

0 fo

r fi

scal

year

199

0, $

835,

000,

000

for

fisc

al y

ear

1991

, $88

5,00

0,00

0 fo

r fi

scal

year

199

2, a

nd $

935,

000,

000

for

fisc

al y

ear

1993

, to

carr

y ou

t the

pro

visi

ons

of th

is c

hapt

er.

(Sep

t. 30

, 195

0,c.

1124

, Titl

e 1,

§ I

. for

mer

ly §

1, 6

4 St

at. 1

100,

renu

mbe

red

and

amen

ded

Apr

. 11,

196

5.Pu

b. L

. 89-

10, T

itk I

, §2,

79

Sta

t. 27

; Apr

. 28,

1988

, Pub

l. 10

0-29

7, T

itle

II, §

201

2(b)

, 102

Sta

t. 29

4.)

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

SR

evis

ion

Not

es a

nd L

egis

lativ

e R

epor

ts19

50 A

ct. S

enat

e R

epor

t No.

245

8 an

dC

onfe

renc

e R

epor

t No.

310

9, s

ee 1

950

U S

.Cod

e C

ong.

Ser

vice

, p. 4

014.

1965

Act

. Sen

ate

Rep

ort N

o. 1

46. s

ee19

65 U

.S.C

ode

Con

g. a

nd A

dm.N

ews,

p.

1446

.

1988

Act

.S

enat

e R

epor

t No.

100

-222

and

Hou

seC

onfe

renc

eR

epor

tN

o.10

0-56

7, s

ee 1

988

U.S

.Cod

e C

ong.

and

Adm

.New

s, p

. 101

.

Ch.

13F

ED

ER

ALL

Y A

FF

EC

TE

D A

RE

AS

20 §

237

whe

re ju

risdi

ctio

n of

gro

unds

had

bee

nce

ded

by th

c C

omm

onw

ealth

to th

e U

nit-

ed S

tate

s.S

chw

artz

v.O

'Har

a T

p.S

choo

l Dis

t., 1

953,

100

A.2

d 62

1. 3

75 P

a.44

0.

5.T

each

ers

Tea

cher

s em

ploy

ed u

nder

this

sub

-ch

apte

r w

ere

not "

teac

hing

sta

ff m

em-

bers

.' w

ithin

the

mea

ning

of t

he te

ache

rte

nure

sta

tute

and

thus

wer

e no

t ent

itled

to a

cqui

re te

nure

, whe

re u

nlik

e th

e re

gu-

lar

teac

hing

sta

ff, th

ey w

ere

hire

d an

nu-

ally

with

out w

ritte

n co

ntra

ct a

nd w

ere

paid

on

art h

ourly

bas

is, a

nd w

here

thou

gh th

ey p

erfo

rmed

dut

ies

func

tion-

ally

sim

ilar

to th

ose

of o

thcr

teac

hers

,th

ey w

ere

rest

ricte

d to

the

prog

ram

un-

der

this

sub

chap

ter

and

acte

d pr

imar

ilyas

tuto

rs g

ivin

g in

divi

dual

rem

edia

l aid

to th

e ch

ildre

n.P

oint

Ple

asan

t Bea

chT

each

ers

Ass

'n v

. Cal

lam

. 198

0. 4

12 A

.2d

1352

, 173

N.J

.Sup

er. I

I. c

ertif

icat

ion

de-

nied

420

A.2

d 12

96. 8

4N

.J.

469.

6.P

erso

ns e

ntitl

ed to

mai

ntai

n ac

tion

Pla

intif

f tax

paye

rs w

ho a

llege

d th

atS

tate

's e

qual

izat

ion

form

ula

dcni

cd s

ub-

stan

tial a

mou

nt o

f sta

te a

id to

sch

ool

dist

ricts

with

in w

hich

pla

intif

f tax

paye

rsre

side

d an

d pa

id ta

xes

alle

ged

suffi

cien

tpe

rson

al s

take

in o

utco

me

of c

ontr

over

.sy

to a

fford

them

sta

ndin

g to

ass

ert c

on.

stitu

tiona

l cha

lleng

e to

suc

h fo

rmul

a,an

d pl

aint

iff s

tude

nts

enro

lled

in th

e im

-pa

cted

sch

ool d

istr

icts

als

o ha

d su

chst

andi

ng.

Gw

inn

Arc

aC

omm

unity

Sch

ools

v. S

tate

of M

ich.

, D.C

.Mic

h.19

83,

574

F.S

upp.

736

, affi

rmed

in p

art,

re-

vers

ed in

par

t on

othe

r gr

ound

s 74

1 F

.2d

840.

7.R

evle

wD

istr

ict c

ourt

had

juris

dict

ion

to r

e-vi

ew a

llege

d ab

use

of d

iscr

etio

n by

Sec

.rc

tary

of H

ealth

, Edu

catio

n, a

nd W

elfa

rein

pay

ing

fund

s to

loca

l sch

ool d

istr

ict

unde

r th

is s

ubch

apte

r an

d §

631

et s

eq.

of th

is ti

tle.

Sch

ool B

d. o

f Oka

loos

aC

ount

y v.

Ric

hard

son.

D.C

.Fla

.197

1, 3

32F

.Sup

p. 1

263.

§ 23

7.Fe

dera

l con

trib

utio

nsis

)F

eder

al a

cqui

sitio

n of

pro

pert

y w

ithin

sch

ool d

istr

ict a

s fin

anci

al b

ur-

den

entit

ling

for

cont

ribut

ion

Whe

re th

e Se

cret

ary,

aft

er c

onsu

ltatio

n w

ith a

ny lo

cal e

duca

tion-

al a

genc

y an

d w

ith th

e ap

prop

riat

e St

ate

educ

atio

nal a

genc

y, d

eter

-m

ines

for

any

fis

cal y

ear

endi

ng p

rior

to O

ctob

er 1

, 199

3(1

) th

at th

e U

nite

d St

ates

ow

ns F

eder

al p

rope

rty

in th

e sc

hool

dist

rict

of

such

loca

l edu

catio

nal a

genc

y, a

nd th

at s

uch

prop

er-

ty (

A)

has

been

acq

uire

d by

the

Uni

ted

Stat

es s

ince

193

8, (

B)

was

not

acq

uire

d by

exc

hang

e fo

r ot

her

Fede

ral p

rope

rty

in th

csc

hool

dis

tric

t whi

ch th

e U

nite

d St

ates

ow

ned

befo

re 1

939,

and

(C)

had

an a

sses

sed

valu

e (d

eter

min

ed a

s of

the

time

or ti

mes

whe

n so

acq

uire

d) a

ggre

gatin

g 10

per

cent

um o

r m

ore

of th

eas

sess

ed v

alue

of

all r

eal p

rope

rty

in th

e sc

hool

dis

tric

t (si

mila

r-ly

det

erm

ined

as

of th

e tim

eor

tim

es w

hen

such

Fed

eral

prop

erty

was

so

acqu

ired

); a

nd(2

) th

at s

uch

acqu

isiti

on h

as p

lace

da

subs

tant

ial a

nd c

on-

tinui

ng f

inan

cial

bur

den

on s

uch

agen

cy; a

nd(3

) E

tat s

uch

agen

cy is

not

bei

ng s

ubst

antia

lly c

ompe

nsat

edfo

r th

e lo

ss in

reve

nue

resu

lting

fro

m s

uch

acqu

isiti

on b

yin

crea

ses

in r

even

ue a

ccru

ing

to th

e ag

ency

fro

m th

e ca

rryi

ngon

of

Fede

ral a

ctiv

ities

with

res

pect

to th

e pr

oper

tyso

acq

uire

d,th

en th

e lo

cal

educ

atio

nal a

genc

y sh

all b

e en

title

d to

rec

eive

for

such

fis

cal

year

suc

h am

ount

as,

in th

e ju

dgm

ent o

f th

e Se

cret

ary,

is 84

20 §

237

ASS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

equa

l to

thc

cont

inui

ng F

eder

al r

espo

nsib

ility

for

the

addi

tiona

lfi

nanc

ial b

urde

n w

ith r

espe

ct to

cur

rent

exp

endi

ture

s pl

aced

onsu

ch a

genc

y by

suc

h ac

quis

ition

of

prop

erty

.Su

ch a

mou

nt s

hall

not e

xcee

d th

e am

ount

whi

ch, i

n th

e ju

dgm

ent o

f th

e Se

cret

ary,

such

age

ncy

wou

ld h

ave

deri

ved

in s

uch

year

, and

wou

ld h

ave

had

avai

labl

e fo

r cu

rren

t exp

endi

ture

s, f

rom

the

prop

erty

acq

uire

dby

the

Uni

ted

Stat

es (

such

am

ount

to b

e de

term

ined

with

out r

egar

dto

any

impr

ovem

ents

or

othe

r ch

ange

s m

ade

in o

r on

suc

h pr

oper

tysi

nce

such

acq

uisi

tion)

.In

mak

ing

the

dete

rmin

atio

n of

the

amou

nt th

at w

ould

hav

e be

en d

eriv

ed in

suc

h ye

ar, t

he S

ecre

tary

shal

l app

ly th

e cu

rren

t lev

ied

real

pro

pert

y ta

x ra

te f

orcu

rren

tex

pend

iture

s le

vied

by

fisc

ally

inde

pend

ent l

ocal

edu

catio

nal a

gen-

cies

or

impu

ted

for

fisc

ally

dep

ende

nt lo

cal e

duca

tiona

l age

ncie

s to

the

curr

cnt a

nnua

lly d

eter

min

ed a

ggre

gate

ass

esse

d va

lue

of s

uch

acqu

ired

Fed

eral

pro

pert

y.

(b)

Prop

erty

exc

lude

dFo

r th

e pu

rpos

es o

f th

is s

ectio

nan

y re

al p

rope

rty

with

res

pect

tow

hich

pay

men

ts a

re b

eing

mad

e un

der

sect

ion

8311

of

Titl

e 16

sha

llno

t be

rega

rded

as

Fede

ral p

rope

rty.

(c)

Scho

ol d

istr

ict c

onso

lidat

ions

Whe

re th

e sc

hool

dis

tric

t of

any

loca

l edu

catio

nal a

genc

y sh

all

have

bee

n fo

rmed

at

any

time

afte

r 19

38 b

y th

c co

nsol

idat

ion

oftw

o or

mor

e fo

rmer

sch

ool d

istr

icts

, suc

hag

ency

may

ele

ct (

at th

etim

e it

file

s ap

plic

atio

n un

der

scct

ion

240

of th

is ti

tle)

for

any

fisc

alye

ar to

hav

e (1

) th

e el

igib

ility

of

such

loca

l edu

catio

nal a

genc

y, a

nd(2

) th

e am

ount

whi

ch s

uch

agen

cy s

hall

he e

ntitl

ed to

rec

eive

,de

term

ined

und

er th

is s

ectio

n on

ly w

ithre

spec

t to

such

of

the

form

er s

choo

l dis

tric

ts c

ompr

isin

g su

ch c

onso

lidat

ed s

choo

l dis

tric

tas

the

agen

cy s

hall

desi

gnat

e in

suc

h el

ectio

n.

(d)

Paym

ents

attr

ibut

able

to I

ncor

rect

ass

esse

d va

lue

dete

rmin

atio

nA

ny p

aym

ent m

ade

to a

loca

l edu

catio

nal

agen

cy f

or a

nyfi

scal

year

pri

or to

198

7 th

at is

attr

ibut

able

to a

n in

corr

ect d

eter

min

atio

nun

der

subs

ectio

n (a

)(1)

(C)

of th

is s

ectio

n sh

all b

e de

emed

to h

ave

been

mad

e in

acc

orda

nce

with

suc

h su

bsec

tion.

(Sep

t. 30

, 195

0, c

. 112

4, T

itle

1, §

2, f

orm

erly

§ 2

, 64

Stat

. 110

1; A

ug. 8

.19

53, c

. 402

, § I

, 67

Stat

. 530

; Aug

. 12,

195

5, c

. 868

, § 1

, 69

Stat

. 713

; Aug

.3,

195

6, c

. 915

, Titl

e 11

, § 2

01, 7

0 St

at. 9

70; A

ug. 1

2, 1

958,

Pub

l.. 8

5-62

0,T

itle

II, §

201

, 72

Stat

. 559

; Oct

. 3, 1

961,

Pub

.L. 8

7-34

4. T

itle

I,§

102(

a). 7

5St

at. 7

59; D

ec. 1

8. 1

963,

Pub

.L. 8

8-21

0, T

itle

III,

§ 3

02, f

orm

erly

§ 3

2. 7

7St

at. 4

19, r

enum

bere

d O

ct. 1

6, 1

968,

Pub

l. 90

-576

, Titl

e 1,

§ 10

1(a)

( I)

. 82

Stat

. 106

4; O

ct. 1

6, 1

964,

Pub

.L. 8

8-66

5, T

itle

XI,

§ 1

102(

a), 7

8 St

at. 1

10q;

renu

mbe

red

and

amen

ded

Apr

. 1 1

, 196

5, P

ub.L

. 89-

10, T

itle

I, §

§ 2.

5. 7

9St

at. 2

7, 3

6; J

an. 2

, 196

8, P

ub.L

. 90-

247,

Titl

e II

, § 2

04(a

)-(c

), T

itle

§ 30

1(c)

, 81

Stat

. 808

, 813

; Apr

. 13,

197

0, P

ub.L

, 91-

230,

Titl

e II

, § 2

01(b

).

Ch.

13

FED

ER

AL

LY

AFF

EC

TE

D

the

dist

rict w

as a

per

mis

sibl

e co

nstr

ue.

tion

of th

c st

atut

e, w

hich

pro

vide

d th

at a

loca

l sch

ool d

istr

ict c

an r

ecei

ve fe

dera

lim

pact

aid

whe

n as

sess

ed v

alue

of t

hefe

dera

l pro

pert

y in

sch

ool d

isu

ict a

ggre

-ga

tes

10%

or

mor

eof

the

asse

ssed

val

ueof

all

real

pro

pert

y in

the

dist

rict.

Bay

-on

ne S

choo

l Bd.

v. U

.S. D

ept.

of E

duC

.,D

.D.C

.198

6.64

0F

.Sup

p. 4

70, a

ffirm

ed81

3 F

.2d

1254

, 259

U.S

.D.C

. 133

.

2.C

urre

nt e

xpen

ditu

res

Und

er th

is s

ectio

n pr

ovid

ing

for

ac-

cept

ance

of f

eder

al fu

nds

by a

tow

n, a

ndfo

r th

eir

disb

urse

men

t for

cur

rent

ex-

pend

iture

s of

the

scho

ol s

yste

m. "

curr

ent

expe

nditu

res"

ref

er to

thos

e ite

miz

edsc

hool

cos

tslis

ted

by s

choo

l fin

ance

AR

EA

S20

§ 2

38

com

mitt

ee in

its

prop

osed

ann

ual b

ud-

get.

Har

vey

v. T

own

of S

udbu

ry, 1

966,

214

N.E

.2d

718,

350

Mas

s. 3

12.

3.It

ems

with

in s

choo

l bud

get

Fed

eral

fund

s re

ceiv

ed o

r an

ticip

ated

purs

uant

to th

is s

ectio

n pr

ovid

ing

for

finan

cial

ass

ista

nce

to lo

cal e

duca

tiona

lag

enci

es in

are

as a

ffect

ed b

y fe

dera

l ac-

tiviti

es m

ust b

e ta

ken

into

con

side

ratio

nin

pre

parin

g lo

cal s

choo

l com

mitt

ee's

budg

et, a

nd s

choo

l com

mitt

ee c

ould

not

expe

nd fu

nds

for

item

s w

hich

wer

e no

tin

clud

ed in

bud

get o

rigin

ally

sub

mitt

edto

tow

nm

eetin

gfo

rap

prop

riatio

n.H

arve

y v.

Tow

n of

Sud

bury

. 196

6. 2

14N

.E.2

d 71

8. 3

50 M

ass.

312

.

§ 23

8. P

aym

ents

to lo

cal s

choo

l age

ncie

s(a

) C

hild

ren

of p

erso

ns w

ho r

esid

e an

d w

ork

on F

eder

al p

rope

rty;

par

ent

in u

nifo

rmed

ser

vice

s; r

esid

ents

of

Indi

an la

nds

For

the

purp

ose

of c

ompu

ting

the

amou

nt to

whi

ch a

loca

led

ucat

iona

l age

ncy

is e

ntitl

ed u

nder

this

sec

tion

for

any

fisc

al y

ear,

the

Secr

etar

y sh

all d

eter

min

e th

e nu

mbe

r of

chi

ldre

n w

ho w

ere

inav

erag

e da

ily a

ttend

ance

at t

he s

choo

ls o

f su

ch a

genc

y, a

nd f

orw

hom

suc

h ag

ency

pro

vide

d fr

ee p

ublic

edu

catio

n, d

uri:I

g su

chfi

scal

yea

r, a

nd w

ho, w

hile

in a

ttend

ance

at s

uch

scho

ols,

res

ided

on F

eder

al p

rope

rty

and-

(1)

did

so w

ith a

par

ent e

mpl

oyed

on

Fede

ral p

rope

rty

situ

-at

cd (

A)

in w

hole

or

in p

art i

n th

e co

unty

in w

hich

the

scho

oldi

stri

ct o

f su

ch a

genc

y is

loca

ted,

or

t13)

if n

ot in

suc

h co

unty

,in

who

le o

r in

par

t in

the

sam

e St

ate

as th

e sc

hool

dis

tric

t of

such

age

ncy;

or

(2)

had

a pa

rent

who

was

on

activ

e du

ty in

the

unif

orm

edse

rvic

es (

as d

efin

ed in

sec

tion

101

of T

itle

37).

In m

akin

g a

dete

rmin

atio

n un

der

clau

se (

2) o

f th

e pr

eced

ing

sen-

tenc

e w

ith r

espe

ct to

a lo

cal e

duca

tiona

l age

ncy

for

any

fisc

al y

ear,

the

Secr

etar

y sh

all i

nclu

de th

e nu

mbe

r of

chi

ldre

n w

ho w

ere

inav

erag

e da

ily a

ttend

ance

at t

he s

choo

ls o

f su

ch a

genc

y, a

nd f

orW

hom

suc

hag

ency

pro

vide

d fr

ee p

ublic

edu

catio

n, d

urin

g su

chye

c.r,

and

who

, whi

le in

atte

ndan

ce a

t suc

h sc

hool

s, r

esid

ed o

nIn

dian

land

s, a

s de

scri

bed

in c

laus

e (A

) of

sec

tion

244(

1) o

f th

istit

le.

(b)

Chi

ldre

n of

per

sons

who

res

ide

or w

ork

on F

eder

al p

rope

rty,

who

are

on a

ctiv

e du

ty I

n un

ifor

med

ser

vice

s, o

r w

ho a

re r

efug

ees

For

the

purp

ose

of c

ompu

ting

the

amou

nt to

whi

ch a

loca

led

ucat

iona

lag

ency

is e

ntitl

ed u

nder

this

sec

tion

for

any

fisc

al y

ear

,

20 §

238

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3

endi

ng p

rior

to O

ctob

er I,

199

3, th

e S

ecre

tary

sha

ll, in

add

ition

toan

y de

term

inat

ion

mad

e w

ith r

espe

ct to

suc

h ag

ency

und

cr s

ubse

c-tio

n (a

) of

this

sec

tion,

det

erm

ine

the

num

ber

of c

hild

ren

(oth

erth

an c

hild

ren

with

res

pect

to w

hom

a d

eter

min

atio

n is

mad

c fo

rsu

ch fi

scal

yea

r un

der

subs

ectio

n (a

) of

this

sec

tion)

who

wer

e in

aver

age

daily

atte

ndan

ce a

t the

sch

ools

of s

uch

agen

cy, a

nd fo

rw

hom

suc

h ag

ency

pro

vide

d fr

ee p

ublic

edu

catio

n, d

urin

g su

chfis

cal y

ear

and

.who

, whi

le in

atte

ndan

ce a

t suc

h sc

hool

s, e

ither

(1)

resi

dcd

on F

eder

al p

rope

rty,

or

(2)

resi

ded

with

a p

aren

t em

ploy

ed o

n F

eder

al p

rope

rty

situ

-at

ed (

A)

in w

hole

or

in p

art i

n th

e co

unty

in w

hich

the

scho

oldi

stric

t of s

uch

agen

cy is

loca

ted,

or

in w

hole

or

in p

art i

n th

esc

hool

dis

tric

t of s

uch

agen

cy if

the

scho

ol d

istr

ict i

s lo

cate

d in

mor

e th

an o

ne c

ount

y, o

r (B

) if

not i

n su

ch c

ount

y or

dis

tric

t,in

who

le o

r in

par

t in

the

sam

e S

tate

as

th-.

. sch

ool d

istr

ict o

fsu

ch a

genc

y, o

r(3

) ha

d a

pare

nt w

ho w

as o

n ac

tive

duty

in th

e un

iform

edse

rvic

es (

as d

efin

ed in

sec

tion

101

of T

itle

37).

For

suc

h pu

rpos

e, w

ith r

espe

ct to

a lo

cal e

duca

tiona

l age

ncy,

in th

eca

se o

f any

fisc

al y

ear

endi

ng p

rior

to O

ctob

er I,

199

3, th

e S

ecre

-ta

ry s

hall

also

det

erm

ine

the

num

ber

of c

hild

ren

(oth

er th

an c

hil-

dren

to w

hom

sub

scct

ion

(a)

of th

is s

ectio

n or

the

prec

edin

gse

nten

ce a

pplie

s) w

ho w

ere

in a

vera

ge d

aily

atte

ndan

ce a

t the

scho

ols

of s

uch

agen

cy a

nd fo

r w

hom

suc

h ag

ency

pro

vide

d fr

eepu

blic

edu

catio

n, d

urin

g su

ch fi

scal

yea

r, a

nd w

ho, w

hile

in a

ttend

-an

ce a

t suc

h sc

hool

s re

side

d w

ith a

par

ent w

ho w

as, a

t any

tim

edu

ring

the

thre

e-ye

ar p

erio

d im

med

iate

ly p

rece

ding

the

begi

nnin

gof

the

fisca

l yea

r fo

r w

hich

the

dete

rmin

atio

n is

mad

e, a

ref

ugee

who

mee

ts th

e re

quire

men

ts o

f cla

uses

(A

) an

d (B

) of

sec

tion

2601

(6)(

3) o

f Titl

e 22

, exc

ept t

hat t

he S

ecre

tary

sha

ll no

t inc

lude

inhi

s de

term

inat

ion

unde

r th

is s

ente

nce

for

any

fisca

l yea

ran

y ch

ildw

ith r

espe

ct to

who

se e

duca

tion

a pa

ymcn

t was

mad

e un

der

sect

ion

2601

(b)(

4) o

f Titl

e 22

.

(c)

Elig

ibili

ty fo

r pa

ymen

ts; w

aive

r of

par

agra

ph (

1)(8

) re

quire

men

t

(I)

Exc

ept a

s is

pro

vide

d in

par

agra

ph (

2), n

o lo

cal e

duca

tiona

lag

ency

sha

ll be

ent

itled

to r

ecei

ve a

pay

men

t for

any

fisc

al y

ear

with

res

pect

to a

num

ber

of c

hild

ren

dete

rmin

ed u

nder

sub

sect

ion

(a)

and

subs

ectio

n (b

) of

this

sec

tion,

unl

ess

the

num

ber

of c

hild

ren

so d

eter

min

ed w

ith r

espe

ct to

suc

h ag

ency

am

ount

s to

(A)

at le

ast f

our

hund

red

such

chi

ldre

n; o

r(B

) a

num

ber

of s

uch

child

ren

whi

ch e

qual

s at

leas

t 3 p

erce

ntum

of t

he to

tal n

umbe

r of

chi

ldre

n w

ho w

ere

in a

vera

geda

ily a

ttend

ance

, dur

ing

such

yea

r, a

t the

sch

ools

of s

uch

Ch.

13

FE

DE

RA

LLY

AF

FE

CT

ED

AR

EA

S20

§ 2

38

agen

cy a

nd fo

r w

hom

suc

h ag

ency

pro

vide

d fr

ee p

ublic

edu

-ca

tion;

whi

chev

er is

the

less

er.

(2)(

A)(

I) If

a lo

cal e

duca

tiona

l age

ncy

is e

ligib

le fo

r a

paym

ent f

oran

y fis

cal y

ear

by th

e op

erat

ion

of c

laus

e (B

) of

par

agra

ph (

1), i

tsh

all c

ontin

ue to

be

so e

ligib

le fo

r th

c tw

o su

ccee

ding

fisc

al y

ears

even

if s

uch

agen

cy fa

ils to

mee

t the

req

uire

men

t of s

uch

clau

se (

B)

durin

g su

ch s

ucce

edin

g fis

cal y

ears

. exc

ept t

hat t

hc n

umbe

r of

child

ren

dete

rmin

ed fo

r th

e se

cond

suc

h su

ccee

ding

fisc

al y

ear

with

resp

ect t

o su

ch a

genc

y fo

r th

e pu

rpos

e of

any

cla

use

in p

arag

raph

(1)

of s

ubse

ctio

n (d

) of

this

sec

tion

shal

l not

exc

eed

50 p

er c

cntu

mof

the

num

ber

of c

hild

ren

dete

rmin

ed w

ith r

espe

ct to

suc

h ag

ency

for

the

purp

ose

of th

at c

laus

e fo

r th

e la

st fi

scal

yea

r du

ring

whi

chsu

ch a

genc

y w

as s

o el

igib

le.

(II)

If th

e S

ecre

tary

det

erm

ines

with

res

pect

to a

ny lo

cal e

du-

catio

nal a

genc

y fo

r an

y fis

cal y

ear

that

(I)

such

age

ncy

does

not

mee

t the

req

uire

men

t of c

laus

e (B

)of

par

agra

ph (

1); a

nd(I

I) th

e ap

plic

atio

n of

suc

h re

quire

men

t, be

caus

e of

exc

ep-

tiona

l circ

umst

ance

s, w

ould

def

eat t

he p

urpo

ses

of th

is s

ub-

chap

ter;

the

Sec

reta

ry is

aut

horiz

ed to

wai

ve s

uch

requ

irem

ent w

ith r

espe

ctto

suc

h ag

cncy

.

(B)

No

loca

l edu

catio

nal a

genc

y sh

all b

e en

title

d to

rec

eive

apa

ymen

t for

any

fisc

al y

car

with

res

pect

to a

num

ber

of c

hild

ren

dete

rmin

ed u

nder

the

seco

nd s

ente

nce

of s

ubse

ctio

n (b

) of

this

sect

ion

unle

ss th

e nu

mbe

r of

chi

ldre

n so

det

erm

ined

con

stitu

tes

atle

ast 2

0 pe

r ce

ntum

of t

he to

tal n

umbe

r of

chi

ldre

n w

ho w

ere

inav

erag

e da

ily a

ttend

ance

at t

he s

choo

ls o

f suc

h ag

ency

and

for

who

m s

uch

agen

cy, d

urin

g su

ch fi

scal

yea

r, p

rovi

ded

free

pub

liced

ucat

ion.

(d)

Am

ount

of p

aym

ents

; spe

cial

edu

catio

n pr

ogra

ms,

enE

tlem

ent;

crite

-ria

; loc

al c

ontr

ibut

ion

rate

; for

mul

a; s

peci

al d

eter

min

atio

n fo

r te

rri-

torie

s; "

hand

icap

ped

child

ren"

, "S

tate

", a

nd "

aver

age

per

pupi

lex

pend

iture

" de

fined

(1)

Exc

ept a

s is

pro

vide

d in

par

agra

ph (

2), t

he a

mou

nt to

whi

ch a

loca

l edu

catio

nal

agen

cy s

hall

be e

ntitl

ed u

nder

this

sec

tion

for

any

fisca

l yea

r sh

all b

e(A

) in

the

case

of a

ny lo

cal e

duca

tiona

l age

ncy

with

res

pect

to w

hich

the

num

ber

of c

hild

ren

is d

eter

min

ed u

nder

sub

sec-

tion

(a)

of th

is s

ectio

n an

am

ount

equ

al to

100

per

cen

tum

of

the

loca

l con

trib

utio

n ra

te m

ultip

lied

by th

e nu

mbe

r of

chi

l-

86

20 §

238

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3

dren

det

erm

ined

und

cr s

uch

subs

ectio

n pl

us th

e pr

oduc

t ob-

tain

ed w

ith r

espe

ct to

suc

h ag

ency

und

er s

ubpa

ragr

aph

(B);

and

(B)

in a

ny o

ther

cas

e, a

n am

ount

equ

al to

25

per

cent

um o

fth

c lo

cal c

ontr

ibut

ion

rate

mul

tiplie

d by

the

num

ber

of c

hil-

dren

det

erm

ined

with

res

-xct

to s

uch

agen

cy f

or s

uch

fisc

alye

ar u

nder

sub

sect

ion

(b)

of th

is s

ectio

n.(2

)(A

) Fo

r an

y fi

scal

yea

r af

ter

Sept

embe

r 30

, 198

8, th

e to

tal

amou

nt o

f pa

ymen

ts u

nder

sub

para

grap

h (B

) m

ay n

ot e

xcee

d$2

0,00

0,00

0.

(B)

If th

e Se

cret

ary

dete

rmin

es th

at(1

) th

e am

ount

of

paym

ent r

esul

ting

from

par

agra

ph (

1), a

s is

othe

rwis

e pr

ovid

ed in

this

sub

scct

ion

with

res

pect

to a

ny lo

cal

educ

atio

nal a

genc

y io

r an

y fi

scal

yea

r, to

geth

er w

ith th

e fu

nds

avai

labl

e to

suc

h ag

ency

fro

m S

tate

and

loca

l sou

rces

and

fro

mot

her

sect

ions

of

this

sub

chap

ter,

det

erm

ined

in a

ccor

danc

ew

ith s

ubpa

ragr

aph

(E),

is le

ss th

an th

e am

ount

nec

essa

ry to

enab

le s

uch

agen

cy to

pro

vide

a le

vel o

f ed

ucat

ion

equi

vale

nt to

the

Stat

e av

erag

e du

ring

the

prec

edin

g fi

scal

yea

r or

to th

eav

erag

e of

that

mai

ntai

ned

duri

ng th

e pr

eced

ing

fisc

al y

ear

inth

ree

or m

ore

of th

e sc

hool

dis

tric

t.; o

f th

e St

ate

whi

ch a

rege

nera

lly c

ompa

rabl

e to

the

scho

ol d

istr

izt o

f su

ch a

genc

y,w

hich

ever

is h

ighe

r, in

crea

sed

or d

ecre

ased

, as

the

case

may

be,

in th

e sa

me

perc

enta

ge a

s th

e co

st o

f su

ch le

vel o

f ed

ucat

ion

incr

ease

d or

dec

reas

ed f

rom

the

scco

nd p

rece

ding

fis

cal y

ear

toth

e pr

ior

fisc

al y

ear;

00 s

uch

agen

cy is

mak

ing

a re

ason

able

tax

effo

rt a

nd e

xer-

cisi

ng d

ue d

ilige

nce

in a

vaili

ng it

self

of

Stat

e an

d ot

her

fina

n-ci

al a

ssis

tanc

e;(I

lI)

not l

ess

than

50

per

cent

um o

f th

e to

tal n

umbe

r of

child

ren

who

wer

e in

ave

rage

dai

ly a

ttend

ance

at t

he s

choo

ls o

fsu

ch a

genc

y du

ring

suc

h fi

scal

yea

r an

d fo

r w

hom

suc

h ag

ency

prov

ided

fre

e pu

blic

edu

catio

n w

ere,

dur

ing

such

fis

cal y

ear,

dete

rmin

ed u

nder

eith

er s

ubse

ctio

n (a

) or

sub

sect

ion

(b)

of th

isse

ctio

n, o

r bo

th; a

nd(1

v) th

e el

igib

ility

of

such

age

ncy

unde

r St

ate

law

for

Sta

teai

d w

ith r

espe

ct to

fre

e pu

blic

edu

catio

n of

chi

ldre

n re

sidi

ng o

nFe

dera

l pro

pert

y, a

nd th

e am

ount

of

such

aid

, are

det

erm

ined

on a

bas

is n

o le

ss f

avor

able

to s

uch

agen

cy th

an th

e ba

sis

used

in d

eter

min

ing

the

elig

ibili

ty o

f lo

cal e

duca

tiona

l age

ncie

s fo

rSt

ate

aid,

and

the

amou

nt th

ereo

f, w

ith r

espe

ct to

the

free

publ

ic e

duca

tion

of o

ther

chi

ldre

n in

the

Stat

e;th

e Se

cret

ary

shal

l inc

reas

e th

e ac

tual

pay

men

t to

be m

ade

purs

u-an

t to

the

amou

nt c

ompu

ted

undc

r pa

ragr

aph

(1)

with

res

pect

to

Ch.

13F

ED

ER

ALL

Y A

FF

EC

TE

D A

RE

AS

20 §

238

such

age

ncy

for

such

fis

cal y

ear

to th

e ex

tent

nec

essa

ry to

enab

lesu

ch a

genc

y to

pro

vide

a le

vel o

f ed

ucat

ion

equi

vale

nt to

that

mai

ntai

ned

in s

uch

com

para

ble

scho

ol d

istr

icts

. The

incr

ease

com

-pu

ted

unde

r th

is s

ubpa

ragr

aph

shal

l be

suff

icie

nt to

allo

w th

esc

hool

dis

tric

t of

the

loca

l edu

catio

nal a

genc

y to

pro

vide

ale

vel o

fed

ucat

ion

(cal

cula

ted

in a

ccor

danc

e w

ith th

issu

bpar

agra

ph)

equa

lto

thc

aver

age

of th

e th

ree

com

para

ble

dist

rict

s in

the

Stat

e or

the

Stat

e av

erag

e, w

hich

ever

is g

reat

er, a

s de

scri

bed

in c

laus

e (i

).Fo

rth

e pu

rpos

e of

cla

use

(ii)

, the

Sec

reta

ry s

hall

dete

rmin

e th

at a

reas

onab

le ta

x ef

fort

has

bee

n m

ade

if th

e ta

x ra

te o

f th

e ag

ency

inth

e ye

ar f

or w

hich

the

dete

rmin

atio

n is

mad

c is

an

amou

ntth

at is

at le

ast e

qual

to 9

5 pe

rcen

t of

the

aver

age

tax

rate

for

gen

eral

fun

dpu

rpos

es o

f co

mpa

rabl

e sc

hool

dis

tric

ts f

orsu

ch f

isca

l yea

r. C

oter

-m

inou

s m

ilita

ry d

istr

icts

sha

ll be

dee

med

to m

eet

the

requ

irem

ent

of s

uch

reas

onab

le ta

x ef

fort

.E

xcep

t for

cot

erm

inou

s m

ilita

rydi

stri

cts,

pay

men

ts m

ade

to a

ny a

genc

y un

der

this

subp

arag

raph

inan

y fi

scal

yea

r sh

all b

e re

duce

d by

the

perc

enta

ge th

at th

e av

erag

eta

x ra

te f

or o

pera

tiona

l pur

pose

s of

the

com

para

ble

scho

ol d

istr

icts

or, i

f no

ne, t

he S

tate

ave

rage

tax

rate

,ex

ceed

s th

e ta

x ra

te o

f su

chag

ency

. Sub

ject

to th

e pr

ovis

ions

of

subs

ectio

n (h

) of

this

sec

tion,

the

Secr

etar

y sh

all n

ot, u

nder

the

prec

edin

g se

nten

ce, i

ncre

ase

the

amou

nt c

ompu

ted

unde

r pa

ragr

aph

(1)

with

res

pect

to a

nylo

cal

educ

atio

nal a

genc

y fo

r an

y fi

scal

yea

r to

an

amou

nt w

hich

exc

eeds

the

prod

uct o

f(I

) th

e am

ount

the

Secr

etar

y de

term

ines

to b

e th

e co

st p

erpu

pil o

f pr

ovid

ing

a le

vel o

f ed

ucat

ion

mai

ntai

ned

in s

uch

com

para

ble

scho

ol d

istr

icts

dur

ing

such

fis

cal y

ear,

mul

tiplie

d by

(II)

the

num

ber

of c

hild

ren

dete

rmin

ed w

ith r

espe

ct to

such

agen

cy f

or s

uch

year

und

er e

ither

sub

sect

ion

(a)

or s

ubse

ctio

n(b

) of

this

sec

tion,

or

both

,m

inus

thc

amou

nt o

f St

ate

aid

whi

ch th

e Se

cret

ary

dete

rmin

es to

beav

aila

ble

with

res

pect

to s

uch

child

ren

for

the

fisc

al y

ear

for

whi

chth

e co

mpu

tatio

n is

bei

ng m

ade.

