districts that have had such a heavy burden that continuing assistance is needed, and in part from new war areas. Generally, the governors and State departmental heads thought that it would be impossible to pass legislation appropriating State funds earmarked specifically for the relatively small number of school districts in congested war areas. Applicants agreed that it would be difficult to get such legislation passed. Many States were considering legislation to increase State appropriations for all schools. In certain States specific taxes, earmarked for school purposes, such as racing and motor vehicle have been reduced or eliminated altogether. Basic State aid for any 1 year generally is allotted to local school districts in accordance with the number of children in attendance the previous year. In a number of schools, the Federal contribution may be reduced or entirety eliminated once school attendance becomes stabilized. The opinion was expressed that although some local school districts could and would increase local school revenues, some could not make increases. It is evident that States generally do not plan to give special assistance to schools in congested areas. State and local revenues for school purposes will increase in many States and the need for Federal assistance will be reduced in some States. There will be a need during the 1945-46 school year for Federal assistance for school purposes. The amount required will be about the same as during the past school year. If pending State legislation is passed, this situation may change to some extent. Local school superintendents and State officials expressed concern over the situation that may exist as the active military phases of the war come to an end and war plants close down. In some areas, the workers and their families may move away and reduce the school population, but the teachers are under contract with school districts and those contracts must be met. Applicants point out that it will not be desirable to discontinue Federal aid in these situations until the end of the school year. In other areas, the war workers and their families may not move away when the plant closes down and the need for Federal aid will be just as great as it was before the war activity stopped. Child care. Most State laws do not permit school funds to be spent for care of children under the regular school age. Several States provide other tax funds to assist in the operation of centers for children of working mothers, and in other States legislation is now pending that would appropriate funds for this purpose or would permit use of regular school funds for preschool centers. The governors, the heads of interested State departments, and the applicants in almost every State expressed the opinion that the child-care program was urgently needed during fiscal year 1946 to meet manpower requirements. Some felt that the program should be expanded in some areas. State officials expressed the opinion that this wartime child-care program should be financed by the parents, the communities, and the Federal Government and is not the type of program for which State funds should be provided. Local officials in most States agreed that it probably would not be possible to obtain State funds for the wartime child-care program. It was felt that some communities may be able to increase local contributions to this program. General hospitals.-Under existing legislation, no State has responsibility for providing funds for operation of general hospitals. This is entirely a local responsibility. The governors felt that the few hospitals that have been federally assisted have been of great help in meeting the needs of the population in crowded areas. Both State and local officials felt that the Federal assistance was needed for an initial period of operation until a staff is recruited and income from patients is sufficient to pay the costs. This period is longer than might be expected because of the difficulties resulting from the war. Hospitals for treatment of venereal diseases.-The program of intensive treatment in hospitals of venereally infected persons, made possible during the war by use of new drugs, has proved so successful in the control of venereal diseases, that many governors and State health department officials believe that it should be a part of their regular health program. The governors were informed that the United States Public Health Service was requesting Federal funds for assisting in financing this program and that it was not the intention of the Bureau of Community Facilities to request funds for this purpose for the 1946 fiscal year. Recreation. There are only a few States that provide State funds to assist communities in financing recreation programs for military personnel or for civilians. The opinion was expressed that this service should be financed by the communities and by the Federal Government. Generally, they believe that recreation programs are needed in war-impacted areas and that in many cases the communities cannot finance the entire cost of this service. Local officials expressed the opinion that this program had been important in recruiting new workers and keeping workers on the job. They declared that they were unable to finance the entire costs of these services, because in these war-impacted areas there is a heavy demand for tax funds for many other purposes. The amount of Federal funds used for this program is small compared to the amounts used for other war-public-services programs and the contribution to the war effort is substantial. Other types of projects.-No State has responsibility under existing laws to assist in financing such municipal services as fire and police protection and disposal of garbage. The local communities are entirely responsible for these services. The State and local officials expressed the opinion that problems in crowded areas would have been extremely serious had not Federal funds been available to assist the communities to hire additional policemen, to expand fire-protection facilities, and to provide additional garbage-disposal facilities. They felt that Federal assistance was needed for these programs, but only for a limited period of time in most areas until the communities could adjust their own budgets to pay these costs. Estimated requirements for War Public Services projects for the fiscal year 1946. During the month of March 1945 each applicant was requested to complete a form giving a brief summary of the war activities in the area, the estimated number of persons needing the service, the estimated expenditures for the 1945 fiscal year, and estimated requirements for the 1946 fiscal year by source of funds. The information on these forms was used in estimating the 1946 fiscal year requirements. Estimates made by applicants. Applicants estimate that 126 projects which received Federal assistant under the Lanham Act during the 1945 fiscal year will not need Federal assistance from this source during the next fiscal year. Included were 37 school services projects, 35 recreation projects, and 36 child-care projects. A total of approximately $1,998,000 in Federal funds, and $13,211,000 in State and local funds will be expended for these projects during the current fiscal year. Also, 46 projects for venereal disease rapid treatment centers, estimated to require $5,909,000 in Federal funds for the current fiscal year, are not expected to receive assistance under the Lanham Act next fiscal year. Funds to finance this service are being requested by the United States Public Health Service. See table 1. On the other hand, applicants estimate that 138 projects that did not receive Federal assistance during the current fiscal year will need assistance during the 1946 fiscal year. These new projects include 24 for schools, 36 for recreation, and 74 for child care. It is estimated that $2,116,000 in Federal funds will be needed for these new projects to supplement $8,705,000 of State and local funds. See table 2. A third group of projects for which applicants gave estimates represent those which are receiving aid under the Lanham Act in the current fiscal year and for which similar aid is requested in fiscal year 1946. These 1,258 projects are estimated to require $46,353,000 in Federal funds during the 1945 fiscal year and to require $60,236,000 in Federal assistance under the Lanham Act in fiscal year 1946. These continuation projects include 400 for schools, 649 for child care, 174 for recreation for servicemen and civilians, and 35 for general hospital and municipal services, such as police and fire protection services. Expenditures from State and local funds for these projects are estimated to amount to $89,219.000 for the current fiscal year as compared to $101,361,000 for the next fiscal year. table 3. See The applicants estimate of an increased need for Federal assistance for fiscal year 1946 is based primarily on a considerable increase in the estimated number of children to be cared for in child-care centers, and the increased costs of providing all types of services. Combining new and continuation projects, applicants arrive at the conclusion that $62,352,000 in Lanham Act funds will be needed during the 1946 fiscal year as compared to estimated expenditures of $54,260,000 from this source during the current fiscal year. The total costs are estimated to amount to $172,417,000 for the next fiscal year as compared to estimated expenditures of $158,239,000 for the current fiscal year. The estimated increase in total costs is $14,179,000, whereas the estimated increase in Federal costs is $8,092,000. See table 4. Table 5 presents information showing the applicants estimated expenditures for the fiscal year 1945 and estimated requirements for the fiscal year 1946 for all types of projects by States and source of funds. Tables 5-A through 5-F show the same information for each type of project. TABLE 1.-War public services projects that received assistance under the Lanham Act during the fiscal year 1945 and for which applicants estimate Lanham Act assistance will not be required during fiscal year 1946, by type of project and source of funds TABLE 2.-War public services projects that received no assistance under the Lanham Act for the fiscal year 1945, and for which applicants request such assistance for the fiscal year 1946 by type of project and source of funds TABLE 3.-War public services projects that received assistance under the Lanham Act during the fiscal year 1945, and for which applicants request Federal assistance for the fiscal year 1946, by type of project and source of funds |