In

carr

ying

out

the

prov

isio

ns o

fth

is s

ubpa

ragr

aph,

the

Secr

etar

y sh

all c

ount

the

actu

al n

umbe

r of

child

ren

with

res

pect

to s

uch

agen

cy f

or e

ach

fisc

al y

ear

unde

rsu

bsec

tion

(b)

of th

is s

ectio

n w

ithou

t reg

ard

to th

e pr

ovis

ions

of

subp

arag

raph

(E

) of

this

par

agra

ph.

(C)(

1) T

he a

mou

nt o

f th

c en

title

men

t of

any

loca

l edu

catio

nal

agen

cy u

nder

this

sec

tion

for

any

fisc

al y

ear

with

res

pect

toha

ndi-

capp

ed c

hild

ren

and

child

ren

with

spe

cifi

c le

arni

ng d

isab

ilitie

s fo

rw

hom

a d

eter

min

atio

n is

mad

e un

der

subs

ectio

n (a

)(2)

or

(b)(

3) o

fth

is s

ectio

n an

d fo

r w

hom

suc

h lo

cal e

duca

tiona

l age

ncy

is p

rovi

d-in

g a

prog

ram

des

igne

d to

mee

t the

spe

cial

edu

catio

nal a

nd r

elat

ed

20 §

238

ASS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

need

s of

suc

h ch

ildre

n sh

all b

e th

e am

ount

det

erm

ined

und

erpa

ragr

aph

(1)

with

res

pect

to s

uch

child

ren

for

such

fis

cal y

ear

mul

tiplie

d by

150

per

cen

tum

.(1

1) F

or th

e pu

rpos

es o

f di

visi

on (

i), p

rogr

ams

desi

gned

to m

eet

the

spec

ial e

duca

tiona

l and

rel

ated

nee

ds o

f su

ch c

hild

ren

shal

l be

cons

iste

nt w

ith c

rite

ria

esta

blis

hed

unde

r di

visi

on (

iii).

(Ill)

The

Sec

reta

ry s

hall

by r

egul

atio

n es

tabl

ish

crite

ria

for

assu

r-in

g th

at p

rogr

ams

(inc

ludi

ng p

resc

hool

pro

gram

s) p

roi/i

ded

by lo

cal

educ

atio

nal a

genc

ies

for

child

ren

with

res

pect

to w

hom

this

sub

par-

agra

ph a

pplie

s ar

e of

suf

fici

ent s

ize,

sco

pe. a

nd q

ualit

y (t

akin

g in

toco

nsid

erat

ion

the

spec

ial e

duca

tiona

l nee

ds o

f su

ch c

hild

ren)

as

togi

ve r

easo

nabl

e pr

omis

e of

sub

stan

tial p

rogr

ess

tow

ard

mee

ting

thos

e ne

eds,

and

in th

e im

plem

enta

tion

of s

uch

regu

latio

ns th

eSe

cret

ary

shal

l con

sult

with

per

sons

in c

harg

e of

spe

cial

edu

catio

npr

ogra

ms

for

hand

icap

ped

child

ren

in th

e ed

ucat

iona

l age

ncy

of th

cSt

ate

in w

hich

suc

h lo

cal e

duca

tiona

l age

ncy

is lo

cate

d.(i

v) F

or th

e pu

rpos

e of

this

sub

para

grap

h th

e te

rm "

hand

icap

ped

child

ren"

has

the

sam

e m

eani

ng a

s sp

ecif

ied

in s

ectio

n1401(1)

ofth

is ti

tle a

nd th

e te

rm "

child

ren

with

spe

cifi

c le

arni

ng d

isab

ilitie

s"ha

s th

e sa

me

mca

ning

as

spec

ifie

d in

sec

tion

1401(15)

of th

is ti

tle.

(D)

The

am

ount

of

the

entit

lem

ents

of

any

loca

l edu

catio

nal

agen

cy u

nder

this

sec

tion

for

any

fisc

al y

ear

with

res

pect

to c

hil-

dren

who

, whi

le in

atte

ndan

ce a

t suc

h ag

ency

, res

ided

on

Indi

anla

nds,

as

desc

ribe

d in

cla

use

(A)

of s

ectio

n244(1)

of th

is ti

tle, s

hall

be th

e am

ount

det

erm

ined

'ind

er p

arag

raph

(1)

with

res

pect

to s

uch

child

ren

for

such

fis

cal y

ear

mul

tiplie

d by

125

p:.1

- cc

ntum

. Fun

dsre

ceiv

ed u

nder

this

sec

tion

may

be

used

to p

ay tu

ition

for

any

stud

ent n

ot e

ligib

le f

or f

undi

ng u

nder

sec

tion

2008

of T

itle

25 in

any

scho

ol r

ecei

ving

fun

ding

und

er s

uch

sect

ion.

No

cond

ition

invo

lvin

g pr

ogra

m o

r pe

rson

nel s

hall

appl

y to

any

suc

h pa

ymen

ts.

(E)

For

the

purp

ose

of s

ubpa

ragr

aph

(B)(

i) o

f th

is p

arag

raph

(I)

avai

labl

e fu

nds

may

not

incl

ude

any

cash

bal

ance

at t

heen

d of

a y

ear

allo

wed

und

er S

tate

law

; or

(II)

whe

neve

r no

Sta

te la

w g

over

ning

cas

h ba

lanc

e ex

ists

,av

aila

ble

fund

s m

ay n

ot in

clud

e 30

per

cent

of

the

loca

l edu

-ca

tiona

l age

ncy'

s op

erat

ing

cost

s.(3

)(A

) E

xcep

t as

is p

rovi

ded

in s

ubpa

ragr

aph

(B),

in o

rder

toco

mpu

te th

e lo

cal c

ontr

ibut

ion

rate

for

a lo

cal e

duca

tiona

l age

ncy

for

any

fisc

al y

ear,

the

Secr

etar

y, a

fter

con

sulti

ng w

ith th

e St

ate

educ

atio

nal a

genc

y of

the

Stat

e in

whi

ch th

e lo

cal e

duca

tiona

lag

ency

is lo

cate

d an

d w

ith th

e lo

cal e

duca

tiona

l age

ncy,

sha

llde

term

ine

whi

ch s

choo

l dis

tric

ts w

ithin

suc

h St

ate

arc

gene

rally

com

para

ble

to th

e sc

hool

dis

tric

t of

the

loca

l edu

catio

nal a

gcnc

y fo

r

91

Ch.

13

FED

ER

AL

LY

AFF

EC

TE

D A

RE

AS

20 §

238

whi

ch th

e co

mpu

tatio

n is

bei

ng m

ade.

The

loca

l con

trib

utio

n ra

tefo

r su

ch a

genc

y sh

all b

e th

e qu

otie

nt o

f(I

) th

c ag

greg

ate

curr

ent e

xpen

ditu

res,

dur

ing

the

scco

ndfi

scal

yea

r pr

eced

ing

the

fisc

al y

ear

for

whi

ch th

e co

mpu

tatio

nis

mad

e, w

hich

the

loca

l edu

catio

nal a

genc

ies

of s

uch

com

para

-bl

e sc

hool

dis

tric

ts d

eriv

ed f

rom

loca

l sou

rces

,

divi

dedo

tb) yt

-he

aggr

egat

e nu

mbe

r of

chi

ldre

n in

ave

rage

dai

ly a

ttend

-an

ce f

or w

hom

suc

h ag

ency

pro

vide

d fr

ee p

ublic

edu

catio

ndu

ring

suc

h se

cond

pre

cedi

ng f

isca

l yea

r.

(B)(

1) T

he lo

cal c

ontr

ibut

ion

rate

for

a lo

cal e

duca

tiona

l age

ncy

in a

ny S

tate

sha

ll no

t be

less

than

(I)

50 p

er c

entu

m o

f th

e av

erag

e pe

r pu

pil e

xpen

ditu

re in

such

Sta

te, o

r(I

I) 5

0 pe

r ce

ntum

of

such

exp

endi

ture

s in

all

the

Stat

es,

whi

chev

er is

gre

ater

, exc

ept t

hat c

laus

e (I

I) s

hall

not o

pera

te in

such

a m

anne

r as

to m

ake

the

loca

l con

trib

utio

n ra

te f

or a

ny lo

cal

educ

atio

nal a

genc

y in

any

Sta

te e

xcee

d an

am

ount

equ

al to

the

aver

age

per

pupi

l exp

endi

ture

in s

uch

Stat

e.

(II)

If

the

curr

ent e

xpen

ditu

res

in th

ose

scho

ol d

istr

icts

whi

ch th

eSe

cret

ary

has

dete

rmin

ed to

be

gene

rally

com

para

ble

to th

e sc

hool

dist

rict

of

the

loca

l edu

catio

nal a

gcnc

y fo

r w

hich

a c

ompu

tatio

n is

mad

e un

der

subp

arag

raph

(A

) ar

c no

t rea

sona

bly

com

para

ble

be-

caus

e of

unu

sual

geo

grap

hica

l fac

tors

whi

ch a

ffec

t the

cur

rent

expe

nditu

res

nece

ssar

y to

mai

ntai

n, in

the

scho

ol d

istr

ict o

f su

chag

ency

, a le

vel o

f ed

ucat

ion

equi

vale

nt to

that

mai

ntai

ncd

in s

uch

othe

r sc

hool

dis

tric

ts, t

he S

ecre

tary

sha

ll in

crea

se th

e lo

cal c

ontr

i-bu

tion

rate

for

suc

h ag

ency

by

such

an

amou

nt w

hich

he

dete

r-m

ines

will

com

pens

ate

such

age

ncy

for

the

incr

ease

in c

urre

ntex

pend

iture

s ne

cess

itate

d by

suc

h un

usua

l geo

grap

hica

l fac

tors

.T

he a

mou

nt o

f an

y su

ch s

uppl

emen

tary

pay

men

t may

not

exc

eed

the

per

pupi

l sha

re (

com

pute

d w

ith r

egar

d to

all

child

ren

in a

vera

geda

ily a

ttend

ance

), a

s de

term

ined

by

the

Secr

etar

y, o

f th

e in

crea

sed

expe

nditu

res

nece

ssita

ted

by s

uch

unus

ual g

eogr

aphi

cal

(111

) T

he lo

cal c

ontr

ibut

ion

rate

for

any

loca

l edu

catio

nal a

genc

yin

-(I

) Pu

erto

Ric

o, W

ake

Isla

nd, G

uam

, Am

eric

an S

amoa

, the

Nor

ther

n M

aria

na I

slan

ds, o

r th

e V

irgi

n Is

land

s, o

r(I

I) a

ny S

tate

in w

hich

a s

ubst

antia

l pro

port

ion

of th

e la

nd is

in u

norg

aniz

ed te

rrito

ry, o

r

92

20 §

238

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3

(III

) an

y St

ate

in w

hich

ther

e is

onl

y on

e lo

cal e

duca

tion

agen

cy,

shal

l be

dete

rmin

ed f

or a

ny f

isca

l yea

r by

thc

Secr

etar

y in

acc

ord-

ance

with

pol

icie

s an

d pr

inci

ples

whi

ch w

ill b

est a

chie

ve th

e pu

r-po

ses

of th

is s

ectio

n an

d w

hich

arc

con

sist

ent w

ith th

e po

licie

s an

dpr

inci

ples

pro

vide

d in

this

par

agra

ph f

or d

eter

min

ing

loca

l con

tri-

butio

n ra

tes

in S

tate

s w

here

itis

pos

sibl

e to

det

erm

ine

gene

rally

com

para

ble

scho

ol d

istr

icts

.(C

) T

he lo

cal c

ontr

ibut

ion

rate

for

a lo

cal e

duca

tiona

l age

ncy

sh,ll

incl

ude

curr

ent e

xpen

ditu

res

from

that

por

tion

of a

rea

lpr

oper

ty ta

x re

quir

ed to

be

levi

ed, c

olle

cted

, and

dis

trib

uted

to lo

cal

educ

atio

nal a

genc

ies

by c

ount

y go

vern

men

ts p

ursu

ant t

o St

ate

law

whe

re th

e re

mai

nder

of

such

rea

l pro

pert

y ta

x is

tran

sfer

red

to th

eSt

ate. (D

) Fo

r th

e pu

rpos

es o

f th

is p

arag

raph

--(I

) th

e te

rm "

Stat

e" d

oes

not i

nclu

de P

uert

o R

ico,

Wak

eIs

land

, Gua

m, A

mer

ican

Sam

oa, t

he N

orth

ern

Mar

iana

Isl

ands

,or

the

Vir

gin

Isla

nds;

and

(it)

the

"ave

rage

per

pup

il ex

pend

iture

" in

a S

tate

sha

ll be

(I)

the

aggr

egat

e cu

rren

t exp

endi

ture

s, d

urin

g th

e se

cond

fis

cal

year

pre

cedi

ng th

e fi

scal

yea

r fo

r w

hich

the

com

puta

tion

ism

ade

of a

H lo

cal e

duca

tiona

l age

ncie

s in

the

Stat

e, d

ivid

ed b

y(I

I) th

e ag

greg

ate

num

ber

of c

hild

ren

in a

vera

ge d

aily

atte

nd-

ance

for

who

m s

uch

agen

cies

pro

vide

fre

e pu

blic

edu

catio

ndu

ring

suc

h se

cond

pre

cedi

ng f

isca

l yea

r.

(e)

Adl

ustm

ent f

or c

erta

in d

ecre

ases

In F

eder

al a

ctiv

ities

Whe

neve

r th

e Se

cret

ary

dete

rmin

es th

at-

(1)

for

any

fisc

al y

ear,

the

num

ber

of c

hild

ren

dcte

rmin

edw

ith r

espe

ct to

any

loca

l edu

catio

nal a

genc

y un

der

subs

ectio

ns(a

) an

d (b

) of

this

sec

tion

is le

ss th

an 9

0 pe

r ce

ntum

of

the

num

ber

so d

eter

min

ed w

ith r

espe

ct to

suc

h ag

ency

dur

ing

the

prec

edin

g fi

scal

yea

r;(2

) th

ere

has

been

a d

ecre

ase

or c

essa

tion

of F

edcr

al a

ctiv

i-tie

s w

ithin

the

Stat

e in

whi

ch s

uch

agen

cy is

loca

ted;

and

(3)

such

dec

reas

e or

ces

satio

n ha

s re

sulte

d in

a s

ubst

antia

lde

crea

se in

^,h

e nu

mbe

r of

chi

ldre

n de

term

ined

und

er s

ubse

c-tio

ns (

a) a

nd (

b) o

f th

is s

ectio

n w

ith r

espe

ct to

suc

h ag

ency

for

such

fis

cal y

ear;

the

amou

nt to

whi

ch s

uch

agen

cy is

ent

itled

for

suc

h fi

scal

yea

r an

dfo

r an

y of

the

thre

e su

ccee

ding

fis

cal y

ears

sha

ll no

t be

less

than

Q0

per

cent

um o

f th

e am

ount

to w

hich

suc

h ag

ency

was

so

entit

led

for

the

prec

edin

g fi

scal

yea

r. T

hat p

art o

f an

y en

title

men

t of

any

loca

l

Ch.

13

FE

DE

RA

LLY

AF

FE

CT

ED

AR

EA

S20

§ 2

38

educ

atio

nal a

genc

y w

hich

is in

exc

ess

of th

e am

ount

whi

ch s

uch

entit

lem

ent w

ould

be

with

out t

he o

pera

tion

of th

e pr

eced

ing

sen-

tenc

e sh

all b

e de

emed

to b

e at

trib

utab

le to

det

erm

inat

ions

of

child

ren

with

res

pect

to s

uch

agen

cy u

nder

sub

sect

ion

(b)(

2)(A

) of

this

sec

tion.

(f)

Det

erm

inat

ions

on

basi

sof

estim

ates

Det

erm

inat

ions

with

res

pect

to a

num

ber

of c

hild

ren

by th

eSe

cret

ary

unde

r th

is s

ectio

n fo

r an

y fi

scal

yea

r sh

all b

e m

ade,

whe

neve

r ac

tual

sat

isfa

ctor

y da

ta a

re n

ot a

vaila

ble,

on

the

basi

s of

estim

ates

.N

o su

ch d

eter

min

atio

n sh

all o

pera

te, b

ecau

se o

f an

unde

rest

imat

e, to

dep

rive

any

loca

l edu

catio

nal a

genc

y of

its

entit

le-

men

t to

any

paym

ent (

or th

e am

ount

ther

eof)

und

er th

is s

ectio

n to

whi

ch s

uch

agen

cy w

ould

bc

entit

led

had

such

dct

erm

inat

ion

been

mad

e on

the

basi

s of

acc

urat

e da

ta.

(g)

Spen

ding

vot

e re

quir

emen

t pro

hibi

ted

Not

with

stan

ding

any

oth

er p

rovi

sion

s of

this

cha

pter

, no

Stat

em

ay r

equi

re th

at a

vot

e of

the

qual

ifie

d el

ecto

rs o

f a

heav

ilyim

pact

ed s

choo

l dis

tric

t of

a lo

cal e

duca

tiona

l age

ncy

be h

eld

tode

term

ine

if s

uch

scho

ol d

istr

ict w

ill s

pend

the

amou

nts

to w

hich

the

loca

l edu

catio

nal a

genc

y is

ent

itled

und

er th

is c

hapt

er.

(h)

Spec

ial p

rovi

sion

s

(1)

Any

loca

l edu

catio

nal a

genc

y fo

r w

hich

thc

boun

dari

es o

f th

esc

hool

dis

tric

t of

such

age

ncy

are

cote

rmin

ous

with

the

boun

dari

esof

a m

ilita

ry in

stal

latio

n an

d w

hich

is n

ot e

ligib

le to

rec

eive

pay

-m

ents

und

er s

ubse

ctio

n (d

)(2)

(B)

of th

is s

ectio

n sh

all r

ecei

ve 1

00pe

rcen

t of

the

amou

nts

to w

hich

suc

h ag

ency

is e

ntitl

ed u

nder

subs

ectio

n (a

) of

this

sec

tion.

(2)

For

the

fisc

al y

ear

begi

nnin

g O

ctob

er 1

, 198

7, a

nd f

or e

ach

year

ther

eaft

er, t

he lo

cal c

ontr

ibut

ion

rate

for

cot

erm

inou

s lo

cal

educ

atio

nal a

genc

ies

undc

r pa

ragr

aph

(I)

shal

l bc

not l

ess

than

70

per

cent

um o

f th

c av

erag

e pe

r pu

pil e

xpen

ditu

re in

all

Stat

es d

urin

gth

e se

cond

pre

cedi

ng y

ear

prio

r to

the

fisc

al y

ear

for

whi

ch th

cde

term

inat

ion

is m

ade

unle

ss s

uch

paym

ent w

ould

rai

se th

c pe

rpu

pil e

xpen

ditu

re a

bove

the

aver

age

for

that

Sta

te. W

hene

ver

the

prec

edin

g se

nten

ce a

pplie

s, th

e lo

cal c

ontr

ibut

ion

rate

may

not

be

less

than

the

amou

nt n

eces

sary

to r

aise

thc

per

pupi

l exp

endi

ture

for

that

dis

tric

t to

the

aver

age

per

pupi

l exp

endi

ture

for

the

Stat

e in

whi

ch s

uch

agen

cy is

loca

ted.

The

fir

st 2

sen

tenc

es o

f th

is p

ara-

grap

h sh

all n

ot a

pply

for

loca

l edu

catio

nal a

genc

ies

in a

r y

Stat

e in

whi

ch th

e St

ate

equa

lizat

ion

law

wou

ld p

rohi

bit t

he lo

cal e

duca

tion-

al a

genc

y fr

om r

etai

ning

suc

h ad

ditio

nal f

unds

or

in w

hich

Sta

tela

w w

ould

req

uire

that

the

Stat

e co

ntri

butio

n w

ould

be

redu

ced

in

20 §

238

ASS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

prop

ortio

n to

suc

h ad

ditio

nal f

unds

. The

loca

l con

trib

utio

nra

tefo

r lo

cal e

duca

tiona

l age

ncie

s un

der

this

par

agra

phm

ay n

ot b

e le

ssth

an 5

0 pe

r ce

ntum

of t

he a

vera

gepe

r pu

pil e

xpen

ditu

re in

all

Sta

tes

durin

g th

c se

cond

pre

cedi

ng fi

scal

yea

r pr

ior

to th

c fis

cal

year

for

whi

ch th

e de

term

inat

ion

is m

ade.

Sep

t. 30

, 195

0, c

. 112

4, T

itle

1, §

3, f

orm

erly

§ 3

, 64

Sta

t. 11

02;

Aug

. 8,

1953

, c. 4

02, §

2, 6

7 S

tat.

530;

Aug

. 12,

195

5, c

. 868

, §I,

69 S

tat.

713;

Aug

.1,

195

6, c

. 852

, § 1

0, 7

0 S

tat.

909;

Aug

. 3, 1

956,

c. 9

15, T

itle

II, §

§ 20

2-20

6,70

Sta

t. 97

0. 9

71; A

ug. 1

2, 1

958,

Puh

.L. 8

5-62

0, T

itle

Ii, §

202

, 72

Sta

t.55

9;Ju

ne 2

5. 1

959,

Pub

.L. 8

6-70

, § 1

8(d)

(1)-

(3).

73

Sta

t. 14

4; J

uly

12,

1960

,P

ub.L

. 86-

624,

§ 1

4(d)

(1)-

(3),

74

Sta

t. 41

4; O

ct. 3

, 196

1, P

ub.L

.87

-344

,T

itle

1, §

IO2(

a), 7

5 S

tat.

759;

Dec

. 18,

196

3, P

ub.L

. 88-

210,

Titl

e III

.§

302,

form

erly

§ 3

2, 7

7 S

tat.

419,

ren

umbe

red

Oct

. 16,

196

8, P

ub.L

. 90-

576,

Titl

e1,

§ 10

1(a)

(I),

82

Sta

t.10

64;

Oct

.16

,19

64, P

ub.L

. 88-

665,

Titl

e X

I,§

1102

(a).

78

Sta

t. 11

09; r

enum

bcrc

d an

d am

ende

d A

pr. 1

1, 1

965.

Pub

.L.

89-1

0, T

itle

1, §

§ 2.

3(a

), 4

(d)(

2), 5

, 79

Sta

t. 27

, 34-

36; N

ov. 1

, 196

5,P

ub.L

.89

-313

, § 4

(a),

79

Sta

t. 11

61; N

ov. 3

, 196

6, P

ub.L

. 89-

750,

Titl

e 11

. §20

1, 8

0S

tat.

1210

; Jan

. 2, 1

968,

Pub

.L. 9

0-24

7. T

itle

II, §

§ 20

4(d)

, 205

(a),

206

, Titl

eIII

, § 3

01(c

), 8

1 S

tat.

808,

809

, 813

; Apr

. 13,

197

0. P

ub.L

. 91-

230,

Titl

e II,

§§ 2

01(b

), 2

02, 8

4 S

tat.

154,

155

; Aug

. 21,

197

4, P

ub.L

. 93-

380,

Titl

e§§

304

(a)(

1), (

b)(1

), 3

05(a

)(1)

, 88

Sta

t. 52

2, 5

23; A

pr. 2

1, 1

976,

Puh

.L.

94-2

73, §

3(5

), 9

0 S

tat.

376;

Nov

.1,

1978

,P

ub.L

. 95-

561,

Titl

eX

,§§

100

1(0,

100

2, 1

003(

a), (

b), (

d), 1

004,

103

1(a)

, Titl

e X

I,§

1101

(a),

92

Sta

t.23

06, 2

307.

231

2. 2

313;

Aug

.13

,19

81, P

ub.L

. 97-

35, T

itle

V.

§ 50

5(a)

(2),

95

Sta

t. 44

2; S

ept.

24, 1

983,

Pub

.L. 9

8-94

, Titl

e X

II, §

1255

(b).

97 S

tat.

701;

Oct

. 19,

198

4, P

ub.L

. 98-

511,

Titl

e III

, §§

301(

a)(1

)-(3

),30

3(a)

,98

Sta

t. 23

88, 2

389;

Nov

. 8, 1

984,

Pub

.L. 9

13-6

19, T

itle

III, §

300,

98

Sta

t.33

23; J

uly

2, 1

986,

Pub

.L. 9

9-34

9. T

itle

I, 10

0 S

tat.

739,

740

;A

pr. 2

8, 1

988.

Pub

.L. 1

00-2

97, T

itle

II, §

§ 20

11(a

)(1)

, 201

2(a)

, 201

4, 2

019,

102

Sta

t. 29

4,29

5, 3

00; M

ay 1

1, 1

989,

Pub

.L. 1

01-2

6, §

2(b

), 1

03 S

tat.

54.)

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

SR

evis

ion

Not

es a

nd L

egis

lativ

e R

epor

ts19

30 A

ct. S

enat

e R

epor

t No.

245

8 an

dC

onfe

renc

e R

epor

t No.

310

9, s

ee 1

950

U.S

.Cod

e C

ong.

Ser

vice

, p. 4

014.

1953

Act

. Sen

ate

Rcp

ort N

o. 7

14, s

ee19

53 U

.S.C

ode

Con

g. a

nd A

dm. N

ews.

p.

2325

.

1955

Act

. Hou

se R

epor

t No.

144

1. s

ee19

55 U

.S.C

odc

Con

g. a

nd A

dm. N

ews,

p.

3086

.

1956

Act

s.S

enat

e R

epor

t No.

266

2,se

e19

56U

.S.C

ode

Con

g. a

nd A

dm.

New

s. p

. 406

2.

Sen

ate

Rep

ort N

o. 2

753,

see

195

6 U

S.

Cod

e C

ong

and

Adm

. New

s, p

. 426

5.19

58 A

ct. S

enat

e R

epor

t No.

192

9, s

ee19

58 U

.S.C

ode

Con

g. a

nd A

dm. N

ews,

p.

3412

.

1959

Act

. Sen

ate

Rep

ort N

o. 3

31, s

ee19

59 U

.S. C

ode

Con

g. a

nd A

dm. N

ews,

p.

1675

. 95

1960

Act

. Sen

ate

Rep

ort N

o. 1

681,

see

1960

U.S

. Cod

e C

ong.

and

Adm

. New

s, p

.29

63.

1961

Act

. Sen

ate

Rep

ort N

o. 7

43, s

ee19

61 U

.S.C

ode

Con

g. a

nd A

dm.N

ews.

p.

3087

.

1963

Act

.H

ouse

Rep

ort N

o. 3

93 a

ndC

onfe

renc

e R

epor

t No.

102

5, s

ee 1

963

U.S

.Cod

e C

ong.

and

Adm

.New

s, p

. 129

3.19

64 A

ct. H

ouse

Rep

ort N

o. 1

639

and

Con

fere

nce

Rep

ort N

o. 1

916.

sec

106

4U

.S.C

odc

Con

g. a

nd A

dm.N

ews,

p. 4

023.

1965

Act

s. S

enat

e R

epor

t No.

146

. see

1965

U.S

.Cod

e C

ong.

and

Adm

.Hew

s, p

.14

46.

Sen

ate

Rep

ort N

o. 7

83. s

ee 1

965

U.S

.C

ode

Con

g. a

nd A

dm.N

cws,

p. 3

939.

1966

Act

. Hou

se R

epor

t No.

181

4, s

ee19

66 U

.S.C

odc

Con

g. a

nd A

dm.N

ews.

p.

3844

.

20 §

238

Not

e 4

sect

ion

in c

redi

t or

dedu

ctio

n fr

om g

en.

eral

stat

esu

ppor

tto

whi

ch d

istr

icts

wou

ld o

ther

wis

e be

ent

itled

vio

late

d U

.S.

C.A

.Con

st. A

rt. 6

, cl.

2.T

riple

tt v.

Tic

m-

ann,

D.C

.Neb

.196

9, 3

02 F

.Sup

p. 1

244.

A d

educ

tion

from

the

stat

e-ai

d fu

nd to

fede

rally

-impa

cted

are

as is

pro

hibi

ted

byth

issu

bcha

pter

.an

d. u

nder

U.S

C.A

.C

onst

. Art

. 6, c

l. 2.

sta

te la

w a

utho

rizin

ga

twen

ty-f

ive

per

cent

ded

uctio

n w

as u

nco

nstit

utio

nal.

Her

genr

eter

v. H

ayde

n.D

.C.K

an.t9

68, 2

95 F

.Sup

p. 2

51.

Sou

th D

akot

a st

atut

es s

peci

fyin

g fo

r-m

ula

for

dedu

ctio

n of

cer

tain

per

cent

-ag

es o

f fed

eral

impa

ct fu

nds

rece

ived

by

elig

ible

dis

tric

ts fr

om a

mou

nt o

f sta

teak

l to

such

impa

cted

are

as a

rc u

ncon

sti-

tutio

nal a

s be

ing

in v

iola

tion

of U

.S.C

.A.

Con

s!. A

rt. 6

, cl.

2, a

nd fo

r ef

fect

ivel

yde

nyin

g to

chi

ldre

n an

d pa

rent

s w

ho e

i.th

er li

ve o

r w

ork

on fe

dera

l lan

ds w

ithin

stat

e of

Sou

th D

akot

a sa

me

scho

ol p

rivi-

lege

s as

oth

cr c

hild

ren

in s

tate

, alth

ough

stat

e di

d no

t ret

ain

mon

ey s

aved

by

ap-

plic

atio

n of

sta

tute

but

dis

burs

ed it

to a

llsc

hool

dis

tric

ts w

ithin

the

stat

e.D

oug-

las

Inde

pend

ent S

choo

l Dis

t. N

o. 3

v.

Jorg

enso

n.D

.C.S

.D.1

968,

293

F.S

upp.

849. R

educ

tion

of s

tate

aid

to lo

cal s

choo

ldi

stric

t, pu

rsua

nt to

"ba

il ou

t" le

gisl

atio

nto

hel

p re

duce

impa

ct fr

om lo

ss o

f rev

c.

nue

follo

win

g pa

ssag

e of

Pro

posi

tion

13,

by ta

king

into

con

side

ratio

n fe

dera

l im

-pa

ct a

id p

revi

ousl

y re

ceiv

ed b

y lo

cal d

istr

ict a

nd h

eld

inits

end

ing

fund

bal

-an

ces

viol

..ted

fede

ral m

anda

te p

rohi

bit-

ing

stat

es fr

om ta

king

fede

ral i

mpa

ctm

oney

into

con

side

ratio

n in

allo

catin

gst

ate

scho

ol a

id fu

nds

and

requ

ired

mod

-ifi

catio

n of

thc

stat

e gr

ant o

f sch

ool a

id,

desp

ite fa

ct th

at th

e le

gisl

atio

n di

d no

tsp

ecifi

cally

req

uire

red

uctio

n to

incl

ude

fede

ral i

mpa

ct a

id a

s ha

d pr

ior

legi

sla.

tivc

effo

rts.

San

Mig

uel J

oint

Uni

on

ASS

IST

AN

CE

TO

LO

CA

LA

GE

NC

IES

Ch.

13

Sch

ool D

ist.

v. R

oss.

198

1, 1

73 C

al.R

ptr,

292,

118

C.A

.3d

82.

5.F

eder

al c

hild

ren

as th

ird-p

arty

ben

.ef

icia

ries

Par

ish

scho

ol h

oard

and

sup

erin

tend

-en

t of s

choo

ls, b

y th

eir

cont

ract

ual a

s-su

ranc

es w

ith th

e U

nite

d S

tate

s to

pro

-vi

de e

duca

tion

for

fede

ral c

hild

ren

from

Air

For

ce b

ase

on s

ame

term

s as

pro

visi

ons

for

othe

r ch

ildre

n in

par

ish

have

affo

rded

rig

hts

to fe

dera

l chi

ldre

nas

third

par

ty b

enef

icia

ries.

Lem

on v

. Rot

.si

er P

aris

h S

choo

l Bd.

, D.C

.L.a

.I965

. 240

F.S

upp.

70Q

.re

hear

ing

deni

ed24

0F

.Sup

p. 7

43, a

ffirm

ed 3

70 F

2d

847.

cer

-tio

rari

deni

ed 8

7 S

.Ct.

2116

. 388

U.S

.91

1, 1

8 L.

Ed.

2d 1

350.

6.P

erso

ns e

ntitl

ed to

sue

for

dese

gre-

gatio

nP

upils

atte

ndin

g sc

hool

s m

aint

aine

dby

fede

ral f

unds

wer

e en

title

d to

sue

for

dese

greg

atio

n of

sch

ools

as

repr

esen

ta-

tives

of c

lass

com

pris

ed o

f all

child

ren

atte

ndin

g sc

hool

s m

aint

aine

d w

ith fe

der-

al fi

nanc

ial a

ssis

tanc

e. L

emon

v. F

loss

i-er

Par

ish

Sch

ool B

d., D

.C.L

a.19

65, 2

40F

.Sup

p.70

9.re

hear

ing

deni

ed24

0F

.Sup

p. 7

43, a

ffirm

ed 3

70 F

.2d

847,

cer

-tio

rari

deni

ed 8

7 S

.Ct.

2116

, 388

U.S

.91

1, i8

L.E

d.2d

135

0.7.

Rev

iew

Whe

re th

ere

was

no

show

ing

of il

lega

l-ity

, abu

se o

f dis

cret

ion

or e

rror

of l

aw,

or a

rbitr

arin

ess

or c

apric

ious

ness

on

part

of C

omm

issi

oner

of E

duca

tion

inal

loca

ting

and

dist

ribut

ing

fede

ral f

unds

prov

ided

for

purp

ose

of fi

nanc

ially

as-

sist

ing

loca

l edu

catio

nal a

genc

ies

in e

du-

catio

n of

chi

ldre

n of

low

inco

me

fam

i-lie

s. C

omm

issi

oner

's ju

dgm

ent o

n su

chm

atte

r w

ould

not

be

dist

urbe

d.B

oard

of E

d.. U

nion

Fre

e S

choo

l Dis

t. N

o. 8

,R

oose

velt.

Tow

n of

Hem

pste

ad. N

assa

uC

ount

y v.

Com

mis

sion

er o

f IA

.,19

69,

306

N.Y

.S.2

d 38

2, 6

1 M

isc.

2d 7

41.

§ 23

9.Su

dden

and

sub

stan

tial I

ncre

ases

In

atte

ndan

ce

(a)

Det

erm

inat

ion

by S

ecre

tary

; am

ount

of c

ontr

ibut

ion

If th

e S

ecre

tary

det

erm

ines

for

any

fisca

l yca

r en

ding

prio

r to

Oct

ober

I,

'493

-(1

1) th

at, a

s a

dire

ct r

esul

t of a

ctiv

ities

of t

he U

nite

dS

tate

s(c

arrie

d on

eith

er d

irect

ly o

r th

roug

ha

cont

ract

or),

an

incr

ease

in th

e nu

mbe

r of

chi

ldre

n in

aver

age

daily

atte

ndan

ce a

t the

ch. 1

3F

ED

ER

ALL

Y A

FF

EC

TE

D A

RE

AS

20 §

239

scho

ols

of a

ny lo

cal e

duca

tiona

l age

ncy

has

occu

rred

in s

uch

fisca

l yea

r, w

hich

incr

ease

so

resu

lting

from

act

iviti

es o

f thc

Uni

ted

Sta

tes

is e

qual

to a

t lea

st 5

per

ccn

tum

of t

he d

iffer

ence

betw

een

the

num

ber

of c

hild

ren

in a

vera

ge d

aily

atte

ndan

ce a

tth

e sc

hool

s of

suc

h ag

ency

dur

ing

the

prec

edin

g fis

cal y

ear

and

the

num

ber

of s

uch

child

ren

who

se a

ttend

ance

dur

ing

such

year

res

ulte

d fr

om a

ctiv

ities

of t

he U

nite

d S

tate

s (in

clud

ing

child

ren

who

res

ided

on

Fed

eral

pro

pert

y or

with

a p

aren

tem

ploy

ed o

n F

eder

al p

rope

rty)

; and

(2)

that

suc

h ac

tiviti

es o

f the

Uni

ted

Sta

tes

have

pla

ced

onsu

ch a

genc

y a

subs

tant

ial a

nd c

ontin

uing

fina

ncia

l bur

den;

and

(3)

that

suc

h ag

ency

is m

akin

g a

reas

onab

le ta

x ef

fort

and

isex

erci

sing

due

dili

genc

e in

ava

iling

itse

lf of

Sta

te a

nd o

ther

finan

cial

ass

ista

nce

but i

s un

able

to s

ecur

e su

ffici

ent f

unds

tom

eet t

he in

crea

sed

educ

atio

nal c

osts

invo

lved

,th

en s

uch

agen

cy s

hall

be e

ntitl

ed to

rec

eive

for

such

fisc

al y

ear

anam

ount

equ

al to

the

prod

uct o

f.(A

) th

e nu

mbe

r of

chi

ldre

n w

hich

the

Sec

reta

ry d

eter

min

esto

be

the

incr

ease

, so

resu

lting

from

act

iviti

es o

f the

Uni

ted

Sta

tes,

in s

uch

year

in a

vera

ge d

aily

atte

ndan

ce; a

nd(D

) th

e am

ount

whi

ch th

e S

ecre

tary

det

erm

ines

to b

e th

ecu

rren

t exp

endi

ture

s pe

r ch

ild n

eces

sary

to p

rovi

de fr

ee p

ublic

educ

atio

n to

suc

h ad

ditio

nal c

hild

ren

durin

g su

ch y

ear,

min

usth

e am

ount

whi

ch th

e S

ecre

tary

det

erm

ines

to b

e av

aila

ble

from

Sta

te, l

ocal

, and

Fed

eral

sou

rces

for

such

pur

posc

(no

tco

untin

g as

ava

ilabl

e fo

r su

ch p

urpo

se e

ither

pay

men

ts u

nder

this

cha

pter

or

fund

s fr

om lo

cal s

ourc

es n

eces

sary

to p

rovi

defr

ee p

ublic

edu

catio

n to

oth

er c

hild

ren)

.F

or th

e ne

xt fi

scal

yea

r (e

xcep

t whe

re th

e de

term

inat

ion

unde

r th

cpr

eced

ing

sent

ence

has

bec

n m

ade

with

res

pect

to th

e fis

cal y

car

endi

ng J

une

30, 1

973)

suc

h ag

ency

sha

ll be

ent

itled

to r

ecei

ve 5

0pe

rce

ntum

of s

uch

prod

uct r

educ

ed b

y th

e am

ount

of s

uch

prod

uct

whi

ch is

attr

ibut

able

to c

hild

ren

with

res

pect

to w

hom

suc

hag

ency

is, o

r up

on a

pplic

atio

n w

ould

be,

ent

itled

to r

ecei

vean

y pa

ymen

tun

der

sect

ion

238

of th

is ti

tle fo

r su

ch fi

scal

yca

r, b

ut n

ot to

c.,,

cced

for

such

yea

r th

e am

ount

whi

ch th

e S

ecre

tary

det

erm

ines

to h

ene

cess

ary

to e

nabl

e su

ch a

genc

y, w

ith th

e S

tate

, loc

al, a

nd o

ther

Fed

eral

fund

s (e

xclu

sive

of f

unds

ava

ilabl

e un

der

subc

hapt

er 1

1 of

this

cha

pter

) av

aila

ble

to it

for

such

purp

ose,

to p

rovi

de a

leve

l of

educ

atio

n eq

uiva

lent

to th

at m

aint

aine

d in

the

scho

ol d

istr

icts

insu

ch S

tate

whi

ch in

his

judg

men

tar

e ge

nera

lly c

ompa

rabl

e to

the

scho

ol d

istr

ict o

f suc

h ag

cncy

.T

he d

eter

min

atio

ns w

heth

er a

nin

crea

se h

as o

ccur

red

for

purp

oses

of c

laus

e (1

) of

this

sub

sect

ion

and

whe

ther

suc

h in

crea

se m

eets

the

5pe

r ce

ntum

req

uire

men

t

20 §

239

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3

cont

aine

d in

suc

h cl

ause

, for

any

fisc

al y

ear,

sha

ll be

mad

e on

the

basi

s of

est

imat

es b

y th

e S

ecre

tary

mad

e pr

ior

to th

e cl

ose

of s

uch

year

, exc

ept t

hat a

n un

dere

stim

ate

mad

eby

the

Sec

reta

ry p

ursu

ant

to th

e fo

rego

ing

prov

isio

ns o

f thi

s se

nten

cesh

all n

ot o

pera

te to

depr

ive

an a

genc

y of

its

entit

lem

ent t

o an

y pa

ymen

tsun

der

this

sect

ion

to w

hich

it w

ould

be

entit

led

had

the

estim

ate

been

acc

u-ra

te. T

hc d

eter

min

atio

n un

der

clau

se (

13)

ofth

is s

ubse

ctio

n sh

all

by m

ade

by th

e S

ecre

tary

afte

r co

nsid

erin

g th

e cu

rren

t exp

endi

ture

spe

r ch

ild in

pro

vidi

ng fr

ee p

ublic

edu

catio

n in

thos

e sc

hool

dis

tric

tsin

the

Sta

te w

hich

, in

the

judg

men

t of t

he S

ecre

tary

, are

gen

eral

lyco

npa

rabl

e to

the

scho

ol d

istr

ict o

f the

loca

l edu

catio

nal a

genc

y fo

rw

hich

the

com

puta

tion

is b

eing

mad

e.

(b)

Om

itted

(c)

Cou

ntin

g of

cer

tain

chi

ldre

n In

det

erm

inat

ion

of In

crea

ses

In d

eter

min

ing

unde

r su

bsec

tion

(a)

of th

is s

ectio

n w

heth

er th

ere

has

been

an

incr

ease

in a

ttend

ance

in a

ny fi

scal

yea

r di

rect

lyre

sulti

ng fr

om a

ctiv

ities

of t

he U

nite

d S

tate

s an

d th

e nu

mbe

r ol

child

ren

with

res

pect

to w

hom

pay

men

t is

to b

e m

ade

for

any

fisca

lye

ar, t

he S

ecre

tary

sha

ll no

t cou

nt(A

) ch

ildre

n w

ith r

espe

ct to

who

m a

loca

l edu

catio

nal a

genc

yis

, or

upon

app

licat

ion

wou

ld b

e, e

ntitl

ed to

rec

eive

any

pay

-m

ent u

nder

sec

tion

238

of th

is ti

tle fo

r su

ch fi

scal

yea

r:P

rovi

d-ed

, Tha

t the

Sec

reta

ry s

hall

coun

t for

suc

h pu

rpos

es a

s an

incr

ease

dire

ctly

res

ultin

g fr

om a

ctiv

ities

of t

he U

nite

d S

tate

s,an

incr

ease

in th

e nu

mbe

r of

chi

ldre

n w

hore

side

on

Fed

eral

prop

erty

or

resi

de w

ith a

par

ent e

mpl

oyed

on

Fed

eral

pro

pert

y,if

the

loca

l edu

catio

nal a

gcnc

y fil

es, i

n ac

cord

ance

with

reg

ula-

tions

of t

he S

ecre

tary

, its

ele

ctio

n th

at s

uch

incr

ease

be

coun

ted

for

such

pur

pose

s in

stca

d of

for

the

purp

oses

of s

ectio

n 23

8 of

this

title

; and

(13)

chi

ldre

n w

hose

atte

ndan

ce is

attr

ibut

able

to a

ctiv

ities

of

the

Uni

ted

Sta

tes

carr

icd

on in

con

nect

ion

with

rea

l pro

pert

yw

hich

has

bee

n ex

clud

ed fr

om th

e de

finiti

on o

f Fed

eral

pro

per-

ty b

y th

e la

st s

ente

nce

of p

arag

raph

(1)

of s

ectio

n 24

4 of

this

title

.

(d)

Adj

ustm

ent f

or d

ecre

ases

In F

eder

al a

ctiv

ities

Whe

neve

r th

e S

ecre

tary

det

erm

ines

that

-(I

) a

loca

l edu

catio

nal a

genc

y ha

s m

ade

prep

arat

ions

topr

ovid

e du

ring

a fis

cal y

ear

free

pub

lic e

duca

tion

for

a ce

rtai

nnu

mbe

r of

chi

ldre

n to

who

m s

ubse

ctio

n (a

) of

this

sec

tion

appl

ies;

Ch.

13

FE

DE

RA

LLY

AF

FE

CT

ED

AR

EA

S20

§ 2

39

(2)

such

pre

para

tions

wer

e in

his

judg

men

t rea

sona

ble

in th

elig

ht o

f the

info

rmat

ion

avai

labl

e to

suc

hag

ency

at t

he ti

me

such

pre

para

tions

wer

e m

ade;

and

(3)

such

num

ber

has

been

sub

stan

tially

red

uced

by

reas

on o

fa

decr

ease

in o

r ce

ssat

ion

of F

eder

al a

ctiv

ities

or

by r

easo

n of

afa

ilure

of a

ny o

f suc

h ac

tiviti

es to

occu

r,th

e am

ount

to w

hich

suc

h ag

ency

is o

ther

wis

e en

title

d un

der

this

sect

ion

for

such

yea

r sh

all b

e in

crea

sed

to th

e am

ount

to w

hich

, in

the

judg

men

t of t

he S

ecre

tary

, suc

hag

ency

wou

ld h

ave

been

ent

i-tle

d bu

t for

suc

h de

crea

se in

or

cess

atio

n of

Fed

eral

act

iviti

esor

the

failu

re o

f suc

h ac

tiviti

es to

occ

ur, m

inus

any

redu

ctio

n in

cur

rent

expe

nditu

res

for

such

yea

r w

hich

the

Sec

reta

ry d

eter

min

es th

atsu

ch a

genc

y ha

s ef

fect

ed, o

r re

ason

ably

sho

uld

have

effe

cted

,by

reas

on o

f suc

h de

crea

se in

or

cess

atio

n of

Fed

eral

act

iviti

es o

r th

efa

ilure

of s

uch

activ

ities

to o

ccur

.

(e)

Con

sulta

tion

with

Sta

te a

nd lo

cal a

utho

ritie

s

All

dete

rmin

atio

ns o

f the

Sec

reta

ry u

nder

this

sec

tion

shal

l be

mad

L on

ly a

fter

cons

ulta

tion

with

the

Sta

te e

duca

tiona

l age

ncy

and

the

loca

l edu

catio

nal a

genc

y.

Sep

t. 30

, 195

0, C

. 112

4, T

itle

I, §

4, fo

rmer

ly §

4, 6

4 S

tat.

1104

; Aug

. 8,

1953

, c. 4

02, §

§ 3-

5, 6

7 S

tat.

532-

534;

Aug

. 12,

195

5. c

. 868

, §§

1, 2

, 69

Sta

t.71

3; A

ug. 3

, 195

6, c

. 915

, Titl

e II,

§§

207,

208

, 70

Sta

t. 97

2; A

ug. 1

2. 1

958,

Pub

.L. 8

5-62

0, T

itle

II, §

203

, 72

Sta

t. 56

0; O

ct. 3

, i 9

61, P

ub.L

. 87-

344,

Titl

e§

102(

a), 7

5 S

tat.

759;

Dec

. 18,

196

3, P

ub.L

. 88-

210,

Titl

e 11

1, §

302

,fo

rmer

ly §

32,

77

Sta

t. 41

9, r

enum

bere

d O

ct. 1

6, 1

968,

Pub

.L. 9

0-57

6, T

itle

I,§

101(

a)(1

), 8

2 S

tat.

1064

;O

ct.

16,

1964

, Pub

.L. 8

8-66

5, T

itle

XI,

§I 1

02(a

), 7

8 S

tat.

1109

; ren

umbe

red

and

amcn

dcd

Apr

. 11,

196

5, P

ub.L

.89

-10,

Titl

e I,

§§ 3

(b),

5, 7

9 S

tat.

34, 3

6; J

an. 2

, 196

8, P

ub.L

. 90-

247,

Titl

eIII

, § 3

01(e

), 8

1 S

tat.

813;

Apr

. 13,

197

0, P

ub.L

. 91-

230,

Titl

e II,

§ 20

1(b)

,84

Sta

t. 15

4; A

ug. 2

1, 1

974,

Pub

.L. 9

3-38

0, T

itle

III,

§ 30

3(a)

(2),

88

Sta

t.52

2; A

pr. 2

1, 1

976,

Pub

.L. 9

4-27

3, §

3(5

). 9

0 S

tat.

376;

Nov

. 1, 1

978,

Pub

.L.

95-5

61, T

itle

X, §

100

1(c)

, 92

Sta

t. 23

06; O

ct. 1

9, 1

984,

Pub

.L. 9

8-51

1, T

itle

§ 30

1(a)

(1),

98

Sta

t. 23

88; A

pr. 2

8, 1

988,

Pub

.L. 1

00-2

97, T

itle

II,§§

201

I(a)

(1),

201

2(a)

, 102

Sta

t. 29

4.)

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

SR

evis

ion

Not

es a

nd L

egis

lativ

e R

epor

ts19

50 A

ct. S

enat

e R

epor

t No.

245

8 an

dC

onfe

renc

e R

epor

t No.

310

9, s

ee 1

950

U.S

.Cod

e C

ong.

Ser

vice

,p.

401

4.19

53 A

ct. S

enat

e R

epor

t No.

714

. see

1953

U.S

.Cod

e C

ong.

and

Adm

.New

s,p.

2325

.

1955

Act

. Hou

se R

epor

t No.

144

1, s

ee19

55 U

.S.C

ocle

Con

g. a

nd A

dm.N

ews,

p.30

86.

1956

Act

. Sen

ate

Rep

ort N

o. 2

753.

see

1956

U.S

.Cod

e C

ong.

and

Adm

.New

s,p.

4265

. 99

1958

Act

. Sen

ate

Rep

ort N

o. 1

929,

see

1958

U.S

.Cod

c C

ong.

and

Adm

.Ncw

s.34

12.

1961

Act

. Sen

ate

Rep

ort N

o. 7

43, s

ee19

61 U

.S.C

ode

Con

g. a

nd A

dm.N

cws,

p.

3087

.

1963

Act

. Hou

se R

epor

t No.

393

and

Con

fere

nce

Rep

ort N

o. 1

025,

see

196

3U

.S.C

ode

Con

g. a

nd A

dm.N

ews,

p. 1

293.

1964

Act

. Hou

se R

epor

t No.

163

9 an

dC

onfe

renc

e R

epor

t No.

191

6, s

ee 1

964

U.S

.Cod

e C

ong.

and

Adm

.New

s, p

. 402

3.

20 §

239

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3

Fis

cal Y

ear

Tra

nsiti

on P

erio

d of

Jul

y I,

1976

, thr

ough

Sep

tem

ber

30,

1976

,D

eem

ed P

art o

f Fis

cal Y

ear

Beg

in-

ning

Oct

ober

1, 1

976

Fis

cal y

ear

tran

sitio

n pe

riod

of J

uly

I.19

76, t

hrou

gh S

ept.

30.

1976

, dee

med

part

of f

isca

l yea

r be

ginn

ing

Oct

. 1. 1

976.

for

purp

oses

of t

his

sect

ion.

see

sec

tion

205(

26)

of P

ub.L

. 94-

274,

set

out

as

ano

te u

nder

sec

tion

5532

of T

itle

5,G

over

nmen

t Org

aniz

atio

n an

d E

mpl

oy-

ees.

LIB

RA

RY

RE

FER

EN

CE

S

Am

erka

n D

iges

t Sys

tem

Adm

inis

trat

ion,

app

ortio

nmen

t and

dis

posi

tion

of s

choo

l fun

ds in

gen

eral

, see

Sch

ools

c=

.18,

19(

1).

Dis

burs

emen

ts in

gen

eral

. see

Uni

ted

Sta

tes

C=

,82(

1 to

7).

Enc

yclo

pedi

asA

dmin

istr

atio

n, a

ppor

tionm

ent a

nd d

ispo

sitio

n of

sch

ool f

unds

in g

ener

al. s

eeC

.J.S

. Sch

ools

and

Sch

ool D

istr

icts

§§

19. 2

1.D

isbu

rsem

ents

in g

ener

al, s

ee C

.J.S

. Uni

tcd

Sta

tes

§ 12

2.

WE

STL

AW

EL

EC

TR

ON

IC R

ESE

AR

CH

Sch

ools

cas

es: 3

45k[

add

key

num

ber]

.U

nite

d S

tatc

s ca

ses:

393

k[ad

d ke

y nu

mbe

r].

Sec

, als

o, W

ES

TLA

W g

uide

follo

win

g th

e E

xpla

natio

n pa

ges

of th

is v

olum

e.

§ 23

9a.

Rep

eale

d.Pu

b. L

. 97-

35, T

ltle

V, §

542(

1), A

ug. 1

3,19

81, 9

5 St

at. 4

58.

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

SS

ectio

n. A

ct S

ept.

30, 1

950,

c. 1

124,

Titl

e1,

§ 4A

, as

adde

d O

ct. 3

,19

80,

Pub

.L. 9

6-37

, Titl

e X

III, §

134

1, 9

5 S

tat.

1500

. rel

ated

to p

aym

ents

for

spec

ial

prog

ram

s fo

r al

ien

child

ren

who

fled

from

Cam

bodi

a, V

ietn

am. L

aos.

Cub

a,or

Hai

ti. S

ee p

rovi

sion

s se

t out

as

note

s

unde

r se

ctio

n 15

22 o

f Titl

e 8.

Alie

ns a

ndN

atio

nalit

y.E

ffect

ive

Dat

e of

Rep

eal

Rep

eal e

ffect

ive

Oct

. :, 1

981,

see

sec

-tio

n 54

7 of

Pub

.L. 9

7-35

, set

out

as

ano

te u

nder

sec

tion

1522

of T

itle

8, A

liens

and

Nat

iona

lity.

§ 24

0.Pa

ymen

ts

(a)

App

licat

ions

to S

ecre

tary

; tim

e of

sub

mis

sion

; for

m; I

nfor

mat

ion

Any

loca

l edu

catio

nal a

genc

y de

sirin

g to

rec

eive

the

paym

ents

tow

hich

it is

ent

itled

for

any

fisca

l yea

r un

der

sect

ions

237

, 238

, or

239

of th

is ti

tle s

hall

subm

it an

app

licat

ion

ther

efor

thro

ugh

the

Sta

te e

duca

tiona

l age

ncy

of th

e S

tate

in w

hich

suc

h ag

ency

islo

cate

d to

the

Sec

reta

ry. S

uch

appl

icat

ions

sha

ll be

sub

mitt

ed a

tsu

ch ti

me,

in s

uch

form

, and

con

tain

ing

such

info

rmat

ion

as th

eS

ecre

tary

may

rea

sona

bly

requ

ire to

ena

ble

him

to c

arry

out

his

func

tions

und

er th

is s

ubch

apte

r an

d sh

all g

ive

adeq

uate

ass

uran

ceth

at th

e ap

plic

ant w

ill s

ubm

it su

ch r

epor

ts a

s th

e S

ecre

tary

may

reas

onab

ly r

equi

re to

det

erm

ine

whe

ther

suc

h ag

ency

is e

ntitl

ed to

a pa

ymen

t und

er a

ny o

f suc

h se

ctio

ns a

nd th

e am

ount

of s

uch

paym

ent.

10 0

ch.

13F

ED

ER

ALL

Y A

FF

EC

TE

D A

RE

AS

20 §

240

(b)

Pay

men

ts b

y S

ecre

tary

; ear

ly p

aym

ents

on

the

basi

s of

est

imat

es;

Indi

an e

duca

tion

(1)(

I)' T

he S

ecre

tary

sha

ll pa

y to

eac

h lo

cal e

duca

tiona

lag

ency

,ro

unde

d to

the

near

est w

hole

dol

lar'

mak

ing

appl

icat

ion

purs

uant

to s

ubse

ctio

n (a

) of

this

sec

tion,

the

amou

nt to

whi

ch it

is e

ntitl

edun

der

sect

ions

237

, 238

, or

239

of th

is ti

tle. S

ums

appr

opria

ted,

for

any

fisca

l yea

r, to

ena

ble

the

Sec

reta

ry to

mak

e pa

ymen

ts p

ursu

ant

to th

is s

ubch

apte

r sh

all,

notw

ithst

andi

ng a

ny o

ther

pro

visi

on o

f law

unle

ss e

nact

ed in

exp

ress

lim

itatio

n of

this

sub

sect

ion,

rem

ain

avai

labl

e fo

r ob

ligat

ion

and

paym

ents

with

res

pect

to a

mou

nts

due

loca

l edu

catio

nal a

genc

ies

unde

r th

is s

ubch

apte

r fo

r su

ch fi

scal

year

, unt

il th

e en

d of

the

fisca

l yea

r su

ccee

ding

the

fisca

l yea

r fo

rw

hich

suc

h su

ms

are

appr

opria

ted.

The

Sec

reta

ry s

hall

retu

rn to

the

Uni

ted

Sta

tes

Tre

asur

y an

y fu

nds

appr

opria

ted

for

paym

ents

unde

r th

is s

ubch

apte

r fo

r fis

cal y

ears

198

8 an

d th

erea

fter

that

,as

the

resu

lt of

ove

rpay

men

ts o

r un

allo

wab

le e

xpen

ditu

res,

are

rec

Ov-

ered

by

the

Dep

artm

ent o

f Edu

catio

n af

ter

the

end

of th

e fif

th fi

scal

year

follo

win

g th

e en

d of

the

fisca

l yea

r fo

r w

hich

thc

sum

s w

ere

appr

opria

ted,

or

that

rem

aill

in D

epar

tmen

t of E

duca

tion

acco

unts

afte

r th

at ti

me.

(2)

As

soon

as

poss

ible

afte

r th

e be

ginn

ing

of a

ny fi

scal

yca

r, th

eS

ecre

tary

sha

ll, o

n th

e ba

sis

of a

writ

ten

requ

est f

or a

pre

limin

ary

paym

ent f

rom

any

loca

l edu

catio

nal a

genc

y th

at w

as e

ligi'o

le fo

r a

paym

ent f

or th

e pr

eced

ing

fisca

l yea

r on

the

basi

s of

ent

itlem

ents

esta

blis

hed

unde

r s:

.'ctio

n 23

7 or

218

of t

his

title

, mak

e su

cha

prel

imin

ary

paym

ent

(A)

to a

ny a

genc

y fo

r w

hom

the

num

ber

of c

hild

ren

dete

r-m

ined

und

er s

ectio

n 23

8(a)

of t

his

title

am

ount

s to

at.

leas

t 20

per

cent

um o

f suc

h ag

ency

's to

tal a

vera

ge d

aily

atte

ndan

ce, o

f75

per

een

tum

of t

he a

mou

nt th

at s

uch

agen

cy r

ecei

ved

for

such

pre

cedi

ng fi

scal

yea

r on

the

basi

s of

suc

h en

title

men

ts;

and (1

3) to

any

oth

er a

genc

y, o

f 50

per

cent

um o

f the

am

ount

that

such

age

ncy

rece

ived

for

such

pre

cedi

ng fi

scal

yea

r on

the

basi

sof

suc

h en

title

men

ts.

(3)

(A)

Pay

men

ts o

f ent

itlem

ents

und

er s

ectio

n 23

8(d)

(2)

(D

) of

this

title

sha

ll be

mad

e on

ly to

loca

l edu

catio

nal a

genc

ies

whi

chha

ve, w

ithin

one

yea

r of

Nov

embe

r 1,

197

8,or

whe

n lo

cal e

du-

catio

nal a

genc

ies

are

form

ed a

fter

Nov

embe

r 1,

197

8, w

ithin

one

year

of t

heir

form

atio

n, e

stab

lishe

d su

ch p

olic

ies

and

proc

edur

esw

ith r

espe

ct to

info

rmat

ion

rece

ived

from

Indi

an p

aren

ts a

nd tr

ibes

as r

equi

red

by th

is p

arag

raph

and

whi

ch h

ave

mad

e as

sura

nces

toth

e S

ecre

tary

, at s

uch

time

and

in s

uch

man

ner

as s

hall

be d

eter

-m

ined

by

regu

latio

n, th

at s

uch

polic

ies

and

proc

edur

es h

ave

been

20 §

240

AS

SIS

TA

NC

ET

O L

OC

AL

AG

EN

CIE

3C

h. 1

3

esta

blis

hed.

The

Sec

reta

ry s

hall

have

the

auth

ority

to w

aive

this

one-

year

lim

it fo

r go

od c

ause

, and

in w

ritin

g to

the

trib

es to

be

affe

cted

.(B

) E

ach

loca

l edu

catio

nal a

genc

y sh

all e

stab

lish

such

pol

icie

san

d pr

oced

ures

as

are

nece

ssar

y to

insu

re th

at(I

) In

dian

chi

ldre

n cl

aim

ed u

nder

sec

tion

238(

a) o

f thi

s tit

lepa

rtic

ipat

e on

an

equa

l bas

is in

the

scho

ol p

rogr

am w

ith a

llot

her

child

ren

educ

ated

by

the

loca

l edu

catio

nal a

genc

y;(I

I) a

pplic

atio

ns, e

valu

atio

ns, a

nd p

rogr

am p

lans

are

ade

-qu

atel

y di

ssem

inat

ed to

the

trib

es a

nd p

aren

ts o

f Ind

ian

chil-

dren

cla

imed

und

er s

ectio

n 23

8(a)

of t

his

title

; and

(Ill)

trib

es a

nd p

aren

ts o

f Ind

ian

child

ren

clai

med

und

erse

ctio

n 23

8(a)

of t

his

title

are

(I)

affo

rded

an

oppo

rtun

ity to

pre

sent

thei

r vi

ews

'with

resp

ect t

o th

e ap

plic

atio

n, in

clud

ing

the

oppo

rtun

ity to

mak

e re

com

men

datio

ns c

once

rnin

g th

e ne

eds

of th

eir

chil-

dren

and

the

way

s by

whi

ch th

ey c

an a

ssis

t the

ir ch

ildre

nin

rea

lizin

g th

e be

nefit

s to

be

deriv

ed fr

om th

e ed

ucat

iona

lpr

ogra

ms

assi

sted

und

er th

is p

arag

raph

;(I

I) a

ctiv

ely

cons

ulte

d an

d in

volv

ed in

the

plan

ning

and

deve

lopm

ent o

f pro

gram

s as

sist

ed u

nder

this

par

agra

ph;

and (III)

affo

rded

a g

ener

al o

ppor

tuni

ty to

pre

sent

thei

r ov

er-

all v

iew

s on

the

educ

atio

nal p

rogr

am, i

nclu

ding

the

oper

a-tio

n of

suc

h pr

ogra

ms,

and

the

degr

ee o

f par

enta

l par

tic-

ipat

ion

allo

wed

.(C

) (I

) A

ny tr

ibe,

or

its d

esig

nee,

whi

ch h

as s

tudc

nts

in a

ttend

ance

at a

loca

l edu

catio

nal a

genc

y m

ay, i

n its

dis

cret

ion

and

with

out

rega

rd to

the

requ

irem

ents

of a

ny o

ther

pro

visi

on o

f law

, file

aw

rittc

n co

mpl

aint

with

the

Sec

reta

ry r

egar

ding

any

act

ion

of a

loca

led

ucat

iona

l age

ncy

take

n pu

rsua

nt to

, or

rele

vant

to, t

he r

equi

re-

men

ts o

f sub

para

grap

h (B

) of

this

par

agra

ph.

(II)

With

in te

n w

orki

ng d

ays

from

rec

eipt

of t

he c

ompl

aint

, the

Sec

reta

ry s

hall

(1)

desi

gnat

e a

tin-e

and

pla

ce Is

m a

hea

ring

into

the

mat

ters

rela

ting

to th

e co

mpl

aint

at a

loca

tion

in c

lose

pro

xim

ity to

the

loca

l edu

catio

nal a

genc

y in

volv

ed, o

r, if

the

Sec

reta

ry d

eter

-m

ines

ther

e is

goo

d ca

use,

at s

ome

othe

r lo

catio

n co

nven

ient

tobo

th th

e tr

ibe,

or

its d

esig

nee,

and

the

loca

l edu

catio

nal a

genc

y;(I

I) d

esig

nate

a h

earin

g ex

amin

er to

con

duct

the

hear

ing;

and (III)

not

ify th

e af

fect

ed tr

ibe

or tr

ibcs

and

the

loca

l edu

-ca

tiona

l age

ncy

invo

lved

of t

he ti

me,

pin

ce, a

nd n

atur

e of

thc

Ch.

13

FED

ER

AL

LY

AFF

EC

TE

D A

RE

AS

20 §

240

hear

ing

and

send

cop

ies

of th

e co

mpl

aint

to th

e lo

cal e

duca

tion-

al a

genc

y an

d th

e af

fect

ed tr

ibe

or tr

ibes

.(li

I) T

he h

earin

g sh

all b

e he

ld w

ithin

thirt

y da

ys o

f the

des

igna

-tio

n of

a h

earin

g ex

amin

er a

nd s

hall

be o

pen

to th

e pu

blic

.A

rcco

rd o

f the

pro

ceed

ings

sha

ll be

est

ablis

hed

and

mai

ntai

ned.

(lv)

The

com

plai

ning

trib

e, o

r its

des

igne

e, a

nd th

c lo

cal e

du-

catio

nal a

genc

y sh

all b

e en

title

d to

pre

sent

evi

denc

e on

mat

ters

rele

vant

to th

e co

mpl

aint

and

to m

ake

reco

mm

enda

tions

con

cern

-in

g th

e ap

prop

riate

rem

edia

l act

ions

.E

ach

part

y to

the

hear

ing

shal

l bea

r on

ly it

s ow

n co

sts

in th

e pr

ocee

ding

.

(v)

With

in th

irty

days

of t

he c

ompl

etio

n of

the

hear

ing,

thc

hear

ing

exam

iner

sha

ll, o

n th

e ba

sis

of th

e re

cord

, mak

e w

ritte

nfin

ding

s of

fact

and

rec

omm

enda

tions

con

cern

ing

appr

opria

te r

e-m

edia

l act

ions

(if

any)

whi

ch s

houl

d be

take

n. T

he h

earin

g ex

am-

iner

's fi

ndin

gs a

nd r

ecom

men

datio

ns, a

long

with

thc

hear

ing

reco

rd, s

hall

be fo

rwar

ded

to th

e S

ecre

tary

.(v

1) W

ithin

thirt

y da

ys o

f his

rec

eipt

of t

he fi

ndin

gs, r

ecom

men

-da

tions

, and

rec

ord,

thc

Sec

reta

ry s

hall,

on

the

basi

s of

the

reco

rd,

com

ake

a w

ritte

n de

term

inat

ion

of th

e ap

prop

riate

rem

edia

l act

ion,

ifan

y, to

be

take

n by

the

loca

l edu

catio

nal a

genc

y, th

e sc

hedu

le fo

rco

mpl

etio

n of

the

rem

edia

l act

ion,

and

the

reas

ons

for

his

deci

sion

.(v

1i)

Upo

n co

mpl

etio

n of

his

fina

l det

erm

inat

ion,

the

Sec

reta

rysh

all p

rovi

de th

e co

mpl

aini

ng tr

ibe,

or

its d

esig

nee,

and

the

loca

led

ucat

iona

l age

ncy

with

cop

ies

of th

e he

arin

g rc

cord

, the

hea

ring

exam

iner

's fi

ndin

gs a

nd r

ecom

men

datio

ns, a

nd th

e S

ecre

tary

's fi

nal

dete

rmin

atio

n. T

he fi

nal d

eter

min

atio

n of

the

Sec

reta

ry s

hall

besu

bjec

t to

judi

cial

rev

iew

.(v

111)

In a

ll ac

tions

und

er th

is s

ubpa

ragr

aph,

the

Sec

reta

ry s

hall

have

dis

cret

ion

to c

onso

lidat

e co

mpl

aint

s in

volv

ing

tine

sam

e tr

ibe

or lo

cal e

duca

tiona

l age

ncy.

(D)

If th

e lo

cal e

duca

tiona

l age

ncy

reje

cts

the

dete

rmin

atio

n of

the

Sec

reta

ry, o

r if

the

rem

edy

requ

ired

is n

ot u

nder

take

n w

ithin

the

time

esta

blis

hed

and

the

Sec

reta

ry d

eter

min

es th

at a

n ex

tens

ion

of th

e tim

e es

tabl

ishe

d w

ill n

ot e

ffect

ivel

y en

cour

age

the

rem

edy

requ

ired,

the

Sec

reta

ry s

hall

with

hold

pay

men

t of a

ll m

oney

s to

whi

ch s

uch

loca

l age

ncy

is e

ntitl

ed u

ndcr

sec

tion

238(

d) (

2) (

D)

ofth

is ti

tle u

ntil

such

tim

e as

the

rem

edy

requ

ired

is u

nder

take

1,

exce

pt w

here

the

com

plai

ning

trib

e or

its

desi

gnee

form

.dly

re-

ques

ts th

at s

uch

fund

s be

rel

ease

d to

the

loca

l edu

catio

nal a

genc

y:P

rovi

ded,

Tha

t the

Sec

reta

ry m

ay n

ot w

ithho

ld s

uch

mon

eys

durin

gth

e co

urse

of t

he s

choo

lye

ar if

he

dete

rmin

es th

at it

wou

ld s

ubst

an-

tially

dis

rupt

the

educ

atio

nal p

rogr

ams

of th

e lo

cal e

duca

tiona

lag

ency

. 1 )3

20 §

240

ASS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

(E)

If th

c lo

cal e

duca

tiona

l age

ncy

reje

cts

the

dete

rmin

atio

n of

the

Sec

reta

ry a

nd a

trib

e ex

erci

ses

thc

optio

n un

der

scct

ion

1101

(d)

of th

e E

duca

tion

Am

endm

ents

of 1

978,

to h

ave

educ

atio

n se

rvic

espr

ovid

ed e

ither

dire

ctly

by

thc

Bur

eau

of In

dian

Affa

irs o

r by

cont

ract

with

that

Age

ncy,

any

Indi

an s

tude

nts

affil

iate

d w

ith th

atLi

lle w

ho w

ish

to r

emai

n in

atte

ndan

ce a

t the

loca

l edu

catio

nal

agen

cy a

gain

st w

hom

the

com

plai

nt w

hich

led

to th

e tr

ibal

act

ion

(und

er s

uch

subs

ectio

n (d

) )

was

lodg

ed m

ay b

c co

unte

d w

ithre

spec

t to

that

loca

l edu

catio

nal a

genc

y fo

r th

e pu

rpos

e of

rec

eivi

ngfu

nds

unde

r se

ctio

n 23

8(d)

(2)

(D

) of

this

title

.In

suc

h ev

ent,

fund

sun

der

such

sec

tion

shal

l not

be

with

held

pur

suan

t to

subp

arag

raph

(D)

and

no fu

rthe

r co

mpl

aint

s w

ith r

espe

ct to

suc

h st

uden

ts m

ay b

efil

ed u

nder

sub

para

grap

h (C

) (i)

.

(F)

Thi

s pa

ragr

aph

is b

ased

upo

n th

e sp

ecia

l rel

atio

nshi

p be

twee

nth

e In

dian

nat

ions

and

the

Uni

ted

Sta

tes

and

noth

ing

in it

sha

ll be

deem

ed to

rel

ieve

any

Sta

te o

f any

dut

y w

ith r

espe

ct to

any

citi

zens

of th

at S

tate

.

(c)

Adj

ustm

ents

whe

re n

eces

sita

ted

by a

ppro

pria

tions

If th

e su

ms

appr

opria

ted

for

any

fisca

l yea

r fo

r m

akin

g pa

ymen

tson

the

basi

s of

ent

itlem

ents

est

ablis

hed

unde

r se

ctio

ns 2

37,2

38, a

nd23

9 of

this

title

for

that

yea

r ar

e no

t suf

ficie

nt to

pay

in fu

ll th

e to

tal

amou

nts

whi

ch th

e S

ecre

tary

est

imat

es a

ll lo

cal e

duca

tiona

l age

n-ci

es a

re e

ntitl

ed to

rec

eive

und

er s

uch

sect

ions

for

such

yea

r, th

eZ

...ec

reta

ry s

hall

allo

cate

suc

h su

ms

amon

g lo

cal e

duca

tiona

l age

n-ci

e: a

nd m

ake

paym

ents

to s

uch

agen

cies

as

follo

ws:

(1)(

A)

The

Sec

reta

ry s

hall

first

allo

cate

to e

ach

loca

l edu

-ca

tiona

l age

ncy

whi

ch is

ent

itled

to a

pay

men

t und

er s

ectio

n23

7 of

this

title

an

amou

nt e

qual

to 1

00 p

er c

entu

m o

f thc

amou

nt to

whi

ch it

is e

ntitl

ed a

s co

mpu

ted

unde

r th

at s

ectio

nfo

r su

ch fi

scal

yea

r an

d to

eac

h lo

cal e

duca

tiona

l age

ncy

anam

ount

equ

al to

the

supp

lem

enta

l 50

per

cent

um o

f the

ent

itle-

men

t tha

t eac

h ch

ild d

escr

ibed

in s

ectio

n 23

8(d)

(2)(

C)

of th

istit

le s

erve

d by

suc

h ag

ency

is e

ligib

le to

rec

eive

und

er s

ectio

n23

8(d)

(2)(

C)

of th

is ti

tle.

(B)

Thc

Sec

reta

ry s

hall

then

allo

cate

to a

ny lo

cal e

duca

tiona

lag

ency

whi

ch is

elig

ible

und

er s

ectio

n 23

8(d)

(2)(

13)

of th

is ti

tlean

am

ount

equ

al to

100

per

cen

tum

of t

he a

mou

nt to

whi

chsu

ch a

genc

y is

ent

itled

und

er s

ectio

ns 2

38(a

) an

d 23

8(b)

of t

his

title

.

(C)

The

Sec

reta

ry s

hall

rese

rve

from

the

rem

aind

er o

f the

sum

s ap

prop

riate

d fo

r th

is c

hapt

er (

othe

r th

an a

mou

nts

need

edfo

r se

ctio

n 24

1-1

of th

is ti

tle)

for

such

fisc

al y

ear- 1

.) 4

Ch.

13

FED

ER

AL

LY

AFF

EC

TE

D A

RE

AS

20 §

240

(I)

80 p

er c

entu

m fo

r th

e pu

rpos

e of

allo

catin

g su

ms

unde

r pa

ragr

aph

(2)

for

entit

lem

ents

det

erm

ined

und

erse

ctio

n 23

8(a)

of t

his

title

; and

(10

20 p

er c

entu

m fo

r th

e pu

rpos

e of

allo

catin

g su

ms

unde

r pa

ragr

aph

(3)

for

entit

lem

ents

det

erm

ined

und

erse

ctio

n 23

8(b)

of t

his

title

.(2

)(A

) F

or th

e pu

rpos

e of

allo

catin

g su

ms

avai

labl

e fo

r se

c-tio

n 23

8(a)

of t

his

title

for

any

5sca

l yea

r w

hich

rem

ain

afte

rth

e al

loca

tion

requ

ired

by p

arag

raph

(1)

and

any

allo

catio

nre

quire

d by

sub

sect

ion

(e)

of th

is s

ectio

n an

d se

ctio

n 23

8(h)

of

this

title

for

such

fisc

al y

ear,

the

Sec

reta

ry s

hall

dete

rmin

e th

eca

tego

ry to

whi

ch a

loca

l edu

catio

nal a

genc

y be

long

s as

fol-

low

s:

(I)

Eac

h lo

cal e

duca

tiona

l age

ncy

in w

hich

the

num

ber

of c

hild

ren

dete

rmin

ed u

nder

sec

tion

238(

a) o

f thi

s tit

leam

ount

s to

at l

east

20

per

cent

um o

f the

tota

l num

ber

ofch

ildre

n w

ho w

ere

in a

vera

ge d

aily

atte

ndan

ce in

the

scho

ols

of s

uch

agen

cy is

in c

ateg

ory

(i).

(11)

Eac

h lo

cal e

duca

tiona

l age

ncy

in w

hich

the

num

ber

of c

hild

ren

dete

rmin

ed u

nder

sec

tion

238(

a) o

f thi

s tit

leam

ount

s to

at l

east

1 5

per

cent

um, b

ut le

ss th

an 2

0 p

erce

ntum

of t

he to

tal n

umbe

r of

chi

ldre

n w

ho w

ere

in a

ver-

age

daily

atte

ndan

ce in

the

scho

ols

of s

uch

agen

cy is

inca

tego

ry (

ii).

(III)

Eac

h lo

cal e

duca

tiona

l age

ncy

in w

hich

the

num

ber

of c

hild

ren

dete

rmin

ed u

nder

sec

tion

238(

a) o

f thi

s tit

leam

ount

s to

less

than

15

per

ccnt

um o

f the

tota

l num

ber

ofch

ildre

n w

ho w

ere

in a

vera

ge d

aily

atte

ndan

ce in

the

scho

ols

of s

uch

agen

cy is

in c

ateg

ory

(iii).

(B)

The

Sec

reta

ry s

hall

allo

cate

the

amou

nts

desc

ribed

insu

bpar

agra

ph (

A)

acco

rdin

g to

the

follo

win

g sc

hedu

le:

(I)

A fi

rst a

lloca

tion

shal

l be

mad

e as

follo

ws:

(1)

80 p

er c

cntu

m o

f ent

itlem

ent t

o lo

cal e

duca

tiona

lag

enci

es d

escr

ibed

in c

ateg

ory

(i);

(II)

60

per

cent

um o

f ent

itlem

ent t

o lo

cal e

duca

tion-

al a

genc

ies

desc

ribed

in c

ateg

ory

(ii);

and

(III

)40

per

cen

tum

of e

ntitl

emen

t to

loca

l edu

catio

n-al

age

ncie

s de

scrib

ed in

cat

egor

y (ii

i).(1

1) A

ny s

ums

rem

aini

ng a

fter

the

allo

catio

n pu

rsuo

rit to

clau

se (

i) sh

all b

e al

loca

ted

as fo

llow

s:(I

) 20

per

cen

tum

of e

ntitl

emen

t to

loca

l edu

catio

nal

agen

cies

des

crib

ed in

cat

egor

y (i)

;

20 §

240

ASS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

(II)

15

per

ccnt

um o

f ent

itlem

ent t

o lo

cal e

duca

tion-

al a

genc

ies

desc

ribed

in c

ateg

ory

(ii);

and

(III

)10

per

cen

tum

of e

ntitl

emen

t to

loca

l edu

catio

n-al

age

ncie

s de

scrib

ed in

cat

egor

y (ii

i).(I

ll) A

ny s

ums

rem

aini

ng a

fter

the

allo

catio

n pu

rsua

nt to

clau

se (

ii) s

hall

be a

lloca

ted

as fo

llow

s:(1

) 25

per

cen

tum

of e

ntitl

emen

t to

loca

l edu

catio

nal

agen

cies

des

crib

ed in

cat

egor

y (ii

); a

nd(I

I) 5

0 pe

r ce

ntum

of e

ntitl

emen

t to

loca

l edu

catio

n-al

age

ncie

s de

scrib

ed in

cat

egor

y (ii

i).(3

)(A

) F

or th

e pu

rpos

e of

allo

catin

g su

ms

avai

labl

e fo

r se

c-tio

n 23

8(b)

of t

his

title

for

any

fisca

l yea

r w

hich

rcm

ain

afte

rth

e al

loca

tion

requ

ired

by p

arag

raph

(1)

and

any

allo

catio

nre

quire

d by

sub

sect

ion

(e)

of th

is s

ectio

n an

d se

ctio

n 23

8(h)

of

this

title

for

such

fisc

al y

ear,

the

Sec

reta

ry s

hall

dete

rmin

e th

eca

tego

ry to

whi

ch a

loca

l edu

catio

nal a

genc

y be

long

s as

fol-

low

s:(I

) E

ach

loca

l edu

catio

nal a

genc

y in

whi

ch th

e nu

mbe

rof

chi

ldre

n de

term

ined

und

er s

cctio

n 23

8(b)

of t

his

title

amou

nts

to a

t lea

st 2

0 pe

r ce

ntum

of t

he to

tal n

umbe

r of

child

ren

who

wer

e in

ave

rage

dai

ly a

ttend

ance

in th

esc

hool

s of

suc

h ag

ency

is in

cat

egor

y (i)

.(I

I) E

ach

loca

l edu

catio

nal a

genc

y in

whi

ch th

e nu

mbe

rof

chi

ldre

n de

term

ined

und

er s

ectio

n 23

8(b)

of t

his

title

amou

nts

to le

ss th

an 2

0 pe

r cc

ntum

of t

he to

tal n

umbe

r of

child

ren

who

wer

e in

ave

rage

dai

ly a

ttend

ance

in th

esc

hool

s of

suc

h ag

ency

is in

cat

egor

y (ii

).(B

) T

he S

ecre

tary

sha

ll al

loca

te th

e am

ount

s de

scrib

ed in

subp

arag

raph

(A

) ac

cord

ing

to th

e fo

ll 'w

ing

sche

dule

:(I

) A

firs

t allo

catio

n sh

all b

e m

ade

as fo

llow

s:(I

) 20

per

cen

tum

of e

ntitl

emen

t to

loca

l edu

catio

nal

agen

cies

des

crib

ed in

cat

egor

y (i)

; and

(II)

10 p

er c

entu

m o

f ent

itlem

ent t

o lo

cal e

duca

tion-

al a

genc

ies

desc

ribed

in c

ateg

ory

(ii).

(II)

Any

sum

s re

mai

ning

afte

r th

c al

loca

tion

purs

uant

tocl

ause

(i)

shal

l be

allo

cate

d as

follo

ws:

(I)

30 p

er c

entu

m o

f ent

itlem

ent t

o lo

cal e

duca

tiona

lag

enci

es d

escr

ibed

in c

ateg

ory

(i); a

nd(I

I)5

per

ccnt

um o

f ent

itlem

ent t

o lo

cal e

duca

tiona

lag

enci

es d

escr

ibed

in c

ateg

ory

(ii).

(IlI)

Any

sum

s re

mai

ning

aftc

r th

e al

loca

tion

purs

uant

tocl

ause

(ii)

sha

ll be

allo

cate

d as

follo

ws:

Ch.

13

FE

DE

RA

LLY

AF

FE

CT

ED

AR

EA

S20

§ 2

40

(1)

50 p

er c

entu

m o

f ent

itlem

ent t

o lo

cal e

duca

tiona

lag

enci

es d

escr

ibed

in c

ateg

ory

(i); a

nd(I

I) 8

5 pe

r cc

ntum

of e

ntitl

emen

t to

loca

l edu

catio

n-al

age

ncie

s de

scrib

ed in

cat

egor

y (ii

).(4

) W

hene

ver

the

addi

tiona

l am

ount

s de

scrib

ed in

par

a-gr

aphs

(2)

(A)

and

(3)(

A)

in e

ach

fisca

l yea

r ar

e in

suffi

cien

t to

prov

ide

the

requ

ired

perc

ent o

f ent

itlem

ent t

o ea

ch lo

cal e

du-

catio

nal a

genc

y un

der

para

grap

h (2

)(B

) or

par

agra

ph (

3)(B

),re

spec

tivel

y, th

e fu

ll am

ount

s th

at lo

cal e

duca

tiona

l age

ncie

sar

e en

title

d to

rec

eive

und

er s

uch

para

grap

hs s

hall

be r

atab

lyre

duce

d.If

addi

tiona

l fun

ds b

ecom

e av

aila

ble

for

mak

ing

such

paym

ents

for

any

fisca

l yea

r du

ring

whi

ch th

e pr

eced

ing

sen-

tenc

e is

app

licab

le, s

uch

redu

ced

amou

nts

shal

l be

incr

case

d on

the

sam

e ba

sis

as th

ey w

ere

redu

ced.

No

allo

catio

n m

ay b

e m

ade

purs

uant

to p

arag

raph

(2)

and

no

paym

ent m

ay b

e pa

id o

n th

e ba

sis

of a

ny s

uch

allo

catio

n un

less

allo

catio

ns a

re m

ade

purs

uant

to p

arag

raph

(1)

and

pay

men

ts a

rcm

ade

on th

e ba

sis

of s

uch

allo

catio

ns.

(d)

Tre

atm

ent o

f pay

men

ts b

y S

tate

s to

det

erm

ine

elig

ibili

ty fo

r, a

ndam

ount

of,

Sta

te a

ld; n

otic

e an

d op

port

unity

for

hear

ing;

"S

tate

ald"

and

"eq

ualiz

e ex

pend

iture

s" d

efin

ed; S

tate

equ

aliz

atio

n

(1)

Exc

ept a

s pr

ovid

ed in

par

agra

ph (

2), n

o pa

ymen

ts m

ay b

em

ade

unde

r th

is s

ubch

apte

r fo

r an

y fis

cal y

ear

to a

ny lo

cal e

du-

catio

nal a

genc

y in

any

Sta

te (

A)

if th

at S

tate

has

takc

n in

to c

onsi

d-er

atio

n pa

ymen

ts u

nder

this

sub

chap

ter

in d

eter

min

ing

(1)

the

elig

ibili

ty o

f any

loca

l edu

catio

nal a

genc

y in

that

Sta

tefo

r S

tate

aid

for

free

pub

lic e

duca

tion

of c

hild

ren;

or

(11)

the

amou

nt o

f suc

h ai

d w

ith r

espe

ct to

any

suc

h ag

ency

;du

ring

that

fisc

al y

ear

or th

e pr

eced

ing

fisca

l yea

r, o

r (B

) if

such

Sta

te m

akes

suc

h ai

d av

aila

ble

to lo

cal e

duca

tiona

l age

ncie

s in

suc

ha

man

ner

as to

res

ult i

n le

ss S

tate

aid

to a

ny lo

cal e

duca

tiona

lag

ency

whi

ch is

elig

ible

for

paym

ents

und

er th

is s

ubch

apte

r th

ansu

ch a

genc

y w

ould

rec

eive

if s

uch

agen

cy w

ere

not s

o el

igib

le.

(2)(

A)

Not

with

stan

ding

par

agra

ph (

1) o

f thi

s su

bsec

tion,

if a

Sta

teha

s in

effe

ct a

pro

gram

of S

tate

aid

for

free

pub

lic e

duca

tion

for

any

fisca

l yea

r, w

hich

is d

esig

ned

to e

qual

ize

expe

nditu

res

for

free

publ

ic e

duca

tion

amon

g th

e lo

cal e

duca

tiona

l age

ncie

s of

that

Sta

te,

paym

ents

und

er th

is s

ubch

apte

r fo

r an

y fis

cal y

ear

may

be

take

nin

to c

onsi

dera

tion

by s

uch

Sta

te in

det

erm

inin

g th

e re

lativ

e(1

) fin

anci

al r

esou

rces

ava

ilabl

e to

loca

l edu

catio

nal a

genc

ies

in th

at S

tate

; and

(II)

fina

ncia

l nee

d of

suc

h ag

enci

es fo

r th

e pr

ovis

ion

of fr

eepu

blic

edu

catio

n fo

r ch

ildre

n se

rved

by

such

age

ncy,

pro

vide

d

1

20 §

240

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3

that

a S

tate

may

con

side

r as

loca

l res

ourc

es fu

nds

rece

ived

unde

r th

is s

ubch

apte

r on

ly in

pro

port

ion

to th

e sh

arc

that

loca

lre

venu

es c

over

ed u

nder

a S

tate

equ

aliz

atio

n pr

ogra

m a

re o

fto

tal l

ocal

rev

enue

s.T

he in

crea

sein

paym

ents

des

crib

edin

sect

ions

238

(d)(

2)(B

),23

8(d)

(2)(

C),

238

(d)(

2)(D

), a

nd 2

38(d

)(3)

(B)(

ii) o

f thi

s tit

le s

hall

not

be ta

ken

into

con

side

ratio

n by

the

Sta

te fo

r th

e pu

rpos

e or

this

subp

arag

raph

. Whe

neve

r a

Sta

te e

duca

tiona

l age

ncy

or lo

cal e

du-

catio

nal a

genc

y w

ill b

e ad

vers

ely

affe

cted

by

the

oper

atio

n of

this

subs

ectio

n, s

uch

agen

cy s

hall

be a

fford

ed n

otic

e an

d an

opp

ortu

nity

for

a he

arin

g pr

ior

to th

e re

duct

ion

or tc

rmin

atio

n of

pay

men

tspu

rsua

nt to

this

sub

sect

ion.

(B)

The

term

s "S

tate

aid

" an

d "e

qual

ize

expe

nditu

res"

as

used

inth

is s

ubse

ctio

n sh

all b

e de

fined

by

the

Sec

reta

ry b

y re

gula

tion,

afte

rco

nsul

tatio

n w

ith S

tate

and

loca

l edu

catio

nal a

genc

ies

affe

cted

by

this

sub

sect

ion,

pro

vide

d th

at th

e te

rm "

equa

lize

expe

nditu

res"

sha

llno

t bc

cons

true

d in

any

man

ner

adve

rse

to a

pro

gram

of S

tate

aid

for

free

pub

lic e

duca

tion

whi

ch p

rovi

des

for

taki

ng in

to c

onsi

dera

-tio

n th

e ad

ditio

nal c

ost o

f pro

vidi

ng fr

ee p

ublic

edu

catio

n fo

rpa

rtic

ular

gro

ups

or c

ateg

orie

s of

pup

ils in

mee

ting

the

spec

ial

educ

atio

nal n

eeds

of s

uch

child

ren

as h

andi

capp

ed c

hild

ren,

eco

-no

mic

ally

dis

adva

ntag

ed, t

hose

who

nee

d bi

lingu

al e

duca

tion,

and

gifte

d an

d ta

lent

ed c

hild

ren.

(C)

In th

e ap

plic

atio

n of

sub

para

grap

h (A

) of

this

par

agra

ph to

any

Sta

te h

avin

g a

prog

ram

des

crib

ed in

suc

h su

bpar

agra

ph (

A)

inef

fect

on

Oct

ober

12,

197

6, n

o pa

ymen

t may

be

with

held

from

and

no r

epay

men

t may

be

requ

ired

of a

ny S

tate

or

loca

l edl

catio

nal

agen

cy fo

r an

y pe

riod

prio

r to

pro

mul

gatio

n of

fina

l reg

ulat

ions

, or,

if th

e S

tate

is n

ot in

con

form

ance

with

suc

h re

gula

tions

, unt

il Ju

ly1,

197

7.

(C)2

(I)

If a

Sta

te d

esire

s to

take

pay

men

ts u

nder

this

sec

tion

into

cons

ider

atio

n as

pro

vide

d in

this

par

agra

ph fo

r an

y fis

cal y

ear,

that

Sta

te s

hall,

not

late

r th

an s

ixty

day

s pr

ior

to th

e be

ginn

ing

of s

uch

fisca

l yca

r, s

ubm

it no

tice

to th

e S

ecre

tary

of i

ts in

tent

ion

to d

o so

.S

uch

notic

e sh

all b

e in

suc

h fo

rm a

nd b

e ac

com

pani

ed b

y su

chin

form

atio

n as

to e

nabl

e th

e S

ecre

tary

to d

eter

min

e th

e ex

tent

tow

hich

the

prog

ram

of S

tate

aid

of t

hat S

tate

is c

onsi

sten

t with

the

prov

isio

ns o

f sub

para

grap

h (A

).In

add

ition

, suc

h no

tice

shal

l be

acco

mpa

nied

by

such

evi

denc

e as

the

Sec

reta

ry fi

nds

nece

ssar

y th

atea

ch lo

cal e

duca

tiona

l age

ncy

in th

at S

tate

has

bee

n gi

ven

notic

c of

the

inte

ntio

n of

the

Sta

te.

If th

e S

ecre

tary

det

erm

ines

that

the

prog

ram

of S

tate

aid

of a

Sta

te s

ubm

ittin

g no

tice

unde

r th

is s

ubpa

r-ag

raph

is c

onsi

sten

t with

the

prov

isio

ns o

f sub

para

grap

h (A

), th

eS

ecre

tary

sha

ll ce

rtify

suc

h de

term

inat

ion

to th

at S

tate

.

1 8

Ch.

13

FED

ER

AL

LY

AFF

EC

TE

D A

RE

AS

20 §

240

(II)

Pri

or to

cer

tifyi

ng a

ny d

eter

min

atio

n un

der

divi

sion

(i)

for

any

Stat

e fo

r an

y fi

scal

yea

r, th

e Se

cret

ary

shal

l giv

e th

e lo

cal

educ

atio

nal a

genc

ies

in th

at S

tate

an

oppo

rtun

ity f

or a

hea

ring

at

whi

ch s

uch

agen

cies

may

pre

sent

thei

r vi

ews

with

res

pect

to th

cco

nsis

tenc

y of

the

Stat

e ai

d pr

ogra

m o

f th

at S

tate

with

the

prov

i-si

ons

of s

ubpa

ragr

aph

(A).

OW

The

Sec

reta

ry s

hall

not f

inal

ly d

eny

to a

ny S

tate

for

any

fisc

al y

ear

cert

ific

atio

n of

a d

eter

min

atio

n un

der

divi

sion

(i)

with

-ou

t fir

st g

ivin

g th

at S

tate

an

oppo

rtun

ity f

or a

hea

ring

.

(e)

Dis

cret

iona

ry a

lloca

tions

(I)(

A)

For

any

fisc

al y

ear

afte

r Se

ptem

ber

30, 1

988,

the

Secr

etar

ysh

all a

lloca

te, t

o an

y lo

cal e

duca

tiona

l age

ncy

elig

ible

for

a p

ay-

men

t und

er s

ectio

n 23

8(a)

of

this

title

, not

less

than

the

prod

uct

of(I

) th

e nu

mb.

-.3-

of

child

ren

in a

vera

ge d

aily

atte

ndan

ce f

or th

efi

scal

yea

r fo

r w

hich

the

dete

rmin

atio

n is

mad

e un

der

sect

ion

238(

a) o

f th

is ti

tle; a

nd

co(l

1)(1

) if

suc

h ag

ency

rec

eive

d a

paym

ent u

nder

sec

tion

238(

a)of

this

title

in f

isca

l yea

r 19

87, t

he p

er p

upil

amou

nt p

aid

toth

at a

genc

y in

fis

cal y

ear

1987

; or

(H)

if s

uch

agen

cy d

id n

ot r

ecei

ve s

uch

a pa

ymen

t in

fisc

alye

ar 1

987,

the

per

pupi

l am

ount

suc

h ag

ency

wou

ld h

ave

been

paid

in f

isca

l yea

r 19

87 if

suc

h ag

cncy

had

bee

n el

igib

le f

orpa

ymen

ts u

nder

sec

tion

238(

a) o

f th

is ti

tle a

nd th

c av

erag

eda

ily a

ttend

ance

for

suc

h ag

ency

for

fis

cal y

ear

1987

had

bee

neq

ual t

o th

e av

erag

e da

ily a

ttend

ance

for

suc

h ag

ency

for

the

firs

t fis

cal y

ear

succ

eedi

ng f

isca

l yea

r 19

88 f

or w

hich

a d

eter

mi-

natio

n is

mad

e un

der

sect

ion

238(

a) o

f th

is ti

tle.

(B)

For

any

fisc

al y

ear

begi

nnin

g af

ter

Sept

embe

r 30

, 198

8, th

eSe

cret

ary

shal

l allo

cate

to a

ny lo

cal e

duca

tiona

l age

ncy

whi

chre

ceiv

ed a

pay

men

t und

er s

ectio

n 23

8(b)

of

this

title

in f

isca

l yea

r19

87 f

or c

hild

ren

desc

ribe

d in

sub

sect

ion

(c)(

3)(A

)(i)

of

this

sec

tion,

an a

mou

nt w

hich

is n

ot le

ss th

an th

e pr

oduc

t of

100

per

cent

um o

fth

e pe

r pu

pil a

mou

nt p

aid

to s

uch

agen

cy in

fis

cal y

ear

1987

and

the

num

ber

of s

uch

child

ren

in a

vera

ge d

aily

atte

ndan

ce in

ihe

fisc

al y

ear

for

whi

ch s

uch

dete

rmin

atio

n is

mad

e.

(C)

The

pro

visi

ons

of s

ubpa

ragr

aphs

(A

) an

d (B

) of

this

par

a-gr

aph

shal

l not

app

ly to

any

loca

l edu

catio

nal a

genc

y fo

r w

hich

thc

fact

or in

the

dete

rmin

atio

n of

the

loca

l con

trib

utio

n ra

te d

escr

ibed

in s

ectio

n 23

8(d)

(3)(

A)(

i) o

f th

is ti

tle in

the

year

for

whi

ch th

ede

term

inat

ion

is m

ade

is le

ss th

an th

e am

ount

for

suc

h fa

ctor

for

fisc

al y

ear

1987

.

20 §

240

ASS

IST

AN

CE

TO

r D

CA

L A

GE

NC

IES

Ch.

13

(D)

The

Sec

reta

ry is

aut

hori

zed

to m

odif

y th

e pe

r pu

pil a

mou

ntde

scri

bed

in s

ubpa

ragr

aph

(A)

of th

is p

arag

raph

, in

any

case

inw

hich

, in

the

fisc

al y

ear

for

whi

ch th

e de

term

inat

ion

is m

ade

alo

cal e

duca

tiona

l age

ncy

is n

o lo

nger

an

agen

cy d

escr

ibed

in s

ub-

sect

ion

(c)(

2)(A

)(i)

of

this

sec

tion

or s

ubse

ctio

n (c

)(2)

(A)(

ii) o

f th

isse

ctio

n, b

ut is

an

agen

cy d

escr

ibed

in s

ubse

ctio

n (c

)(2)

(A)(

ii) o

f th

isse

ctio

n or

sub

sect

ion

(c)(

2)(A

)(iii

) of

this

sec

tion,

as

the

case

may

be. (E

) T

he p

rovi

sion

s of

sub

para

grap

h (B

) of

this

par

agra

ph s

hall

not a

pply

to a

ny lo

cal e

duca

tiona

l age

ncy

whi

ch, i

n th

e fi

scal

yea

rfo

r w

hich

the

dete

rmin

atio

n is

mad

e, is

not

a lo

cal e

duca

tiona

lag

ency

des

crib

ed in

sub

sect

ion

(c)(

3)(A

)(i)

of

this

sec

tion.

(2)

sum

s ap

prop

riat

ed f

or a

ny f

isca

l yea

r fo

r m

akin

g pa

ymen

tsun

der

this

sec

tion

are

not s

uffi

cien

t to

pay

in f

ull t

he a

mou

nt to

whi

ch e

ach

loca

l edu

catio

nal a

genc

y is

ent

itled

und

er th

e pr

evio

uspa

ragr

aph,

suc

h am

ount

s sh

all b

e ra

tabl

y re

duce

d.(3

) In

no

even

t sha

ll th

e am

ount

allo

cate

d to

any

loca

l edu

catio

n-al

age

ncy

in a

ny f

isca

l yea

r un

der

subp

arag

raph

B o

f pa

ragr

aph

(1)

exce

ed th

e am

ount

rec

eive

d by

suc

h ag

ency

in th

e fi

scal

yea

r 19

87.

(f)

Use

of

fund

s w

ith r

espe

ct to

ent

itlem

ents

incr

ease

d un

der

sect

ion

238(

d)(2

)(C

) of

this

title

The

am

ount

of

the

paym

ent t

o an

y lo

cal e

duca

tiona

l age

ncy

for

any

fisc

al y

car

whi

ch is

attr

ibut

able

to a

det

erm

inat

ion

of c

hild

ren

for

incr

ease

d pa

ymen

ts u

nder

sub

para

grap

h (C

) of

sec

tion

238(

d)(2

)of

this

title

sha

ll be

use

d by

suc

h ag

ency

for

spe

cial

edu

catio

nal

prog

ram

s de

sign

ed to

mee

t the

spe

cial

edu

catio

nal n

eeds

of

chil-

dren

with

res

pect

to w

hom

suc

h de

term

inat

ion

is m

ade.

(g)

Hea

ring

and

rev

iew

Eac

h lo

cal e

duca

tiona

l age

ncy

whi

ch is

adv

erse

ly a

ffec

ted

orag

grie

ved

by a

ny a

ctio

n of

the

Secr

etar

y un

der

this

sub

chap

ter

shal

lbe

ent

itled

to a

hea

ring

on,

and

rev

iew

of,

suc

h ac

tion

in th

e sa

me

man

ner

as if

suc

h ag

ency

wer

e a

pers

on u

nder

the

prov

isio

nsof

chap

ters

5 a

nd 7

of

Titl

e 5.

(h)

Tre

atm

ent o

f ad

min

istr

ativ

e sc

hool

dis

tric

t with

in S

tate

as

loca

l edu

-ca

tiona

l age

ncy

for

purp

ose

of d

eter

min

ing

amou

nt o

f pa

ymen

t;re

stri

ctio

nsIf

any

legi

slat

ion

enac

ted

afte

r M

arch

31,

198

3, a

ffec

ts th

e de

ter-

min

atio

n of

am

ount

s of

pay

men

ts m

ade

on th

e ba

sis

of e

ntitl

emen

tses

tabl

ishe

d un

der

sect

ions

237

, 238

, and

239

of

this

title

by

plac

ing

any

addi

tiona

l res

tric

tion

on p

aym

ents

bas

ed o

n th

e co

ncen

trat

ion

of c

hild

ren

coun

ted

unde

r su

bsec

tion

(a)

or (

b) o

f se

ctio

n 23

8 of

this

title

in th

e sc

hool

s of

a lo

cal e

duca

tiona

l age

ncy,

suc

h re

stri

c-1

t

Ch.

13

FED

ER

AL

LY

AFF

EC

TE

D A

RE

AS

20 §

240

tion

shal

l be

appl

ied,

in th

e ca

se o

f any

Sta

te (

othc

r th

an a

terr

itory

or p

osse

ssio

n of

the

Uni

ted

Stat

es)

with

in w

hich

ther

eis

onl

y on

elo

cal e

duca

tiona

l age

ncy,

by

trea

ting

each

adm

inis

trat

ive

scho

oldi

stri

ct w

ithin

suc

h St

ate

asa

loca

l edu

catio

nal a

genc

y (s

olel

y fo

rth

e pu

rpos

e of

com

putin

g th

eam

ount

of

such

pay

men

ts).

Tre

atin

gsu

ch a

n ad

min

istr

ativ

e sc

hool

dis

tric

tas

a lo

cal e

duca

tiona

l age

ncy

unde

r th

e pr

eced

ing

sent

ence

sha

llno

t res

ult,

duri

ng f

isca

l yea

r19

84, 1

985,

or

1986

, in

an in

crea

se o

fm

ore

than

10

per

cent

um in

the

amou

nt o

f fu

nds

paid

to s

uch

Stat

e ab

ove

the

amou

nt w

hich

wou

ld o

ther

wis

e be

pai

d to

suc

h St

ate

for

such

fis

cal y

ear.

(Sep

t. 30

, 195

0, c

. 112

4, T

itle

I, §

5. f

orm

erly

§ 5,

64

Stat

. 110

6; A

ug. 8

,19

53, c

. 402

, §§

6, 7

, 67

Stat

. 534

; Aug

. 3, 1

956,

c. 9

15, T

itle

11, §

209

, 70

Stat

. 972

; ren

umbe

red

and

amen

ded

Apr

. 11,

196

5,Pu

b.L

. 89-

10, T

itle

I,§

2, 7

9 St

at. 2

7; N

ov. 3

, 196

6, P

ub.L

. 89-

750,

Titl

e II

, §§

202,

203

, 80

Stat

.12

11, 1

212;

Oct

. 16,

196

8, P

ub.L

. 90-

576,

Titl

e11

1, §

305

(a),

82

Stat

. 109

7;A

pr. 1

3, 1

970,

Pub

.L. 9

1-23

0, T

itle

§ 20

3(c)

(4),

84

Stat

. 156

; Jun

e 23

,19

72, P

ub.L

. 92-

318,

Titl

e IV

, § 4

11(c

)(1)

, 86

Stat

. 338

; Aug

. 21,

197

4,Pu

b.L

. 93-

380,

Titl

e II

I, §

§ 30

4(c)

(1),

(2)

, (d)

(2),

305(

a)(2

), 8

8 St

at. 5

22. 5

23,

529;

Apr

. 21,

197

6, P

ub.L

. 94-

273,

§ 3

(5),

90

Stat

.37

6; O

ct. 1

2, 1

976,

Puh

.L.

94-4

82, T

itle

111,

§ 3

30(a

), (

b)(1

)-(3

), 9

0 St

at.

2221

; Nov

. I, 1

978,

Pub

.L.

co95

-561

, Titl

e X

, §§

1003

(c),

100

5, 1

006(

a), 1

007,

1008

, Titl

e X

I, §

110

1(h)

,(c

), (

c), 9

2 St

at. 2

306-

2309

, 231

3, 2

315;

Aug

.6,

197

9, P

ub.L

. 96-

46, §

3(b

),93

Sta

t. 34

2; O

ct. 1

7, 1

979,

Pub

.L. 9

6-88

, Titl

eII

I, §

301

(a)(

1), T

itle

V.

§ 50

7, 9

3 St

at. 6

77, 6

92; O

ct. 3

1, 1

983,

Pub

.L.

98-1

39, T

itle

III,

§ 3

00, 9

7St

at. 8

89; D

ec. 8

, 198

3, P

ub.L

. 98-

211,

§ 2

3, 9

7St

at. 1

419;

Aug

. 22,

198

4,Pu

b.L

. 98-

396,

Titl

e I,

§ 1

01, 9

8 St

at. 1

393;

Oct

. 19,

198

4, P

ub.L

. 98-

511,

Titl

e H

I, §

303

(b)(

1), 9

8 St

at. 2

389:

Apr

. 28,

1988

, Pub

.L. 1

00-2

97, T

itle

II,

§§ 2

01I(

a)(1

), (

2), 2

015,

102

Sta

t. 29

4, 2

96; M

ay11

, 198

9, P

ub.L

. 101

-26,

§ 2(

c)-(

e), 1

03 S

tat.

54. 5

5.)

1So

in o

rigi

nal.

2So

in o

rigi

nal.

Prob

ably

sho

uld

be "

(Dr.

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

SR

evis

ion

Not

es a

nd L

egis

lativ

e R

epor

ts19

50 A

ct. S

enat

e R

epor

t No.

245

8 an

dC

onfe

renc

e R

epor

t No.

310

9, s

ee 1

950

11 S

.Cod

e C

ong.

Ser

vice

, p. 4

014.

1953

Act

. Sen

ate

Rep

ort N

o. 7

14,

scc

1953

U.S

.Cod

c C

ong.

and

Adm

.Ncw

s,p.

2325

.

1956

Act

. Sen

ate

Rep

ort N

o. 2

753,

see

1256

U.S

.Cod

e C

ong.

and

Adm

.New

s,p.

4265

.19

65 A

ct.

Sena

te R

epor

t No.

146

. see

1965

U.S

.Cod

e C

ong.

and

Adm

.New

s,p.

1446

.

1966

Act

. Hou

se R

epor

t No.

181

4,se

c19

66 U

.S.C

ode

Con

g. a

nd A

drn.

New

s,p.

3844

,

1968

Act

. Hou

se R

epor

t No.

164

7 an

dC

onfe

renc

e R

epor

t No.

193

8,se

e 19

68U

.S.C

ode

Con

g. a

nd A

dm.N

ews,

p. 4

164.

Ilk-

1970

Act

.Se

nate

Rep

ort N

o. 9

1-63

4an

d C

onfe

renc

e R

epor

t No.

91-

937,

see

1970

U.S

.Cod

e C

ong.

and

Adm

.New

s,p.

2768

.19

72 A

ct.

Dou

se R

A.p

ort N

o. 9

2-55

4,Se

nate

Rep

ort N

o. 9

2-60

4, a

nd S

enat

eC

onfe

renc

e R

epor

t No.

92-

798,

see

197

2U

.S.C

ode

Con

g. a

nd A

dm.N

ews,

p. 2

462.

1974

Act

.H

ouse

Rep

ort N

o. 9

3-50

5an

dSe

nate

Con

fere

nce

Rep

ort

No.

93-1

026,

see

197

4 U

.S.C

ode

Con

g. a

ndA

dm.N

cws,

p. 4

093.

1976

Act

s.H

ouse

Rep

ort

No.

94-1

000,

see

197

6 U

.S.C

ode

Con

g. a

ndA

dm.N

cws,

p. 6

90.

Sena

te R

epor

t No.

94-

882

and

Hou

seC

onfe

renc

eR

epor

t No.

94-

1701

,se

e19

76 U

.S.C

ode

Con

g. a

nd A

dm.N

ews,

p.47

13.

ch. 1

3FE

DE

RA

LL

Y A

FFE

CT

ED

AR

EA

S20

§ 2

41

WE

STL

AW

EL

EC

TR

ON

IC R

ESE

AR

CH

Scho

ols

case

s: 3

45kl

add

key

num

ber]

.U

nite

d St

ates

cas

es: 3

93kl

add

key

num

ber]

.Sc

c, a

lso,

WE

STL

AW

gui

de f

ollo

win

g th

e E

xpla

natio

n pa

ges

of th

is v

olum

e.

NO

TE

S O

F D

EC

ISIO

NS

Eff

ectiv

e da

teI

Equ

aliz

atio

n2

Subs

titut

ion

of F

eder

al f

or s

tate

fun

ds3

I.E

ffec

tive

date

Publ

. 90-

576.

Titl

e 11

1, §

305

(b),

Oct

.16

. 196

8, 8

2 St

at. 1

097.

set

out

as

a no

teun

der

this

sec

tion,

whi

ch p

resc

ribe

d th

cef

fect

ive

date

s of

pro

hibi

tion

of s

ubse

c.(d

)(2)

of

this

sec

tion

agai

nst m

akin

g of

any

paym

ent t

o lo

cal e

duca

tiona

l age

ncy

in a

ny s

late

whi

ch h

as ta

ken

into

con

sid-

erat

ion

paym

ents

und

er th

is s

ubch

apte

rin

det

erm

inin

g el

igib

ility

of

loca

l age

ncy

for

stat

e ai

dis

inte

nded

to g

ive

stat

ele

gisl

atur

es c

hanc

e to

cha

nge

law

s so

as

to e

limin

ate

thei

r un

law

ful f

eatu

res

and

mer

ely

post

pone

s ef

fect

ive

date

of

pena

l-ty

and

doe

s no

t wip

e ou

t sta

te's

liab

ility

to d

istr

icts

and

sta

te la

ws

prov

idin

g fo

rde

duct

ion

of p

art o

f fe

dera

l im

pact

fund

s fr

om s

tate

aid

wer

e in

valid

und

erU

.S.C

.A.C

onst

. Art

. 6, c

l. 2.

Car

lsba

d U

n-io

n Sc

hool

Dis

t. of

San

Die

go C

ount

y v.

Raf

fert

y, C

.A.C

a1.1

970,

429

F.2

d 33

7.

2.E

qual

izat

ion

Stat

e m

ay f

acto

r re

venu

e re

ceiv

ed b

ysc

hool

dis

tric

ts w

hich

ser

ve c

hild

ren

who

res

ide

on I

ndia

n la

nds

into

itssc

hool

fin

ance

equ

aliz

atio

n sy

stem

onl

yif

that

sys

tem

mcc

ts th

c fe

dera

l def

ini-

tion

of a

o eq

ualiz

ed p

rogr

am, s

ubje

ct to

the

dete

rmin

atio

n of

the

Secr

etar

y of

F.du

catio

n.H

elen

a E

lem

enta

ry S

choo

lD

ist.

No.

1 v

. Sta

te. M

ont.1

989,

796

P.2

d68

4.

3.Su

bstit

utio

n or

Fed

eral

for

sta

tefu

nds

Rho

de I

slan

d, w

hich

had

cho

sen

to a

idlo

cal d

istr

icts

by

reim

burs

ing

them

ac-

cord

ing

to e

ffor

t of

each

com

mun

ity,

two

year

s pr

evio

usly

, and

had

cho

sen

tode

fine

loca

l eff

ort a

s to

tal e

xpen

ditu

rele

ss f

eder

al a

id g

rant

ed in

sam

e sc

hool

year

as

expe

nditu

re f

igur

e, c

ould

not

he

proh

ibite

d fr

om b

asin

g st

ate

aid

to lo

cal

dist

rict

s on

bas

is o

f ex

pend

iture

s tw

oye

ars

old

or o

n ba

sis

of f

igur

es e

ven

olde

r if

it s

o ch

ose

whe

re d

educ

tion

did

not h

ave

effe

ct o

f su

bstit

utin

g fe

dera

l for

stat

e fu

nds.

Mid

dlet

own

Scho

ol C

om-

mitt

ee v

. Boa

rd o

f R

egen

ts F

or E

d. o

fSt

ate

of R

.I..

D.C

.R.1

.197

7, 4

39 F

.Sup

p.11

22.

§ 24

1. E

duca

tion

of c

hild

ren

whe

re lo

cal a

genc

ies

cann

ot s

up-

ply

faci

litie

s

(a)

Nec

essa

ry a

rran

gem

ents

by

Secr

etar

y; s

tand

ard

of e

duca

tion

In th

e ca

se o

f ch

ildre

n w

ho r

esid

e on

Fed

eral

pro

pert

y-(1

) if

no

tax

reve

nues

of

the

Stat

e or

any

pol

itica

l sub

divi

sion

ther

eof

may

be

expe

nded

for

the

frec

pub

lic e

duca

tion

of s

uch

child

ren;

or

(2)

if it

is th

c ju

dgm

ent o

f th

e Se

cret

ary,

aft

er h

e ha

s co

nsul

t-ed

with

the

appr

opri

ate

Stat

e ed

ucat

iona

l age

ncy,

that

no

loca

led

ucat

iona

l age

ncy

is a

ble

to p

rovi

de s

uita

ble

free

pub

lic e

du-

catio

n fo

r su

ch c

hild

ren,

the

Secr

etar

y sh

all m

ake

such

arr

ange

men

ts (

othe

r th

anar

rang

e-m

ents

with

res

pect

to th

e ac

quis

ition

of

land

, the

ere

ctio

n of

faci

litie

s, in

tere

st, o

r de

bt s

ervi

ce)

as m

ay b

e ne

ccss

ary

to p

rovi

defr

ee p

ublic

edu

catio

n fo

r su

ch c

hild

ren.

Such

arr

ange

men

ts to

112

20 §

241

ASS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

prov

ide

free

pub

lic e

duca

tion

may

als

o be

mad

e fo

r ch

ildre

n of

mem

bers

of

the

Arm

ed F

orce

s on

act

ive

duty

, if

the

scho

ols

inw

hich

fre

e pu

blic

edu

catio

n is

usu

ally

pro

vide

d fo

r su

ch c

hild

ren

are

mad

e un

avai

labl

e to

them

as

a re

sult

of o

ffic

ial a

ctio

nby

Sta

teor

loca

l gov

ernm

enta

l aut

hori

ty a

nd it

is th

e ju

dgm

ent o

f th

eSe

cret

ary,

aft

er h

e ha

s co

nsul

ted

with

the

appr

opri

ate

Stat

e ed

u-ca

tiona

l age

ncy,

that

no

loca

l edu

catio

nal a

genc

y is

abl

e to

pro

vide

suita

ble

free

pub

lic e

duca

tion

for

such

chi

ldre

n. T

o th

e m

axim

umex

tent

pra

ctic

able

, the

loca

l edu

catio

nal a

genc

y, o

r th

e he

ad o

f th

eFe

dera

l dep

artm

ent o

r ag

ency

, with

whi

ch a

ny a

rran

gem

ent i

sm

ade

unde

r th

is s

ectio

n sh

all t

akc

such

act

ion

as m

ay b

e ne

cess

ary

to e

nsur

e th

at th

e ed

ucat

ion

prov

ided

pur

suan

t to

such

arr

ange

-m

ent i

s co

mpa

rabl

e to

fre

e pu

blic

edu

catio

n pr

ovid

ed f

or c

hild

ren

in c

ompa

rabl

e co

mm

uniti

es in

the

Stat

c, o

r, in

the

case

of

edu-

catio

n pr

ovid

ed u

nder

this

sec

tion

outs

ide

the

cont

inen

tal U

nite

dSt

ates

, Ala

ska,

and

Haw

aii,

com

para

ble

to f

ree

publ

ic e

duca

tion

prov

ided

for

chi

ldre

n in

the

Dis

tric

t of

Col

umbi

a. F

or th

e pu

rpos

eof

pro

vidi

ng s

uch

com

para

ble

educ

atio

n, p

erso

nnel

may

be

em-

ploy

ed a

nd th

e co

mpe

nsat

ion,

tenu

re, l

eave

, hou

rs o

f w

ork,

and

othe

r in

cide

nts

of th

e ,m

ploy

men

t rel

atio

nshi

p m

ay b

e fi

xed

with

-ou

t rcg

ard

to th

e C

ivil

Serv

ice

Act

and

rul

es a

nd th

c fo

llow

ing:

(1)

chap

ter

51 a

nd s

ubch

apte

r H

I of

cha

pter

53

of T

itle

5; (

2) s

ubch

ap-

ter

I of

cha

pter

63

of T

itle

5; (

3) s

ectio

ns 5

504,

554

1 to

554

9, a

nd61

01 o

f T

itle

5; (

4) s

ectio

ns 1

302(

b), (

c), 2

108,

330

5(b)

, 330

6(a)

(2),

3308

to 3

318,

331

9(b)

, 332

0, 3

351,

336

3, 3

364,

350

1 to

350

4, 7

511,

7512

, and

770

1 of

Titl

e 5;

and

(5)

cha

pter

43

of T

itle

5.Pe

rson

nel

prov

ided

for

und

cr th

is s

ubse

ctio

n ou

tsid

e of

the

cont

inen

tal U

nite

dSt

ates

, Ala

ska,

and

Haw

aii,

shal

l rec

eive

suc

h co

mpe

nsat

ion,

tenu

re,

leav

e, h

ours

of

wor

k, a

nd o

ther

inci

dent

s of

em

ploy

men

t on

thc

sam

e ba

sis

as p

rovi

ded

for

sim

ilar

posi

tions

in th

e pu

blic

sch

ools

of

the

Dis

tric

t of

Col

umbi

a. I

n an

y ca

se w

here

edu

catio

n w

as b

eing

prov

ided

on

Janu

ary

1, 1

955,

or

ther

eaft

er u

nder

an

arra

ngem

ent

mad

e un

der

this

sub

sect

ion

for

child

ren

resi

ding

on

an A

rmy,

Nav

y(i

nclu

ding

thc

Mar

ine

Cor

ps),

or

Air

For

ce in

stal

latio

n, it

sha

ll be

pres

umed

, for

thc

purp

oses

of

this

sub

sect

ion,

that

no

loca

l edu

-ca

tiona

l age

ncy

is a

ble

to p

rovi

de s

uita

ble

free

pub

lic e

duca

tion

for

the

child

ren

resi

ding

on

such

inst

alla

tion,

unt

il th

e Se

cret

ary

and

the

Secr

etar

y of

the

mili

tary

dep

artm

ent c

once

rned

join

tly d

eter

-m

ine,

aft

er c

onsu

ltatio

n w

ith th

e ap

prop

riat

e St

ate

educ

atio

nal

agcn

cy, t

hat a

loca

l edu

catio

nal a

genc

y is

abl

e to

do

so.

(b)

Edu

catio

n of

chi

ldre

n In

adj

acen

t are

asIn

any

cas

e in

whi

ch th

e Se

cret

ary

mak

es s

uch

arra

ngem

ents

for

the

prov

isio

n of

fre

e pu

blic

edu

catio

n in

fac

ilitie

s si

tuat

ed o

nFe

dera

l pro

pert

y, h

e m

ay a

lso

mak

e ar

rang

emen

ts f

or p

rovi

ding

free

pub

lic e

duca

tion

in s

uch

faci

litie

s fo

r ch

ildre

n re

sidi

ng in

any

Ch.

13

FED

ER

AL

LY

AFF

EC

TE

D A

RE

AS

20 §

241

arca

adj

acen

t to

such

pro

pert

y w

ith a

par

ent w

ho, d

urin

g so

me

port

ion

of th

c fi

scal

yea

r in

whi

ch s

uch

educ

atio

n is

pro

vide

d, w

asem

ploy

ed o

n su

ch p

rope

rty,

but

onl

y if

the

Secr

etar

y de

term

ines

afte

r co

nsul

tatio

n w

ith th

e ap

prop

riat

e St

ate

educ

atio

nal a

genc

y (1

)th

at th

c pr

ovis

ion

of s

uch

educ

atio

n is

app

ropr

iate

to c

arry

out

the

purp

oses

of

this

sub

chap

ter,

(2)

that

no

loca

l edu

catio

nal a

genc

y is

able

to p

rovi

de s

uita

ble

free

pub

lic e

duca

tion

for

such

chi

ldre

n, a

nd(3

) in

any

cas

e w

here

in th

e ju

dgm

ent o

f th

e Se

cret

ary

thc

need

for

the

prov

isio

n of

suc

h ed

ucat

ion

will

not

be

tem

pora

ry in

dur

atio

n,th

at th

c lo

cal e

duca

tiona

l age

ncy

of th

e sc

hool

dis

tric

t in

whi

chsu

ch c

hild

ren

resi

de, o

r th

e St

ate

educ

atio

nal a

genc

y, o

r bo

th, w

illm

ake

reas

onab

le tu

ition

pay

men

ts to

the

Secr

etar

y fo

r th

e ed

u-ca

tion

of s

uch

child

ren.

Such

pay

men

ts m

ay b

e m

ade

eith

erdi

rect

ly o

r th

roug

h de

duct

ions

fro

m a

mou

nts

to w

hich

the

loca

led

ucat

iona

l age

ncy

is e

ntitl

ed u

nder

this

sub

chap

ter,

or

both

, as

may

be

agre

ed u

pon

betw

een

such

age

ncy

and

the

Secr

etar

y. A

nyam

ount

s pa

id to

the

Secr

etar

y by

a S

tate

or

loca

l edu

catio

nal

agen

cy p

ursu

ant t

o th

is s

ectio

n sh

all b

e co

vere

d in

to th

e T

reas

ury

asm

isce

llane

ous

rece

ipts

.(c

) E

duca

tion

of c

hild

ren

who

se p

aren

ts a

re e

mpl

oyed

In

cert

ain

Ter

rito

-ri

es a

nd P

osse

ssio

nsIn

any

cas

e in

whi

ch th

e Se

cret

ary

mak

es a

rran

gem

ents

und

erth

is s

ectio

n fo

r th

e pr

ovis

ion

of f

ree

publ

ic e

duca

tion

in f

acili

ties

situ

atcd

on

Fede

ral p

rope

rty

in P

uert

o R

ico,

Wak

e Is

land

, Gua

m,

Am

eric

an S

amoa

, the

Nor

ther

n M

aria

na I

slan

ds, o

r th

e V

irgi

nIs

land

s, h

e m

ay a

lso

mak

e ar

rang

emen

ts f

or p

rovi

ding

fre

e pu

blic

educ

atio

n in

suc

h fa

cilit

ies

for

-hild

ren

resi

ding

with

a p

aren

tem

ploy

ed b

y th

e U

nite

d St

ates

in I

gra

de, p

ositi

on, o

r cl

assi

fica

tion

subj

ect b

y po

licy

and

prac

tice

to t

-ans

fer

or r

eass

ignm

ent t

o ar

eas

whe

re E

nglis

h is

the

lang

uage

of

inst

ruct

ion

in th

e sc

hool

s no

rmal

lyat

tend

ed b

y ch

ildre

n of

Fed

eral

em

ploy

ees.

Dep

ende

nts

of e

xcep

t-ed

ser

vice

pro

fess

iona

l em

ploy

ees

of th

e sc

hool

s sh

all b

c el

igib

le to

atte

nd th

e sc

hool

s.In

any

cas

e w

here

edu

catio

n is

bei

ng p

rovi

ded

unde

r an

arr

ange

men

t mad

e un

der

this

sub

sect

ion,

itsh

all b

epr

esum

ed th

at n

o lo

cal e

duca

tiona

l age

ncy

is a

ble

to p

rovi

de s

uit-

able

fre

e pu

blic

edu

catio

n fo

r th

e ch

ildre

n of

elig

ible

par

ents

empl

o}ed

by

the

Uni

ted

Stat

cs u

ntl t

he S

ecre

tary

det

erm

ines

, aft

erco

nsul

tatio

n w

ith th

e ap

prop

riat

e St

ate

educ

atio

nal a

genc

y, th

at a

loca

l edu

catio

nal a

genc

y is

abl

e to

do

so.

(d)

Res

tric

tions

on

mak

ing

arra

ngem

ents

The

Sec

reta

ry m

ay m

ake

an a

rran

gem

ent u

nder

this

sec

tion

only

with

a lo

cal e

duca

tiona

l age

ncy

or w

ith th

e he

ad o

f a

Fede

ral

depa

rtm

ent

(.1-

age

ncy

adm

inis

teri

ng F

eder

al p

rope

rty

onw

hich

child

ren

resi

de w

hoar

e to

be

prov

ided

edu

catio

n pu

rsua

nt to

suc

h Ijc

20 §

241

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SC

h. 1

3

arra

ngem

ent o

r, in

the

case

of

child

ren

to w

hom

the

seco

ndse

nten

ce o

f su

bsec

tion

(a)

of th

is s

ectio

n ap

plie

s, w

ithth

e L

ead

ofan

y Fe

dera

l dep

artm

ent o

r ag

ency

hav

ing

juri

sdic

tior

over

the

pare

nts

of s

ome

or a

ll of

suc

h ch

ildre

n.E

xcep

t whe

re th

e Se

cre-

tary

mak

es a

rran

gem

ents

pur

suan

t to

the

seco

nd s

ente

nce

ofsu

b-se

ctio

n (a

) of

this

sec

tion,

arr

ange

men

ts m

ay b

e m

ade

unde

r th

isse

ctio

n on

ly f

or th

e pr

ovis

ion

of e

duca

tion

in f

acili

ties

of a

loca

led

ucat

iona

l age

ncy

or in

fac

ilitie

s si

tuat

ed o

n Fe

dera

l pro

pert

y.T

he S

ecre

tary

sha

ll en

sure

that

fun

ds p

rovi

ded

unde

r su

ch a

rran

ge-

men

t or

arra

ngem

ents

arc

exp

ende

d in

an

effi

cien

t man

ner,

and

shal

l req

uire

an

acco

untin

g of

fun

ds b

y su

ch a

genc

y at

leas

t on

anan

nual

bas

is.

The

Sec

reta

ry s

hall

furt

her

be p

rovi

ded

with

dat

are

latin

g to

the

qual

ity a

nd ty

pe o

f ed

ucat

ion

prov

ided

to s

uch

child

ren

unde

r su

ch a

rran

gem

ent o

r ar

rang

emen

ts.

(e)

Lim

it on

pay

men

ts

To

the

max

imum

ext

ent p

ract

icab

le, t

he S

ecre

tary

sha

ll lim

it th

eto

tal p

aym

ents

mad

e pu

rsua

nt to

any

suc

h ar

rang

emen

t for

edu

cat-

ing

child

ren

with

in th

e co

ntin

enta

l Uni

ted

Stat

es, A

lask

a, o

r H

a-w

aii,

to a

n am

ount

per

pup

il w

hich

will

not

exc

eed

the

per

pupi

lco

st o

f fr

ee p

ublic

edu

catio

n pr

ovid

ed f

or c

hild

ren

in c

ompa

rabl

eco

mm

uniti

es in

the

Stat

e. T

he S

ecre

tary

sha

ll lim

it th

e to

tal p

ay-

men

ts m

ade

purs

uant

to a

ny s

uch

arra

ngem

ent f

or e

duca

ting

chil-

dren

out

side

the

cont

inen

tal U

nite

d St

ates

, Ala

ska,

or

Haw

aii,

to a

nam

ount

per

pup

il w

hich

will

not

exc

eed

the

amou

nt h

e de

term

ines

to b

e ne

cess

ary

to p

rovi

de e

duca

tion

com

para

ble

to th

e fr

ee p

ublic

educ

atio

n pr

ovid

ed f

or c

hild

ren

in th

e D

istr

ict o

f C

olum

bia.

(f)

Chi

ldre

n liv

ing

on F

eder

al p

rope

rty

If n

o ta

x re

venu

es o

f a

Stat

e or

of

any

rnlit

ical

sub

divi

sion

of

the

Stat

e m

ay b

e ex

pend

ed f

or 't

he f

ree

publ

ic e

duca

tion

of c

hild

ren

who

res

ide

on a

ny F

eder

al p

rope

rty

with

in th

e St

ate,

or

if n

o ta

xre

venu

es o

f a

S'at

e ar

e al

loca

ted

for

thc

free

pub

lic e

duca

tion

ofsu

ch c

hild

ren,

thc

the

prop

erty

on

whi

ch s

uch

child

ren

resi

de s

hall

not b

e co

nsid

ered

Fed

eral

pro

pert

y fo

r th

e pu

rpos

es o

f se

ctio

ns 2

38an

d 23

9 of

this

title

.If

a lo

cal e

duca

tiona

l age

ncy

refu

ses

for

any

othe

r re

ason

to p

rovi

de in

any

fis

cal y

ear

free

pub

lic e

duca

tion

for

child

ren

who

res

ide

on F

eder

al p

rope

rty

whi

ch is

with

in th

e sc

hool

dist

rict

of

that

age

ncy

or w

hich

, in

the

dete

rmin

atio

n of

the

Secr

e-ta

ry, w

ould

be

with

in th

at s

choo

l dis

tric

t if

it w

ere

not F

eder

alpr

oper

ty, t

here

sha

ll be

ded

ucte

d fr

om a

ny a

mou

nt to

whi

ch th

elo

cal e

duca

tiona

l age

ncy

is o

ther

wis

e en

title

d fo

r th

at y

ear

undc

rsc

ctio

n 23

8 or

239

of

this

title

an

amou

nt e

qual

to (

1) th

e am

ount

(if

any)

by

whi

ch th

e co

st to

the

Secr

etar

y of

pro

vidi

ng f

ree

publ

iced

ucat

ion

for

that

yea

r fo

r ea

ch s

uch

child

exc

eeds

the

loca

l

1 1

5

Ch.

13

FE

DE

RA

LLY

AF

FE

CT

ED

AR

EA

S20

§ 2

41

cont

ribu

tion

rate

of

that

age

ncy

for

that

yea

r, m

ultip

lied

by (

2) th

enu

mbe

r of

suc

h ch

ildre

n.

(g)

Ele

ctiv

e sc

hool

boa

rds

The

Sec

reta

ry s

hall

ensu

re th

e es

tabl

ishm

ent o

f an

ele

ctiv

esc

hool

boar

d in

sch

ools

ass

iste

d un

der

this

sec

tion.

Such

sch

ool b

oard

shal

l be

com

pose

d of

a m

inim

um o

f th

ree

mem

bers

, ele

cted

by

the

pare

nts

of s

tude

nts

in a

ttend

ance

at s

uch

scho

ol.

The

Sec

reta

rysh

all,

by ..

-egu

latio

n, e

stab

lish

proc

edur

es f

or c

arry

ing

out s

uch

scho

ol b

oard

ele

ctio

ns a

s pr

ovid

ed in

this

sub

sect

ion.

(h)

Sch

ool b

oard

ove

rsig

ht o

f sch

ool e

xpen

ditu

res

and

oper

atio

ns

A s

choo

l boa

rd e

stab

lishe

d pu

rsua

nt to

sub

sect

ion

(g)

of th

isse

ctio

n sh

all b

e em

pow

ered

to o

vers

ee s

choo

l exp

endi

ture

s an

dop

erat

ions

, sub

ject

to a

udit

proc

edur

es e

stab

lishe

d by

the

Secr

etar

y,an

d ot

her

prov

isio

ns o

f th

is s

ectio

n.

(I)

Ava

ilabi

lity

of fu

nds

Not

with

stan

ding

any

oth

er p

rovi

sion

of

law

, a lo

cal e

duca

tiona

lag

ency

rec

eivi

ng f

unds

und

er s

ectio

n 23

8 of

this

title

may

als

ore

ceiv

e fu

nds

unde

r th

is s

ectio

n.(S

ept.

30, 1

950,

c. 1

124,

Titl

e I,

§ 6

, for

mer

ly §

6, 6

4 St

at. 1

107;

Aug

. 8,

1953

, c. 4

02, §

8, 6

7 St

at. 5

35; A

ug. 1

, 195

5, c

. 446

, 69

Stat

. 433

; Aug

. 1,

1956

, c. 8

52, §

10,

70

Stat

. 909

; May

6, 1

960,

Pub

.L. 8

6-44

9, T

itle

V, §

501

,74

Sta

t. 89

; ren

umbe

red

and

amen

ded

Apr

. 11,

196

5, 1

'ub.

L. 8

9-10

, Titl

e 1,

§§ 2

, 4(d

)(2)

, 79

Stat

. 27,

35;

Jul

y 21

, 196

5, P

ub.L

. 89-

77, §

2, 7

9 St

at. 2

43;

Nov

. 3, 1

966,

Pub

.L. 8

9-75

0, T

itle

H, §

204,

80

Stat

. 121

2; A

pr. 1

3, 1

970,

Publ

.. 91

-230

, Titl

e IV

. § 4

01M

M, 8

4 St

at. 1

73;

Nov

. 1,

1978

, Pub

.L.

95-5

61, T

itle

X, §

§ 10

09, 1

03I(

a), 9

2 St

at. 2

309,

231

2; A

pr. 2

8, 1

988,

Pub

.L.

100-

297,

Titl

e II

, §§

2011

(a)(

1), 2

016,

102

Sta

t. 29

4, 2

99.)

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

S

Rev

isio

n N

otes

and

Leg

isla

tive

Rep

orts

1950

Act

. Sen

ate

Rep

ort N

o. 2

458

and

Con

fere

nce

Rep

ort N

o. 3

109,

see

19'

.30

U.S

Cod

e C

ong.

Ser

vice

, p. 4

014.

1933

Act

. Sen

ate

Rep

ort N

o. 7

14, s

ee19

53U

.S.C

ode

Con

g. a

nd A

dm.N

ews,

p.23

25.

1953

Act

. Sen

ate

Rep

ort N

o. 8

71, s

ee19

.55

U.S

Cod

e C

ong.

and

Adm

.New

s, p

.25

91.

1936

Act

. Sen

ate

Rep

ort N

o. 2

662,

see

1956

U.S

.Cod

e C

ong.

and

Adm

.New

s, p

.40

62.

1960

Act

. Sen

ate

Rep

ort N

o. 1

205

and

Hou

se R

epor

t No.

956

, sec

196

0 U

.S.

Cod

e C

ong.

and

Adm

.New

s. p

. 192

5.19

63 A

cts.

Sen

ate

Rep

ort

No.

146,

see

1965

U.S

.Cod

e C

ong.

and

Adm

.New

s, p

.14

46.

Sen

ate

Rep

ort N

o. 3

11, s

ee 1

965

U.S

.C

ode

Con

g. a

nd A

dm.N

ews,

p. 1

910.

1966

Act

. Hou

se R

epor

t No.

181

4. s

ee19

66 U

.S.C

odc

Con

g.an

d A

dm.N

ews,

p.38

44.

1970

Act

.S

enat

e R

epor

t No.

91-

634

and

Con

fere

nce

Rep

ort N

o. 9

1-93

7, s

ee19

70 U

.S.C

ode

Con

g. a

nd A

dm.N

ews,

p.

2768

.

1978

Act

.H

ouse

Rep

ort N

o. 9

5-11

37an

dH

ouse

Con

fere

nce

Rep

ort

No.

95-1

753.

see

197

8 U

.S.C

ode

Con

g.an

dA

dm.N

ews,

p. 4

971.

1979

Act

.S

enat

e R

epor

t No.

96-

49an

dH

ouse

Con

fere

nce

Rep

ort

No.

96-4

59, s

ee 1

979

U.S

.C.o

de C

ong.

and

Adm

.New

s, p

. 151

4.

116

20 §

241

AS

SIS

TA

NC

E T

O L

OC

AL

AG

EN

CIE

SN

ote

3sa

me

cond

ition

s of

em

ploy

men

t as

thei

rD

istr

ict o

f Col

umbi

a co

unte

rpar

ts, a

de-

quat

ely

set f

orth

cla

im, u

nder

sub

sec.

(a)

of th

is s

ectio

n gr

antin

g rig

hts

of e

qual

ityw

ith D

istr

ict o

f Col

umbi

a co

unte

rpar

ts.

Ant

illes

Cou

ncil

of S

choo

l Offi

cers

. i.o

.ca

l 68,

Am

eric

an F

eder

atio

n of

Sch

ool

Adm

inis

trat

ors,

AF

L-C

IO v

.Le

hman

,D

.C.P

uert

o R

ico

1982

, 550

F.S

upp.

123

8.

4.C

olle

ctiv

e ba

rgai

ning

Sal

ary

prop

osal

mad

c by

uni

on r

epre

-se

ntin

g no

npro

fess

iona

l em

ploy

ees

ofar

my

depe

nden

t sch

ool w

as n

ot s

ubje

ctto

man

dato

ryba

rgai

ning

;pr

opos

alw

hich

invo

lved

pay

ing

empl

oyee

s an

amou

nt e

qual

to w

ages

pai

d to

oth

erem

ploy

ees

at a

rmy

post

con

flict

ed w

ithst

atut

es r

equi

ring

that

dep

ende

nt s

choo

lspr

ovid

e ed

ucat

ion

at a

cos

t per

pup

il no

tex

ceed

ing

that

incu

rred

by

com

para

ble

loca

l pub

lic s

choo

l sys

tem

s.U

.S.D

ept.

ofD

efen

se D

epen

dent

Sch

ools

,F

ort

Bra

gg, N

.C. v

. Fed

eral

Lab

or R

elat

ions

Aut

horit

y. C

.A.4

, 198

8, 8

38 F

.2d

129.

Sub

sec.

(a)

of t

his

sect

ion

prov

idin

gth

at in

cide

nts

of e

mpl

oym

ent o

f sch

ool

Co

pers

onne

l und

er th

is s

ectio

n, i.

e., p

erso

n-C

Orid

in s

choo

ls lo

cate

d in

mili

tary

bas

esou

tsid

e co

ntin

ent o

r U

nite

d S

tate

s, A

las-

ka a

nd H

awai

i, be

"on

the

sam

e ba

sis"

as

thos

e gr

ante

d to

sch

ool p

erso

nnel

of t

heD

istr

ict o

f Col

umbi

a w

as in

tend

ed p

ri-m

arily

to in

sure

that

qua

lity

of e

du-

catio

n gi

ven

by n

onst

ate

scho

ols

unde

rth

is s

ectio

n be

com

para

ble

to e

duca

tion

prov

ided

byD

istr

ict

ofC

olum

bia

scho

ols,

and

it w

as n

ot in

tend

ed to

gra

ntco

llect

ive

barg

aini

ng r

ight

s to

teac

hers

and

prin

cipa

ls.

Ant

illes

Cou

ncil

ofS

choo

l Offi

cers

, Loc

al 6

8. A

mer

ican

Fed

-er

atio

n of

Sch

ool A

dmin

istr

ator

s. A

FL-

CIO

v. L

ehm

an, D

.C.P

uert

o R

ico

1982

,55

0 F

.Sup

p. 1

238.

5.W

ages

Sta

tute

req

uirin

g th

e A

rmy

to p

rovi

deed

ucat

ion

for

depe

nden

ts o

fse

rvic

em

embe

rs a

nd c

ivili

an e

mpl

oyee

s w

hich

is c

ompa

rabl

e to

the

educ

atio

n pr

ovid

edth

roug

h lo

cal p

ublic

sch

ools

at a

cos

t per

pupi

l not

exc

eedi

ng th

e pe

r pu

pil c

ost o

f

1 1

Ch.

13

Ch.

13

FE

DE

RA

LLY

AF

FE

CT

ED

AR

EA

S

publ

ic e

duca

tion

inlo

cal c

omm

unity

does

not

spe

cific

ally

pro

vide

for

wag

esof

teac

hers

and

oth

er e

mpl

oyee

s of

arm

ysc

hool

nor

req

uire

thc

paym

ent o

f com

-pa

rabl

e w

ages

.F

ort S

tew

art S

choo

ls v

.F

eder

alLa

bor

Rel

atio

nsA

utho

rity,

C.A

.11,

198

8, 8

60 F

.2d

396,

reh

earin

g de

-ni

ed 8

69 F

.2d

1502

.

Und

er th

is s

ectio

n, p

erso

ns "

may

" he

empl

oyed

to w

ork

at fe

dera

l dep

ende

nts'

scho

ols

with

out r

egar

d to

cer

tain

civ

ilse

rvic

e la

ws,

incl

udin

g th

ose

pert

aini

ngto

the

gene

ral s

ched

ule

pay

rate

s, b

ut th

epr

ovis

ions

of s

uch

law

s m

ay n

ever

the-

less

be

exte

nded

to s

choo

l em

ploy

ees

byop

erat

ion

of a

dmin

istr

ativ

e di

rect

ives

and

cont

ract

cla

uses

.19

79, 5

8 C

omp.

Gcn

. 430

.

6.R

emed

iesG

ener

ally

Tea

cher

s em

ploy

ed b

y ag

ency

res

pon

sibl

e fo

r ed

ucat

ion

of c

hild

ren

of U

nite

dS

tate

s pe

rson

nel s

tatio

ned

atva

rious

mili

tary

bas

es in

Pue

rto

Ric

o w

ere

not

entit

led

to m

onet

ary

relie

f for

hav

ing

tow

ork

long

er d

ay th

an s

imila

r pe

rson

nel

in p

uhlic

sch

ools

of D

istr

ict o

f Col

umbi

aun

dcr

stat

ute

requ

iring

that

fede

rally

empl

oyed

per

sonn

el r

ecei

ve s

ame

com

-pe

nsat

ion,

tenu

re, h

ours

of w

ork

and

othe

r in

cide

nts

of e

mpl

oym

ent a

s th

eir

Dis

tric

tof

Col

umbi

aco

nnte

rpar

ts.

Fra

nco

v. U

.S.,

1988

. 15

Cl.C

t. 28

3, a

f-fir

med

878

F.2

d 14

45.

7.In

)une

tIon

Cou

nty

scho

ol d

istr

ict w

hich

had

alle

g-ed

ly a

pplie

d fo

r an

d re

ceiv

ed g

rant

s of

fede

ral f

unds

from

Com

mis

sion

er o

f Ed-

ucat

ion

of th

e U

nite

d S

tate

s up

on g

ivin

gas

sura

nces

that

sch

ool f

acili

ties

of d

is.

tric

t wou

ld b

e av

aila

ble

to c

hild

ren

for

who

se e

duca

tion

cont

ribut

ions

wer

e pr

o-vi

ded

and

whi

ch h

ad r

ecei

ved

the

mon

eyfo

r th

e sp

ecifi

c pu

rpos

e of

pro

vidi

ngsc

hool

hou

sing

for

Air

For

ce b

ase

chil-

dren

wou

ld b

c te

mpo

raril

y en

join

edag

ains

t fai

ling

to m

ake

the

scho

ols

avai

l-ab

le to

thos

e ch

ildre

n.U

.S. v

. Sum

ter

Cou

nty

Sch

ool D

ist,

N-o

. 2, D

.C.S

.C.1

964,

232

F.S

upp.

945

.

§ 24

1-1.

Ass

ista

nce

for

curr

ent s

choo

l exp

endi

ture

s In

cas

esof

cer

tain

dis

aste

rs(a

) E

ligib

ility

req

uire

men

ts; t

erm

s; d

urat

ion;

max

imum

am

ount

In a

ny c

ase

in w

hich

20 §

241

-1

(1)

the

Pre

side

nt d

eter

min

es w

ith r

espe

ct to

any

loca

l edu

-ca

tiona

l age

ncy

(incl

udin

g fo

r th

e pu

rpos

e of

this

scc

tion

any

othe

r pu

blic

age

ncy

whi

ch o

pera

tes

scho

ols

prov

idin

g te

chni

cal,

voca

tiona

l, or

oth

er s

peci

al e

duca

tion

to c

hild

ren

of e

lem

enta

ryor

sec

onda

ry s

choo

l age

) th

at s

uch

agen

cy is

loca

ted

in w

hole

or in

par

t with

in a

n ar

ca w

hich

afte

r A

ugus

t 30,

196

5, a

nd p

rior

to O

ctob

er 1

, 199

3, h

as s

uffe

red

a m

ajor

dis

aste

r as

the

resu

lt of

any

flood

, dro

ught

, fire

, hur

rican

e, e

arth

quak

e, s

torm

, or

othe

rca

tast

roph

e w

hich

, in

the

dete

rmin

atio

n of

the

Pre

side

nt p

ursu

-an

t to

sect

ions

512

2(2)

and

517

0 of

Titl

e 42

, is

or th

reat

ens

to b

eof

suf

ficie

nt s

ever

ity o

r m

agni

tude

to w

arra

nt d

isas

ter

assi

st-

ance

by

the

Fed

eral

Gov

ernm

ent;

and

(2)

the

Gov

erno

r of

the

Sta

te in

whi

ch s

uch

agen

cy is

loca

ted

has

cert

ified

the

need

for

disa

ster

ass

ista

nce

unde

r th

is s

ectio

n,an

d ha

s gi

ven

assu

ranc

e of

exp

endi

ture

of a

rea

sona

ble

amou

ntof

the

fund

s of

the

gove

rnm

ent o

f suc

h S

tate

, or

of a

ny p

oliti

cal

subd

ivis

ion

ther

eof,

for

the

sam

e or

sim

ilar

purp

oses

with

resp

ect t

o su

ch c

atas

trop

he;

and

if th

e S

ecrc

tary

det

erm

ines

with

res

pect

to s

uch

agen

cy th

at(3

) su

ch a

genc

y is

util

izin

g or

will

util

ize

all S

tate

and

oth

erfin

anci

al a

ssis

tanc

e av

aila

ble

to it

for

thc

purp

ose

of m

eetin

gth

e co

st o

f pro

vidi

ng fr

ee p

ublic

edu

catio

n fo

r th

e ch

ildre

nat

tend

ing

thc

scho

ols

of s

uch

agen

cy, b

ut a

s a

resu

lt of

suc

hdi

sast

er it

is u

nabl

e to

obt

ain

suffi

cien

t fun

ds fo

r su

ch p

urpo

sean

d re

quire

s a!

tt am

ount

of a

dditi

onal

ass

ista

nce

equa

l to

atle

ast $

10,0

00 o

r 5

per

cent

um o

f suc

h ag

ency

's c

urre

nt o

pera

t-in

g ex

pend

iture

s du

ring

the

fisca

l yea

r pr

eced

ing

thc

one

inw

hich

suc

h di

sast

er o

ccur

red,

whi

chev

er is

less

, and

(4)

in th

e ca

se o

r an

y su

ch m

ajor

dis

aste

r to

the

exte

nt th

atth

c op

erat

ion

of p

rivat

e el

emen

tary

and

sec

onda

ry s

choo

ls in

the

scho

ol a

ttend

ance

are

a of

suc

h lo

cal e

duca

tiona

l age

ncy

has

been

dis

rupt

ed o

r im

paire

d by

suc

h di

sast

er, s

uch

loca

l edu

-ca

tiona

l oge

ncy

has

mad

e pr

ovis

ions

for

the

cond

uct o

f edu

-ca

tiona

l pro

gram

s un

der

publ

ic a

uspi

ces

and

adm

inis

trat

ion

inw

hich

chi

ldre

n en

rolle

d in

suc

h pr

ivat

e el

emen

tary

and

sec

ond-

ary

scho

ols

may

atte

nd a

nd p

artic

ipat

e:Pr

ovid

ed,

Tha

t not

hing

cont

aine

d in

this

cha

pter

sha

ll be

con

stru

ed to

aut

horiz

e th

cm

akin

g of

any

pay

men

t und

er th

is c

hapt

er fo

r re

ligio

us w

or-

ship

or

inst

ruct

ion,

the

Sec

reta

ry m

ay p

rovi

de to

suc

h ag

ency

the

addi

tiona

l ass

ista

nce

nece

ssar

y to

pro

vide

free

pub

lic e

duca

tion

to th

e ch

ildre

n at

tcnd

ing

the

scho

ols

of s

uch

agen

cy, u

pon

such

term

s an

d in

suc

h am

ount

s(s

ubje

ct to

the

prov

isio

ns o

f thi

s se

ctio

n) a

s th

e S

ecre

tary

may

cons

ider

to b

e in

the

publ

ic in

tere

st.

Suc

h ad

ditio

nal a

ssis

tanc

e

J

20 §

241

-1A

SS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

may

be

prov

ided

for

a p

erio

d no

t gre

ater

than

a f

ive-

fisc

al-y

ear

peri

od b

egin

ning

with

the

fisc

al y

ear

in w

hich

itis

det

erm

ined

purs

uant

to c

laus

e (1

) of

this

sub

sect

ion

that

suc

h ag

ency

suf

fere

d a

disa

ster

.T

he a

mou

nt s

o pr

ovid

ed f

or a

ny f

isca

l yea

r sh

all

not

exce

ed th

e am

ount

whi

ch th

e Se

cret

ary

dete

rmin

es to

be

nece

ssar

yto

ena

ble

such

age

ncy,

with

the

Stat

e, lo

cal,

and

othe

r Fe

dera

l fun

dsav

aila

ble

to it

for

suc

h pu

rpos

e, to

pro

vide

a le

vel o

f ed

ucat

ion

equi

vale

nt to

that

mai

ntai

ned

in th

c sc

hool

s of

suc

hag

ency

pri

or to

the

occu

rren

ce o

f su

ch d

isas

ter,

taki

ng in

to a

ccou

nt th

e ad

ditio

nal

cost

s re

ason

ably

nec

essa

ry to

car

ry o

ut th

e pr

ovis

ions

of

clau

sc (

4)of

this

sub

sect

ion.

The

am

ount

, if

any,

so p

rovi

ded

for

the

seco

nd,

thir

d, a

nd f

ourt

h fi

scal

yea

rs f

ollo

win

g th

e fi

scal

year

in w

hich

it is

so d

eter

min

ed th

at s

uch

agen

cy h

as s

uffe

red

a di

sast

er s

hall

not

exce

ed 7

5 pe

r ce

ntum

, 50

per

cent

um, a

nd 2

5pe

r ce

ntum

, res

pec-

tivel

y, o

f th

e am

ount

so

prov

ided

for

the

firs

t fis

cal

year

fol

low

ing

such

det

erm

inat

ion.

(b)

Add

ition

al fu

nds

for

repl

acin

g su

pplie

s an

d eq

uipm

ent,

mak

ing

mi"o

rre

pairs

, and

leas

ing

tem

pora

ry fa

cilit

ies

Inad

ditio

n to

and

apa

rt f

rom

the

fund

s pr

o,..:

rd u

nder

sub

sec-

tion

(a)

of th

is s

ectio

n, th

? Se

cret

ary

is a

utho

l izc

dto

pro

vide

tosu

ch a

genc

y an

am

ount

whi

ch h

e de

term

ines

to b

ene

cess

ary

tore

plac

e in

stru

ctio

nal a

nd m

aint

enan

ce s

uppl

ies,

equ

ipm

ent,

and

mat

eria

ls (

incl

udin

g te

xtbo

oks)

des

troy

edor

ser

ious

ly d

amag

ed a

s a

resu

lt of

suc

h di

sast

er, t

o m

ake

min

or r

epai

rs, a

ndto

leas

e or

othe

rwis

e pr

ovid

e (o

ther

than

by

acqu

isiti

on o

f la

ndor

ere

ctio

n of

faci

litie

s) s

choo

l and

caf

eter

ia f

acili

ties

need

edto

rep

lace

tem

po-

rari

ly s

uch

faci

litie

s w

hich

hav

e be

en m

ade

unav

aila

ble

as a

res

ult

of th

e di

sast

er.

(c)

Aut

horiz

atio

n of

app

ropr

iatio

ns; e

xpen

ditu

re o

f sum

s pe

ndin

g ap

pro-

pria

tion

The

re is

her

eby

auth

oriz

ed to

be

appr

opri

ated

for

eac

h fi

scal

year

such

am

ount

s as

may

be

nece

ssar

y to

carr

y ou

t the

pro

visi

ons

ofth

is s

ectio

n.Pe

ndin

g su

ch a

ppro

pria

tion,

the

Secr

etar

y is

aut

ho-

rize

d to

exp

end

(with

out r

egar

d fo

r se

ctio

ns 1

341(

a) a

nd15

15(b

) of

Titl

e 31

) fr

om a

ny f

unds

app

ropr

iate

d to

the

Dep

artm

ent o

f E

du-

catio

n an

d at

that

tim

e av

aila

ble

to th

e Se

cret

ary,

suc

hsu

ms

as m

aybe

nec

essa

ry f

or p

rovi

ding

imm

edia

te a

ssis

tanc

e un

der

this

scct

ion.

Exp

endi

ture

s pu

rsua

nt to

the

prec

edin

g se

nten

ce s

hall-

(1)

be r

epor

ted

by th

e Se

cret

ary

to th

e C

omm

ittee

son

App

ro-

pria

tions

and

Edu

catio

n an

d L

abor

of

the

Hou

se o

f R

epre

sent

a-tiv

es a

nd th

e C

omm

ittee

s on

App

ropr

iatio

ns a

nd L

abor

and

Hum

an R

esou

rces

of

the

Sena

te w

ithin

thir

ty d

ays

of th

eex

pend

iture

;

119

Ch.

13F

ED

ER

ALL

Y A

FF

EC

TE

D A

RE

AS

20 §

241

-1

(2)

be r

eim

burs

ed f

rom

the

appr

opri

atio

ns a

utho

rize

d by

the

firs

t sen

tenc

e of

this

sub

sect

ion.

The

rep

ort r

equi

red

to th

e C

omm

ittee

s on

App

ropr

iatio

ns b

y cl

ause

(1)

in th

e pr

eced

ing

sent

ence

sha

ll co

nstit

ute

a bu

dget

est

imat

ew

ithin

the

mea

ning

of

sect

ion

1105

(a)

(5)

of T

itle

31.

(d)

App

licat

ions

; prio

rity

of a

ppro

vals

; pro

mpt

con

side

ratio

n fo

r ap

plic

a-tio

ns

No

paym

ent m

ay b

e m

ade

to a

ny lo

cal e

duca

tiona

l agc

ncy

unde

rth

is s

ectio

n ex

cept

upo

n ap

plic

atio

n th

eref

or w

hich

is s

ubm

itted

thro

ugh

the

appr

opri

ate

Stat

e ed

ucat

iona

l age

ncy

and

is f

iled

with

the

Secr

etar

y in

acc

orda

nce

with

the

regu

latio

ns p

resc

ribe

d by

him

.In

det

erm

inin

g th

e or

der

in w

hich

suc

h ap

plic

atio

ns s

hall

be a

p-pr

oved

, the

Sec

reta

ry s

hall

cons

ider

the

rela

tive

educ

atio

nal a

ndfi

nanc

ial n

eeds

of

the

loca

l edu

catio

nal a

genc

ies

whi

ch h

ave

sub-

mitt

ed a

ppro

vabl

e ap

plic

atio

ns.

The

Sec

reta

ry s

hall

com

plet

e ac

-tio

n of

app

rova

l or

disa

ppro

val o

f an

app

licat

ion

with

in 9

0 da

ys o

fth

e fi

ling

of a

n ap

plic

atio

n.

(e)

Pay

men

ts to

loca

l age

ncie

s; r

epay

men

t of u

nexp

ende

d fu

nls

Am

ount

s pa

id b

y th

e Se

cret

ary

to lo

cal e

duca

tiona

l age

ncie

sun

der

this

sec

tion

may

be

pa;d

in a

dvan

ce o

r by

way

of

reim

burs

e-m

ent a

nd in

suc

h in

stal

lmen

t.; a

s th

e Se

cret

ary

may

det

erm

ine.

Any

fun

ds p

aid

to a

loca

l edu

catio

nal a

genc

y an

d no

t exp

ende

d or

othe

rwis

e us

ed f

or th

e pu

rpos

es f

or w

hich

pai

d sh

all b

c re

paid

toth

e T

reas

ury

of th

e U

nite

d St

ates

.

(f)

Ava

ilabi

lity

of fu

nds

Fund

s av

aila

ble

for

this

sec

tion

for

any

fisc

al y

ear

shal

l als

o be

avai

labl

e fo

r se

ctio

n 64

6 of

this

title

.

(Sep

t. 30

, 195

0, c

. 112

4, T

itle

I, §

7, a

s ad

dcd

Nov

. I, 1

965,

Pub

.L. 8

9-31

3,§

2, 7

9 St

at. 1

159,

and

am

ende

d Ja

n. 2

, 196

8, P

ub.L

. 90-

247,

Titl

e II

, § 2

18,

81 S

tat.

811;

Oct

. 21,

196

8, P

ub.L

. 90-

608,

c. I

V, §

402

, 82

Stat

. 119

4; A

pr.

13, 1

970,

Pub

.L. 9

1-23

0, T

itle

11, §

201

(c),

84

Stat

. 154

;D

ec. 3

1, 1

970,

Pub.

L. 9

1-60

6, T

itle

III,

§ 3

01(c

), 8

4 St

at. 1

759;

1973

Rco

rg. P

lan

No.

I.

1§ 1

, 3(a

)(1)

, eff

. Jul

y 1,

197

3, 3

8 F.

R. 9

579,

87

Stat

. 108

9; D

ec. 1

0, 1

973,

Ex.

Ord

. No.

117

49, §

2(2

), 3

8 F.

R. 3

4177

; May

22,

197

4, P

ub.L

. 93-

288,

Titl

e V

I, §

602

(c),

88

Stat

. 163

; Aug

. 21,

197

4, P

ub.L

. 93-

380,

Titl

eIll

,§§

303

(a)(

3), 3

05(a

)(3)

, 88

Stat

. 522

, 532

, Apr

. 21,

197

6, P

ub.L

. 94-

273,

§ 3(

5), 9

0 St

at. 3

76; N

ov. 1

, 197

8, P

ub.L

. 95-

561,

Titl

e X

, § 1

010(

a), 9

2 St

at.

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;Ju

ly 2

0. 1

979,

Ex.

Ord

. No.

121

48, §

4-1

06, 4

4 F.

R. 4

3239

; Aug

. 6,

1979

, Pub

.L. 9

6-46

, § 3

(a),

93

Stat

. 342

; Oct

17,

197

9, P

ub.L

. 96-

88, T

itle

§ 30

1(6)

(2),

Titl

e V

, § 5

07, 9

3 St

at. 6

79, 6

92; O

ct. 1

9, i9

84, P

ub.L

.98

-511

, Titl

e II

I, §

301

(a)(

1), 9

8 St

at. 2

388;

Apr

. 28,

198

8,P

ub.L

. 100

-297

,T

itle

II, §

§ 20

11(a

)(1)

, (b)

, 201

2(a)

, 201

7, 1

02St

at. 2

94, 2

99; N

ov. 2

3, 1

988,

Pub

.L. 1

00-7

07,

Titl

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tat.

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.)

120

CD

No

+-

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243

AS

SIS

TA

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AL

AG

EN

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SC

it. 1

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riod

begi

nnin

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ly 1

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3, a

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whi

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llow

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sert

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rovi

sion

s re

lat-

ing

to a

vaila

bilit

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app

ropr

iatio

ns u

n-de

r se

ctio

ns 4

52 to

455

of T

itle

25.

1956

Am

endm

ent.

Sub

sec.

(d)

.A

ctA

ug.

3,19

56su

bstit

uted

"195

8"fo

r"1

957"

.19

55 A

men

dmen

ts. S

ubse

c. (

d).

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Aug

.12

,19

55 s

ubst

itute

d "1

957"

for

"195

6".

Act

Aug

. 4, 1

955

excl

uded

app

ropr

ia-

tions

for

the

mak

ing

of p

aym

ents

dire

ct-

ed to

be

mad

e by

sec

tion

2391

of T

itle

42. 19

53 A

men

dmen

t. S

ubse

c. (

a).

Act

Aug

. 8, 1

953,

§ 9

(a),

aut

horiz

ed th

e C

om-

mis

sion

er to

del

egat

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l his

func

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unde

r th

is c

hapt

er, e

xctp

t the

mak

ing

ofre

gula

tions

.S

ubse

c. (

d).

Act

Aug

. 8, 1

953,

§ 9

(b),

exte

nded

its

dura

tion

for

two

year

s un

tilJu

ne 3

0. 1

956,

lim

ited

rest

rictio

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ap-

prop

riatio

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use

of f

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for

empl

oy-

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each

ing

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onne

l and

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nds

hand

led

by th

e B

urea

u of

Indi

-an

Affa

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Effe

ctiv

e D

ates

1988

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.A

men

dmen

t by

Pub

.L.

100-

297

effe

ctiv

e Ju

ly 1

, 198

8, s

ee s

ec.

tion

6303

of P

ub.L

. 100

-297

, set

out

as

ano

te u

nder

sec

tion

2701

of t

his

title

.

1958

Act

.A

men

dmen

t by

Pub

.L.

85-6

20 e

ffect

ive

for

the

perio

d be

ginn

ing

July

1, 1

958,

see

not

e se

t out

und

er s

ec-

tion

237

of th

is ti

tle.

1956

Act

. Am

endm

ent b

y A

ct A

ug. 3

,19

56 e

ffect

ive

July

1, 1

956.

see

not

e se

tou

t und

er s

ectio

n 23

7 of

this

title

.

1953

Act

.S

ectio

n 9

of A

ct A

ug. 8

,19

53 p

rovi

ded

in p

art t

hat t

he a

men

d-m

ents

mad

e by

suc

h se

ctio

n 9

(am

end-

ing

subs

ecs.

(a)

and

(d)

of t

his

sect

ion]

shal

l bec

ome

effe

ctiv

e Ju

ly 1

, 195

3.

Am

ount

s A

ppro

pria

ted

for

Fis

cal Y

ears

Afte

r F

isca

l Yea

r 19

88P

rovi

sion

s of

sec

tions

200

1 to

203

4 of

Pub

.L 1

00-2

97 to

app

ly o

nly

with

re-

spec

t to

amou

nts

appr

opria

ted

for

fisca

lye

ars

begi

nnin

g af

ter

Sep

t. 30

, 198

8, s

eese

ctio

n 63

03(b

)(6)

of P

ub.L

. 100

-297

, set

out a

s a

note

und

er s

ectio

n 27

01 o

f thi

stit

le.

CR

OS

S R

EF

ER

EN

CE

S

Bur

eau

of In

dian

Affa

irs, s

ee 2

0 U

SC

A §

1 e

t seq

.

LIB

RA

RY

RE

FE

RE

NC

ES

Am

eric

an D

iges

t Sys

tem

Adm

inis

trat

ion,

app

ortio

nmen

t and

dis

posi

tion

of s

choo

l fun

ds in

gen

eral

, see

Sch

ools

4=

18, 1

9(1)

.D

isbu

rsem

ents

in g

ener

al, s

ee U

nite

d S

tate

s 4=

.82(

1 to

7).

Enc

yclo

pedi

asA

dmin

istr

atio

n, a

ppor

tionm

ent a

nd d

ispo

sitio

n of

sch

ool f

unds

in g

ener

al, s

eeC

J.S

. Sch

ools

and

Sch

ool D

istr

icts

§§

19. 2

1.D

isbu

rsem

ents

in g

ener

al, s

ee C

J.S

. Uni

ted

Sta

tes

§ 12

2.

WE

ST

LAW

ELE

CT

RO

NIC

RE

SE

AR

CH

Sch

ools

cas

es: 3

45k(

add

key

num

ber)

.U

nite

d S

tate

s ca

ses:

393

k(ad

d ke

y nu

mbe

r).

See

, als

o, W

ES

TLA

W g

uide

follo

win

g th

e E

xpla

natio

n pa

ges

of th

is v

olum

e.

§ 24

4. D

efin

ition

sFo

r th

e pu

rpos

es o

f th

is c

hapt

er(1

) T

he te

rm "

Fede

ral p

rope

rty"

mea

ns r

eal p

rope

rty

whi

ch is

owne

d by

the

Uni

ted

Stat

es o

r is

leas

ed b

y th

e U

nite

d St

ates

,an

d w

hich

is n

ot s

ubje

ct to

taxa

tion

by a

ny S

tate

or

any

polit

ical

sub

divi

sion

of

a St

ate

or b

y th

e D

istr

ict o

f C

olum

bia.

Ch.

13

GE

NE

RA

L20

§ 2

44

Such

term

incl

udes

(A

) ex

cept

for

pur

pose

s of

sec

tion

241

ofth

is ti

tle, r

eal p

rope

rty

held

in tr

ust b

y th

e U

nite

d St

ates

for

indi

vidu

al I

ndia

ns o

r In

dian

trib

es, a

nd r

eal p

rope

rty

held

by

indi

vidu

al I

ndia

ns o

r In

dian

trib

es w

hich

is s

ubje

ct to

res

tric

-tio

ns o

n al

iena

tion

impo

sed

by th

e U

nite

d St

ates

, (B

) fo

r on

eye

ar b

eyon

d th

e en

d of

the

fisc

al y

ear

in w

hich

occ

urre

d th

esa

le o

r tr

ansf

er th

ereo

f by

the

Uni

ted

Stat

es, a

ny p

rope

rty

cons

ider

ed p

rior

to s

uch

sale

or

tran

sfer

to b

e Fe

dera

l pro

pert

yfo

r th

e pu

rpos

es o

f th

is c

hapt

er, (

C)

any

low

-ren

t hou

sing

(whe

ther

or

not o

wne

d by

the

Uni

ted

Stat

es)

whi

ch is

par

t of

alo

w-r

ent h

ousi

ng p

roje

ct a

ssis

ted

unde

r th

e U

nite

d St

ates

Hou

s-in

g A

ct o

f 19

37 [

42 U

.S.C

.A. §

143

7 et

seq

.], s

ectio

n 51

6 of

the

Hou

sing

Act

of

1949

[42

U.S

.C.A

. § 1

4861

, or

part

B o

f tit

le I

IIof

the

Eco

nom

ic O

ppor

tuni

ty A

ct o

f 19

64 [

42 U

.S.C

.A. §

286

1 et

seq.

], (

D)

any

scho

ol w

hich

is p

rovi

ding

flig

ht tr

aini

ng to

mem

bers

of

the

Air

For

ce u

nder

con

trac

tual

arr

ange

men

ts w

ithth

e D

epar

tmen

t of

the

Air

For

ce a

t an

airp

ort w

hich

is o

wne

dby

a S

tate

or

a pc

yliti

cal s

ubdi

visi

on o

f a

Stat

e an

d (E

) an

ypr

oper

ty o

wne

d by

a f

orei

gn g

over

nmen

t or

by a

n in

tern

atio

nal

orga

niza

tion

whi

ch b

y re

ason

of

such

ow

ners

hip

is n

ot s

ubje

ctto

taxa

tion

by th

e St

ate

in w

hich

it is

loca

ted

or a

sub

divi

sion

ther

eof.

Suc

h te

rm a

lso

incl

udes

any

inte

rest

in F

eder

al p

rop-

erty

(as

def

ined

in th

e fo

rego

ing

prov

isio

ns o

f th

is p

arag

raph

)un

der

an e

asem

ent,

leas

e, li

cens

e, p

erm

it, o

r ot

her

arra

nge-

men

t, as

wel

l as

any

impr

ovem

ents

of

any

natu

re (

othe

r th

anpi

pelin

es o

r ut

ility

line

s) o

n su

ch p

rope

rty

even

thou

gh s

uch

inte

rest

s or

impr

ovem

ents

are

sub

ject

to ta

xatio

n by

a S

tate

or

polit

ical

sub

divi

sion

of

a St

ate

or b

y th

e D

istr

ict o

f C

olum

bia.

Not

with

stan

ding

the

fore

goin

g pr

ovis

ions

of

this

par

agra

ph,

such

term

doe

s no

t inc

lude

any

rea

l pro

pert

y un

der

the

juri

sdic

-tio

n of

the

Uni

tcd

Stat

es P

osta

l Ser

vice

and

use

d pr

imar

ily f

orth

e pr

ovis

ion

of p

osta

l ser

vice

s.R

eal p

rope

rty

whi

ch q

ualif

ies

as F

eder

al p

rope

rty

unde

r cl

ause

(A

) of

this

par

agra

ph s

hall

not

lose

suc

h qu

alif

icat

ion

beca

use

it is

usc

d fo

r a

low

-ren

t hou

sing

proj

ect.

(2)

The

term

"ch

ild"

mca

ns a

ny c

hild

who

is w

ithin

the

age

limits

for

whi

ch th

e ap

plic

able

Sta

te p

rovi

des

free

pub

lic e

du-

catio

n.(3

) T

he te

rm "

pare

nt"

incl

udes

a le

gal g

uard

ian

or o

ther

pers

on s

tand

ing

in lo

co p

aren

tis.

(4)

The

term

"fr

ee p

ublic

edu

catio

n" m

eans

edu

catio

n w

hich

is p

rovi

ded

at p

ublic

exp

ense

, und

er p

ublic

sup

ervi

sion

and

dire

ctio

n, a

nd w

ithou

t tui

tion

char

ge, a

nd w

hich

is p

rovi

ded

asel

emen

tary

or

seco

ndar

y sc

hool

edu

catio

n in

the

appl

icab

leSt

ate.

1 9

2

20 §

244

ASS

IST

AN

CE

TO

LO

CA

L A

GE

NC

IES

Ch.

13

(5)

The

term

"cu

rren

t exp

endi

ture

s" m

eans

exp

endi

ture

s fo

rfr

ec p

ublic

edu

catio

n, in

clud

ing

expe

nditu

res

for

adm

inis

tra-

tion,

inst

ruct

ion,

atte

ndan

ce a

nd h

ealth

ser

vice

s, p

upil

tran

spor

-ta

tion

serv

ices

, ope

ratio

n an

d m

aint

enan

ce o

f pl

ant,

fixe

dch

arge

s, a

nd n

et e

xpen

ditu

res

to c

over

def

icits

for

foo

d se

rvic

esan

d st

uden

t bod

y ac

tiviti

es, b

ut n

ot in

clud

ing

expe

nditu

res

for

com

mun

ity s

ervi

ces,

cap

ital o

utla

y, a

nd d

ebt s

ervi

ce, o

r an

yex

pend

iture

s m

ade

from

fun

ds g

rant

ed u

nder

cha

pter

1 o

r 2

oftit

le I

of

the

Ele

men

tary

and

Sec

onda

ry E

duca

tion

Act

of

1965

[20

U.S

.C.A

. § 2

701

et s

eq.,

§ 29

11 e

t seq

.].

(6)

For

purp

oses

of

subc

hapt

er I

of

this

cha

pter

, the

term

"loc

al e

duca

tiona

l age

ncy"

mea

ns a

boa

rd o

f ed

ucat

ion

or o

ther

lega

lly c

onst

itute

d lo

cal s

choo

l aut

hori

ty h

avin

g ad

min

istr

ativ

eco

ntro

l and

dir

e '-

of f

ree

publ

ic e

duca

tion

in a

coun

ty,

tow

nshi

p, in

depe

nden

t, or

oth

er s

choo

l dis

tric

t loc

ated

with

in a

Stat

e.Su

ch te

rm in

clud

es a

ny S

tate

agen

cy w

hich

dir

ectly

oper

ates

and

mai

ntai

ns f

acili

ties

for

prov

idin

g fr

ee p

ublic

ele

-m

enta

ry a

nd s

econ

dary

edu

catio

n th

roug

h gr

ade

12.

(7)

The

term

"St

ate

educ

atio

nal a

genc

y" m

eans

the

offi

cer

orag

ency

pri

mar

ily r

espo

nsib

le f

or th

e St

ate

supe

rvis

ion

of p

ublic

elem

enta

ry a

nd s

econ

dary

sch

ools

.(8

) T

he te

rm "

Stat

e" m

eans

a S

tate

, Pue

rto

Ric

o, W

ake

Is-

land

, Gua

m, t

he D

istr

ict o

f C

olum

bia,

Am

eric

an S

amoa

, the

Nor

ther

n M

aria

na I

slan

ds, o

r th

e V

irgi

n Is

land

s.(9

) T

he te

rm "

Secr

etar

y" m

eans

the

Secr

etar

y of

Edu

catio

n.(1

0) A

vera

ge d

aily

atte

ndan

ce s

hall

be d

eter

min

ed in

acc

ord-

ance

with

Sta

te la

w, e

xcep

t tha

t (A

) th

e av

erag

e da

ily a

ttend

-an

ce o

f ch

ildre

n w

ith r

espe

ct to

who

m p

aym

ent i

s to

be

mad

eun

der

sect

ion

238

or 2

39 o

f th

is ti

tle s

hall

be d

eter

min

ed in

acco

rdan

ce w

ith r

egul

atio

ns o

f th

e Se

cret

ary,

and

(B

) no

twith

-st

andi

ng a

ny o

ther

pro

visi

on o

f th

is c

hapt

er, w

here

thc

loca

led

ucat

iona

l age

ncy

of tn

e sc

hool

dis

tric

t in

whi

chan

y ch

ildre

side

s m

akes

or

cont

ract

s to

mak

e a

tuiti

onpa

ymen

t for

the

free

pub

lic e

duca

tion

of s

uch

child

ina

scho

ol s

ituat

ed in

anot

her

scho

ol d

istr

ict,

for

purp

oscs

of

this

cha

pter

the

atte

nd-

ance

of

such

chi

ld a

t suc

h sc

hool

sha

ll be

hel

d an

d co

nsid

ered

(i)

to b

e at

tend

ance

at a

sch

ool o

f th

e lo

cal e

duca

tiona

lag

ency

so m

akin

g or

con

trac

ting

to m

ake

such

tuiti

onpa

ymen

t, an

d(i

i) n

ot to

be

atte

ndan

ce a

t a s

choo

l of

thc

loca

l edu

catio

nal

agen

cy r

ecei

ving

suc

h tu

ition

pay

men

t or

entit

led

to r

ecei

vesu

ch p

aym

ent u

nder

the

cont

ract

.A

chi

ld s

hall,

for

the

pur-

pose

s of

sec

tion

238

of th

is ti

tle, b

e de

emed

to b

e in

atte

ndan

ceat

a s

choo

l of

a lo

cal e

duca

tiona

lag

ency

if s

uch

child

isde

term

ined

to b

e fe

dera

lly c

onne

ctcd

und

er c

laus

e (1

)or

(2)

of

sect

ion

238(

a) o

f th

is ti

tle o

r un

der

clau

se (

1), (

2),

or (

3) o

f

ch.

13G

EN

ER

AL

20 §

244

sect

ion

238(

b) o

f th

is ti

tle f

oran

y fi

scal

yea

r an

d if

suc

h ch

ild is

atte

ndin

g a

scho

ol o

ther

than

a s

choo

l of

such

agen

cy b

ecau

sesu

ch c

hild

is h

andi

capp

ed (

as d

efin

ed in

sec

tion

1401

(1)

of th

istit

le)

and

if s

uch

agen

cy m

akcs

a tu

ition

paym

ent o

n be

half

of

such

chi

ld to

suc

h sc

hool

for

suc

h fi

scal

year

.R

egul

atio

nspr

omul

gate

d by

the

Secr

etar

y in

acc

orda

nce

with

cla

use

(A)

ofth

is p

arag

raph

sha

ll pe

rmit

the

conv

ersi

on o

fav

erag

e da

ilym

embe

rshi

p to

ave

rage

dai

ly a

ttend

ance

for

loca

l edu

catio

nal

agen

cies

in S

tate

s w

hich

rei

mbu

rse

loca

l edu

catio

nal

agen

cies

base

d up

on a

vera

ge d

aily

mem

bers

hip

and

whi

ch d

o no

t re-

quir

e lo

cal e

duca

tiona

l age

ncie

s to

kee

p re

cord

s ba

sed

onav

erag

e da

ily a

ttend

ance

.(1

1) T

he te

rm "

coun

ty"

mea

ns th

ose

divi

sion

s of

a St

ate

utili

zed

by th

c Se

cret

ary

of C

omm

erce

inco

mpi

ling

and

repo

rt-

ing

data

reg

ardi

ng c

ount

ies.

(12)

The

term

"co

nstr

uctio

n" in

clud

es th

epr

epar

atio

n of

draw

ings

and

spe

cifi

catio

ns f

or s

choo

lfa

cilit

ies;

erec

ting,

build

ing,

acq

uiri

ng, a

lteri

ng, r

emod

elin

g,im

prov

ing,

or

c lte

nd-

ing

scho

ol f

acili

ties;

and

the

insp

ectio

n an

dsu

perv

isio

n of

the

cons

truc

tion

of s

choo

l fac

ilitie

s.(1

3) T

he te

rm "

scho

ol f

acili

ties"

mea

ns c

lass

room

s an

d re

lat-

ed f

acili

ties

(inc

ludi

ng in

itial

equi

pmen

t) f

or f

ree

publ

ic e

du-

catio

n an

d in

tere

sts

in la

nd (

incl

udin

gsi

te, g

radi

ng, a

nd im

-pr

ovem

ents

) on

whi

ch s

uch

faci

litie

s ar

e co

nstr

ucte

d,ex

cept

that

suc

h te

rm d

oes

not i

nclu

de th

ose

gym

nasi

ums

and

sim

ilar

faci

litie

s in

tend

ed p

rim

arily

for

exh

ibiti

ons

for

whi

ch a

dmis

-si

on is

to b

c ch

arge

d to

the

gene

ral

publ

ic.

(14)

The

term

"eq

uipm

ent"

incl

udes

mac

hine

ry, u

tiliti

es, a

ndbu

ilt-i

n eq

uipm

ent a

ndan

y ne

cess

ary

encl

osur

es o

r st

ruct

ures

to h

ouse

them

, and

incl

udes

all

othe

r ite

ms

nece

ssar

y fo

r th

efu

nctio

ning

of

a pa

rtic

ular

fac

ility

as

a fa

cilit

y fo

r th

epr

ovis

ion

of e

duca

tiona

l ser

vice

s, in

clud

ing

item

s su

chas

inst

ruct

iona

leq

uipm

ent a

nd n

eces

sary

fur

nitu

re, p

rint

ed, p

ublis

hed,

and

audi

o-vi

sual

inst

ruct

iona

l mat

eria

ls, a

nd b

ooks

,pe

riod

ical

s,do

cum

ents

, and

oth

cr r

elat

ed m

ater

ials

.(S

ept.

30, 1

950,

c. 1

124,

Titl

e IV

, § 4

03, f

orm

erly

§ 9

, 64

Stat

.11

08: A

ug. 8

,19

53, c

. 402

, § 1

0, 6

7 St

at. 5

36; A

ug. 1

, 195

6,c.

852

, § 1

0, 7

0 St

at. 9

09; A

ug.

3, 1

956,

c. 9

15, T

itle

II, §

211

, 70

Stat

. 972

;A

ug. 1

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itle

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. 560

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e 25

, 195

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. 86-

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y 12

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. 89-

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at. 3

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ov. 1

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9 St

at.

1162

; Nov

. 3, 1

966,

Pub

.L. 8

9-75

0, T

itle

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b), T

itle

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206

,80

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t. 11

98, 1

199,

121

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, 196

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.90

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pr. 1

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itle

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1

Ch. 13

GENERAL

20 §

244

a

CROSS REFERENCES

Det

erm

inin

g in

crea

sed

scho

ol a

ttend

ance

whe

re n

on-F

eder

al p

rope

rty,

see

20

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ocal

edu

catio

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genc

ies

on I

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ppro

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adju

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20

USC

A §

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0 U

SCA

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38.

Proh

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gain

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se o

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prop

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for

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see

20

USC

A §

122

8.

LIBRARY REFERENCES

Am

eric

an D

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t Sys

tem

Adm

inis

trat

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app

ortio

nmen

t and

dis

posi

tion

of s

choo

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ds in

gen

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, see

Scho

ols

4;=

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19(

1).

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burs

emen

ts in

gen

eral

, see

Uni

ted

Stat

es c

.82(

1 to

7).

Enc

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asA

dmin

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ppor

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sch

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unds

in g

ener

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eeC

.J.S

. Sch

ools

and

Sch

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istr

icts

§§

19. 2

1.D

isbu

rsem

ents

in g

ener

al, s

cc C

.I.S

. Uni

ted

Stat

es §

122

.

WE

STL

AW

EL

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TR

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ESE

AR

CH

Scho

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case

s: 3

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add

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WE

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AW

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n pa

ges

of th

is v

olum

e.

§ 24

4a. S

choo

l fac

ilitie

s fo

r ch

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n of

Gov

ernm

ent e

mpl

oy-

ees

and

othe

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side

nts

in I

ndia

n re

serv

atio

ns, n

a-tio

nal p

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, and

nat

iona

l mon

umen

ts

In o

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to f

acili

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the

prov

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ren

of G

over

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nat

iona

l mon

umen

ts th

eSe

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of th

e In

teri

or is

aut

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in h

is d

iscr

etio

n to

mak

eav

aila

ble

for

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enta

ry s

choo

l pur

pose

s th

erei

n, w

ithou

t cha

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spac

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Gov

ernm

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owne

d bu

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gs, w

hen

such

spa

ce m

ay b

eav

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ble

for

such

pur

pose

s w

ithou

t det

rim

ent t

o th

e of

fici

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usi-

ness

of

such

Ind

ian

rese

rvat

ions

, nat

iona

l par

ks a

nd n

atio

nal m

onu-

men

ts.

(Jul

y 16

, 194

0, c

. 629

, 54

Stat

. 761

.)

HIS

TO

RIC

AL

AN

D S

TA

TU

TO

RY

NO

TE

SC

odif

icat

ions

Sec

tion

was

not

ena

cted

as

part

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AL

ASe

pt. 3

0,19

50, c

.11

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ified

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.1.

lion

Ma

of T

itle

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sor

to th

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sion

and

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tof

Tul

e5,

Gov

es :i

nten

t Ot g

anita

tion

and

Em

ploy

-ee

s, b

y Pu

b I.

. 89-

554,

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.S

ept.

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966,

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tat.

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LIB

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RE

FER

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SA

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Dig

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app

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Source

20 U

SCA

236

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(19

90)

Appendix D

1. Section 3(b) payments are distributed as follows:

Percentage step of 3{1)) Percentage of "entitlement"Wave 1 Wave 2 Wave 3Type of district children in district

"Super b" 20% or more 20% 30% 50%

"Regular b lees than 20% 10% 5% 85%

These steps are also applied successively to funds reservedfor 3(b) payments. If money is insufficient for full fundingof any step, available funds are prorated among districts.21

'Section 5'13)(2) provides that districts may receive preEminary paymentsbased on a written request to the Secretary of Education. "Super a" districts areeligible to receive 75 percent of 3(a) payments of the previous fiscal year.Others may receive 50 percent of the previous year's payments.

93

127

2. Districts receive the supplementary 50 percent of theirentitlement for handicapped students of military parents andhandicapped students residing on Indian lands.

3. Of the remaining funds (except for funds needed for section 7),"80 percent are reserved for payments under section 3(a) and 20percent for section 3(b) payments."

4. Section 3(a) payments are then distributed as follows:'

Type of districtPercentage of 3(a)children in district

Percentage of "entitlement"Wave 1 Wave 2 Wave 3

"Super a" 20% or more 80% 20% 0%

"Sub-super a" 15% but less than 20% 60% 15% 25%

"Regular a" less than 15% 40% 10% 50%

Each wave is applied successively. The first wave requiresthat "super a" districts receive 80 percent of theirentitlements from the funds reserved for section 3(a)payments; then "sub-super a's" receive 60 percent of theirpayments; and finally "regular a's" receive 40 percent of theirpayments. Next, if funds are sufficient, the percentages forwave 2 are applied, bringing the "super a" districts to 100percent of entitlement, the "sub-super a" districts to 75percent of entitlement, and the "regular a* districts to 50percent of entitlement. If there are sufficient funds, in step3 all districts would receive 100 percent of theirentitlement.'

"Section 7 provides financial assistance to local school districts in whichnatural disaster necessitates repair of school facilities.

"For FY 1991 Congress appropriated approximately 81 percent for section3(a) ($585.4 million) and 19 percent for 3(b) ($136.6 million).

'9According to the Senate Committee on Labor and Human Resources, whichreported the same tier or step system in its bill (S. 373) to reauthorize ImpactAid, "it is the intehf, of the Committee to provide a thorough method fordistribution of funds for times when Impact Aid is funded below entitlement.The payment system is intended to guarantee that all districts share in overalllosses and gains in the Impact Aid program, while at the same time setting aclear priority for the districts that are most heavily impacted." (S. Rept. 100-222, p. 52)

20If money is insufficient for full funding of any step, available funds areprorated among districts.

94 I .2s

Finally, States' programs that "equalize" educational aid to local schooldistricts can influence impact aid payments (section 5(d)). Since the 1970s, someStates have Attempted to equalize educational treatment for all school childrenin the State by providing greater amounts of per pupil aid to poorer schooldistricts, and little or no State education aid to relatively wealthy schooldistricts. Impact aid payments, which ED disburses directly to local schooldistricts, can potentially disrupt these efforts to equalize State educational aid.To alleviate this problem, a State may consider impact aid payments as localrevenue and thus reduce State education aid to federally impacted schooldistricts by a specified percentage if the State's equalization program meetspublished standards (see 34 CFR 222, subpart G) of the Impact Aid programunder P.L. 81-874." However, before a State may take this action, ED mustapprove each specific equalization program, and the State's legislature mustenact legislation that allows the State education agency to consider impact aidpayments in calculating State education aid payments to federally impactedschool districts."

How Are Payments Determined When Appropriations Are Insufficient?

If appropriations are insufficient to fully fund impact aid payments, section5(c) of the Act specifies a payment distribution system for section 2 and section3 payments based on districts' percentages and types of federally connectedstudents. The following outlines the priority in which section 2 and section 3funds are distributed:

1. Districts entitled to section 2" and 3(d)(2)(B)" payments receive100 percent of their entitlements under those sections.

13The Hawkins-Stafford Act (P.L. 100-297) amends section 5(d)(2) to exemptpayments for the following section 3 categories from State equalizationcalculations: heavily impacted districts (3(d)(2)(B)), handicapped students(3(d)(2)(C)), children residing on Indian lands (3(d)(2)(D)), and unusualgeographic factors (3(d)(3)(B)(ii)).

"Currently the following States have authorized plans: Alaska, Arizona,Kansas, Maine, Michigan, New Mexico, and Wisconsin. For further information,see U.S. Library of Congress. Congressional Research Service. Federal ImpactAid and State School Finance Equalization Programs. CRS Report for CongressNo. 87-589 EPW, by K. Forbis Jordan. Washington, 1987.

"Section 2 provides financial assistance to local school districts in which theFederal Government owns significant amounts of property, thereby reducinglocal property tax revenues used for schools.

'Districts eligible for additional payments under section 3(d)(2)(B) have 3(a)and 3(b) enrollment of at least 50 percent of their total attendance and mustmeet other statutory requirements.

(2) The products of these calculations are then multiplied by the totalnumber of federally connected students of each type in average dailyattendance in the school district.

Other circumstances and determinations help specify the actual section 3payments districts receive. The Act provides the minimum 3(a) payments andpayments for "super b" districts" would be based on the FY 1987 paymentrate.12 Moreover, some districts receive additional section 3 payments becauseof special circumstances and needs. For example, section 3(d)(2)(B) authorizesthe Secretary of Education to make additional impact aid payments to schooldistricts where at least 50 percent of the total average daily attendance iscomprised of federally connected students and where the district cannot provideeducational services equivalent to comparable school districts in the State.

1°(...continu ed)nontaxable Federal property; thus either their residence or place of employmentis subject to local taxation. As a result, less local tax revenue is lost. Inaddition, the authorized payment rate for handicapped children of militaryparents and handicapped children residing on Indian land is increased by 50percent of the LCR (section 3(d)(2)(C)) and by 25 percent for other childrenliving on Indian land (section 3(d)(2)(D)) because the local school districtpresumably must provide more expensive school programs to meet the specialeducational needs of these students. In this regard, the Senate Labor andHuman Resources Committee noted its--

concern for the additional financial burden placed on school districtsthat educate federally connected handicapped children. In many cases,military families with handicapped children are given specialassignments to areas with school districts that have outstandingspecial needs programs. While many districts welcome such childreninto their schools, the Committee is concerned that these districtsassume a particularly large financial burden because of the specialservices required fcr these children (U.S. Congress. Senate. S. Rept.100-222 to accompany S. 373. p. 51).

"These are districts for which 3(b) students make up at least 20 percent ofthe average daily attendance.

12Section 5(e) specifies that the minimum 3(a) or super 3(13) allocation adistrict would receive would be the lesser amount of: 1) the product of thepayment per pupil for the category of student paid to the district in FY 1987times the number of children in average daily attendance in that category forthe fiscal year in question and 2) the payment for that category of children thedistrict received in FT 1987. The minimum grant amount would not apply if thestatus of the district has changed (e.g., a "super b" district has become a "regularb") or approl-,riations are insufficient for full payment under this provision. Inthe latter case, amounts would be reduced proportionately. P.L. 101-26 amendedsection 5(e) for situations in which districts received no 3(a) payment in FY 1987and experienced an influx of 3(a) children after that fiscal year. Section 722(d)of P.L. 101-589 made similar modifications for "super b" districts.

96139

How Are MaNdmum Authorized Payments Determined?

A local school district's maximum authorized section 3 payment (which issometimes referred to as the district's "entitlement") is derived from the numberof federally connected students multiplied by a percentage of the school district'slocal contribution rate (LCR). The LCR is the average current educationalexpenditure per pupil derived from local (as opposed to Federal or State)revenue sources of districts "generally comparable"8 to the district for whichpayments are being calculated. The LCR must be at least one-half the nationalaverage per pupil expenditure or one-half the State's average per pupilexpenditure, whichever is greater.'

Maximum section 3 payments are the product of two calculations:

(I) The school district's LCR is multiplied by the percentage assigned tothe specific type of federally connected student. In general, theauthorized payment rate for section 3(a) children is 100 percent of theLCR (section 3(d)(1)(A)). The authorized payment rate for studentsclassified as section 3(b) children is 25 percent of the school district'slocal contribution rate (section 3(d)(1)(B));'°

8See 34 CFR Ch. la, §222.33 for regulations on identifying comparable localeducational agencies (LEAs).

"LCRs for school districts in States with relatively low per pupilexpenditures generally equal one-half the national average per pupilexpenditure; those in States with relatively high per pupil expenditures usuallyequal one-half their State's average per pupil expenditure or one-half theaverage per pupil expenditure of generally comparable school districts in theirState.

i°The rate for section 3(a) children is higher because their parents live andwork on Federal property, which is not subject to local taxation. The rate forsection 3(b) students is less because their parents either live or work on such

(continued...)

Source: U.S. CRS Report for Congress, The Impact Aid Program Under Section 3 of Public Law

81-874. Congressional Research Service. The Library of Congress, January 25, 1991,

PP. 5-9.

Appendix E

Impact Aid

Maintenance and operations

1993 BUDGET PROPOSAL

A total of $522,130,000 is requested for Maintenance and Operations activitiesin 1993, $221,578,000 less than the 1992 appropriation. For Section 3(a),$489,540,000 is requested, $81,000,000 less than the comparable 1992 amount.No funds are requested for section 3(b). For Section 3(d)(2)(B), the requestprovides $16,000,000, $14,000,000 less than the amount projected to bereserved in 1992 for 3(d)(2)(8) from the appropriation for 3(a) and 3(b). ForSection 2, the request provides $16,590,000, the same amount provided in thefiscal year 1992 appropriation. No funds are requested for Section 3(e).

The request of $489.5 million for "a" payments represents continued Federalsupport at a reduced level for the education of these children. Payments for"a" students continue to be an important Federal responsibility. Even at thereduced level, the request would enable school districts to be paid nearly thesame percentage of entitlement for those "a" children who, because of theirnumbers, represent a real burden to the local schools.

The Administration is again proposing several legislative changes that wouldincrease equity in the program and improve the efficiency of the paymentprocess. Most of these proposals were first made for fiscal year 1992.

First, the Administration proposes that districts be required to absorb thecosts associated with the number of Section 3 children vho make up the minimumeligibility threshold of at least 400 children or at least 3 percent of thetotal number of children in average daily attendance, whichever is less. Thisabsorption policy would make payments under the program more equitable.Currently, districts that do not meet the minimum eligibility thresholdreceive no funds, while districts that meet the minimum threshold are paid forall of their federally connected children. The proposed change would thuseliminate this inequity in the formula and focus more funds on districts withhigher concentrations of federally connected children.

The proposal would also increase equity in the distribution of these funds byminimizing the substantial differences in funding available to very similardistricts under the current systam of categorizing districts. Currently,"super a" districts, those that have 20 percent or more "a" children, are paid80 percent of entitlement for all of their "a" children at "vave 1" of thestatutory distribution formula, while "sub-super a" districts are paid only60 percent of entitlement and "regular a" districts are paid 40 percent ofentitlement. This formula results in some districts that have only a few morefederally connected children than other comparable districts receivingsubstantially higher Impact Aid payments. This situation has resulted in anumber of requests for special legislation to assist districts that have lostor will lose their status as "super a" or "sub-super a" and vant to retain the

98 132

higher payment rate. To correct this problem, the Administration proposes to

pay districts at the higher levels of entitlement only for the number of

students that affect the districts' classification. For example, payments for

"super a" districts would consist of 40 percent of entitlement for those "a"

children who constitute up to 15 percent of average daily attendance (ADA),

60 percent of entitlement for those students at or above 15 percent but below

20 percent of ADA, and 80 percent of entitlement for those students at or

above 20 percent. This policy would promote equity by compensating districts

at the higher rate only for those students that, because of their numbers,

create an extra burden, while the current formula compensates districts for

all federally connected children at the highest payment rate applicable to the

district.

The request would provide no funding for "b" payments, those for children

whose parents vork on or who live on Federal property. No data have been

found to document that "b" children create a special burden for school

districts justifying Federal support, and the severe budget constraints

preclude any funding for these payments.

The Administration's request of $16 million for Section 3(d)(2)(B), $14

million less than the amount projected to be needed for this purpose in 1992,

would be sufficient to fund Section 3(d)(2)(B) because of the elimination of

all "b" students from eligibility and entitlement calculations. Separate

funding is proposed for this section, to remain available until expended, to

facilitate the administration of these funds. Under current procedures, funds

for Section 3(d)(2)(B) are reserved from the amounts available for Sections

3(a) and 3(b) until data are available to determine final 3(d)(2)(B) payments

-- usually well into the following school year. This system has resulted in

small, supplemental payments for all other Section 3 districts once final

determinations for Section 3(d)(2)(B) have been made, a practice that is

administratively burdensome and inconvenient to both the Department and the

recipient LEAs. The proposed separate appropriation would allow theDepartment to make single awards for Section 3(d)(2)(B) after final data

become available without disrupting regular "a" and "b" payments.

To further improve the Impact Aid payment process, the Administration proposes

to allow Section 3 funding determinations to be based on prior-year enrollment

data. This proposal responds to the concerns of the Appropriations Committees

that payments should be made earlier in the school year, and is strongly

supported by the National Association of Federally Impacted Schools. This

change will enable eligible districts to receive their entire award early in

the fiscal year, rather than after enrollment data are available for the

current year, which is often not until spring or early summer. This proposal

would also obviate the need for Section 3(e) payments,_designed to compensatedistricts for decreases or cessation of Federal activities, since school

districts experiencing declines in enrollment would be cushioned from the

immediate effect of decreased payments by continuing to receive the higher

payments calculated from the previous year's enrollment level. This change

would afford these districts the opportunity to plan for diminishing Impact

A4d payments in subsequent years. Therefore, the Administration proposes no

funding for Section 3(e).

Source U S Department of Education. Justifications of Appropriation Estimates to the Congress: Fiscal Year

1993 (Washington. 1992), pp. B-24-26.

99

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Appendix G

Bill ARALYSIS

BILL NO. HB 2679 ANALYST Susan McNicholas (2319) mm

SPONSOR Stern-Matijevich DATE OF INTRODUCTION 11/7/91

COMMITTEE Elementary &Secondary Education

COST TO STATE GOVERNMENT

DATE OF ANALYSIS 4/3/92

Undetermined (Source: State Board of Education)

SYNOPSIS

Amends the School Code. Provides for the detachment from elementary, high,and unit school districts meeting certain criteria of that part of any suchdistrict located within a U.S. military base and provides for the formation ofa new school district from the territory so detached. Establishes petitionrequirements and prohibits the regional board of school trustees with whom thepetition is filed from denying the changes requested in a proper petition.Effective immediately.

BACKGROUND/ANALYSIS

Fort Sheridan Army base lies within Highland Park School District 111. Theschool district receives Federal Impaction Aid for the students who live inFort Sheridan and attend the district's schools. For the 1991-92 school year,this will amount to approximately $813,000.

When the Army leaves Fort Sheridan, the Navy is scheduled to move in. As longas the same or a greater number of Navy children (as compared to the number ofArmy children) attend district schools, the district will continue to receiveFederal Impaction Aid for those children.

If a lesser number of Navy children attend district schools, the FederalImpaction Aid will be reduced according to the following sliding scale: 1styear - 907. - $720,000; 2nd year - 907. - $648,000; 3rd year - 907. - $583,000;4th year - 907. - $524,000; 5th year and thereafter - 07..

ANALYSIS

House Bill 2679 providts that any elementary or high school district with 100or more of its students residing on a military or installation, or a unitschool district with 300 or more of its children residing on a militaryinstallation, shall have such military installation detached from the schooldistrict and a new school district created.

The petition for such detachment shall have been signed by a majority ofregistered voters living on the military installation or a petition adopted byresolution of the board of education. The petition shall be filed with theregional board of school trustees, wo shall have no authority to deny thedetachment and creation of a new school district.

Source: Illinois House of Representatives. Spring 1992.

112

Appendix H

H82679 Enrolled LRE18708464THcd

1 AN ACT in relation to the creation of new school 47

2 districts within the State of Illinois. 48

3 Be it enacted by the People of the State of Illinois, 52

4 represented in the General Assembly:

5 Section 1. The School Code is amended by changing 56

6 Sections 7-1 and 7-2 as follows:

7 (Ch. 122. par. 7-1) 59

8 Sec. 7-1. Districts in one educational service region 61

9 changing boundaries.

10 iAl School district boundaries lying entirely within any 63

11 educational service region may be changed by detachment, 64

12 annexation, division or dissolution or any combination 65

13 thereof by the regional board of school trustees of such 66

14 region, or by the State Superintendent of Education as

15 provided in subsection (1) of Section 7-6, when petitioned by 67

16 the boards of each district affected or by a majority of the 68

17 registered voters in each district affected or by twothirds 69

18 of the registered voters in any territory proposed to be 70

19 detached from one or more districts or in each of one or more 71

20 districts proposed to be annexed to another district. 72

21 Registered voters shall be determined by the official voter

22 registration lists as of the date the petition is filed. No 73

23 signatures shall be added after the date the petition is 74

24 filed. If there are no registered voters within the 75

25 territory proposed to be detached from one or more districts.

26 then the petition may be signed by all of the owners of 76

27 record of the real estate of the territory. 77

28 Each page of the circulated petition shall include the 79

29 full prayer of the petition, and each signature contained 80

30 therein shall match the official signature and address of the 81

31 registered voters as recorded in the office of the election 82

32 authority having jurisdiction over the county. Each

113

159 ","

HB2679 Enrolled 2 LRB8708464THcd

i petitioner shall also reccrd the date of his signing. Each 83

2 page of the petition shall be signed by a circulator who has 84

3 witnessed the signature of each petitioner on that page. The 85

4 length of time for signatures to be valid, before filing of 86

5 the petition, shall not exceed 6 months.

6 Where there is only one school building in an approved 88

7 operating district, the building and building site may not be 89

8 included in any detachment proceeding unless petitioned by 90

9 twothirds of the registered voters within the entire 91

10 district wherein the school is located.

11 (to) Any elementary or high school district with 100 or 93

12 more of its students residing upon territory located entirely 94

13 within a military base or installation operated and 95

14 maintained by the government of the United States, or any 96

15 unit school district or any combination of the above

16 mentioned districts with 300 or more of its students residing 97

17 upon territory located entirely within a military base or 98

18 installation operated and maintained by the government of the 99

19 United States, shall, upon the filing with the regional board 100

20 of school trustees of a petition adopted by resolution of the 101

21 board of education or a petition signed by a majority of the

22 registered voters residing upon such military base or 102

23 installation, have all of the territory lying entirely within 103

24 such military base or installation detached from such school 104

25 district, and a new school district comprised of such 105

26 territory shall be created. The petition shall be filed with

27 and decided solely by the regional board of school trustees 106

28 of the region in which the regional superintendent of schools 107

29 has supervision of the school district affected. The 108

30 regional board of school trustees shall have no authority to

31 den the detachment and creation of a new school district 109

32 requested in a proper petition filed under this subsection. 110

33 This subsection shall apply only to those school districts 111

34 having a population of not fewer than 1,000 and not more tnan 112

35 500 000 residents, as ascertained by any special or general 113

1141 6 ')

HB2679 Enrolled LRB8708464THdd

1 census. 113

2 The new school district shall tuition its students to the 115

3 same districts that its students were previously attending 116

4 and the districts from which the new district was detached 117

5 shall continue to educate the students from the new district, 118

6 until the federal dovernment provides other arrangements. 119

7 The federal government shall pay for the education of such 120

8 children as required by Section 6 of Public Law 81-874.

9

10

11

(Source: P.A.

(Ch. 122.

Sec. 7-2.

87-210.) 122

par. 7-2) 125

Districts in two or more counties Change of 127

12 boundaries. Boundaries of existing school districts lying 128

13 within two or more counties may be changed by detachment. 129

14 annexation, division, dissolution or any combination thereof 130

15 by the concurrent action of, taken following a joint hearing 131

16 before, the regional boards of school trustees of each region 132

17 affected. For purposes of this Section and Section 7-6, an 133

18 educational service region shall be deemed to be a region

19 affected if any portion of the territory which the petition 134

20 seeks to have detached from any school district is located in 135

21 the region. The petition may be by the boards of each 136

22 district affected, or by a majority of the legal voters 137

23 residing in each district affected, or by twothirds of the 138

24 legal voters residing in any territory proposed to be

25 detached from one or more districts or in each of one or more 139

26 districts proposed to be annexed to another district. The 140

27 original petition shall be filed with the regional board of 141

28 school trustees of the region in which the territory being 142

29 detached is located or if territory is being detached from

30 more than one region then the petition shall be'filed with 143

31 the regional board of school trustees of the region in which 144

32 the regional superintendent has supervision over the greatest 145

33 portion of such terr1tory. A certified true copy of the 146

34 petition shall be filed with thr regional board of school 147

115

1 6 1

HB2679 Enrolled 4 LRB8708464THcd

1 trustees of each other region affected. 147

2 The regional board of school trustees in whose region the 149

3 joint hearing on the original petition is conducted shall 150

4 send a certified true copy of the transcript of the hearing 151

5 to each other region affected. If there are no legal voters 152

6 residing within the territory proposed to be detached from 153

7 one or more districts, then the petition may be signed by all

8 of the owners of record of the real estate of the territory. 154

9 The annexing district is that district to which territory is 155

10 proposed to be added.

11 Where there is only one school building in an approved 157

12 operating district, the building and building site may not be 158

13 included in any detachment proceeding unless petitioned by 156

14 twothirds of the eligible voters within the entire district 160.

15 wherein the school is located.

16 After September 23, 162

17 *e.t.--ef- 1983, no petition shall be filed under Sections 7-1 164

18 and 7-2 to form a new school district under this Article 165

19 except that such a petition may be filed under Section 7-1 to 166

20 form a new school district where the boundaries of such new 167

21 school district lie entirely within the boundaries of a 168

22 military base or installation operated and maintained by the 169

23 government of the United States.

24 (Source: P.A. 86-743.) 171

25 Section 2. This Act takes effect upon becoming a law.

Source: Illinois House of Representatives, Spring 1992.

1161 6. 2

174

Appendix I

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day Hey 13, 1992

Speaker Satterthwaite: "House Bill 2679. Mr. Clerk, read the

Bill."

Clerk McLennand: "House Bill 2679, a Bill for an Act in relation

to the creation of new school districts within the State of

Illinois. Third Reading of the Bill."

Speaker Satterthwaite: "Representative Stern."

Stern: "Madam Speaker and Members of the House. For my district,

this is the most important Bill I um carrying this year,

and I hope you will all listen carefully. This is a shot

off the bow of the Federal Government which I hope you will

join in helping me fire. In my area, Fort Sheridan has

sent children to the local schools over a period of many

years. They pay an impact aid, $2,100 per student. It

costs our school districts $6500 per student. We have

tried every way we could. We have visited with our

senators, we have visited before committees, we have talked

all the way to the White House on the subject of Increasing

impact aid. In my county, we have one nearly-bankrupt

school district, and one school district in my area which

is about to consolidate with two others in order to save

its fiscal skin. This Bill would permit a school district

which includes a military b;.se to disconnect the military

base. We are trying to get the attention of the Federal

Government. It is like hitting the mule over the head with

a 2' by 4'. Are you listening, Ladies and Gentlemen in

Washington? We mean it. You are hurting us. We have got

to have relief. I ask you to vote 'aye' on this Bill, and

let us see if we can get their attention. I will answer

questions, of course."

Speaker Satterthwaite: "Representative Cowlishaw."

Cow1ishaw: "Thank you very much, Madam Speaker, Ladies and

Gentlemen of the House. I have discussed this Bill at some

117

1

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day May 13, 1992

length with Representative Stern. I certainly understand

her motivation in introducing this, and indeed it ss a

matter of firing a rather loud shot at the Federal

Government for failing to do something that is harmful to

students. It is not right for the Federal Government to do

that. I stand in strong support of Representative Stern's

Bill. Thank you, Madam Speaker."

Speaker Satterthwaite: "Representative Davis."

Davis: "Yes, Madam Speaker, will the Sponsor yield?"

Stern: "Of course."

Davis: "Okay, my question is if children are attending these base

schools and the Federal Government is not providing for

them, what will happen to them?"

Stern: "The children are not attendinq base schools. The

children are attending the public schools in Highland Park.

And according to Section 6 of Public Law 81.874 on impact

aid, 7uch arrangements to provide free education may also

be made for children of members of the armed forces on

active duty, if the schools in which free education is

usually provided for such children are made unavailable to

them as a result of official action by state or local

government authority. In order words, the Federal

Government would have two options. Well, have myriad

options. One option would certainly be to contract with

the local schools by paying a tuition per child .to send

them, as they now do, to the local schools. Another option

would be to form a base school and send the youngsters

there, and the Federal Government pay its way. I want you

to understand that the Federal Government pays ti-,e full

cost of students in West Point, New York; of students in

Fort Knox, Kentucky; students of military personnel in

Germany are fully paid for. It is only in ot'ier states,

118

tR4

STATE OF ILLINOIS87th GENERAL ASSEMBLYHOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative DP,'May 13, 1992

and Illinois is certainly one of the stepchildren in this

regard, that insufficient funds are provided for the

education of military children."

Davis: "Would this prove disruptive, Representative, to the

children who are now attending school in Highland Park?"

Stern: "It might prove disruptive for a brief time. You have to

understand, we have a long way to go before we have the

full attention. We still have to go through the Senate, we

have to persuade the Governor of the correctness of our

position. We have not heard one word from Washington on

this question, and this Bill has been in the hopper for

several months."

Davis: "We have a fine Senator called Paul Simon down there in

the Senate in Washington, and it would truly appear to me

that we would do the children of Highland Park and those

men and women who are in the service and their children a

disservice to disrupt their education in the middle of the

stream when we could certainly provide remedy by asking our

honorable Senator Paul Simon, and soon-to-be Senator Carol

Mosley Braun, to immediately address the situation of the

children in Highland Park whose families are service

members who are now going to the Highland Park school.

think it appears a bit, I just don't want to say

un-American, but it truly concerns me that we would not

consider the disruption to these children, but immediately

uproot them because you're tot getting money from the

Federal Government. It would appear to me that we would

try some avenues of questioning, some avenues of

requesting, some avenues of using our Representatives at

the federal level to bring about a remedy, rather than

dealing with this federal problem at the state level."

Stern: "I have the feeling... May I respond, or are there other

119

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day May 13, 1992

questions? Well, we have really spoken to both Senators at

great length. There has been testimony before federal

committees on this. Our people have traveled back and

forth to Washington on a regular basis. Senator Simon has

not been able to help. Senator Dixon has not been able to

help. And, with all due respect, I'm not sure Senator

Carol Mosley Braun will be able to help unless we take a

very strong, outspoken position. You know the Boston Tea

Party was a little un-American, too. We watered down all

that good water in Boston Harbor, for what avail? Taxation

without representation. Damn it, they're cloing to listen

to us this time."

Davis: "Well, as Acting Chair of Elementary (sic and) Secondary

Education in the State of Illinois, I find that any, any

legislation that isn't needed on an immediate basis is

truly not worthy of cur disruption of the education of

children whose parents are serving in the military of this

country. We have men and women who will go to Desert Storm

tomorrow if called upon, and yet we're saying these

Peoples' children are not worthy of going to school in

Highland Park. Well, I say vote no on this un-American

Piece of legislation."

Speaker Satterthwaite: "Representative Wennlund."

Wennlund: "Thank you, Madam Speaker. Will the Sponsor yield?"

Speaker Satterthwaite: "She indicates she will."

Wennlund: "It's my undtstanding that in approximately six months

Fort Sheridan will be closed by the Federal Government. Is

that correct?"

Stern: "I'm sorry, I've lost track of the speaker. Who's

speaking?"

Speaker Satterthwaite: "Representative Wennlund."

Stern: "Ah, yes, Fort Sheridan is closing, and the Navy is moving

120 1 f.;

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day May 13, 1992

in."

Wennlund: "So that there will still be the same amount of

students involved?"

Stern: "That's correct, there will be a lot of youngsters, yes."

Wennlund: "What impact will this have on other school districts

in Illinois?"

Stern: "We hope it will have the effect of generating some action

from the Federal Government to increase impact aid. We

love the children of Fort Sheridan. They are a wonderful

resource for the children of our area, for the public

schools. We only hope by this Bill to make the point that

we are dead serious, that we really care about talking to

them. They have chosen to ignore us in every area of

negotiation on Fort Sheridan."

Wennlund: "The fiscal note filed by the Illinois State Board of

Education indicates that there will be a loss of federal

impact aid of about $8.3 million, and a loss of general

State aid to districts in the amount of $2.8 million."

Stern: "The Illinois State Board of Education has taken, in my

view and in the view of the superintendents of schools in

my area, a very prejudiced position. They have chosen to

ignore that Section 6, that I read to you a moment ago,

which says that the Federal Government will provide

education. They have put the worst case scenario before

you on the impact, on the...what do you call em...the

revenue."

Wennlund: "They seem to indicate that this Bill would affect

approximately seven schools districts but 5,100 students

who will then not have a school district at that point."

Stern: "There are school districts available. We are happy to

negotiate with them on the basis of a contract per student

basis. We are happy to rent to them buildings, to d-,a1

121R'7

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day May 13, 1992

with them with personnel. These youngsters are not going

to go ignored. We care about them."

Wennlund: "The fiscai note also indicates that the impact of

creating new school districts and new school infrstructure

for some 5,100 students, averaging at about $3,500 per

Pupil, would be about $17.5 million."

Stern: "I think the State Board of Education is dead wrong."

Wennlund: "How do we... What certainty is there in the Bill that

would assure us that these 5,100 students would indeed have

the entire cost paid for by the Federal Government, whether

it be by contract, or..."

Stern: "We're not... We are.... We have no guarantees for you,

sir. We have done everything we possibly can do to talk to

the Federal Government about this, what has become a very

burdensome situation. I cannot tell you that they are

going to hear us now. But I think that if we make a

concerted effort, and certainly this is a Body that fights

back against mandates handed down to us, this is an onerous

mandate indeed, that has been ignored far too lona."

Wennlund: "Can you tell me what the basis, or what you feel is

the reason why the State Board of Education is opposed to

this?"

Stern: "The State Board of Education testified before the

committee abcut its concerns for the youngsters. We care

about those youngsters, too. I would like to make the

Point that that bipartisan Committee on Elementary and

Secondary Education, the temporary Chairman not

withstanding, (oh, it's going to be cool on this row from

now on) the temporary Chairman notwithstanding, voted

unanimously to send this Bill to the Floor."

Wennlund: "Thank you very much."

Speaker Satterthwaite: "Representative Matijevich."

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STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day May 13, 1992

Matijevich: 'Madam Speaker, Ladies and Gentlemen of the House,

I'm a Co-Sponsor of this Bill; however, I don't want the

Navy nor my school district to get the feeling that I want

the Navy to get out of our school district. None of us

want that, nor does Grace Mary Stern want that. My school

district, the North Chicago School District, pays the

highest, property tax rate in the whole Lake County. Now

Lake County -- you've heard a little bit about Lake County,

it's something like DuPage county -- it's got a high,

property tax rate. However, my community is about 70%

minority. There's lot of poor people in my community.

There's a middle income people in my community. They

cannot stand more taxes, and the school district

understands that. They are right by Great Lakes Naval

Trainino Center, and at one time the North Chicago School

District, because of the federal impact aid, was one of the

better-financed school districts in the county, That is no

longer the case. It has now gotten so bad that my school

district is not only on the school...the school board...the

State School Board's watch list, they are being threatened

that the state may have to take over our school district.

That's the condition of our school district. It is mainly

because of the fact that we have lost that federal impact

aid. Now, what Grace Mary Stern is trying to do, she isn't

trying to disrupt any school, she is trying to tell the

Federal Government, 'Let's live up to your

responsibilities.' We have met with, as she said, with

Congressman Porter, with Senator Simon's staff, Senator

Dixon's staff, and all of them tell us that the monies in

the Education... Federal Office of Education are limited

and each year the federal impact aid is being reduced.

However, however, there is a source that can be tapped.

123

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day May 13, 1992

And that is the Department of Defense revenues. Now, isn't

it logical that revenues that are under the Department of

Defense ought to be used for impact aid for students;

military establishments -- their dependents, their kids?

That makes eminent sense to everybody. Now, what Grace

Mary Stern is trying to do, and I think everybody,

includi,., her seat-mate, ought to help her to wake up the

Federal Government. You know, this trickle-down theory

we're talking about, we're talking about the education of

oar kids. I fear the day, if this doesn't happen, if some

aid doesn't come about, what's going to happen to my school

district in North Chicago? It is in bad shape, and they

cannot go to the taxpayers. Does anybody here think that a

minority community, 70% minority, ought to have the highest

tax rate in the whole county? I dn't think anybody

believes that. So you ought to help Grace Mary Stern,

am going to vote 'aye'. And I wanted to tell the Navy that

they do a good job, that we want their kids in our schools,

we want them badly, but we want the Federal Government to

live up to its responsibility and provide the resources it

should."

Speaker Satterthwaite. "Representative Frederick."

Frederick: "Thank you, Madam Speaker, Ladies and Gen+lemen of the

House. I also rise in support of this very fine Bill. I

remember, Ladies and Gentlemen, in the '40s and '50s, the

impact aid that was offered to school districts of North

Chicago and Highwood were fair and just. But every year

since then, the Federal Government has absolutely abrogated

its responsibility to these children. All we're trYing to

do, is to alert the Federal Government that they are not

being fair to these school children. So I ask you all to

vote 'aye' on this good Bill."

124

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STATE OF ILLINOIS87th GENERAL ASSEMBLYHOUSE OF REPRESENTATIVES

TRANSCRIPTION DEBATE

141st Legislative Day May 13, 1992

Speaker Satterthwaite: "Representative Flinn. Representative

Monroe Flinn."

Flinn: "Madam Speaker, I move the previous question."

Speaker Satterthwaite: "The Gentleman moves the previous

question. All in favor say 'aye', opposed, 'nay'. The

ayes have it, and the previous question is moved.

Representative Stern, to close."

Stern: "I only want to add one more thing: I am smitten to the

heart with the charge of 'unAmericanism'. This is about

as American as a Bill can get. We are protesting in the

most vigorous way we can find against what we believe to be

injustice. I ask your 'aye' vote."

Speaker Satterthwaite: "The question is, 'Shall House Bill 2679

pass?' All in favor vote 'aye', opposed vote 'no'. Voting

is open. Representative Parcells, one minute to explain

her vote."

Parcells: "Thank you, Madam Speaker. I join with Representative

Stern in this Glenview Naval Air Station is also one of

those air bases where they have asked again and again for

the Federal Government to pay a reasonable amount of money.

The people of Glenview have been taxed over and over again

to Pay for these children. They'v.-- done it very

graciously, but it's unfair, and the Federal Government

should ante up and pay for those children, hundreds and

hundreds of them that are going to school in Glenview on

the taxpayers of Glenview. I ask for your 'aye' vote."

Speaker Satterthwaite: "Representative Schoenberg."

Schoenberg: "Madam Speaker, Ladies and Gentlemen of the House,

because of a potential conflict of interest with my wife's

law firm I will be voting 'present'."

Speaker Satterthwaite: "Have all voted who wish? Have all voted

who wish? Have all voted who wish? Mr. Clerk, take the

125

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STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

141st Legislative Day may 13, 1992

record. On this question, there are 104 voting 'yes', 4

voting 'no', 5 voting 'present'. The Bill, having received

the required Constitutional Major-ity, is hereby declared

passed. Representative Hensel, on Ho.jse Bill 2726. Mr.

Clerk, read the Bill."

Clerk McLennand: "House Bill 2726, a Bill for an Act to amend the

School Code. Third Reading of the Bill."

Speaker Satterthwaite: "Representative Hensel."

Hensel: "Thank you, Madam Speaker, Members of the House. House

Bill 2726 amends the School Code. It provides that

whenever boards of education determine that it is

economically and practically feasible to do so, they shall

ensure that all paper purchased by them and the schools and

attendance centers in their districts for publication of

student newspapers shall be recycled newsprint. What this

is is just a little added recycling effort by some of the

students that initiated this proposal in my district, and

they would like to see that the student newspapers, when

feasible, use recycled newsprint, and I ask for a favorable

vote."

Speaker Satterthwaite: "Is there any discussion? Seeing no one

seeking recognition, the question is, 'Shall.House Bill

2726 pass?' All in favor vote 'aye', opposed vote 'no'.

Voting is open. Have all voted who wish? Have all voted

who wish? Have all voted who wish? Mr. Clerk, take the

record. On this question, there are 111 voting 'yes', 1

voting 'no', 3 voting 'present'. The Bill, having received

a Constitutional Majority, is hereby declared passed."

126

7 2

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

163rd Legislative Day June 26, 1992

Speaker Keane: "House Bill 2679, Representative Stern."

Stern: "Mr. Speaker and Members of the House, we wish to concur

in Senate Amendment #1. Let me remind you about the Bill.

This is the Bill which would permit a school district which

includes a military base to disconnect the military base

and in an efl'ort to force the governmebt...the US

government to the table to talk to us about improving

impact aid. They have bankrupted one school district in my

county and nearly bankrupted another beca,se they will not

talk. The Bill, when it first came out of the House,

passed out of here 104 to 4, and the 4 were concerned

because they were afraid, my seat mate in particular, that

the youngsters would be caught in the hinge. The Amendment

in the Senate, I believe takes care of that concern, and I

think it ... ',roves the Bill. The Amendment in the Senate,

and the Senate Sponsor stands at my right, the Amendment in

the Senate requires the youngsters in the event of such a

disconnection to return to the schools at which they have

been going and the government, the US federal government,

stands responsible for their tuition. This strikes me as a

immanently fair, decent, capital A American way to handle

this situation, May I have any questions?"

Speaker Keane: "Representative Ropp."

Popp: "Thank you, Mr. Speaker. A question of the Sponsor. I

think this is a laudable idea, I guess the question is,

'Can you, through this Amendment, demand that the federal

government pay for their education of these kids,

or...if...we're kind of short of money in the state, can we

demand that they come up with some additional dollars for a

lot of things? How for sure are you that it's going to

happen?"

Stern: "Uell, this Bill is doing that. I suPpose the future

127

173

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

163rd Legislative Day June 26, 1992

alone will answer your question. I believe that it's

absolutely legitimate that they pay for the expenses that

they incur in each school district. I assume they are not

going to take this lying down, Representative, and I would

imagine this is not the last we will hear of this."

Ropp: "If I recall in committee you say that a numbel of other

states, or at least several states where the federal

government was in fact being more responsible in this

situation..."

Stern: "Oh, yes."

Ropp: "...And.what is it that these other states are doing that

we either haven't been doing and if we haven't maybe this

is what...the thing that's going to do it."

Stern: "In West Point, New York, and at Fort Knox, Kentucky the

children are being subsidized to the tune of about $5,000

Per youngster. In school district 111 in Hiohland Park,

Illinois they are being subsidized to the tune of $2100

while it costing us over $6,000 per youngster. So, we feel

that there is a unjust inequitable treatment being handed

out."

Ropp: "I think this is a good, a good Amendment and a good Bill

and a good conference Committee report. I just hope that

the federal government would comply with the law that

should the Governor sign it. Thank you."

Stern: "Well, they're going to have to defy us if they don't.

We'll see. I ask your 'aye' vote."

Speaker Keane: "Representative Davis."

Davis: "Thank you. According to the Amendment, Representative,

it states that the district from which the new district was

detached shall continue to educate the students. Now,

which district is the district from which the new district

was detached?"

128 17,4;

STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

163rd Legislative DaY June 26, 1992

Stern: '"The larger district which has detached the military...the

land on which the military base is located, has been

educating these youngsters. So, these youngsters will

return to the schools they have been goino to right along."

Davis: "They will tot be on the base, is that what you're

saying?"

Stern: "There is no school on the base."

Davis: "I say...they will not. I mean, they won't be going to

Highland Park?"

Stern: "Yes, they will be going to Hichland Park,"

Davis: "And that's the school that..."

Stern: "That they have been attending."

Davis: "So in other words, we will not disrupt their

education..."

Stern: "We will not disrupt..."

Davis: "...until this dispute is settled..."

Stern: "That's correct."

Davis: "Or until you get those dollars these children will be

allowed to continue their education. Is that correct?"

Stern: "That's correct. That's what the Amendment says."

Davis: "Then we certainly do...We support your concurrence,

Speaker Keane: "The question is, 'Shall the House concur in

Senate Amendment #1 to House Bill 2679?' All those in

favor vote 'aye', all opposed vote 'no'. The voting is

open. Have all voted who wish? Representative Lang votes

'aye'. Have all voted who wish? Representative Schoenberg

votes 'aye'. Representative Schoenberg votes 'present'.

No."

Schoenberg: "Yes. With my wife's law practice I am voting

'present'."

Speaker Keane: "Have all voted who wish? M-. Clerk, take the

record. On this there are 111 voting 'aye', none voting

129

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STATE OF ILLINOIS87th GENERAL ASSEMBLY

HOUSE OF REPRESENTATIVESTRANSCRIPTION DEBATE

163rd Legislative Day June 26, 1992

'no', 3 voting 'present', and the House concurs in Senate

Amendment 41 to House Bill 2679, and this Bill, having

received the required Constitutional Majority, is hereby

declared passed."

Source: Illinois House of Representatives. Spring 1992.

130 176

Appendix J

HOUSE OF REPRESENTATIVESSIXTEENTH LEGISLATURE, 1992STATE OF HAWAII

H.B. NO. ..(4lesi

A BILL FOR AN ACTRELATING TO THE TRANSFER OF CERTAIN PUBLIC SCHOOLS TO THE UNITED

STATES DEPARTMENT OF DEFENSE PURSUANT TO PUBLIC LAW 81-874.

BE IT ENACITI) BY THE LEGISLATURE OF THE STATE OF HAWAII:

1 SECTION 1. The legislature finds that section 6 bf Public

2 Law 81-874, relating to federal impact aid, requires the United

3 States Department of Defense (USDOD) to make such arrangements as

4 may be necessary to provide a free public education to all

5 children who reside on USDOD facilities in those instances where

6 there are no tax revenues available from a state or any of the

7 state's political subdivisions to pay for the education of these

8 children. Thus, in such cases in other states, the USDOD is

9 obligated to operate schools for those children who reside on

10 certain facilities.

11 In Hawaii, however, the board of education provides for the

12 establishment, support, and control of; and formulates policy for

13 and exercises control over; all public schools on USDOD

14 facilities, even those attended exclusively or predominately by

15 children residing on these facilities. The legislature finds

16 that soma parents of children who reside on USDOD facilities in

17 Hawaii have publicly voiced their unhappiness with the quality of

18 the State's public schools and system of public education in

19 general. Consequently, the purpose of this Act is to enable

131 7 7

Page 2 H.B. NO.

1 these parents and their children to experience the same quality

2 of public schools and system of public education that they are

3 entitled to under Public Law 81-874 when there are no tax

4 revenues available from a state or any of the state's political

5 subdivisions to pay for the education of their children.

6 SECTION 2. (a) The board of education, not later than

7 June 30, 1993, shall transfer organizational and managerial

8 control of all public educational institutions on United States

9 Department of Defense facilities and all other public educational

10 institutions that are attended predominately by students residing

11 on United States Department of Defense facilities, including any

12 equipment or furniture appurtenant thereto or contained therein,

13 to the United States Department of Defense pursuant to P.L.

14 81-874. The board of education, upon this Act taking effect,

15 shall notify the Secretary of Defense in writing that no tax

16 revenues of the State or any county shall be expended after

17 July 1, 1994, Zor the establishment, support, or control of any

18 public educational institutions on United States Department of

19 Defense facilities and any other public educational institutions

20 that are attended predominately by students residing on United

21 States Department of Defense facilities. The board of education

22 shall identify those public educational institutions affected by

17c'132

Page 3 H.B. NO.

1 this Act and inform the Secretary of Defense that organizational

2 and managerial control of these institutions, including any

3 equipment or furniture appurtenant thereto or contained therein,

4 shall be transferred not later than June 30, 1993, from the board

5 of education to the United States Department of Defense.

6 (b) Beginning July 1, 1994:

7 (1) The board of education shall not provide for the

8 establishment, support, or control of any public

9 educational institutions on United States Department of

10 Defense facilities or any other public educational

11 institutions that are attended predominately by

12 students residing on United States Department of

13 Defense facilities;

14 (2) Public funds shall not be appropriated for the support

15 or benefit of any public educational institutions on

16 United States Department of Defense facilities or any

17 other public educational institutions that are attended

18 predominately by students residing on United States

19 Department of Defense facilities; and

20 (3) The board of education shall not formulate policy for

n or exercise control over any public educational

22 institutions on United States Department of Defense

133

1 79

Page 4 H.B. NO. -(11

1 facilities or any other public educational institutions

2 that are attended predominately by students residing on

3 United States Department of Defense facilities.

4 (c) The State shall not provide for the repair and

5 maintenance of any real properties, capital improvements, and

6 equipment transferred to the United States Department of Defense

7 by this Act; provided that title to these real properties and

8 capital improvements shall be retained by the State and shall not

9 be transferred to the United States Department of Defense.

10 (d) Notwithstanding any other law to the contrary, all

11 fiscal savings realized by the transfer of all public educational

12 institutions on United States Department of Defense facilities

13 and all other public educational institutions that are attended

14 predominately by students residing on United States Department of

15 Defense facilities, to the United States Department o: Defense

16 shall accrue to the benefit of the department of education.

17 These savings shall be used to reduce pupil-to-teacher ratios,

18 increase instructional time, improve curriculum, increase teacher

19 salaries, and fund other educational initiatives.

20 (e) With the exception of pullic educational institutions

21 that are attended predominately by students residing on United

22 States Department of Defense facilities, nothing in this Act

134

IS!)

Page 5 H.B. NO.

1 shall be construed to deny any person of a public education at a

2 public educational institution located outside the confines of a

3 United States Department of Defense facility.

4 (f) The board of education, not later than June 30, 1993,

5 shall provide for the establishment of two school complexes to

6 service areas in the proximity of military establishments. The

7 first complex shall be established around Wheeler Intermediate

8 School, which shall serve as the intermediate and high school for

9 the Schofield Barracks/Wheeler Army Air Field area. The second

10 complex shall be established around Radford High School, which

11 shall serve as the intermediate and high school for the Pearl

12 Harbor/Hickam Air Force Base area.

13 (g) The board of education, upon this Act taking effect,

14 shall provide for the establishment, support, and control of an

15 intermediate school facility in Mililani-mauka to replace Wheeler

16 Intermediate School, which shall be transferred to the United

17 States Department of Defense by this Act.

18 SECTION 3. No officer or employee of the State having

19 tenure shall suffer any loss of salary, seniority, prior service

20 credit, vacation, sick leave, or other employee benefit or

21 privilege as a consequence of this Act, and such officer or

22 employee may be transferred or appointed to a civil service

Page 6

H.B. NO. "i-C.tei

1 position without the necessity of examination; provided that the

2 officer or employee possesses the minimum qualifications for the

3 position to which transferred or appointed; and provided that

4 subsequent changes in status may 1:,e made pursuant to applicable

5 civil service and compensation laws.

6 An officer or employee of the State who does not have tenure

7 and who may be transferred or appointed to a civil service

8 position as a consequence of this Act shall become a civil

9 service employee without the loss of salary, seniority, prior

10 service credit, vacation, sick leave, or other employee benefits

11 or privileges and without the necessity of examination; provided

12 that such officer or employee possesses the minimum

13 qualifications for the position to which transferred or

14 appointed.

15 In the event that an office or position held by an officer

16 or employee having tenure is abolished, the officer or employee

17 shall not thereby be separated from public employment, but shall

18 remain in the employment of the State with the same pay and

19 classification and shall be transferred to some other office or

20 position for which the officer or employee is eligible under the

21 personnel laws of the State as determined by the head of the

22 department or the governor.

P:12136

Page 7 H.B. NO. )t-f II

1 SECTION 4. All records, equipment, machines, files,

2 supplies, books, papers, documents, maps, and other personal

3 property heretofore made, used, acquired, or held by the

4 department of education relating to the public educational

5 institutions transferred to the United States Department of

6 Defense shall be transferred with the institutions to which they

7 relate.

8 SECTION 5. If any provision of this Act, or the application

9 thereof to any person or circumstance is held invalid, the

10 invalidity does not affect other provisions or applications of

11 the Act which can be given effect without the invalid provision

12 or application, and to this end the provisions of this Act are

13 severable.

14

15

16

17

18

19

20

SECTION 6. This Act shall take effect o July 1 1992.

INTRODUCED BY:

137

Appendix K

Hearing Date: February 11, 192Committees: House Education

Intergovernmental Relations andInternational Affairs

Department: Education

Person Testifying: Charles T. Toguchi, Superintendent

Title of Bill: H.B. No. 2617, "Relating to the Transfer of Certain PublicSchools to the United States Department of Defense Pursuant toPublic Law 81-874."

Purpose of Bill: To propose the transfer of organizational and managerialresponsibility of all public educational institutions located onmilitary bases in Hawaii and attended predominantly by studentsresiding on military bases from the Board of Education to theUnited States Department of Defense. Additionally, the bilimandates the Board of Education to establish two schoolcomplexes to service areas in the proximity of militaryestablishments.

Department's Position: The Department recognizes that this bill attempts to dealcreatively with some military parents' dissatisfaction with publiceducation in Hawaii. Similar departmental attempts in the past,however, have not been successful. We now share some of ourpast concerns and experiences to assist you to identify thedifferent issues that need to be considered if this bill is to beenacted into law.

First, the bill may require a change in Hawaii's existing laws.Presently, the state is required to provide educational servicesfor all children. Specifically, Section 1, Article X, of the StateConstitution provides for "the establishment, support and controlof a statewide system of public schools," and Section 298-9,Hawaii Revised Statutes, makes education compulsory for allchildren between ages six and 18, with few exceptions such aschildren enrolled in an appropriate alternative educationalprogram or taught by a competent family tutor. This bill woulddifferentiate military students from all other students. Bysegregating one segment of the school population, it may appearto be discriminatory.

Second, while the United States Department of Defenseoperates dependent schools for military and civilian minordependents of personnel stationed in foreign countries, federallaws generally leave the education of dependents of personnelstationed in the states and territories to local jurisdictions.According to Army Regulation 352-3, when the 81st Congressenacted Public Laws 874 and 815, its intent was that whereverpossible, free public education for children living on federalproperty in the 50 states, Puerto Rico, Wake Island, Guam,

138

American Samoa, or the Virgin Islands would be provided by theregularly constituted state and local educational agencies. Thatis, children residing on federal property would be educated inschools operated and controlled by local public school systemsin accordance with state laws and standards. If it was notpossible for these children to attend a locally operated school offthe federal property and it became necessary to operate a schoolon the federal property, then, every effort would be made to haveit operated by the local educational agency. In return, the localeducational agency would be furnished federal assistance in theform of Impact Aid.

Third, while there are special circumstances under which themilitary operates what are known as Section Six schools,according to military officials, the mood in Congress is to doaway with these schools. Authorized by Public Law 81-874, theArmy operates Section Six schools on nine military installations:Forts McClellan and Rucker, Alabama; Forts Benning andStewart, Georgia; Forts Campbell and Knox, Kentucky; FortBragg, North Carolina; Fort Jackson, South Carolina; and WestPoint, New York. Originally, these schools were established forchildren living on federal property in areas where local educationagencies were unable to provide suitable free education orwhere, by law, local education agencies were forbidden toexpend funds for educating such children. Funding for SectionSix schools are provided by the Department of Defense as aresult of the Omnibus Reconciliation Act of FY 1982.

Fourth, with the collapse and dissolution of the Soviet Union andthe enjoyment of unprecedented peacetime conditions, it seemslikely that the federal defense budget will experience deep cuts.In this climate, Congress may not be willing to appropriateadditional funds to establish Section Six schools on militarybases in Hawaii.

Fifth, passage of this legislation may send the militarycommunity and the federal government a wrong message. Themilitary presence is welcome in Hawaii. Indeed, manycollaborative efforts between the military and the Department areongoing.

Sixth, the Department will need to establish two schoolcomplexes to service areas in the proximity of militaryestablishments as replacements for Wheeler and AliamanuIntermediate Schools and Radford High School, as called for bythe bill. Currently, however, there is no money in the capitalimprovement program budget for the design and/or constructionof such facilities. Similarly, there are no plans for landacquisition for such facilities.

Some military parents' unhappiness with the public educationsystem in Hawaii may not be resolved by transferringresponsibility of the schools situated on military bases to theUnited States Department of Defense. Perhaps, it may be moreadvantageous to provide avenues for military parents' increasedparticipation in their children's education. School/Community-

45139

Based Management provides such an avenue. As each schoollocated on a military base converts to School/Community-BasedManagement, it will require wide par'icipation by knowledgeableparents and interested members of the military community onthe school council. Together with school administrators and thefaculty, they will decide on the course that education will take ata particular school. We believe parents' direct involvement intheir children's education and the positive results of theirinvolvement will contribute to a positive attitude toward publiceducation in Hawaii.

Thank you for this opportunity to comment.

Source: Hawaii, DOE, Office of the Superintendent.

140

Appendix L

MILITARY AFFAIRS COUNCILThe Chamber of Commerce of Hawaii / Established 1850

ID735 Bishop StreetHonolulu, Hawaii96813

(808) 522-8821Fax (808) 522-8836

Testimony of the Chamber of Commerce of Hawaii

Date: February 10, 1992

To: The House Committee on EducationRepresentative Rod Tam

From: The Military Affairs CouncilEducation Task Force

Re: House Bill 2617, Relating to the Transfer of Certain Public Schools to theUnited States Department of Defense pursuant to Public Law 81-874

Purpose: House Bill 2617 states that some militazy parents have publkly voiced their44-D, 4 A I. . . 4 I 114 511 54 SI

bases, or those predominantly attended by military dependents. should be turned over to DoDas Section 6 schools under Public Law # 81-874,

Summary: The Military Affairs Council develops and implements strategies that maximizethe economic benefits of Hawaii's Defense industry. Key initiatives include activities that tointegrate servicemembers into the community fabric and increase their satisfaction with"Assignment Hawaii."

The Chamber of Commerce of Hawaii is against bothHB 2617 and its companion, SB 2604

Policy: The Chamber of Commerce of Hawaii promotes excellence in all sectors of Hawaii'spublic school system. The committee advocates meaningful, long-term educational reform...andembraces the creative use of resources to enhance student learning and achievement. Further,the Chamber supports continuing expansion of efforts to address the concerns of militaryconnected students in Hawaii's public schools.

First, we'd question the legality of this measure, both in terms of state statutes and federallaw.

*State Law - Section 6 schools, according to public law 81-874, may be created only ifstate agencies are not authorized to spend state/local tax revenues for the free public educationof military children. This is clearly not the case in Hawaii, where Article X Section I of theConstitution clearly provides for a statewide system of public schools.

*Federal Law - Public law 81-874 says that wherever possible, free public education formilitary children assigned in the 50 states and Puerto Rico will be furnished by local education

141

1 w?

agencies. We are not legal experts, but this would seem to rule out the creation of section 6schools for Hawaii's military population.

Section 6 Schools - Background and Trends. In certain areas decades ago, local agencies couldnot furnish suitable education, and Section 6 schools were established. No new Section 6 schoolshave been created in 20 years. Of the 106 schools on mainland bases, only 18 of them are Section6 schools. Congress has expressed its preference to turn back section 6 schools to local educationagencies. Ten have been transferred since 1989. Funding for Section 6 schools has been greatlylimited. As DoD draws down, further budget reductions are expected.

On the topic of drawdowns. We respectfully point out that the military is the state's secondlargest industry. We feel this is a perilous period of unprecedented cutbacks. It is dangerous tobe sending strong negative messages to Washington D.C. alluding to our educational problems.There are no sacred cows as we face two more base closure cycles in 1993 and 1995. Quality oflife issues, among which we count public education, could easily carry weight in determiningpullouts. Should this measure pass, it will go directly to the Secretary of Defense forresolution. The red flag will go to the top of the pole for all to see.

* The Military Affairs Council functions as a solution oriented communications conduitencouraging military families to get involved and help solve problems in public education. Wespend much of our effort trying to spark understanding between our military neighbors and ourpermanent citizenry, efforts that weave them into the community fabric where they co-exist inharmony. We see them as adding to Hawaii's ethnic and cultural rainbow. HB 2617 creates an"us and them" mentality. We'd rather see the energy that's going into this negative effort putto work in other more positive areas, i.e. reforming the public school system, supporting Szhooland Community Based Management, and asking our lawmakers to fund the DOE to levels thatwill adequately cover the costs of educating out children.

Costs are another matter. The state would lose $22.5 million in impact aid if this measure ispassed. While we agree that this amount in no way covers the full costs. On our annual businessdelegation trip to Washington, we would rather spend our time lobbying for increases in impactaid than fighting the unfavorable image this measure is bound to generate among our Pentagoncontacts.

In many of the schools recommended for turnover to DoD by this measure, students from non-military families comprise high percentages of the student body. At Radford High School,about 34 percent of the students enrolled are not military-connected. Where would they go toschool if Radford became a DoD Section 6 School. If the state had to build new schools theexpense could be prohibitive.

The entire community, including parents, business leaders, and education professionals, isconcerned with the current sad state of our education system. We discourage any focus thatsuggests that military parents are the only ones complaining about the education system. Thegovernor called for reform in his State of the State. The Lt. Governor has, via his task force,been openly critical. Why spend precious time and resources isolating one complainant, simplybecause they are vocal and sometimes undiplomatic in their criticism? Finger pointing mayonly fuel ili will, serving no constructive purpose.

The measure calls for full transfer of equipment. What will this do to such innovativeprograms such as the Challenger Learning Center at Barbers Point Elementary designed tospark enthusiasm about science among students? About $300,000 has already gone into thisprogram, and HB2622 relating to an appropriation for the center is pending in the HouseCommittee on Education. This DOE/military/business partnership is a successful model asHawaii embraces School/Cominunity-Based Management initiatives.

Source Military Affairs Couacil. The Chamber of Commeice Of Hawaii, February 10, 1992

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PUBLISHED REPORTSOF THE LEGISLATIVE REFERE\CE B,JIREA.J1990 1. New Categories of Teachers in Hawaii: A Review of a Concept. 118 p.

2. A Study on the Feasibility of Establishing a State Equivalent of the Federal Vista Program. 64 p.3. The Feasibility of Centralized Motor Vehicle Administration in Hawaii. 138 p.

LRB Publications 1963-1989. 53 p.4. Maintaining the Affordability of State-Subsidized Housing. 38 p.

Hawaii Administrative Rules Table of Statutory Sections Implemented; 1990 Supplement to Directory. 106 p.5. A Taste of Aloha: Food Labeling Laws in Hawaii. 52 p.6. Regulation of Hawaii's Roofing Industry. 47 p.

Hawaii Legislators' Handbook. 150 p.7. Generic Drug Substitution: Role and Function. 197 p.8. Working to Learn/Learning to Work: Secondary Education's Dilemma. 52 p.

1991 1. A Clash of Arms: The Great American Gun Debate. 200 p.Hawaii Administrative Rules Directory. 352 p.

2. Tuition Waivers for Hawaiian Students in Higher Education. 39 p.3. Sex Offender Treatment - Interagency Coordination in Hawaii. 72 p.4. Trial Court Consolidation in Hawaii: The Road Already Taken? 74 p.5. Nonresident Traffic Violation Enforcement. 44 p.6. The Department of Education Budget: Selected Issues in Public School Funding and Accountability. 134 p.

1992 1. Alternative Methods of Compensating Members of the OHA Board of Trustees. 88 p.2. Telecommuting: The Ride of the Future. 100 p.3. The Feasibility of Establishing a State Travel Agency in Hawaii. 63 p.4. Literacy Programs in Hawaii and the Need for an Office of Literacy. 164 p.5. Gender-Neutralizing the Hawaii Revised Statutes. 35 p.6. The Feasibility of Requiring All Licensed Attorneys to Carry Legal Malpractice Insurance. 120 p.7. Phased Retirement for Public Employees. 94 p.8. Mail Order Pharmacy: First Class or Second Rate? 84 p.9. Cellular Phones and Highway Safety. 39 p.

10. Certification and Licensure Requirements for Lodging and Tenement Facilities in Hawaii. 92 p.11. Hawaii's Adult Residential Care Program: An Evaluation of Selected Concerns. 80 p.12. The University of Hawaii at Hilo; A Re-examination of the Issues of Separation from the University of

Hawaii System. 208 p.13. Family Leave. 200 p.14. Two Aspects )f Ridesharing: State Parking Control Policy and HOV Lane Enforcement. 61 p.15. The State Satellite Office Program. 77 p.16. Bends in the Road: Problems Affecting the Implementation of Capital Improvement Projects. 142 p.17. The Role of the Multidisciplinary Team in the Diagnosis and Treatment of Child Abuse and Neglect in

Hawaii. 106 p.1993 1. A Warehouse District for Hawaii? 68 p.

2. Issues Concerning A Children's Trust Fund for Hawaii. 68 p.3. Quadriplegics In Hawaii. 76 p.

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